EU Imposes €458 Million Fine on 15 Car Manufacturers for Recycling Cartel
Major penalties imposed on automotive giants including Volkswagen and Renault/Nissan for collusion in vehicle recycling.
The European Commission has levied a €458 million fine against 15 prominent car manufacturers and the European Automobile Manufacturers Association (ACEA) for their involvement in a cartel relating to the recycling of end-of-life vehicles.
The announcement, made on Tuesday, outlines the serious implications of the cartel operating for a period of 15 years, from May 2002 to September 2017.
The manufacturers sanctioned include Stellantis, Mitsubishi, Ford, BMW, Hyundai/Kia, Jaguar Land Rover/Tata, Mazda, Renault/Nissan, Opel, General Motors, Suzuki, Toyota, Volkswagen, and Volvo.
All parties have acknowledged their participation and responsibility, allowing them to benefit from a reduction in the total penalties imposed.
Mercedes-Benz was also implicated in similar unlawful practices but avoided a fine due to its proactive cooperation with the European authorities in exposing the cartel's activities.
The investigation uncovered a sustained violation of European competition law, wherein the manufacturers agreed to classify vehicle recycling as a “sufficiently profitable” business.
This designation allowed them to avoid compensating dismantling companies for their services.
Additional evidence indicated that these manufacturers shared contract details with scrap companies and coordinated their conduct towards these entities, which included not disclosing the number of vehicles available for recycling or the volume of recycled components utilized in new cars.
Such strategies aimed to obscure critical information from consumers at the point of vehicle purchase.
Furthermore, the ACEA was found to have acted as a facilitator of the cartel by organizing numerous meetings that encouraged these manufacturers to collaborate and consolidate their illegal practices.
Volkswagen received the highest fine, amounting to €127.7 million, followed by Renault/Nissan at €81.5 million, Stellantis at €74.9 million, and BMW and Opel, each receiving €24.5 million.
The fine against Mercedes-Benz would have reached €35 million if not for its whistleblowing efforts, while the penalty for ACEA was determined to be €500,000.
Teresa Ribera, the European Commission's Vice President responsible for Competition, emphasized that the Commission would not tolerate any form of cartels that undermine consumer awareness or stifle demand for more environmentally friendly products.
The exact fines for each company were calculated based on factors such as the number of vehicles involved, the nature of the infringement, the geographical scope, and the duration of participation in the illegal activity.
The European Commission also encouraged affected individuals to seek legal recourse through national courts for compensation due to the illegal behavior.
It reiterated that EU court jurisprudence recognizes fines imposed by the Commission as conclusive evidence of the existence and illegality of the cartel.
While the EU's sanctions are in place, national judges may still grant consumers rights to compensation independent of any reductions in the European penalties.
The announcement, made on Tuesday, outlines the serious implications of the cartel operating for a period of 15 years, from May 2002 to September 2017.
The manufacturers sanctioned include Stellantis, Mitsubishi, Ford, BMW, Hyundai/Kia, Jaguar Land Rover/Tata, Mazda, Renault/Nissan, Opel, General Motors, Suzuki, Toyota, Volkswagen, and Volvo.
All parties have acknowledged their participation and responsibility, allowing them to benefit from a reduction in the total penalties imposed.
Mercedes-Benz was also implicated in similar unlawful practices but avoided a fine due to its proactive cooperation with the European authorities in exposing the cartel's activities.
The investigation uncovered a sustained violation of European competition law, wherein the manufacturers agreed to classify vehicle recycling as a “sufficiently profitable” business.
This designation allowed them to avoid compensating dismantling companies for their services.
Additional evidence indicated that these manufacturers shared contract details with scrap companies and coordinated their conduct towards these entities, which included not disclosing the number of vehicles available for recycling or the volume of recycled components utilized in new cars.
Such strategies aimed to obscure critical information from consumers at the point of vehicle purchase.
Furthermore, the ACEA was found to have acted as a facilitator of the cartel by organizing numerous meetings that encouraged these manufacturers to collaborate and consolidate their illegal practices.
Volkswagen received the highest fine, amounting to €127.7 million, followed by Renault/Nissan at €81.5 million, Stellantis at €74.9 million, and BMW and Opel, each receiving €24.5 million.
The fine against Mercedes-Benz would have reached €35 million if not for its whistleblowing efforts, while the penalty for ACEA was determined to be €500,000.
Teresa Ribera, the European Commission's Vice President responsible for Competition, emphasized that the Commission would not tolerate any form of cartels that undermine consumer awareness or stifle demand for more environmentally friendly products.
The exact fines for each company were calculated based on factors such as the number of vehicles involved, the nature of the infringement, the geographical scope, and the duration of participation in the illegal activity.
The European Commission also encouraged affected individuals to seek legal recourse through national courts for compensation due to the illegal behavior.
It reiterated that EU court jurisprudence recognizes fines imposed by the Commission as conclusive evidence of the existence and illegality of the cartel.
While the EU's sanctions are in place, national judges may still grant consumers rights to compensation independent of any reductions in the European penalties.
Translation:
Translated by AI
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