Customer Corner : The Volvo Villains

Meet the Villains
Cummins Inc., the diesel engine giant from Columbus, Indiana, has a knack for picking bedfellows with skeletons in their closets. This time it’s Volvo Group — the Swedish multinational best known for trucks and construction equipment — caught in a corruption scandal that stinks of oil, politics, and moral rot.

Two of Volvo’s former executives, Tommy Lindström and Gunnar Eriksson, were convicted in 2012 for bribing Saddam Hussein’s regime during the United Nations’ Oil-for-Food Programme. The details are grim: they bypassed sanctions, paid bribes, and falsified documents to land lucrative deals in Iraq. The kind of business Cummins doesn’t seem to mind associating with.


The Oil-for-Food Racket
The UN’s Oil-for-Food Programme was designed to allow Iraq to sell oil in exchange for humanitarian supplies, under strict sanctions. But for corrupt executives, it became a playground.

Volvo Construction Equipment, part of Volvo Group, was deeply involved. Lindström, then head of Middle East operations, and Eriksson, his subordinate, funnelled cash to Iraqi officials to secure contracts. Their methods included falsifying records and routing money through intermediaries.

In 2012, a Swedish court found both men guilty of aggravated bribery. Lindström was sentenced to two years in prison. Eriksson received a suspended sentence and a fine.


A $19.6 Million Admission
This wasn’t Volvo’s first reckoning. In 2008, it paid $19.6 million to settle charges with U.S. authorities. The company admitted its subsidiaries made improper payments under the Oil-for-Food Programme, violating the Foreign Corrupt Practices Act (FCPA).


Cummins: Still in Bed with Volvo
Despite these convictions and fines, Cummins continues its strategic partnership with Volvo. In May 2023, the companies expanded their collaboration across multiple segments, including supplying engines for construction and transport vehicles.

In doing so, Cummins signalled that business trumps integrity. These aren’t historical footnotes — they are unresolved questions about judgment and standards.


Birds of a Feather
Volvo isn’t the only questionable associate. Cummins’ client list includes other ethically tainted companies:

  • Navistar paid $50 million to settle fraud claims involving inflated pricing on military vehicle contracts.
  • Dodge (Ram) was at the centre of Cummins’ own diesel emissions cheating scandal, which led to a $1.675 billion civil penalty in 2023 for installing defeat devices in over 630,000 Ram trucks.

To name but two, check out our Customer Corner and Supplier Series for more. These aren’t isolated incidents. They form a clear pattern: Cummins, while pushing PR-friendly messages about sustainability and ethics, consistently aligns itself with corporations mired in misconduct.


What It Says About Cummins
Lindström and Eriksson weren’t rogue operators. They held high-level positions with full authority. Their actions reflected a corporate culture willing to cross ethical lines for market share. And Cummins? It didn’t flinch.

No public statement. No paused contracts. No sign of reassessment. Just business as usual.


Conclusion: Complicity by Choice
Cummins’ continuing alliance with Volvo shows that when ethics conflict with convenience, convenience wins. This isn’t about one bad deal — it’s a long-term pattern of overlooking red flags for commercial gain.

The Volvo scandal highlights just one chapter in a growing file on Cummins’ global partnerships. In each case, Cummins has the opportunity to lead — and chooses to follow the money.

When a company repeatedly aligns itself with the corrupt, it’s not accidental. It’s cultural.

Lee Thompson – Founder, The Cummins Accountability Project
TCAP.blog | Substack


Sources

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