According to a recent filing, PACCAR noted that in January 2011, the European Commission (EC) commenced an investigation of all major European commercial vehicle manufacturers, including subsidiaries of the company. In November 2014, the EC issued a statement of objections to the manufacturers, including DAF Trucks, its subsidiary DAF Trucks Deutschland GmbH and PACCAR as their parent.

PACCAR said the statement of objections is a procedural step in which the EC expressed its preliminary view that the manufacturers participated in anticompetitive practices in the European Union. The EC indicated it will seek to impose significant fines on the manufacturers. DAF is cooperating with the EC.

Based on recent developments, PACCAR said it will record a charge of €850 million ($945 million) in the first quarter of 2016. The company will continue to evaluate the amount of the charge pending final resolution of the proceeding. The charge is not tax deductible. DAF Trucks has sufficient liquidity to fund a payment in the amount of the charge.

A related post by the Seattle Times noted that Volvo and Daimler have also set aside funds because of the investigations, while the annual report of Volkswagen AG’s MAN division indicated that it is cooperating fully with authorities but hasn’t yet taken provisions.