EU regulation: Manufacturers to bear costs for old vehicles in future

The European Parliament has approved a new regulation aimed at making car parts more reusable and recyclable, marking a significant shift in how vehicles are designed and disposed of within the European Union. The decision, passed on June 18, 2026, received broad support from 437 members of parliament, with 112 opposing and 20 abstaining. This legislative move follows months of negotiations between representatives of the European Parliament and member states, which were finalized in December 2025. Before becoming law, the regulation must still be ratified by all EU member states, after which it will take effect two years later.

Under the proposed rules, automakers will be required to design new vehicles in such a way that as many components as possible can be easily disassembled and reused or recycled. This includes materials such as aluminum, copper, and rare earth metals, which are currently difficult and energy-intensive to extract and process. By increasing the reuse of these valuable resources, the regulation aims to reduce Europe’s reliance on imports from third countries and make the automotive industry more environmentally sustainable. Additionally, a specific percentage of the plastic used in new vehicle models must come from materials recovered from old cars and used auto parts.

The regulation also addresses the issue of end-of-life vehicles. According to the European Commission, there are approximately 286 million motor vehicles in circulation within the EU, and around 6.5 million reach the end of their useful life each year. However, authorities remain largely unaware of what happens to up to 4 million of these vehicles annually—whether they are scrapped, exported, or otherwise disposed of. To address this lack of transparency, the regulation introduces measures ensuring that manufacturers bear responsibility for the collection and disposal costs of end-of-life vehicles within the EU. This obligation will come into force three years after the regulation takes effect, likely around 2031. As a result, the cost of new cars is expected to rise due to these added expenses.

Old vehicles deemed no longer roadworthy will also face restrictions on export following a five-year transition period. This measure is intended to prevent the export of non-repairable vehicles without historical value, thereby encouraging local recycling and reducing environmental impact associated with long-distance transportation of waste.

Jens Gieseke, a Member of the European Parliament representing the CDU, welcomed the decision, stating that it would help keep valuable raw materials within the economic cycle, reduce dependence on costly imports from other countries, and enhance Europe's resilience against global crises. He emphasized that the regulation benefits both the environment and European industries.

The regulation reflects growing concerns over resource sustainability and environmental protection within the EU. With millions of vehicles reaching the end of their lifespans each year, the need for effective recycling and reuse strategies has become increasingly urgent. The new rules aim to ensure that the automotive sector contributes to a circular economy, where materials are kept in use for as long as possible, minimizing waste and reducing the demand for newly extracted resources.

As the regulation moves forward, its implementation will depend on the approval of all EU member states. Once enacted, it will set a clear framework for automakers, requiring them to adapt their designs and production processes accordingly. The anticipated increase in the cost of new vehicles could have broader implications for consumers and the automotive market, potentially influencing purchasing behavior and industry practices. In the coming years, the success of this regulation will hinge on compliance, enforcement, and the ability of the automotive sector to meet the new standards while maintaining competitiveness.