Scania goes alone against EC investigation


Swedish truck maker denies any involvement in the cartel collusion that the European Commission has accused it of

Scania goes alone against EC investigation
While denying involvement, Scania has made provisions to cover EC fine.

 

Scania has remained defiant in the face of the European Commission (EC), denying any involvement in the cartel charges that have seen its truck manufacturing rivals fined €2.93 billion (A$4.3 billion).

While MAN, Volvo/Renault, Daimler, Iveco, and DAF settled with the EC on Friday, Scania says it "contests the Commission’s view that the company has entered into a pan-European agreement with other manufacturers with regard to pricing."

"Also, the company has not delayed the introduction of new engines compliant with EU-legislation for exhaust emissions," it says.

"The company will fully exercise its rights of defence in the ongoing investigation."

The investigation covers the 14-year period up to 2011, where it alleges the truck makers gathered at industry events and communicated electronically to discuss the price of vehicles, the passing of emissions technology costs onto customers, and the delay of the more environmentally-conscious technology.

"Between 1997 and 2004, meetings were held at senior manager level, sometimes at the margins of trade fairs or other events," the commission says. "This was complemented by phone conversations."

"From 2004 onwards, the cartel was organised via the truck producers' German subsidiaries, with participants generally exchanging information electronically."

For their part in the investigation, the EU fined Daimler just over €1 billion (A$1.5 billion), DAF €753 million (A$1.1 billion), Volvo/Renault €670 million (A$984 million), and Iveco €494 million (A$725 million).

MAN, which blew the whistle, escaped without a fine.

While Scania denies the charges against it, it has made provisions to account for a possible fine.

"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 in order to cover possible fines," Scania says.

The outlay is SEK 3.8 billion (A$590 million) according to the company, a figure that will "have an impact on operating income in the second quarter of 2016."

Unlike the other parties involved, Scania’s decision to contest the charges will mean it won’t receive a 10 per cent discount.

Scania’s Interim Report for the period January-June 2016 will be unveiled on Thursday.

 

 

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