Volkswagen, Ford among 15 automakers fined whopping $495M: Here's why
What's the story
Volkswagen and Stellantis are among the 15 automakers that have been fined a total of €458 million ($495 million) by European Union (EU) antitrust regulators. They were fined for their involvement in a vehicle recycling cartel.
The European Commission, which had raided these companies three years ago, disclosed that the cartel operated between May 2002 and September 2017.
Cartel operations
ACEA facilitated meetings between automakers
The European Commission's investigation found that the Association of European Automobile Manufacturers (ACEA) helped organize meetings and communications between these automakers.
The cartel was involved in end-of-life vehicle recycling, which is the dismantling of cars for recycling and disposal when they are no longer usable.
The EU competition watchdog said these companies colluded to not compete with each other on promoting how recyclable their cars were.
Environmental impact
Automakers colluded to suppress customer awareness
The automakers also agreed to hide the amount of recycled materials in new cars and not pay car dismantlers for handling end-of-life vehicles.
This goes against EU rules that mandate automakers to pay for recycling, letting car owners get rid of their cars for free via a dismantler.
"We will not tolerate cartels of any kind, and that includes those that suppress customer awareness and demand for more environmentally friendly products," EU antitrust chief Teresa Ribera said.
Penalties
Volkswagen fined the most, Mercedes-Benz escaped penalty
Volkswagen was fined the most at €127.69 million, followed by Stellantis with a total of €99.5 million.
Renault-Nissan was fined €81.46 million, and Ford received a fine of €41.46 million.
Other companies penalized included Toyota, Mitsubishi, Honda, Hyundai, Jaguar Land Rover, Mazda, GM, Suzuki, and Volvo.
Mercedes-Benz avoided penalties by alerting EU regulators about the cartel's existence.
Reduced penalties
ACEA fined, carmakers admit wrongdoing for reduced fines
The ACEA was also fined €500,000. All the automakers involved in the cartel confessed their wrongdoing, which resulted in a 10% reduction in their fines.
A statement from Stellantis acknowledged the EU's decision and confirmed that they had cooperated throughout the investigation.
The company also said provisions for this fine had already been made and are reflected in its 2024 full-year results.