EU fines carmakers €458M for end-of-life vehicle recycling cartel

By Gokhan Ergocun

ISTANBUL (AA) - The European Commission has fined 15 leading car manufacturers and the European Automobile Manufacturers' Association (ACEA) a combined €458 million (approximately $494.2 million) for participating in a cartel related to the recycling of end-of-life vehicles.

According to a statement issued Tuesday, Mercedes-Benz was granted full immunity from the fine under the EU's leniency program for being the first to reveal the existence of the cartel to regulators.

“All companies admitted their involvement in the cartel and agreed to settle the case,” the Commission said.

End-of-life vehicles -- those no longer suitable for use due to age, wear, or damage -- are dismantled and processed for recycling and recovery. The goal is to reduce waste and reclaim materials such as metals, plastics, and glass.

The Commission’s investigation uncovered that, for over 15 years, 16 major automakers, including Mercedes, engaged in anticompetitive agreements and concerted practices coordinated through ACEA. The industry association facilitated numerous meetings and communications that enabled the cartel’s operation.

Among the penalized companies, Volkswagen received the largest fine at €127.7 million, followed by the Renault/Nissan group with €81.4 million, and Stellantis with €74.9 million.