In the statement, Volvo said it has agreed to pay a fine of $738 million. It said the amount of the settlement “is mainly covered by provisions made in 2014 and 2016.” Volvo said only about $22 million will have an impact on the company’s operating income for the third quarter of 2016.
“The Commission case was already more than five years under way. Without the settlement we would have been facing many more years of proceedings, with an uncertain outcome. We are now able to look forward and focus on our business,” said Martin Lundstedt, Volvo president and CEO, in a statement. “We strive to be a world leading business because we compete with the best products and services and the best employees.”
The investigation alleged that the Volvo Group and five other companies coordinated gross list prices of goods and services as well as the introduction of emission technology. The European Commission contended the anti-trust violations occurred between 1997 and January 2011.
“While we regret what has happened, we are convinced that these events have not impacted our customers. The Volvo Group has always competed for every single transaction,” Lundstedt said. “We have taken these events very seriously from the outset and our full cooperation with the Commission resulted in a very substantial reduction in the fine.”