Renault’s new “right of preference” clauses in contracts with ELV centers and crushers have sparked a strong backlash from FEDEREC.
With unanimous backing from its executive board and the presidents of all 12 sectors, FEDEREC, led by President François Excoffier, vows strong actions against Renault’s “right of preference” clauses in ELV contracts. Unlike the eco-organization Recycle My Vehicle, Renault’s clauses favor the automaker in accessing valuable materials, which FEDEREC argues undermines industrial sustainability and fair competition.
Excoffier asserts, “This is a red line that the profession will defend without compromise. Our companies invest heavily, bear the costs of non-recyclable materials, and must maintain control over the materials produced by their facilities.”
FEDEREC believes the right of preference contradicts the principles of REP ELV (Extended Producer Responsibility for End-of-Life Vehicles), which aim to combat illegal practices and enhance environmental performance. Additionally, these clauses create significant competition concerns by giving producers undue advantage in material access.
While FEDEREC members are open to supporting manufacturers’ industrial projects, they insist on balanced commercial negotiations. The federation warns against the potential for disproportionate retaliation by manufacturers, such as revoking ELV centers’ and crushers’ approvals.
FEDEREC has already appealed to the Council of State to annul the ELV decrees of November 24, 2022, and November 20, 2023, citing the risk of abuse evident in Renault’s standard contracts. Backed by its entire board, FEDEREC is committed to removing the right of preference from these contracts to ensure fair practices in the recycling industry.
About FEDEREC
FEDEREC is the Professional Federation of Recycling Companies. It is governed by Book IV, Title 1 of the Labor Code. Created in 1945, FEDEREC represents 34,400 employees, 1,250 companies or 2,450 establishments, from small businesses to large groups, spread across the entire French territory and whose activity consists of collection, sorting, material recovery of industrial and household waste or trading/brokering of materials first from recycling. FEDEREC is structured into 12 sectors and 8 regional unions.
Visit federec.com
Source federec.com
