Overview
- Volvo Group North America will pay $196.5 million to settle CARB allegations over how 2010–2016 truck engine emission controls were described in California.
- The package includes a $12.5 million civil penalty, $71 million for CARB’s Air Pollution Control Fund, $108 million for projects to cut emissions pending CARB approval within a year, plus $5 million to reimburse costs.
- Volvo will provide software updates and extend part of the warranty for about 7,200 model year 2014–2016 engines used in California.
- The company will book a $196.5 million charge to second‑quarter 2026 operating income, exclude it from adjusted results, and expects an $89 million cash outflow in the quarter with most remaining payments spread over five years.
- Volvo says it disclosed the issue years ago, found no bad faith in an internal review, agreed without admitting liability, and reports no other U.S. emissions investigations.