December 6, 2018 / 7:31 AM / in 12 days

Autoliv makes $210 million accrual for European cartel investigation

STOCKHOLM, Dec 6 (Reuters) - Swedish auto safety gear maker Autoliv said on Thursday it would make a $210 million accrual in the fourth quarter to cover a fine it believes the European Commission (EC) will impose over a long-running cartel investigation.

Autoliv, the world’s largest airbag maker, has since 2011 been subject to an investigation of anti-competitive behaviour among suppliers of occupant safety systems in the European Union.

The company paid a 8.1 million euro fine in the first quarter this year related to a smaller part of the investigation, completed by the commission in November 2017.

“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,” Autoliv said in a statement.

“According to management’s best estimation and based on the advice of our legal counsel, the company will accrue $210 million in the fourth quarter of 2018 in connection with the remaining portion of the EC investigation.”

Autoliv said it believed a fine could be issued in the first half of 2019, but noted that may be delayed. (Reporting by Johannes Hellstrom; Editing by Simon Johnson)

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