Volvo Pays $197 Million to Settle CARB Allegations

Volvo Emissions Settlement Reaches $197 Million in California Case

Volvo Group North America has agreed to a settlement worth nearly $197 million with California regulators. The agreement resolves allegations involving emissions certification requirements for more than 10,000 heavy-duty truck engines sold in the state.

The California Air Resources Board (CARB) announced the settlement on May 18. It covers certain model year 2010-2016 engines installed in Volvo Group trucks operating in California.

According to CARB, the case involved alleged violations of California emissions and certification laws tied to auxiliary emission control devices (AECDs) used in heavy-duty diesel engines. Regulators claimed those devices were not fully disclosed during the certification process and led to nitrogen oxide (NOx) emissions that exceeded state limits.

What California Regulators Alleged

CARB said the alleged violations involved more than 10,000 heavy-duty engines from model years 2010 through 2016 that operated in California.

The agency stated that certain emissions-control strategies were not fully disclosed or approved before the engines were sold. According to regulators, those undisclosed controls changed how the emissions systems operated and contributed to NOx emissions above California standards.

Nitrogen oxides are pollutants that contribute to smog and poor air quality. As a result, California enforces some of the strictest diesel-engine emissions standards in the country.

Volvo Says Settlement Resolves Disclosure Issues

In its own statement, the company said the settlement resolves allegations related to how certain emissions-control systems were described to CARB during the certification process.

The company said it conducted an internal review and found no evidence of bad faith or intentional misconduct. Volvo also noted that the settlement does not include an admission of liability.

In addition, Volvo said the case involves certification and disclosure issues rather than vehicle safety concerns. The company added that it plans to continue working with regulators and customers under the terms of the agreement.

How the $197 Million Volvo Settlement Is Structured

The settlement carries a total financial impact of approximately $196.5 million to $197 million.

According to CARB and Volvo, the agreement includes:

• $12.5 million in civil penalties
• $71 million for CARB’s Air Pollution Control Fund
• $108 million for emissions-reduction projects in California
• Approximately $5 million to cover CARB’s investigation and administrative costs

CARB said the emissions-reduction funding will support projects designed to offset air-quality impacts linked to the violations. Under the agreement, Volvo must submit a project plan to CARB within one year for review and approval.

Software Updates and Warranty Extension Planned

As part of the settlement, Volvo will provide software updates for affected engines. The company will also offer a partial warranty extension for about 7,200 model year 2014-2016 engines operating in California.

According to the settlement, the updates are intended to address emissions-control issues identified during the investigation.

Additional information about eligibility and implementation is expected as CARB and Volvo move forward with the agreement.

What It Means for Truck Owners

The settlement does not include an immediate recall. However, it affects thousands of heavy-duty engines currently operating in California.

Owners of affected trucks may receive information in the future regarding software updates and warranty coverage available under the settlement.

More broadly, the case highlights the ongoing focus on diesel-engine emissions compliance and certification requirements in California. Regulators continue to closely examine how emissions systems perform in both laboratory testing and real-world operating conditions.