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.
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