Volvo Settles California Emissions Case With CARB Over Truck Engine Controls

Volvo Group North America announced on May 18 that it has finalized a settlement agreement with the California Air Resources Board regarding allegations linked to the description of certain emission control systems used on model year 2010-2016 engines installed in Volvo Group trucks sold in California. The agreement resolves concerns raised by the regulator after a long-running review connected to heavy-duty vehicle emissions compliance in the state.

Under the terms of the settlement, the company will pay USD 12.5 million in civil penalties and contribute USD 71.0 million to CARB’s Air Pollution Control Fund. In addition, Volvo has committed to investing USD 108 million into emission-reduction projects within California. The proposed environmental projects will be submitted to CARB for approval within one year as part of the compliance process established under the agreement.

Settlement Components and Financial Commitments

The settlement package also includes reimbursement of USD 5 million toward costs incurred by CARB during the investigation and resolution process. Volvo stated that the agreement was reached without any admission of liability. The company emphasized that it has cooperated with regulators throughout the investigation period and worked toward a mutually agreed resolution focused on environmental improvements and future compliance measures.

To address the issue further, Volvo will provide software updates and introduce a partial warranty extension program covering approximately 7,200 model year 2014-2016 engines operating in California. The company indicated that these measures are intended to support vehicle owners affected by the settlement while ensuring continued compliance with emissions-related operational standards.

Breakdown of Volvo’s California Settlement Measures

The following table outlines the major financial and operational elements included in the settlement agreement between Volvo and CARB.

Volvo stated that its own internal review did not identify evidence of employees acting in bad faith. According to the company, the issues connected to CARB’s concerns were proactively disclosed nearly a decade ago. Since that time, Volvo said it has maintained cooperation with regulators while working toward a final settlement that addresses operational, environmental, and customer-related considerations linked to the affected engines.

Frequently Asked Questions

What is the Volvo California emissions settlement about?
The settlement addresses allegations related to how certain emission control systems were described on Volvo Group truck engines sold in California between model years 2010 and 2016. Volvo agreed to financial penalties, environmental project investments, software updates, and warranty support measures without admitting liability. The agreement also includes contributions to CARB’s Air Pollution Control Fund and reimbursement of investigation-related costs. Volvo stated that it cooperated with regulators throughout the process and proactively disclosed the issues several years ago during its internal review activities.

What actions will Volvo take under the CARB agreement?
Volvo will implement multiple corrective and environmental measures as part of the settlement agreement with CARB. These include civil penalty payments, funding for California emission-reduction projects, software updates for affected truck engines, and partial warranty extensions for approximately 7,200 engines from model years 2014-2016. The company must also submit a detailed plan for emission-reduction investments within one year for CARB approval. Volvo said the measures are intended to strengthen compliance efforts and support customers operating affected vehicles in California.