Stockholm — Volvo shares tumbled after the world’s second-largest truck maker uncovered a faulty component in the emissions-control setup of vehicles widely sold in Europe and the US, 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 on Tuesday in a statement. The stock fell by as much as 9.3%, the most in more than two years. The news also dragged down shares in British catalyst supplier Johnson Matthey by as much as 6.6% amid concerns it may have supplied the materials in the component. Both companies declined to comment about the maker of the component. The revelation by Volvo comes against a backdrop of Volkswagen’s emissions scandal that erupted in 2015, when the car maker was...

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