Carmakers hit with cartel fine
A group of 15 carmakers and the European Automobile Manufacturers Association (ACEA) have been fined a combined €458 million (NZ$866m) for being part of a vehicle-recycling cartel.
European Union (EU) anti-trust regulators dished out the penalties on April 1 in relation to the recycling and disposal of end-of-life vehicles.
The European Commission raided the companies involved three years ago and says the cartel operated from May 2002 to September 2017, reports Reuters.
The commission says its investigations found ACEA was the facilitator of the cartel, having organised numerous meetings and contacts between the car manufacturers involved.
It also found that the parties agreed not to promote the extent to which their cars could be recycled and how much recycled material was used in new cars.
“Their goal was to prevent consumers from considering recycling information when choosing a car, which could lower the pressure on companies to go beyond legal requirements,” the commission says.
The manufacturers and ACEA also agreed not to pay car dismantlers for processing end-of-life vehicles. EU laws require carmakers to bear the costs of recycling such vehicles if needed, allowing car owners to dispose of cars free with a dismantler.
Teresa Ribera, the commission’s executive vice-president for clean, just and competitive transition, says it has taken firm action against those companies that colluded to prevent competition on recycling.
“These car manufacturers co-ordinated for over 15 years to avoid paying for recycling services, by agreeing to not compete with each other on advertising the extent to which their cars could be recycled, and by agreeing to remain silent on the recycled materials used in their new cars,” she adds.
“We will not tolerate cartels of any kind, and that includes those that suppress customer awareness and demand for more environmentally friendly products.”
Volkswagen copped the biggest fine at €127.69m, followed by Stellantis at €99.5m, Renault-Nissan at €81.46m, and Ford at €41.46m.
Other brands penalised included BMW, Honda, Hyundai/Kia, Jaguar Land Rover, Mazda, Opel, Suzuki, Toyota and Volvo.
Mercedes-Benz was not fined as it revealed the cartel to the commission under a leniency programme. The ACEA was handed a €500,000 penalty.
The commission notes all the companies admitted their involvement in the cartel and agreed to settle the case.
