Discrepancies in Required CFR Reporting

On October 22, 2018, an Audit Query (AQ18-005) was opened to assess the completeness and timeliness of Volvo Group's early warning reporting, safety recalls, and communications submissions to the agency. NHTSA's investigation determined that Volvo Group failed to recall vehicles in a timely fashion and to comply with other recall and reporting requirements, including notifying owners of recalls and reporting death and injury incidents. NHTSA and Volvo Group entered into a Consent Order on January 27, 2023 to resolve AQ18-005. As part of the Consent Order, Volvo Group agreed to a total civil penalty of one-hundred and thirty million dollars ($130,000,000), of which, sixty-five million dollars ($65,000,000) was paid on February 21, 2023. Also, of that total civil penalty, Volvo Group agreed to spend twenty million dollars ($20,000,000) on the specific performance obligation to create a safety data analytics infrastructure to detect and study emerging safety-related defect trends on its vehicles. The Consent Order also holds forty-five million dollars ($45,000,000) of the civil penalty in abeyance pending Volvo Group's satisfactory completion of the requirements of this Consent Order, and its compliance with the Safety Act, and regulations thereunder. The Consent Order is for a three-year term and may be extended by up to two years if NHTSA reasonably finds that an extension is warranted. In the Consent Order, Volvo Group agreed to several performance obligations, including enhanced oversight of its compliance with the Safety Act and the terms of the Consent Order through a third-party auditor and regular meetings with NHTSA. The third-party auditor will recommend and oversee implementation of process improvements to enhance Volvo Group's safety compliance processes and oversee the company's review of past recalls and submissions to NHTSA for accuracy and completeness. Also, via the Consent Order, Volvo Group agreed to create updated written policies, procedures, and t