|[July 19, 2014]
Volvo Group Ordered by US Court to Pay Penalties in Engine Emission Case
GÖTEBORG, Sweden --(Business Wire)--
The U.S. Court of Appeals for the District of Columbia Circuit has ruled
that the Volvo Group (STO:VOLVA) (STO:VOLVB) should pay penalties and
interest of approximately SEK 508 million following a dispute between
the Volvo Group and the U.S. Environmental Protection Agency (EPA)
regarding emission compliance of diesel engines. The Court of Appeals
affirmed a District Court's ruling that model year 2005 Volvo Penta
engines violated the provisions of a Consent Decree. This is expected to
have a negative impact on the Group's operating income of approximately
SEK 440 million in the third quarter of 2014 in the segment Group
functions and other.
The Volvo Group had previously accounted for approximately SEK 68
million as a provision and approximately SEK 422 million as a contingent
In 2012 the District Court issued a judgment ordering the Volvo Group to
pay penalties and interest for engines which Volvo claims were not part
of the decree. Volvo filed an appeal on several grounds. The Court of
Appeals' ruling was rendered on July 18, 2014. Volvo will now review the
ruling in detail, and consider whether to appeal or not
Journalists who would like further information, please contact Kina
Wileke +46 (0)31-66 12 32 or +46 (0)765-537229.
For more stories from the Volvo Group, please visit http://www.volvogroup.com/globalnews.
The Volvo Group is one of the world's leading manufacturers of trucks,
buses, construction equipment and marine and industrial engines. The
Group also provides complete solutions for financing and service. The
Volvo Group, which employs about 110,000 people, has production
facilities in 18 countries and sells its products in more than 190
markets. In 2013 the Volvo Group's sales amounted to about SEK 270
billion. The Volvo Group is a publicly-held company headquartered in
Göteborg, Sweden. Volvo shares are listed on NasdaqOMX Stockholm. For
more information, please visit www.volvogroup.com
if you are using your mobile phone.
AB Volvo (publ) may be required to disclose the information provided
herein pursuant to the Securities Markets Act and/or the Financial
Instruments Trading Act. The information was submitted for publication
at 04.00 p.m July 19, 2014.
This information was brought to you by Cision http://news.cision.com
[ Back To Technology News's Homepage ]