Share
July 21, 2014 8:45 AM, EDT
Volvo Group Ordered to Pay Penalty in Engine-Emission Case
Justin Ide/Bloomberg News

Volvo Group has been ordered to pay penalties of about $91 million by the U.S. Court of Appeals for the District of Columbia in a case involving engine-emission compliance, the company said.

The initial case involved Volvo and the Environmental Protection agency regarding the Gothenburg, Sweden-based company’s model year 2005 Volvo Penta engines not meeting emissions standards.

In 2012, the district court issued a judgment ordering Volvo to pay penalties and interest, and the truck maker appealed. The company claimed Penta engines were not part of the initial agreement to pay a fine but not accept fault.

The company said it expects the decision to have a negative impact of about $80 million on third-quarter earnings. Volvo said it is reviewing the ruling and considering whether to appeal.