Volvo Group Hit With $130 Million Penalty Over Recall Issues

A low-emission Volvo truck
A low-emission Volvo truck at the Frito-Lay manufacturing facility in Modesto, Calif. (Benjamin Fanjoy/Bloomberg News)

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Volvo Group North America will pay a civil penalty of as much as $130 million under an arrangement with the National Highway Traffic Safety Administration over findings that the maker of heavy-duty trucks was slow to recall vehicles and report injuries and deaths.

NHTSA said Jan. 30 that the figure, which includes a $65 million upfront payment, is “one of the largest-ever penalties for violations of the Vehicle Safety Act.” The manufacturer, which is separate from Volvo Cars, also agreed to oversight by an independent third-party auditor and to meet regularly with NHTSA to ensure that it addresses any potential safety issues.

The consent order will last for a period of three years. NHTSA said it has the option to extend it for two additional years if warranted.

“We look forward to continuing our close work with NHTSA to identify and close any compliance gaps,” Volvo Group said in a separate statement. “Wide-ranging improvements in our North American safety processes and systems are already underway.”

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