The European Commission has fined 15 car firms including Ford, Jaguar Land Rover and BMW for their involvement in a recycling cartel.
An investigation concluded that the companies – along with Mercedes, which was spared a penalty as it blew the whistle on the activity – had entered into anticompetitive agreements regarding the reprocessing of end-of-life vehicles.
The Commission found that the car manufacturers agreed not to pay dismantlers for processing end-of-life vehicles, sharing sensitive information on their deals with such firms.
Car makers also agreed not to promote how much of an end-of-life vehicle could be recycled, recovered and reused, and how much recycled material was in new cars, according to the Commission.
Under EU law, manufacturers are obliged to bear the cost of owners dismantling their vehicles, and to inform consumers about recycling credentials of cars placed on the market.
The European Automobiles Manufacturers’ Association (known as ACEA) was fined €500,000 for its role facilitating the cartel by arranging meetings and contacts.
The total level of fines imposed by the Commission was more than €450m (£386m), with Ford ordered to pay €41.5m, BMW €24.6m and Jaguar Land Rover €1.6m.
Mercedes-Benz received full immunity for revealing the cartel, avoiding a fine of around €35m.
Teresa Ribera, executive vice-president for clean, just and competitive transition at the Commission, said: “We will not tolerate cartels of any kind, and that includes those that suppress customer awareness and demand for more environmental-friendly products.”
BMW Group said it had accepted the fine.
Jaguar Land Rover said it had cooperated with the investigation. “We are committed to complying with competition law and have taken steps to further strengthen compliance,” added a spokesperson.
Mercedes Benz said it avoided a fine as a leniency applicant who “cooperated early and comprehensively”.
It added that it had a “strong compliance culture and an effective compliance system that uncovers and addresses misconduct”.
“By cooperating transparently with the competent authorities, the company protects its shareholders and employees from significant financial and reputational risks,” added the firm in a statement.
The European Automobiles Manufacturers’ Association said it “cooperated fully” with the European Commission and did not intend to appeal.
It added: “Manufacturers have continued to improve car recyclability and today, almost 90 per cent of the parts and materials in cars scrapped in the EU are reused and recycled.
“ACEA and its members remain firmly committed to designing vehicles that promote advanced circularity, reducing reliance on so-called virgin raw materials and pioneering world-leading ELV recycling practices.”
Ford has been contacted for comment.
