Volvo sets aside £616m to deal with emissions control issue07 January 2019
Volvo has announced that it is setting aside SEK 7 billion (£615.8m) for potential costs relating to an emissions control issue, first revealed in October.
The manufacturer previously announced that an emissions control component used in certain models and markets could degrade more quickly than expected, causing engines to exceed emissions limits for nitrogen oxide (NOx).
The financial provision announced last week will affect income for Q4 2018, with the company adding that a negative cashflow effect will start in 2019 “and gradually ramp up in the coming years”.
The estimated costs are based on factors such as testing of vehicles, statistical analysis and dialogue with relevant authorities, according to the statement released last week (3 January).
The company says the component problem does not pose a safety risk, nor does it negatively affect vehicle or engine performance in areas other than emissions control. All engines and vehicles equipped with the component meet emissions limits at delivery.
Volvo Group UK Ltd
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