Volvo Group North America has agreed to a consent order with the National Highway Traffic Safety Administration (NHTSA), resulting in a serious civil penalty of up to $130 million.
This resolution follows an investigation revealing serious lapses in how Volvo Group handled vehicle recalls and adhered to reporting obligations under the Vehicle Safety Act, including timely owner notifications and incident reporting.
Under the terms of the agreement, Volvo Group North America will promptly pay $65 million, with an additional $45 million set aside pending any future violations. The company could potentially recover this deferred amount if it successfully meets all compliance requirements.
A further $20 million will be allocated towards establishing a robust infrastructure for safety data analytics. In addition to these financial obligations, Volvo Group North America must implement substantial operational changes overseen by an independent auditor.
This includes holding regular safety meetings with NHTSA, conducting comprehensive training sessions for employees on compliance with the Vehicle Safety Act, and enhancing their website to facilitate easier recall searches for vehicle owners.
NHTSA will maintain strict oversight of Volvo Group North America for an initial three-year period, with the option to extend this monitoring for an additional two years if deemed necessary.
Looking forward, Volvo Group is pushing forward with its commitment to electric mobility, with plans underway to install electric semi-truck chargers at Pilot and Flying J truck stops throughout North America.
Already in production, these electric heavy-duty vehicles represent Volvo Group’s proactive stance towards sustainable transportation solutions.