Volvo Ordered to Pay $130 Million Fines Due to Recall Delays

Auto Recall Accidents

According to a news report on Jalopnik.com, Volvo Group has been ordered to pay a fine totaling $130 Million. The National Highway Transportation Safety Administration is fining Volvo because the automaker unreasonably delayed initiating safety recalls in the United States. The NHTSA stated that Volvo Group delayed recalls from two member companies, Volvo Bus Corporation and Volvo Trucks.

The National Highway Traffic Safety Administration announced that it imposed the $130 million civil penalty against Volvo Group North America because Volvo failed “to recall vehicles in a timely fashion.” The recalls did not concern Volvo Cars but did include Volvo Bus, Volvo Trucks, Nova Bus, and Mack Trucks, among other commercial vehicles.

The report claims that this penalty is one of the largest fines filed against an automaker under recall law in the United States. Volvo also agreed to a three-year consent rule. For the next three years, Volvo will be supervised by an independent third-party auditor that will review Volvo’s recalls from July 2013 until 2026. The independent auditor will provide guidance as warranted, and the NHTSA will make sure that Volvo addresses all potential safety issues.

According to Reuters, Volvo Group failed to capitulate with recall requirements, such as recall timeliness, early warning reporting conditions, and manufacturer communications. The NHTSA’s report also alleges that Volvo failed to submit its quarterly safety recall reports, automotive service bulletins, and injury and death reports.

The fine is designed to punish the company for Volvo’s noncompliance, and most of the fine will be given back to the company to develop a safety data analytics infrastructure that will improve “Volvo’s capability to detect and investigate potential safety defects.” Volvo will also be required to draft new procedures and provide additional training to its employees on recall regulation compliance. The remaining $65 million payment is due to NHTSA in 60 days. Should Volvo fails to comply with any part of the agreement, Volvo will be required to pay $45 million. The NHTSA may also extend the agreement by two more years if needed.

Volvo Group stated that safety is its priority and that the company welcomes working with the NHTSA to resolve any safety concerns. A spokesman for Volvo Group North America stated that safety is of paramount importance to Volvo, and the company appreciates the chance to resolve the issue and looks forward to working closely with the NHTSA to pinpoint and complete any compliance gaps. Volvo is also working on a wide range of safety improvements in our North American safety systems, and they are dedicated to maintaining a best-in-class safety organization.

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