Swedish premium carmaker Volvo has agreed to pay a US$1.5 million (€1.2 million) fine to settle U.S. government allegations that the company’s North American division failed to report safety defects and noncompliances to federal regulators in a timely fashion.
The fines received from Volvo, a company that prides itself on its reputation for safety, will be paid into the General Fund of the U.S. Treasury.
The National Highway Traffic Safety Administration (NHTSA) launched an investigation on the matter in January of 2011 and found that Volvo Cars North America failed to meet federal requirements that known defects be reported within five business days in seven cases, including six in 2010 and one in 2012.
“With millions of vehicles traveling our highways every single day, we take our responsibility to safeguard the driving public very seriously and we expect automakers to do the same,” said U.S. Transportation Secretary Ray LaHood. “Manufacturers are required to handle any safety issues both quickly and appropriately,” he added.
The NHTSA said that as part of the settlement, Volvo Cars North America, LLC and its parent company Volvo Car Corporation agreed to make internal changes to its recall decision-making process to ensure that this won’t happen again.
Earlier this year, the NHTSA dropped a $3 million fine on BMW for delays in reporting safety defects and recalls to auto regulators.
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