Swedish truckmaker Volvo warned on Tuesday that an emissions control component used in its vehicles was degrading more quickly than expected, which could cause engines to exceed emission limits for nitrogen oxides.
The company, which makes trucks, construction equipment, buses and engines, said that costs to fix the problem ‘could be material’ and that it was in the process of informing authorities in various markets, which it did not name.
The issue could become an added headache for Volvo, which has been working hard to protect profitability after a surge in demand in Europe and North America caused supply chain bottlenecks, inflating costs for raw materials and labour.
Volvo said in a statement that the largest volume of potentially affected engines had been sold in North America and Europe, the company's two largest markets.
The company delivered 202,402 trucks in 2017.
Governments in several countries have in recent years set ambitious goals to cut carbon dioxide and nitrogen oxide emissions, bringing carmakers and truckmakers under greater scrutiny.
Volvo said that all products equipped with the component met emissions limits at delivery and that its probe so far indicated that the degradation was not affecting all vehicles and engines in the same way and to the same extent.
Volvo is due to report third-quarter results on Friday.
LEAVE A COMMENT Your email address will not be published. Required fields are marked*
Boeing's troubled 737 MAX gets huge vote of confidence from IAG
Siemens to cut 2,700 jobs from power generation division
Man dies as parachute fails during US military exercise in Bulgaria
'Invisible pandemic': WHO offers global plan to fight superbugs
Semenya accuses IAAF of using her as 'human guinea pig'
New Boeing jet blow at Paris as Airbus long-range A321 takes off
Catalan leaders deny violence, call for dialogue as trial nears end
Boeing crisis, trade tensions cast pall over air show
Heavy toll for French farms following hailstorm