Autoliv sets aside $210 mln to cover European cartel investigation (updated)
06/12/2018 08:48
(Adds shares, background, detail)
STOCKHOLM, Dec 6 (Reuters) - Sweden's Autoliv ALIVsdb.ST
ALV.N is setting aside $210 million this quarter to cover a
fine it expects the European Commission to impose after a
long-running cartel investigation, the car safety equipment
maker said on Thursday.
Autoliv, the world's largest airbag maker, has since 2011
been subject to an investigation of anti-competitive behaviour
among suppliers of so-called occupant safety systems - such as
seatbelts, steering wheels and airbags - in the European Union.
The company paid a 8.1 million euro ($9.2 million) fine in
the first quarter of this year related to a smaller part of the
investigation, completed by the Commission in November 2017.
urn:newsml:reuters.com:*:nB5N1JD00P
In that part of the investigation, Toyoda Gosei 7282.T ,
Takata, Marutaka and Tokai Rika 6995.T were also fined for
taking part in cartels to fix prices for seatbelts, airbags and
steering wheels to Japanese carmakers.
"Management now has reason to believe that the EC (European
Commission) will seek to impose a fine in connection with the
remaining portion of the EC investigation," Autoliv said in a
statement.
"According to management's best estimation and based on the
advice of our legal counsel, the company will accrue $210
million in the fourth quarter of 2018 in connection with the
remaining portion of the EC investigation."
Autoliv said it believed a fine could be issued in the first
half of 2019, but noted it could be delayed.
Autoliv's Swedish-listed shares were down 2.7 percent at
0815 GMT, slightly underperforming a 2.5 percent drop for the
European automotive sector .SXAP .
The company had previously said it believed the outcome of
the Commission's investigation was likely to materially affect
operating results.
($1 = 0.8828 euros)
(Reporting by Johannes Hellstrom; Editing by Simon Johnson and
Mark Potter)
((johannes.hellstrom@thomsonreuters.com; +4687001008; Reuters
Messaging: johannes.hellstrom.reuters.com@reuters.net))