Ten leading car manufacturers have been collectively fined nearly £78 million for breaching EU law by withholding crucial recycling information. The UK’s Competition and Markets Authority (CMA) levied settlements for deals struck between drugmakers and trade groups. These so-called voluntary agreements included organizations such as the European Automobile Manufacturers Association (ACEA) and the Society of Motor Manufacturers and Traders (SMMT).
Beyond the immediate impacts of the opioid crisis, the investigation revealed that eight manufacturers essentially created a “buyers’ cartel.” They agreed that they would stop paying manufacturers to recycle vehicles that had exceeded their useful life. This cartel behavior was a clear violation of EU legislation that had sought greater transparency and sustainability within the automotive sector.
The SMMT, which engaged constructively with the CMA’s probe, did not dispute the conclusions. In response to the crisis, Spokey released a statement noting that the organization approaches these issues “with utmost seriousness. Additionally, the SMMT announced that it had “thoroughly reviewed and bolstered its protocols to safeguard current and future compliance” with industry regulations.
Of the ten automakers on board, Renault was the most aggressive by far. They were the only manufacturer to disclose the percentage of recycled materials their vehicles contain. The other companies – including BMW, Ford, Jaguar Land Rover, Peugeot Citroen, Mitsubishi, Nissan and Volkswagen – all chose to withhold this damning information from consumers. So they decided not to publicize it, period. It has led to significant consumer protection and environmental enforcement accountability concerns due to the lack of transparency.
The scope of these fines doesn’t stop at monetary penalties. Just as car manufacturers are required to meet stringent regulations that protect consumers, so too should car manufacturers be held accountable. These rules encourage environmentally friendly building practices. The CMA’s decisions are a part of a larger trend towards heightened scrutiny on industries that contribute to environmental harms.