Volvo Makes Additional $275MM Provision under EU Investigation



The Volvo Group has decided to make an additional provision of EUR 250 million ($275 million) in connection with the ongoing investigation, in which the Commission’s preliminary standpoint is that Volvo and other companies in the truck industry may have violated EU antitrust laws in the period prior to January 18, 2011. The provision will have an impact on operating income in the second quarter of 2016.

In January 2011, the Volvo Group and a number of other companies in the truck industry became part of an investigation by the European Commission regarding a possible violation of EU antitrust rules. In the fourth quarter of 2014, the Volvo Group made an initial provision of EUR 400 million ($444 million) since it was likely that the group’s financial results and cash flow would be adversely impacted by the Commission’s investigation.

At the same time, Volvo announced that the company would reassess the size of the provision on a continuous basis as the Commission’s investigation continued. The provision made by the Volvo Group total EUR 650 million ($722 million) and is based on the company’s best assessment of the financial impact of the investigation at the present time.

The investigation is ongoing and the Volvo Group is cooperating fully with the authorities involved.


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