Volvo Group settles with CARB for $196.5 million

Volvo Group North America reached a settlement with the California Air Resources Board (CARB) involving allegations regarding the adequacy of certain emissions controls on 2010-2016 engines. 

Volvo will pay $12.5 million in civil penalties, $71 million to CARB's Air Pollution Control Fund and will spend a further $108 million on California emission-reduction projects, and reimburse $5 million of CARB costs. Volvo's internal review found no evidence anyone acted in bad faith and there's no admission of liability in the settlement. 

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The company proactively disclosed the issues that were the subject of CARB concerns nearly a decade ago and has worked cooperatively with CARB to resolve the matter. Volvo Group will make available software updates and a partial warranty extension for about 7,200 2014-2016 engines in California as part of the settlement. 

Volvo says it's not aware of any additional investigations related to emissions compliance in the U.S. and that it always intended to comply with relevant regulations.