BMW, Ford, VW and other car makers fined for preventing competition on car recycling

The UK’s competition watchdog and the European Commission have hit 15 car manufacturers from around the world with swingeing fines totalling £77 million and 458 million Euros respectively, after a lengthy investigation into a long-standing cartel around end-of-life vehicle recycling.

Investigators found that for more than 15 years between 2002 and 2017, car makers agreed not to pay vehicle dismantlers for end-of-life services, illegally shared information about individual agreements with dismantlers, and coordinated their behavior towards them. They also agreed not to advertise how much of their end-of-life vehicles could be recycled beyond the 85 per cent legal minimum, to prevent consumers making purchase decisions based on that information.

Mercedes escaped a fine, because although it was a cartel participant, it blew the whistle on an operation that was facilitated by the European Automobile Manufacturers Association (ACEA). 

Here in the UK, the Competition and Markets Authority has issued fines for breaches of competition law totalling £18.5m to Ford, £14.8m to Volkswagen, £11m to BMW, £10m to Nissan and Renault, and around £4.5m each to Jaguar Land Rover and Toyota. 

Among those paying the price of collusion in Europe, Volkswagen has been hit hardest with a fine approaching 128 million Euros. Also in the frame are Renault/Nissan and Stellantis (fined 81 million and 74 million Euros respectively), Ford (41.5m Euros), BMW (25m Euros), Toyota (23m Euros), Kia/Hyundai (12m Euros) and Volvo (9m Euros). The trade body ACEA has also been fined to the tune of half a million Euros.

“Today, we have taken firm action against companies that colluded to prevent competition on recycling. These car manufacturers coordinated 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,” said Teresa Ribera, the commission’s executive vice-president for clean, just and competitive transition.

“We will not tolerate cartels of any kind, and that includes those that suppress customer awareness and demand for more environmentally friendly products,” she added. 

The UK’s Competition and Markets Authority coordinated with the European investigation, and will shortly announce its own ruling on breaches of competition law here.

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