Volvo is making a provision of €400m ($497m) to pay any possible fine to be imposed by the European Commission as a result of its ongoing investigation into the company’s violation of antitrust rules.
The provision will impact Volvo Group's 2014 operating income in the trucks segment, the company said.
Volvo's decision to make a provision comes after the company was issued a Statement of Objections by the European Commission last week.
The EU began investigations into suspected price fixing deals by heavy and medium-duty truck manufacturing arms of Volvo, Volkswagen, and Daimler among others, in 2011.
Last week, the European Commission issued a Statement of Objections to the companies stating that it suspects them of having participated in a cartel in breach of EU antitrust rules.
The commission then said that it has 'concerns that certain heavy and medium duty truck producers may have agreed or coordinated their pricing behavior in the European Economic Area'.
Volvo said in a statement: "The proceedings are still at an early stage and there are a number of uncertainties associated with the final outcome of the Commission's investigation as well as the amount of a potential fine.
"The Volvo Group will re-assess the size of the provision regularly following the development of the proceedings."
Image: The provision will impact the operating income of Volvo's trucks segment. Photo: courtesy of AB Volvo.
