Volvo Fined $1.5 Million for Not Reporting Safety Defects

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.”

About Ken Zino

Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
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