The European Commission (EC) and the UK competition watchdog have both issued fines totalling more than $940 million to a large number of dozen carmakers, plus the peak bodies for automotive brands in those regions, after finding they engaged in cartel behaviour.
Earlier this week, the EC issued a €458 million (A$784m) fine to the Automobile Manufacturers’ Association (ACEA) and 15 of its members, after they admitted to their involvement in “a long-lasting cartel concerning end-of-life vehicle recycling”.
Similarly, the UK’s Competition and Markets Authority fined 10 brands and two peak bodies – the ACEA and the Society of Motor Manufacturers & Traders (SMMT) – a total of £77.7 million (A$160m) as a part of a parallel probe also launched in 2022.
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The probe found the carmakers illegally agreed not to compete against one another when advertising what percentage of their cars can be recycled, as well as illegally colluded to avoid paying third parties to recycle their customers’ scrap cars.
According to the findings of the probe, “most manufacturers took part in this practice from May 2002 to September 2017”, which had the goal of “prevent[ing] consumers from considering recycling information when choosing a car, which could lower the pressure on companies to go beyond legal requirements”.
“Under Directive 2000/53/EC on ELVs, the last owner of an ELV must be able to dispose of it at no cost with a dismantler and if needed, car manufacturers are obliged to bear the costs,” the EC said in a media statement.
“Moreover, consumers are required to be informed about the recycling performance of new cars.
“The investigation found that ACEA was the facilitator of the cartel, having organised numerous meetings and contacts between car manufacturers involved in the cartel.”
Both the EC and UK did not fine Mercedes-Benz, which received immunity after revealing the cartel behaviour in the first place – saving it a fine of €35 million (A$60 million).
Stellantis – which now owns Opel, Vauxhall, Peugeot and Citroen – received a 50 per cent reduction after co-operating with the European probe, while Mitsubishi and Ford had their fines reduced by 30 and 20 per cent respectively.
However, BMW, Honda, Hyundai/Kia, Jaguar Land Rover (JLR), Mazda, Renault/Nissan, General Motors, Suzuki, Toyota, Volkswagen and Volvo all felt the full brunt of the EC’s fines.
Likewise, the UK gave settlement reductions to all brands, however, only some were provided a leniency reduction.
“Today, we have taken firm action against companies that colluded to prevent competition on recycling,” Teresa Ribera, EC Executive Vice-President for Clean, Just and Competitive Transition, said in a media statement.
“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.
“We will not tolerate cartels of any kind, and that includes those that suppress customer awareness and demand for more environmental-friendly products.
“High quality recycling in key sectors such as automotive will be central to meeting our circular economy objectives, not only to cut waste and emissions, but also to reduce dependencies, lower production costs and create a more sustainable and competitive industrial model in Europe”
A full list of the carmakers and fines can be found below.
European Commission
| Company | Reduction under the Leniency Notice | Fine (Euros) | Fine (AUD) |
|---|---|---|---|
| Mercedes-Benz | 100% | €0 | $0 |
| Stellantis | 50% | €74,934,000 | $128,137,140 |
| Mitsubishi | 30% | €4,150,000 | $7,096,500 |
| Ford | 20% | €41,462,000 | $70,900,020 |
| BMW | €24,587,000 | $42,043,770 | |
| Honda | €5,040,000 | $8,618,400 | |
| Hyundai / Kia | €11,950,000 | $20,434,500 | |
| Jaguar Land Rover / Tata | €1,637,000 | $2,799,270 | |
| Mazda | €5,006,000 | $8,560,260 | |
| Of which jointly and severally with Ford | €1,034,000 | $1,768,140 | |
| Renault / Nissan | €81,461,000 | $139,298,310 | |
| Opel | 50% | €24,530,000 | $41,946,300 |
| Of which jointly and severally with GM | €13,659,000 | $23,356,890 | |
| GM solely | €17,075,000 | $29,198,250 | |
| Suzuki | €5,471,000 | $9,355,410 | |
| Toyota | €23,553,000 | $40,275,630 | |
| Volkswagen | €127,696,000 | $218,360,160 | |
| Volvo | €8,890,000 | $15,201,900 | |
| Of which jointly and severally with Ford | €3,901,000 | $6,670,710 | |
| Of which jointly and severally with Geely | €4,419,000 | $7,556,490 | |
| ACEA | €500,000 | $855,000 |
United Kingdom
| Company | Fine (Pounds) | Fine (AUD) |
|---|---|---|
| BMW | £11,060,925 | $22,674,896 |
| Ford | £18,541,929 | $38,010,954 |
| Jaguar Land Rover | £4,626,404 | $9,484,128 |
| Peugeot Citroen (and owner Stellantis) | £5,189,948 | $10,639,393 |
| Mitsubishi | £898,531 | $1,841,989 |
| Nissan and Renault (formerly the same business group) | £9,979,826 (shared total) | $20,458,643 |
| Toyota | £4,502,760 | $9,230,658 |
| Vauxhall and Opel | £2,181,127 | $4,471,310 |
| Vauxhall and Opel (and former owner General Motors) (GM is fined only as owner of both firms during part of the infringement) |
£2,867,049 | $5,877,450 |
| Vauxhall and Opel (and owner Stellantis) (Stellantis is fined only as owner of both firms during part of the infringement) |
£123,072 | $252,298 |
| Volkswagen | £14,755,900 | $30,249,595 |
| ACEA | £114,000 | $233,700 |
| SMMT | £46,800 | $95,940 |
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