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EU: Volvo ups provision for possible antitrust fine

 |  June 27, 2016

Swedish truck maker Volvo AB said Saturday it had increased by more than 60% a provision for possible fines in connection with a European Union antitrust probe.

Volvo said it had set aside about $278 million on top of the initial EUR400 million provision it made in late 2014, adding it would book the additional amount against second-quarter earnings.

The first provision was made in late 2014, shortly after the European Commission, the bloc’s top competition regulator, issued formal charges against a number of heavy-truck makers, including Volvo. The Commission has said it suspected Volvo and the other companies of participating in an illegal cartel.

Volvo said the probe targets possible antitrust violations prior to January 2011. At the time, the Commission made a series of unannounced inspections of European firms in the trucks sector.

Volvo said the total provision of EUR650 million is based on the company’s best assessment of the financial impact of the investigation at the present time.

Full Content: Market Watch

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