Overview
- The agreement totals $196.5 million, including $12.5 million in civil penalties, $71 million for CARB’s Air Pollution Control Fund, $108 million for state emissions projects, and $5 million to reimburse CARB costs.
- CARB said Volvo did not fully disclose auxiliary emission control devices on 2010–2016 engines, which the agency alleged led to higher real‑world nitrogen oxide emissions than California allows.
- Volvo will offer software updates and a partial warranty extension for about 7,200 model year 2014–2016 engines in California, and it says the engines have no performance or safety issues.
- Volvo will book the full charge to second‑quarter 2026 operating profit, exclude it from adjusted results, and expects an $89 million cash outflow in Q2 with the rest spread over five years.
- The case extends a string of large CARB actions against truck makers such as Hino and Cummins, highlighting a split between California’s strict approach and looser federal moves on heavy‑duty emissions.