Volvo Group agrees to $197 million settlement with California over excess truck emissions

Reuters

Mon, May 18, 2026 astatine 12:42 PM CDT 1 min read

HELSINKI/WASHINGTON, May 18 (Reuters) - Truckmaker Volvo Group connected Monday agreed to a $197 cardinal colony with the California Air ‌Resources Board implicit alleged violations of the state's ‌heavy-duty motor regulations.

The colony resolves allegations that Volvo failed to decently disclose ​auxiliary emanation power devices successful implicit 10,000 of its 2010-2016 exemplary twelvemonth heavy-duty engines successful California that resulted successful emissions successful excess of regulatory limits, CARB said.

Volvo volition wage $13 ‌million successful civilian ⁠penalties, $71 cardinal to CARB’s Air Pollution Control Fund, walk $108 cardinal connected California emissions‑reduction projects and ⁠reimburse $5 cardinal of CARB’s costs, the truckmaker said.

• As portion of the settlement, Volvo volition marque bundle updates and a ​partial warranty ​extension disposable for astir ​7,200 engines successful California.

• CARB ‌said Volvo acted transparently and successful bully religion successful explaining and improving emissions power devices and afloat cooperated with the authorities investigation.

• Volvo said the colony is without admittance of liability and that an interior reappraisal recovered ‌no grounds of atrocious faith.

• The ​company said it would instrumentality a $197 ​million complaint to ​its second-quarter operating results that volition beryllium excluded ‌from adjusted operating income and ​that the ​operating cash-flow interaction successful the ongoing 4th would beryllium $89 million, with the remaining currency outflows dispersed implicit the ​next 5 years.

• ‌The Volvo Group volition study its second-quarter results ​on July 17.

(Reporting by Essi Lehto and David ​Shepardson, editing by Tomasz Janowski)