The U.S. Department of Transportation’s National Highway Traffic Safety Administration has fined Volvo Cars North America $1.5 million because NHTSA said the automaker failed to report safety defects to the federal government in a timely manner.
Volvo – once known for its safety reputation – now has the dubious distinction of joining Toyota Motor and BMW Group in paying penalties in recent years for not reporting defects or violations of U.S. regulations. Volvo will pay the fines into the General Fund of the U.S. Treasury; they will not go toward enforcement of U.S. Safety regulations.
The National Traffic and Motor Vehicle Safety Act requires all auto manufacturers to notify NHTSA within five business days of determining that a safety defect exists or that the manufacturer is not in compliance with federal motor vehicle safety standards – and to promptly conduct a recall.
In January 2011, NHTSA launched an investigation to determine whether Volvo met its obligation under the law to notify the agency of a safety defect and conduct a recall in a timely manner. NHTSA’s evaluation of six recalls issued in 2010 and one recall announced in 2012 found that Volvo failed to report the safety defects in violation of federal law.
As part of the settlement, Volvo Cars North America, and its parent company Volvo Car Corporation agreed to make internal changes to its recall decision-making process to ensure timely reporting to consumers and the federal government in the future.
“It’s critical to the safety of everyone on our roadways that automakers promptly report safety defects – and take immediate action to resolve the issue,” said NHTSA Administrator David Strickland. “NHTSA expects all manufacturers to obey the law and address automotive safety concerns without delay.”
