Volvo Group North America entered into a consent order with the National Highway Traffic Safety Administration because the company where the company agreed to pay up to $130 million as a civil penalty. To be clear, Volvo Group runs brands like the eponymous semi-brand and Mack Trucks. It is a separate entity from Volvo Cars which produces automobiles.
According to the NHTSA:
The action follows an investigation that found the company failed to recall the vehicles in a timely manner and failed to comply with other recall and reporting requirements, including notifying owners of the recalls and reporting deaths and injuries. The consent order includes a total civil penalty of $130 million, one of the largest penalties ever imposed for violations of the Motor Vehicle Safety Act.
Volvo Group North America will make an immediate payment of $65 million under the terms of the consent order. A $45 million payment will be deferred for additional breaches, but the company can potentially recoup that money if the company meets all of the agreed-upon requirements. The last $20 million will be used to create a security data analysis infrastructure.
As part of the agreement, Volvo Group North America is to make several changes, and there will be oversight by an independent third-party auditor. He will need to hold regular meetings with NHTSA to discuss potential safety issues. The company will have to train its employees to comply with the Motor Vehicle Safety Act. An update to the truck maker’s website will allow users to search for recalls for their vehicles.
NHTSA will monitor Volvo Group North America for three years. The government body has the option to extend the period for another two years, if necessary.
Motor1.com contacted Volvo Group North America for comment on this agreement. At the time of publication, the company had yet to respond.
The Volvo Group is taking steps towards electrification. It signed a letter of intent to build electric semi-chargers at the Pilot and Flying J truck stops in North America. The company has already started building these large heavy-lift platforms.