Volvo Group agrees to $197 million settlement with California over excess truck emissions
Truckmaker Volvo Group has agreed to a $197 million settlement with the California Air Resources Board (CARB) over alleged emissions violations. The agreement was announced on Monday.
The settlement resolves allegations that Volvo failed to properly disclose auxiliary emission control devices in more than 10,000 of its 2010-2016 model year trucks.
The $197 million agreement includes several components. Volvo will pay $13 million in civil penalties. An additional $71 million will be directed to CARB's Air Pollution Control Fund.
The company will also spend $108 million on California emissions-related projects as part of the settlement.
Volvo Group is expected to take a $197 million earnings hit as a result of the settlement.
CARB reached the settlement with Volvo Group North America, LLC, which is based in Greensboro, North Carolina. The agreement was finalized in June 2022.