Volvo Group Semi Truck Maker Reaches $130M Consent Order With NHTSA

Volvo Group North America reached a consent order with the National Highway Traffic Safety Administration because the company where the company agreed to pay as much as $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 that produces automobiles.

According to NHTSA:

The action follows an investigation that found the company failed to recall vehicles in a timely fashion and to comply with other recall and reporting requirements, including notifying owners of recalls and reporting death and injury incidents. The consent order includes a total civil penalty of $130 million, one of the largest-ever penalties for violations of the Vehicle Safety Act.

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Volvo Group North America will make an immediate $65 million payment under the terms of the consent order. A $45 million payment will be deferred in case of additional violations, but the company will potentially get this money back if the business meets all of the agreed requirements. The final $20 million will be for creating a safety data analytics infrastructure.

As part of the agreement, Volvo Group North America has to make several changes, and there will be oversight from an independent third-party auditor. It will have to hold regular meetings with NHTSA to discuss potential safety concerns. The company will have to train employees about compliance with the Vehicle Safety Act. An update to the truck maker’s website will let users search for recalls for their vehicles.

NHTSA will watch Volvo Group North America for three years. The government agency has the option to extend the period for two additional years, if necessary.

Motor1.com reached out to Volvo Group North America for a comment about this agreement. At publication, the company hadn’t yet responded.

Volvo Group is taking steps toward electrification. It signed a letter of intent to build electric semi chargers at Pilot and Flying J truck stops in North America. The company already started building these heavy-hauling big rigs.