Volvo makes SEK7bn provision to address degrading emission control componentry
By Jim Gibbins - 1st February 2019
Sweden - Volvo Group of Gothenburg says it has set aside a provisional sum of SEK7bn (EUR673m) during the fourth quarter 2018 to deal with potential claim costs associated with a degrading emission control component issue in its commercial vehicles. Volvo Group, which first acknowledged an issue in October 2018, said then an emissions control component used in certain markets and models may degrade more quickly than expected, thereby affecting the vehicles’ emission performance negatively.
The estimated costs are based on several factors such as testing of vehicles, statistical analysis and dialogue with relevant authorities. The next step will be to define how to implement corrective actions concerning the component in vehicles affected by this issue. This will be done together with the relevant authorities.
