The Germany-based company, Daimler, stated on Thursday it is putting aside 600 million euros to cover any potential costs that would emerge from an antitrust investigation into truck producers led by the European Commission.
This strategy will affect the company’s earnings these last three months of 2014 but stood by this year’s forecast earnings to rise significantly compared to last year. The Commission said in November it had sent formal charge sheets to producers suspected of price-fixing, increasing a wide cartel investigation that could end with massive fines for some of the world’s largest truck makers.
Companies that went under investigation besides Daimler are Volvo, CNH Industrial – Iveco’s parent, Scania and MAN, both controlled by Volkswagen.
Daimler decided to increase its money cushion after they received documents from the EU containing allegations and a chance to review after the received charge sheet a month ago.
If the Commission decided there is enough evidence of an infringement of EU rules, companies could receive fines of up to 10% of their annual revenue for abusing market dominance and not following the rules barring cartels. Without being more specific, Daimler stated that it was cooperating with the authorities and it would also review all of its procedural options in this case.
By Gabriela Florea