NHTSA initiated an investigation into Volvo in October 2018, looking into their recall timeliness, manufacturer communications, and early warning reporting requirements. The investigation revealed that Volvo did not comply with recall notification requirements, failed to submit certain quarterly recall reports, did not submit certain manufacturer communications, and failed to comply with early warning requirements by not reporting certain deaths and accidents.
As part of the settlement, Volvo Group North America must pay $65 million within 60 days and an additional $45 million if they violate the agreement. The company will also spend $20 million to develop a safety data analytics infrastructure to enhance their ability to detect and investigate potential safety defects. Furthermore, the company will create written procedures and training for their employees on compliance with the Vehicle Safety Act and agree to oversight by an independent third-party auditor. They will also meet regularly with NHTSA to address any potential safety concerns.
