Volvo Trucks Slumps After Warning on Faulty Emissions Part
- Costs may be material and affect trucks sold in major markets
- Component from supplier degraded faster than expected
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Volvo AB shares tumbled after the world’s second-largest truckmaker uncovered a faulty component in the emissions-control setup of vehicles widely sold in Europe and the U.S., the manufacturer’s biggest markets.
The Gothenburg, Sweden-based company has started informing authorities about the issue, caused by a component degrading faster than expected and potentially leading to the release of emissions exceeding limits. The cost to fix the problem with the part, which comes from an outside supplier, “could be material,” it said Tuesday in a statement. The stock fell by as much as 9.3 percent, the most in more than two years.