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Volvo Fined $1.5 Million by NHTSA for Delayed Reporting of Recalls

By Kelly Balamuth on July 6, 2012

A new report from Cars.com states that auto manufacturer Volvo received a hefty fine for failure to report safety defects. An investigation conducted by the U.S. National Highway Traffic Safety Administration (NHTSA), which began in January 2011, found that Volvo failed to issue a total of seven safety recalls within the amount of time required by law in 2010 and 2012. Under the guidelines of the National Traffic and Motor Vehicle Safety Act, automakers have five business days after determining a defect exists to notify the NHTSA or they may face civil penalties. According to the NHTSA, the seven recalls involved a total of 32,000 vehicles.

As the NHTSA reports that all seven recalls were not reported in a timely manner, Volvo Cars North America has agreed to pay $1.5 million penalty to settle the charge, and the fine will be paid directly to General Fund of the U.S. Treasury. In addition, Volvo Cars North America, LLC and its parent company Volvo Car Corporation have agreed to make “internal changes to its recall decision-making process” to ensure that the issue does not happen again and defects are reported in a timely manner, as reported by Nitrobahn.com. Several of the problems cited in the recalls include air bags that might not deploy properly, engines that could stall, and incorrect tire-pressure labeling.

Auto manufacturers are legally and ethically obligated to produce safe products and maintain the highest level of quality and testing during production. If a manufacturer does not and instead puts profit before safety, innocent consumers may be put in danger. The Walnut Creek auto product liability lawyers of Balamuth Law are committed to protecting the rights of consumers who have been harmed due to a dangerous auto product. To see how we can help you hold negligent manufacturers accountable, call (888) 254-1234 to schedule a free consultation.

Attorney Kelly Balamuth was profiled in the
September 2013 Issue of Plaintiff Magazine.

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