Auto News: $780 Million Emissions Charge for Volvo01/04/2019
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 »