Volvo shares have slumped after the company warned some of its vehicle engines could be exceeding emissions limits due to a faulty component.
The Swedish truck maker said the overall cost of the problem “could be material”.
It said an emissions control component was degrading more quickly than expected reducing its ability to convert nitrogen oxides.
Volvo Group has launched a full investigation and said the largest volume of potentially affected engines had been sold in North America and Europe.
It added that all engines and vehicles met emissions limits at the time of delivery but may be now exceeding limits in “certain markets with stringent emissions standards.”
Shares in the company fell to a one-year low opening nine per cent down this morning but have since gained some ground back at 5.6 per cent down for the day – the biggest faller on the OMX Stockholm 30 index.
Volvo said it was not yet possible to assess the financial impact but the cost could be material.