The Volvo Group said it had reached a settlement with the European Commission putting an end to a long-running EU antitrust investigation.
As part of the settlement, Volvo will pay a fine of EUR670m (US$737.12m; SEK6.3bn). The amount was covered mainly by provisions made in 2014 and 2016, totalling EUR650m. An additional provision negatively impact third quarter 2016 operating income by EUR20m.
"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 Volvo president and CEO Martin Lundstedt. "We strive to be a world leading business because we compete with the best products and services and the best employees."
The anti-trust investigation concerns the period between 1997 and January 2011 and involves the Volvo Group as one of six manufacturers. The focal point of the case is the coordination on gross list prices but also the introduction of new emission related technologies.
"While we regret what has happened, we are convinced that these events have not impacted our customers. The [group] has always competed for every single transaction," added Lundstedt. "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."