Car manufacturers fined over ELV ‘cartel’ across Europe

The European Commission has fined 15 major car manufacturers and the European Automobiles Manufacturers’ Association (ACEA) more than EUR 458 million for participating in a cartel concerning end-of-life vehicle (ELV) recycling for periods of up to 15 years.

Mercedes-Benz, which revealed the cartel, was not fined. Other companies, including Stellantis, BMW and Volvo, admitted their involvement in the cartel and agreed to settle the case. Stellantis (including Opel), Mitsubishi and Ford received reduced fines because of their co-operation.

The Commission’s investigation, in partnership with UK authorities, revealed that the guilty parties engaged in anti-competitive deals and practices related to the recycling of ELVs. It concluded there was a single and continuous infringement in the European Economic Area spanning 15 years from 29 May 2002 to 4 September 2017.

Recycling silence

ACEA was accused of being the facilitator of the cartel, organising numerous meetings and contacts between car manufacturers. There were two key transgressions:

• manufacturers agreed not to pay car dismantlers for processing ELVs. They also shared commercially sensitive information on their individual agreements with car dismantlers and coordinated their behaviour towards them.
• manufacturers agreed not to promote how much of an ELV can be recycled, recovered and reused and how much recycled material is used in new cars. The goal was to prevent consumers from considering recycling information when choosing a car.

UK action

Under an EU directive, the final owner of an ELV must be able to dispose of it with a dismantler at no cost and, if needed, manufacturers are obliged to bear the costs. Consumers are also required to be informed about the recycling performance of new cars.

Following the joint investigation, the UK Competition and Markets Authority fined 10 manufacturers and two industry bodies nearly £78 million (EUR 93 million) in relation to vehicle recycling and related advertising claims.