Ten car manufacturers and two industry groups have been fined a total of nearly £78 million by the UK’s Competition and Markets Authority (CMA) for withholding information about vehicle recycling.
BMW, Ford, Jaguar Land Rover, Peugeot Citroen, Mitsubishi, Nissan, Renault, Toyota, Vauxhall, and Volkswagen, along with the European Automobile Manufacturers’ Association (ACEA) and the Society of Motor Manufacturers and Traders (SMMT), were penalised by the CMA.
The CMA found that these carmakers and trade bodies had agreed not to inform customers about the actual recyclability of their cars. Furthermore, with the exception of Renault, the carmakers also agreed not to disclose the percentage of recycled materials used in their vehicles. The regulator stated that most of the involved carmakers engaged in this practice for 15 years, starting in 2002. Eight of the fined manufacturers formed a “buyers’ cartel,” with other carmakers joining later. This cartel involved an agreement not to pay companies for handling the recycling of their customers’ end-of-life vehicles.
Both the ACEA and the SMMT were implicated in these illegal agreements, according to the CMA. Carmakers are legally obligated to include recyclability details in their advertising to allow customers to consider this before purchasing a vehicle.
All involved carmakers and industry bodies, except Mercedes-Benz (which received immunity for revealing the cartel), have settled with the CMA, admitting their participation and agreeing to pay the fines.
The SMMT stated that it fully cooperated with the CMA’s investigation and has accepted the findings. In a statement, the SMMT affirmed its commitment to competition law obligations and has reviewed its protocols to ensure future compliance.
Source: BBC News