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Photo = Hyundai Motor Group |
[Alpha Biz= Paul Lee] The European Union (EU) imposed a fine of 700 billion KRW on car manufacturers that engaged in long-term collusion to reduce the costs of processing end-of-life vehicles (ELVs) on Tuesday (local time).
A total fine of 458 million euros (approximately 728.7 billion KRW) was imposed on 15 companies, with Hyundai Motor and Kia receiving a fine of 11.95 million euros (approximately 19.1 billion KRW).
According to the investigation results released by the EU Commission, the European Automobile Manufacturers' Association (ACEA) and manufacturers violated EU guidelines from 2002 to 2017, engaging in anti-competitive agreements and organized practices related to the recycling of scrap cars. The ACEA and the manufacturers were found to have decided not to pay costs to scrap processing companies, citing the profitability of the recycling business.
The Commission also pointed out that the manufacturers colluded not to advertise information about the recycling rate and the use of recycled materials in cars to consumers. This allowed them to comply with the minimum required recycling rate by law.
According to EU guidelines, the final owner of an ELV can dispose of the vehicle free of charge through a processing company. Any incurred costs must be borne by the manufacturer.
The fines were calculated based on the number of vehicles involved and the duration of the violation. Volkswagen received the highest fine of 127.7 million euros (approximately 203.1 billion KRW), and Toyota was fined 23.55 million euros (approximately 37.5 billion KRW), with other Japanese manufacturers also included. Hyundai Motor and Kia were found to have participated in the collusion from 2006 to 2017.
The Commission stated that all companies admitted to their collusive behavior during the investigation, resulting in a 10% reduction in the fines. Mercedes-Benz, which voluntarily reported the collusion, was the only company to receive a full reduction. Ford, Mitsubishi, and Stellantis were granted a 20-50% reduction for their cooperation in providing evidence to support the cartel investigation.
The Commission also noted that Honda, Mazda, Mitsubishi, and Suzuki were subject to lower fines due to their relatively limited involvement in the collusion compared to other manufacturers.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
