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Court allows $74 million EPA fine to stand against Volvo Group

July 22, 2014

Sweden’s Volvo Group recently issued a statement that the U.S. Court of Appeals for the District of Columbia Circuit this weekend has allowed an approximately $74.14 million fine U.S. (SEK 508 million) levied against it by the Environmental Protection Agency (EPA) to stand. The company added that it’s now considering whether to appeal the verdict or not.

Volvo said the fine results from a dispute with the EPA regarding emission compliance of model year 2005 Volvo Penta engines, which EPA said violates the provisions of the consent decree signed back in 1998 between six diesel engine makers and the agency. Volvo claims those Penta engines were not part of the original decree.

The OEM added that the fine, if allowed to stand, will negatively affect its operating income in the third quarter this year by an estimated $64.21 million U.S. (SEK 440 million).

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