Mexican Media Brands
Volvo Trucks Braces for $778 Million Hit on Emission Fix
AB Volvo is setting aside 7 billion kronor ($778 million) to cover the potential costs of fixing a flaw that allows some of its trucks to emit too much nitrogen oxides.
#regulations
Share
AB Volvo is setting aside 7 billion kronor ($778 million) to cover the potential costs of fixing a flaw that allows some of its trucks to emit too much nitrogen oxide.
The company says it will take the charge in the fourth quarter of 2018. The negative impact on cash flow will begin this year and “ramp up in the coming years,” according to the truckmaker.
Volvo warned in October that an emission control component in certain diesels sold worldwide can deteriorate prematurely and allow NOx levels to exceed market standards, especially in Europe and the U.S. The company noted that the flaw is not a safety issue that emphasizes that the affected trucks do meet regulatory standards initially.
Volvo arrived at the estimated cost to remedy the problem by considering testing, analysis and achieving agreement with regulators on an effective repair. But it said in October that the degradation doesn’t affect all engines and vehicles in the same way.
RELATED CONTENT
-
CARB Predicts 10x Hike in Fuel Cell Vehicles by 2024
California expects the number of fuel cell-powered vehicles registered in the state will surge to 23,600 units in 2021 from 4,800 through May of this year and reach 47,200 by 2024.
-
Bill on Self-Driving Cars Stalls in Senate
Congressional efforts to make it easier to develop self-driving cars in the U.S. have stalled in the Senate despite strong bipartisan support.
-
Carmakers Ask 10 States to Help Bolster EV Sales
Carmakers are asking for more support for electric cars from states that support California’s zero-emission-vehicle goals, Automotive News reports.