Volvo Hit With $1.5M NHTSA Fine For Late Recalls

July 5, 2012

Volvo Cars North America will have to pay $1.5 million in fines as a result of seven late recalls since 2010. That’s according to the National Highway Traffic Safety Administration (NHTSA) which on Tuesday ordered Volvo to pay the civil penalties to settle claims that the company failed to report safety defects in a timely manner.

As required by the National Traffic and Motor Vehicle Safety Act, all auto manufacturers must notify within five business days of determining that a safety defect exists or that they are in noncompliance with federal motor vehicle safety standards (FMVSS) and to “promptly” conduct a recall.

In January 2011, the NHTSA launched an investigation to determine whether Volvo had met its obligation under the law to notify the agency of a safety defect and to conduct a recall.

2012 Volvo XC60

2012 Volvo XC60

Enlarge Photo

The NHTSA statement said the agency’s evaluation of the seven recalls, six of which occurred in 2010 and one in 2012, found that Volvo failed to report safety defects and noncompliance in accordance with law.  The seven recalls covered approximately 32,000 vehicles, according to The Detroit News. The largest recall evaluated involved 11,168 2012 model Volvo S60, XC60, S80 and XC70 models over potentially improperly attached front seat wiring harnesses.

Volvo Cars North America and its parent company Volvo Car Corporation (owned by Chinese manufacturer Zhejiang Geely Holding Group Co.), agreed to make internal changes to its recall decision-making process to ensure timely reporting in the future.

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