Washington, D.C., United States — The National Highway Traffic Safety Administration (NHTSA) has fined Volvo’s North American group approximately US$130 million (approx. $175 million), citing multiple violations of the U.S.’s safety act.
That included untimely recall filings, including inaccurate defect and noncompliance information reports, failure to adequately notifying owners of a recall, failure to submit quarterly recall reports, failure to submit manufacturer communications and failure to report death and injury incidents and field reports.
According to the NHTSA, Volvo Group North America must pay $65 million of the fine within 60 days. Another $45 million could be cancelled if it abides by the terms of a 21-page consent decree.
Finally, Volvo must spend $20 million to upgrade its recall-tracking technology and hire an independent third-party auditor to monitor its improvement.
This three-year decree may be extended by another two years, if deemed necessary.
“(The) NHTSA will use the full scope of our authorities to protect the public from safety defects and from manufacturers that create potential safety problems by failing to comply with the law,” said Ann Carlson, NHTSA acting administrator.