Stellantis and Others Fined €458 Million for Recycling Cartel

European regulators have fined Stellantis and 14 other major automakers a staggering €458 million ($495 million) for their involvement in an illegal “recycling cartel.” The European Commission determined that these companies colluded to suppress competition in recycling end-of-life vehicles (ELVs) over a 15-year period, violating antitrust laws.

What Was the Recycling Cartel? – 

The cartel, which operated from May 2002 to September 2017, involved agreements between automakers to restrict advertising related to vehicle recyclability. The companies also conspired to limit transparency regarding the use of recycled materials in new vehicles. Most notably, they agreed not to pay dismantlers for processing old vehicles, effectively shifting the financial burden onto consumers and limiting proper recycling incentives.

Under EU law, automakers are required to cover the costs of vehicle recycling to ensure that end-of-life cars can be disposed of without charge to their owners. By colluding, these automakers reduced consumer awareness and discouraged competition in environmentally friendly vehicle disposal.

Who Got Fined and How Much? – 

The European Commission’s investigation resulted in significant fines for several well-known brands:

• Volkswagen Group: €127.69 million ($138 million)
• Stellantis: €99.5 million ($108 million)
• Renault-Nissan: €81.46 million ($88 million)
• Ford: €41.46 million ($45 million)
• Other penalized companies are Toyota, Mitsubishi, Honda, Hyundai, Jaguar Land Rover, Mazda, General Motors (GM), Suzuki, and Volvo.

The European Automobile Manufacturers’ Association (ACEA), which facilitated communication among the companies, was also fined €500,000 ($540,000).

Mercedes-Benz Escapes Fines – 

Mercedes-Benz played a key role in exposing the cartel and cooperating with regulators under the EU’s leniency program. As a result, the German automaker avoided financial penalties.

Stellantis and Other Automakers Respond – 

Stellantis and the other fined companies acknowledged the European Commission’s decision and admitted wrongdoing in exchange for a 10% reduction in their fines. Stellantis stated that it had cooperated with the investigation and had already set aside financial provisions to cover the fine, which is reflected in its 2024 financial results.

EU Regulators Send a Strong Message – 

EU Antitrust Chief Teresa Ribera emphasized that the commission will not tolerate collusion that undermines competition and environmental responsibility. “We will not tolerate cartels of any kind, and that includes those that suppress customer awareness and demand for more environmentally friendly products,” she stated.

This case underscores the European Union’s commitment to cracking down on anti-competitive behavior, particularly in industries critical to sustainability and environmental responsibility.