Hagens Berman Blog

Auto News: $780 Million Emissions Charge for Volvo

by Hagens Berman

01/04/2019

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Volvo Trucks to Take $780 Million Charge Over Emissions Flaw

Volvo AB, the world’s second-largest truckmaker, will set aside $780 million (7 billion kronor) to address a faulty emissions-control component that’s worn out more quickly than expected.

The charge will eat into operating income in the just-finished fourth quarter, while the drag on cash flow will impact the coming years, the Gothenburg, Sweden-based manufacturer said Jan. 3 in a statement issued after trading closed in Stockholm. Citigroup said the size of the provision was “better than feared,” and Volvo shares gained as much as 2.3%.

The expected cost is made up of several factors, including testing of vehicles, statistical analysis and discussions with authorities. read more »