© melpomenem dreamstime.com Electronics Production | December 06, 2018
Autoliv sets money aside – awaits further fines
Swedish automotive security group, Autoliv, provides an update on the European Commission's investigation of suppliers of occupant safety systems.
As previously disclosed, since June 2011, Autoliv has been subject to an investigation of anti-competitive behaviour among suppliers of occupant safety systems in the European Union. Autoliv has since been cooperating with the EC investigation. The EC previously concluded a discrete portion of its investigation in November 2017 and imposed a fine on the company which was paid during the first quarter of 2018. However, Autoliv's management now has reason to believe that the EC will seek to impose a fine in connection with the remaining portion of the EC investigation, the company states in a press release. According to management's best estimation and based on the advice of our legal counsel, the Company will accrue USD 210 million in the fourth quarter of 2018 in connection with the remaining portion of the EC investigation. Any such fine from the EC will likely not be tax deductible. Autoliv believes that a fine could be issued during the first half of 2019, although this may be delayed. The fine would be payable within 90 days after the investigation is ultimately resolved and be denominated in euros.