Tuesday, July 26, 2016

Despite Recent Record Fines for Truck Makers in Cartel One Denies Antitrust Activity

Difference in Viewpoint with European Commission May Still Cost Manufacturer Dearly
Shipping News Feature
EUROPE – Following last week’s announcement of a record price fixing fine on several well-known truck manufacturers levied by the European Commission (EC) for antitrust activity, Swedish firm Scania has remained defiant against the EC ruling, contesting the accusation that it colluded in a cartel with competitors to fix the prices of its vehicles. Scania has however made a provision of SEK 3.8 billion (around €400 million) in order to cover possible fines.

Scania says that it has fully cooperated with the European Commission during the investigation but disputes the Commission’s view that the company entered into a pan-European agreement with other manufacturers with regard to pricing, between at least 1997 and 2011. The EC has already imposed a record fine of €2.9 billion on Volvo/Renault, Daimler, Iveco, and DAF, with MAN receiving full leniency for revealing the existence of the cartel.

The provision of SEK 3.8 billion will have an impact on operating income in the second quarter of 2016 and Scania say this situation has not delayed the company’s introduction of new engines compliant with EU-legislation for exhaust emissions.