EU Fines 15 Major Carmakers $495 Million Over Vehicle Recycling Cartel

The European Commission on Tuesday fined 15 major carmakers and an industry group a total of about 458 million euros ($495 million) for taking part in a cartel over vehicle recycling.

Manufacturers, including BMW, Ford, Jeep maker Stellantis and Volkswagen, entered into anti-competitive agreements to avoid paying car dismantlers and lower consumer pressure to recycle more, the commission said.

"We have taken firm action against companies that colluded to prevent competition on recycling," EU antitrust chief Teresa Ribera said in a statement announcing the fines.

The cartel was revealed by Mercedes-Benz, which participated in it but received immunity -- and avoided a 35-million-euro fine -- for cooperating with the authorities.

The European Automobiles Manufacturers' Association (ACEA), an industry lobby group, acted as facilitator, organising meetings and contacts between the manufacturers, the commission said.

All companies admitted their involvement and agreed to settle the case, it added.

Under EU rules, car owners must be able to dispose of old or damaged cars that are no longer fit for use with a dismantler at no cost, with manufacturers picking up the bill if needed.

Car buyers must also be informed about the "recycling performance" of new cars.

But the companies involved, which also included Toyota, Suzuki, Volvo, Honda, Renault, Mitsubishi and Opel, coordinated to avoid paying dismantlers, sharing sensitive information on individual agreements.

They also agreed not to promote how much of a vehicle could be recycled, recovered and reused and how much recycled material was used in new cars, according to the commission.

"These car manufacturers coordinated for over 15 years to avoid paying for recycling services," Ribera said.

"We will not tolerate cartels of any kind, and that includes those that suppress customer awareness and demand for more environmental-friendly products."

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)