Volvo to Pay $1.5 Million in Civil Penalties for Delayed Reporting of Recalls in 2010, 2012

WASHINGTON Volvo Cars North America, LLC has agreed to pay $1.5 million in civil penalties in response to the agencys assertion that the automaker failed to report safety defects and noncompliances to the federal government in a timely manner. The National Traffic and Motor Vehicle Safety Act requires all auto manufacturers to notify NHTSA within five business days of determining that a safety defect exists or that the manufacturer is not in compliance with federal motor vehicle safety standards and to promptly conduct a recall. In January 2011, NHTSA launched an investigation to determine whether Volvo met its obligation under the law to notify the agency of a safety defect and conduct a recall in a timely manner. NHTSAs evaluation of six recalls issued in 2010 and one recall announced in 2012 found evidence that Volvo failed to report safety defects and noncompliances to the agency in accordance with federal law. As part of todays settlement, Volvo Cars North America, LLC and its parent company Volvo Car Corporation agreed to make internal changes to its recall decision-making process to ensure timely reporting to consumers and the federal government in the future. NHTSAs investigation led the agency to believe that Volvo did not report known safety defects within five days, as required under the law. The fines received from the automaker will be paid into the General Fund of the U.S. Treasury.