Car Giants Fined €458 Million for Recycling Cartel

EU antitrust regulators fined Volkswagen, Stellantis, and other carmakers for a vehicle recycling cartel, imposing a total fine of €458 million. The cartel, involving automakers' association ACEA, restricted competition on car recycling practices from 2002 to 2017. Mercedes-Benz avoided fines by reporting the cartel.

In a significant regulatory move, EU antitrust authorities have sanctioned major car manufacturers including Volkswagen and Stellantis with a hefty fine of €458 million for participating in a vehicle recycling cartel.

Spanning from May 2002 to September 2017, the cartel operations were facilitated by the automakers' association ACEA, which orchestrated meetings and communications among the companies. The European Commission discovered collusion among these firms, with agreements in place to avoid competitive advertising of their car recycling capabilities and to refrain from compensating dismantlers for end-of-life vehicle processing.

With the largest penalty of €127.69 million imposed on Volkswagen, Renault-Nissan, Stellantis, and Ford also faced substantial fines. Mercedes-Benz, however, sidestepped the fines due to its role in alerting regulators about the cartel's existence. This action underscores the Commission's broader commitment to dismantling anti-competitive practices in the automotive sector.

(With inputs from agencies.)