Volvo Group has said it will set aside SKr7bn ($780m) to cover potential costs related to the admission that its trucks could be emitting higher levels of poisonous nitrogen oxide gases than is legal.
The company revealed in October that the “emissions control component” in its vehicles was wearing out faster than expected, sending its shares down more than 6 per cent on the day of the announcement. At the time Volvo predicted a “material” cost from the issue.
The Swedish group said yesterday that the estimated costs were based on “several factors” such as vehicle testing and statistical analysis, as well as “dialogue with relevant authorities”. Volvo said in a statement released after European markets had closed: “The next step will be to define how to implement corrective actions concerning the component in vehicles affected by this issue.”