Volvo Group North America Reaches Settlement with California Air Pollution Authority
By Nina Kienle
Volvo Group North America said it reached a settlement including payments totaling $196.5 million with the California Air Resources Board related to allegations surrounding the description of emission controls on model year 2010-2016 engines.
The Swedish truck maker on Monday said that while its internal review found no evidence to support the allegations, it had agreed to pay $12.5 million in civil penalties.
It also agreed to pay $71.0 million to CARB's air pollution control fund, to spend $108 million on California emission-reduction projects, and to reimburse $5 million of CARB's costs, the group said.
As part of the settlement, software updates and partial warranty extensions of around 7,200 model year 2014-2016 engines in California will be made available, it said.
Volvo said that as a result, its second quarter operating income will take a $196.5 million hit--which will be excluded from adjusted operating income.
In addition, operating cash flow will be reduced by $89 million, it said.
Write to Nina Kienle at nina.kienle@wsj.com
(END) Dow Jones Newswires
May 18, 2026 12:49 ET (16:49 GMT)
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