VW, Stellantis and other carmakers hit with US$495mil EU cartel fine

BRUSSELS: Volkswagen, Stellantis, 13 other carmakers and their car association were fined a total of €458 million (RM2.2bil/US$495mil) by EU antitrust regulators on Tuesday for taking part in a vehicle recycling cartel.

The European Commission, which raided the companies three years ago, said the cartel, which involved end-of-life vehicles, took place from May 2002 to September 2017, with automakers association ACEA organising meetings and contacts between the companies.

End-of-life vehicle recycling is when cars are dismantled and processed for recycling and disposal once they are no longer fit for use.

The EU competition watchdog said the companies agreed not to compete with each other in advertising the extent to which their cars could be recycled and agreed to keep quiet on how much recycled materials are used in new cars.

They also agreed not to pay car dismantlers for processing the end-of-life vehicles. EU laws require carmakers to bear the costs of recyling such vehicles if needed, allowing car owners to dispose of cars free with 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 in a statement.

Volkswagen's fine was the biggest at €127.69 million (RM614mil), followed by Stellantis at a total of €99.5 million (RM478mil), Renault-Nissan at €81.46 million (RM392mil), and Ford at €41.46 million (RM199mil).

Other penalised members of the cartel included Toyota, Mitsubishi, Honda, Hyundai, Jaguar Land Rover, Mazda, GM, Suzuki and Volvo.

Mercedes-Benz avoided a fine for alerting the EU enforcer to the cartel.

The ACEA was handed a €500,000 (RM2.4mil) fine.

All the carmakers admitted wrongdoing in return for a 10% reduction to their fines.

A Stellantis statement said the company acknowledged the decision by the EU's competition body, having cooperated with it throughout the investigation.

Provisions had already been made against the fine and are reflected in the company's 2024 full-year results, Stellantis added.