Volvo Reaches Settlement With European Commission
By Maddy Price
Wednesday, July 20, 2016 - 11:21
The Volvo Group has reached a settlement with the European Commission putting an end to a long-running EU anti-trust investigation. As part of the settlement Volvo will pay a fine of EUR 670 M, corresponding to SEK 6.3 bn (£660m). The amount is mainly covered by provisions made in 2014 and 2016, which total EUR 650 million (£543m). An additional provision will have a negative impact of EUR 20 M (£17m) on the operating income in the third quarter of 2016.
“The Commission case was already more than five years under way. Without the settlement we would have been facing many more years of proceedings, with an uncertain outcome. We are now able to look forward and focus on our business”, says Martin Lundstedt, Volvo President and CEO. “We strive to be a world-leading business because we compete with the best products and services and the best employees.”
The anti-trust investigation concerns the time between 1997 and January 2011 and involves the Volvo Group as one of six manufacturers. The focal point of the case is the co-ordination on gross list prices, but also the introduction of new emission related technologies.
“While we regret what has happened, we are convinced that these events have not impacted our customers. The Volvo Group has always competed for every single transaction”, says Martin Lundstedt. “We have taken these events very seriously from the outset and our full co-operation with the Commission resulted in a very substantial reduction in the fine.”