The North American Volvo Group reached a consent order with the National Highway Traffic Safety Administration because the company it was based on agreed to pay as much as $130 million in civil penalties. To be clear, the Volvo Group runs brands like the eponymous semi-brand and Mack Trucks. It is a separate entity from Volvo Cars which manufactures cars.
According to NHTSA:
The action follows an investigation that found the company failed to recall vehicles in a timely manner and comply with other recall and reporting requirements, including notifying owners of recalls and reporting incidents of death and injury. The consent order includes a $130 million civil fine, one of the largest penalties ever for a violation of the Vehicle Safety Act.
Volvo Group North America will make an immediate payment of $65 million under the terms of the approval order. The $45 million payout will be suspended in the event of additional violations, but the company can potentially get this money back if the business meets all agreed terms. The final $20 million will be used to create a security data analytics infrastructure.
As part of the agreement, the North American Volvo Group will have to make some changes, and there will be oversight by an independent third-party auditor. It should hold regular meetings with the NHTSA to discuss potential safety issues. Companies must train employees in compliance with the Vehicle Safety Act. The truck maker’s website update will allow users to search for recalls of their vehicles.
NHTSA will monitor the North American Volvo Group for three years. Government agencies have the option to extend the term for an additional two years, if needed.
Motor1.com contacted the North American Volvo Group for comment on this agreement. At the time of publication, the company had not responded.
The Volvo Group is taking steps towards electrification. It signed a letter of intent to build electric semi chargers at Pilot and Flying J truck stops in North America. Company already started building this heavy hauling big rigs.