Scania makes SEK 3.8bn provision for EU fine

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Scania has made a SEK 3.8 billion (£336 million) provision in case it is fined by the European Union for price fixing, while maintaining its innocence.

Earlier this week, four truck manufacturers were fined a total of almost €3 billion. Margrethe Vestager, the EU’s commissioner for competition, said: For 14 years they colluded on the pricing and on passing on the costs for meeting environmental standards to customers. This is also a clear message to companies that cartels are not accepted.”

MAN, Scania’s sister company in the Volkswagen group, escaped a fine because it revealed the existence of the cartel.

Scania contests the Commission’s view that the company has entered into a pan-European agreement with other manufacturers with regard to pricing.

The company also maintains that it has not delayed the introduction of new engines compliant with EU-legislation for exhaust emissions. “The company will fully exercise its rights of defence in the on-going investigation,” it said in a statement.

However, it said: “In light of the European Commission’s Statement of Objections and recent developments in the investigation, Scania is now, in accordance with relevant accounting principles and a prudent approach, making a provision to cover possible fines.”

It warned that the provision of SEK 3.8 billion would have an impact on operating income in the second quarter of 2016.

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