Commission fines 15 carmakers €458m for cartel involvement

The Association of European Automobile Manufacturers (ACEA), an industry lobby group, acted as an intermediary, arranging meetings and contacts between manufacturers, the Commission said.

The European Commission has fined 15 major carmakers and one industry group a total of around €458 million for participating in a car recycling cartel, AFP reports.

The manufacturers, which included BMW, Ford, SUV maker Stellantis and Volkswagen, entered into anti-competitive agreements to avoid paying to scrap cars and reduce consumer pressure for greater recycling.

"We have taken decisive action against the companies that colluded to prevent competition in recycling," stated the head of the EU's antitrust authority, Teresa Ribera.

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

The Association of European Automobile Manufacturers (ACEA), an industry lobby group, acted as an intermediary, arranging meetings and contacts between manufacturers, the Commission said.

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

Under EU rules, car owners should be able to dispose of old or damaged cars that are no longer fit for use free of charge at a dismantling workshop. If necessary, the bill is picked up by the manufacturers.

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

But the companies involved, which also include Toyota, Suzuki, Volvo, Honda, Renault, Mitsubishi and Opel, are coordinating to avoid paying the dismantlers by sharing confidential information about individual agreements.

They have also agreed not to promote what part of a car can be recycled, recovered and reused and how much recycled material is used in new cars.

"These automakers have coordinated for more than 15 years to avoid paying for recycling services. We will not tolerate cartels of any kind, including those that suppress customer awareness and demand for greener products," Ribera said. | BGNES

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