1 April 2025 – London
Ten of the world’s leading car manufacturers and two industry bodies have agreed to pay a combined £77.7 million in fines after admitting to serious breaches of UK competition law, the Competition and Markets Authority (CMA) announced today.
BMW, Ford, Jaguar Land Rover, Peugeot Citroen, Mitsubishi, Nissan, Renault, Toyota, Vauxhall, Volkswagen, and trade groups ACEA and SMMT were found to have unlawfully colluded in two key areas: limiting competition over vehicle recyclability advertising and coordinating practices regarding the recycling of end-of-life vehicles (ELVs).
Mercedes-Benz, which also participated in the arrangements, avoided a fine after reporting its involvement under the CMA’s leniency programme.
Recycling Claims Agreement
The CMA’s investigation revealed that, from 2002 to 2017, the manufacturers agreed not to advertise if their vehicles surpassed the legal minimum of 85% recyclability, even if their cars were significantly greener. Except for Renault, the manufacturers also withheld information from customers about the percentage of recycled material used in their vehicles.
This so-called “gentleman’s agreement”, documented under the title “ELV Charta”, restricted customer access to full information about the environmental performance of different vehicles. According to the CMA, this illegal behaviour harmed consumer choice and reduced incentives for manufacturers to invest in more sustainable practices.
Buyers’ Cartel on Vehicle Recycling
Separately, from 2004 to 2018, eight manufacturers – BMW, Ford, Mercedes-Benz, Peugeot Citroen, Renault, Toyota, Vauxhall, and Volkswagen – colluded to agree that they would not pay third-party firms to collect and recycle their customers’ scrap cars. This ‘buyers’ cartel’ effectively suppressed competition among recycling providers, with serious potential knock-on effects for investment in better recycling technologies.
Trade bodies ACEA and the SMMT played an active role in both agreements, with ACEA chairing meetings and intervening when manufacturers stepped outside the agreed lines.
Fines and Leniency
The CMA granted discounts to companies that cooperated with the investigation. Stellantis (the owner of Peugeot Citroen and Vauxhall) and Mitsubishi received significant reductions for their early admissions.
Among the largest fines were:
- Ford: £18.5 million
- Volkswagen: £14.8 million
- BMW: £11.1 million
- Nissan and Renault: jointly fined £9.98 million, with Nissan facing an additional £2.8 million
The fines must be paid by 2 June 2025.
Lucilia Falsarella Pereira, Senior Director of Competition Enforcement at the CMA, said:
“Agreeing with competitors the prices you’ll pay for a service or colluding to restrict competition is illegal. This kind of collusion can limit consumers’ ability to make informed choices and lower the incentive for companies to invest in new initiatives.”
She added that while businesses can collaborate on environmental initiatives, they must do so lawfully, and the CMA is open to supporting businesses who want to work together on green projects within competition rules.
Broader Context
The European Commission has issued its own parallel decision, fining several of the same manufacturers for similar breaches under EU law, as reported.
The CMA emphasized that while it found breaches based on the object of restricting competition, it made no findings on whether these agreements actually had an effect on customers.
The case serves as a reminder that even well-intentioned environmental collaboration must respect competition rules. Companies and trade associations are urged to consult the CMA’s Green Agreements Guidance to ensure compliance.
Source: https://www.gov.uk/government/news/car-industry-settles-competition-law-case
