News

Car Manufacturers Fined Millions For Forming Cartels

Published

3 weeks ago

April 2, 2025

Ehijie

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A total of sixteen major car manufacturers and the trade association were involved in the cartel. The European Commission is imposing the penalties because the organizations made secret agreements for more than fifteen years. For example, they agreed not to pay car dismantlers for processing scrapped vehicles. Old or damaged cars that were no longer suitable for driving were taken apart. Parts were processed for recycling because the metal, plastic,, and glass can still be very valuable.

The car manufacturers and ACEA felt that recycling old vehicles was already profitable enough for the dismantling companies. That is why they did not want to give any extra compensation. The car manufacturers also shared the agreements they made with the dismantling companies.

The European consumer was also disadvantaged. For example, car companies tried to make recycling information about their cars difficult to access. They did this, for example, by not promoting how much of an end-of-life vehicle can be recycled. This made it more difficult for buyers to weigh up which car was more sustainable for the environment. The advantage for car manufacturers was that, due to the mutual agreements, they did not have to make their vehicles more recycling-friendly than was legally required.

All companies have admitted their involvement in the cartel and agreed to the fines imposed by the EC. Mercedes-Benz escapes the dance because this manufacturer revealed the cartel. Otherwise, the German brand would have had to pay a fine of around 35 million euros. Stellantis, Mitsubishi, and Ford also received a reduction because they cooperated with the commission’s investigation. Volkswagen pays the highest fine: more than 127 million euros.