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Volvo Recall Delays Cost Automaker $130 Million

» Posted April 12, 2023Resources | Share This Post

Volvo Group has been ordered to pay a $130 million fine for not recalling certain trucks in a timely manner.

The penalty, announced by the National Highway Traffic Safety Administration, is one of the largest fines ever imposed under current recall law in the U.S.

Volvo failed to comply with federal safety standards by delaying the recall of almost 500,000 trucks, according to NHTSA. A faulty component in the trucks could cause engines to shut down, among other problems.

“NHTSA will use the full scope of our authorities to protect the public from safety defects and from manufacturers that create potential safety problems by failing to comply with the law,” Ann Carlson, the agency’s acting administrator, said in a statement announcing the fine.

Investigators, who started looking into the situation in 2018, found that Volvo knew about the problem for two years before launching a recall. 

In addition to the fine, Volvp will be required to develop and implement a safety compliance and oversight program to prevent failures in the future. The company has also stated that it will fully cooperate with the NHTSA to ensure that all affected vehicles are repaired.

“We look forward to continuing our close work with NHTSA to identify and close any compliance gaps,” Volvo told Reuters. “Wide-ranging improvements in our North American safety processes and systems are already underway."

This is not the first time that Volvo has been fined over safety violations. In 2019, the company was ordered to pay a $70 million fine for failing to report safety defects in a timely manner.

Carmakers Drag Their Feet on Recalls

The Volvo situation highlights the importance of timely and effective recalls to ensure the safety of consumers and other road users. 

Unfortunately, automakers often seem to take their sweet time in issuing critical recalls. They often announce recalls long after the defective vehicles have left factory floors and dealership lots, sold to unsuspecting buyers.

The good news for Volvo and other car owners in California is that you do not need to wait around for a recall to get a defective vehicle fixed. The state’s lemon law provides some valuable rights and protections.

The lemon law generally requires carmakers to perform various repairs on vehicles while they are under warranty. It also forces them to buy back covered vehicles that they are not able or refuse to fix. That includes compensating the owner for the car’s purchase price, as well as financing fees, rental car costs and other related expenses.

There is no specific number of repair requests or attempts that must happen before the buyback or replace requirement kicks in. An experienced lemon law attorney can help you understand your rights and take action.

Talk with a California Lemon Law Attorney

If you have been stuck with a defective or malfunctioning vehicle, a California lemon law attorney at Bickel Sannipoli APC can help you fight back.  

Call us at (888) 800-1983 or contact us online to speak with a California lemon law attorney.

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Posted By: Rick Mills