Volvo Group Faces $130 Million Penalty Over Safety Act Violations

The manufacturer of Mack Trucks and Volvo Trucks will have to pay up to $130 million in penalties over its poor handling of recalls and reporting requirements.

Volvo Group North America signed a Jan. 27 consent order with the National Highway Traffic Safety Administration (NHTSA) that concedes the company violated multiple sections of the National Traffic and Motor Vehicle Safety Act. These violations stem from the company’s failure to meet vehicle recall requirements, to provide NHTSA with safety notices in a timely fashion and provide some early warning information, according to the consent order.

Under the terms of the civil settlement, the company will pay $65 million up front, invest a further $20 million in data analytics to “study emerging safety-related trends” and hold the remaining $45 million in abeyance. After three years, if the company has no more violations, the $45 million is returned.

According to an NHTSA release on the settlement, the penalty amount is “one of the largest-ever penalties for violations of the Vehicle Safety Act.”

To ensure future compliance, the North American arm of Volvo Group has to hire a third-party auditor to monitor its compliance and report any failings to NHTSA, the consent order stipulates.