European regulators expose collusion that avoided recycling costs, risking brand damage and legal fallout
The European Commission fined 15 major car manufacturers on Wednesday, including Hyundai and Kia, a total of $494.4 million (€458 million) for colluding on the recycling of end-of-life vehicles (ELVs). Hyundai and Kia were fined $12.9 million (€11.95 million) for their involvement in the 15-year-long cartel, which also included the European Automobile Manufacturers’ Association. Mercedes-Benz avoided a fine after revealing the cartel under the EU’s leniency program, while other companies admitted to their involvement and settled the case.
The cartel, active from 2002 to 2017, involved agreements to avoid paying car dismantlers for recycling ELVs and to limit consumer information on recycling rates. The companies colluded to consider ELV recycling as inherently profitable, thus justifying the non-payment to dismantlers. The cartel also coordinated to refrain from promoting how much of an ELV could be recycled, recovered or reused, thereby reducing consumer pressure to exceed legal recycling requirements.
The European Commission fined 15 major car manufacturers on Wednesday, including Hyundai and Kia, a total of $494.4 million (€458 million) for colluding on the recycling of end-of-life vehicles (ELVs). Hyundai and Kia were fined $12.9 million (€11.95 million) for their involvement in the 15-year-long cartel, which also included the European Automobile Manufacturers’ Association. Mercedes-Benz avoided a fine after revealing the cartel under the EU’s leniency program, while other companies admitted to their involvement and settled the case.
The cartel, active from 2002 to 2017, involved agreements to avoid paying car dismantlers for recycling ELVs and to limit consumer information on recycling rates. The companies colluded to consider ELV recycling as inherently profitable, thus justifying the non-payment to dismantlers. The cartel also coordinated to refrain from promoting how much of an ELV could be recycled, recovered or reused, thereby reducing consumer pressure to exceed legal recycling requirements.
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