Volvo Trucks braces for possible EU fines
The Swedish truck giant, Volvo Group, is putting aside SEK 3.7 billion to pay for fines it may get slapped with by the European Union, if it is found guilty of violating antitrust rules. However the company did not admit that it had been complicit in the cartel that has aroused the EU Commission's suspicions, according to news agency TT.
The EU Commission is investigating whether Volvo and several other truck companies, including Swedish company Scania, have been collaborating to fix prices. Last week, the Commission described the accusations, and now Volvo has reacted by reserving cash for possible future fines.
Agence France Presse reports that the Commission has indicated that if the companies are found guilty, they may face fines of up to 10 percent of annual worldwide sales.
Volvo has been involved in a cartel case before. News agency TT reports that the company was convicted last year by South Korea's competition authorities and was fined for SEK 100 million, but that it has appealed.