Between 2002 and 2017, major industry players including Volkswagen, Stellantis, Renault-Nissan, Ford, and others agreed to restrict competition around the disposal and recycling of end-of-life vehicles (ELVs). Instead of upholding their legal obligations under EU law to cover recycling costs, the companies coordinated to avoid paying car dismantlers, effectively shifting the financial burden to consumers and weakening the illusion of a circular system.
The case underscores the ongoing tension between corporate sustainability narratives and operational realities. Extended Producer Responsibility (EPR), a cornerstone of circular economy policy, mandates that manufacturers bear the financial and physical responsibility for post-consumer product recovery. By actively colluding to avoid EPR obligations, these automakers not only breached antitrust laws but also undermined broader EU environmental goals.
At the heart of this cartel was an agreement not to advertise recyclability or reveal the amount of recycled content in new vehicles. This coordinated suppression of consumer-facing sustainability claims represents a form of greenwashing by omission.
As Executive Vice-President Teresa Ribera noted,
"We will not tolerate cartels of any kind, and that includes those that suppress customer awareness and demand for more environmentally friendly products."
By withholding this information, the companies obstructed market dynamics that reward environmental innovation and prevented consumers from making informed choices. The contrast is stark when compared to growing corporate alignment with sustainability frameworks such as GRI and CSRD, which emphasize disclosure of product-level environmental attributes.
The enforcement action highlights the limitations of voluntary ESG commitments absent robust oversight. Many of the firms implicated publicly celebrated their sustainability performance while engaging in a years-long conspiracy to subvert environmental regulations behind the scenes. ACEA, the carmakers' association, which was fined €500,000 for facilitating the cartel, stated that the infringement "should not have occurred," although it claimed it did not reduce innovation or harm consumers—a statement that sidesteps the clear regulatory and ethical breaches involved.
Mercedes-Benz, which avoided penalties through early cooperation with authorities, emphasized its transparency efforts to protect shareholders and mitigate risk, highlighting the potential value of whistleblower protections and internal compliance structures.
To prevent future abuses, industry stakeholders must double down on transparency, accountability, and traceable recycling systems. Potential strategies include:
These strategies strengthen compliance and offer reputational and operational advantages in a regulatory environment shaped by sustainable procurement standards. As the automotive sector strives to decarbonize and align with circular economy objectives, the alignment between sustainability rhetoric and measurable action will become a central determinant of corporate credibility and competitiveness.
