The European Commission has handed out a US$1.03 billion fine to Swedish truck manufacturer Scania after it was involved in a long-running price rigging scam.
Scania has been told to pay up, although the company has vowed to appeal against the decision announced on Wednesday, September 27, by Margrethe Vestager, the EU's competition commissioner.
"This cartel affected very substantial numbers of road hauliers in Europe. These trucks account for around three quarters of inland transport of goods in Europe and play a vital role in the European economy," Vestager said.
.@ScaniaGroup to pay fine of more than 880 mio € for participating in truck cartel. Total fine of all 6 truck companies 3.8 bn €.
— Margrethe Vestager (@vestager) September 27, 2017
Having had the second-highest fine imposed after Daimler's US$1.17 billion on it over its part in the scandal, Scania has announced it will be contesting the matter.
"Scania has not on any level or in any context entered into an agreement with other manufacturers with regard to pricing and Scania has also not delayed the introduction of new engines compliant with EU legislation for exhaust emissions," the company said in a statement.
"Scania strongly contests all the findings and allegations made by the European Commission and will appeal against the decision in its entirety," it added.
Owned by Volkswagen, the Scandinavian firm had previously refused to settle with Brussels over the affair despite other lorry manufacturers involved in the cartel settling their cases.
Scania offers tailored solutions that give customers a basis for profitable operations. #ScaniaTough #transport https://t.co/iNx7NqfhVh pic.twitter.com/E22eGXS5vU
— Scania Group (@ScaniaGroup) September 26, 2017
Record-breaking fines totaling US$3.5 billion are being handed out to Volvo, Daimler, Iveco and DAF. All four admitted wrongdoing in return for a 10 percent cut in their fines when the EU took action in 2016.
German truck maker Man — a subsidiary of Volkswagen — was also implicated in the price-fixing scheme but escaped a fine after blowing the whistle on its rivals in 2011.
This latest fine is a further blow to German auto giant Volkswagen as it comes in the wake of the diesel emissions scandal which has already cost it US$26.6 billion in damages and penalties, so far.
