Following an investigation into the company’s recall practises, AB Volvo, a manufacturer of professional quality trucks and buses, agreed to a $130 million civil penalty imposed by the United States National Highway Traffic Safety Administration (NHTSA). The NHTSA determined that AB Volvo violated the recall regulation by failing to recall vehicles in a timely way. The company has agreed to a three-year consent order that includes one of the largest-ever penalties for violations of recall laws.
AB Volvo’s North American unit, which owns several bus and truck brands including Mack Trucks and Prevost Car, has agreed to an independent third-party audit and will meet with NHTSA on a regular basis to ensure any potential safety issues are addressed. The company has stated that it appreciates the opportunity to resolve the matter and that improvements to its North American safety processes and systems are already underway.
In October 2018, the NHTSA launched an investigation into AB Volvo’s recall compliance, including timeliness, producer communications, and early warning reporting. The examination discovered that the corporation neglected to submit certain quarterly recall reports and producer communications, as well as some death and injury events and field reports.
AB Volvo will pay $65 million within 60 days and another $45 million if the settlement is not followed. In addition, the company is investing $20 million in the development of a safety data analytics infrastructure to improve its ability to detect and investigate potential safety flaws. The third-party auditor will review all recalls since July 2013 and recommend any changes that are necessary. If necessary, the NHTSA has the authority to extend the settlement for up to two years.
Finally, AB Volvo’s agreement to pay a $130 million civil penalty and to be audited by a third party serves as a reminder of the importance of adhering to recall regulations in order to ensure public safety.
