Volvo Faces $130 Million Penalty for Safety Concerns
On September 9, 1966, President Lyndon Johnson signed the Vehicle Safety Act into law, promising the American people to curb the increasing number of traffic deaths and accidents. During a speech, he compared the loss of American lives in car accidents to those in the Vietnam War, emphasizing the gravity of the situation and stating that safety must be considered a normal cost of doing business.
Fast forward to January 30, 2023, the National Highway Traffic Safety Administration (NHTSA) invoked the Vehicle Safety Act when they announced a consent order with Volvo Group North America. The consent order involved a $130 million civil penalty, one of the largest-ever penalties for violations of the Vehicle Safety Act. NHTSA Acting Administrator Ann Carlson stated in a statement that the agency would use their full authority to protect the public from safety defects and manufacturers who fail to comply with the law.