Volvo shares falls as its vehicles may fail emission test

17 Oct 2018_campuscad

Volvo

Volvo group released the press note on its website that an emission control component used in its engine is degrading more quickly than expectation and leads to pass the threshold value set by emission regulators in some of the markets.

As a result emission of Nitrogen Oxide (NOx) is exceeding on some vehicles. The most affected vehicles are sold out in North America and Europe.

Volvo is now connecting to the appropriate authorities to report the issue and it is mandatory to make it public as per European Union Market Abuse Regulation.Amazon ad      

Volvo is world’s leading manufacturer of trucks, buses and construction equipment. Volvo revenue in 2017 was around EUR 35 billion with production capacities in 18 countries.

Emission affected vehicles are safe to drive and performance will not be affected except areas of emission control.

Shares of Volvo group dropped by 5% on Tuesday traded at NASDAQ Stockholm‎.

Emission standards for trucks and buses are different as compared to light utility vehicles and passenger vehicles in Europe. Euro 1 to Euro 6 used for LUV and PV and EU-I to EU-VI used for Heavy duty vehicles and calculated in Kilowatt-hours.

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