Fined truckmakers take EC medicine and look to move on


Provisions for cost help deflect some impact of massive collusion fines

Fined truckmakers take EC medicine and look to move on
DAF, EC, Scania,Volvo,Daimler,Iveco, Lundstedt,MAN, Volkswagen,CNH,

 

Having copped enormous European Commission collusion fines, most of the region’s truckmakers are looking to put the issue behind them.

The focal point of the case that cost fined companies €2.93 billion (A$4.3 billion) is the coordination on gross list prices and the introduction of new emission related technologies.

Much has been made of the total penalty being twice as much as the previous comparable fine but that might relate to turnover and the value of stock involved.

Daimler in Europe says its €1 billion fine is partially based on the company’s related revenue during the period of the violation.

"The settlement ends the EU antitrust investigation," a Daimler spokesperson in Stuttgart tells ATN.

"Daimler regrets these occurrences and took appropriate action some time ago.

"Daimler takes its responsibility with regard to competition law very seriously and has taken all appropriate measures to ensure that all employees act in compliance with applicable law.

"The company has strengthened its internal controls and has intensified its regular and comprehensive employee training with regard to antitrust law and competition law.

"The company has cooperated in full with the EU Commission."

While the issue gained renewed prominence in the past eight months, it has been bubbling away for a while.

"The Commission case was already more than five years under way," Volvo president and CEO Martin Lundstedt sates.

"Without the settlement, we would have been facing many more years of proceedings, with an uncertain outcome.

"We are now able to look forward and focus on our business.

"We strive to be a world leading business because we compete with the best products and services and the best employees."

Lundstedt has also sought to reassure buyers.

"While we regret what has happened, we are convinced that these events have not impacted our customers," he says.

"The Volvo Group has always competed for every single transaction.

"We have taken these events very seriously from the outset and our full cooperation with the Commission resulted in a very substantial reduction in the fine."

DAF will pay its fine within three months after notification from the EC, according to parent company Paccar.

"DAF has sufficient liquidity to fund a payment in the amount of the fine," Paccar says in a stock exchange report.

While standing its ground in rejecting the view it participated in Europe-wide cartel activity Scania’s headquarters says it is working through the issues with the EC and denies delaying emissions technology introduction.

Iveco parent CNH and MAN parent Volkswagen appear yet to have commented.

A spokesperson for the Australian Competition and Consumer Commission says it has "no comment at this time".

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