Volvo Recall: Car Manufacturer Fined $1.5 Million

    July 10, 2012
    WebProNews Staff
    Comments are off for this post.

Volvo recall: Although the car manufacturer is thought to produce some of the safest automobiles money can buy, apparently even they are prone to making mistakes. Between 2010 and 2012, the company recalled roughly 32,000 vehicles for a variety of issues, including incorrect tire-pressure labeling, defective airbag deployments, and stalling engines. Although the company eventually alerted consumers about the recalls, the National Highway Traffic Safety Administration thought Volvo’s handling of the situation was a little on the slow side. At the end of the day, the company will have to fork over $1.5 million in fines.

Of course, Volvo isn’t admitting that it did anything wrong. In fact, the reason they decided to pay the fine was to “avoid a protracted dispute and possible litigation”. In other words, spending $1.5 million is quite a bit cheaper than fighting the allegations in court. Lawyers are, after all, a tad expensive, especially when you can just pay a small amount of money to make the problem go away. When you make as much money as Volvo does on a yearly basis, $1.5 million is practically chump change. They’ll make that much back in a heartbeat.

According to federal law, car manufacturers have five business days to inform the National Highway Traffic Safety Administration about an impending recall. If they fail to do so, fines will be issued. This, of course, is why Volvo was staring down a multi-million dollar penalty in the first place. They failed to take the proper steps when the threat of a recall was looming on the horizon, and they ultimately paid the price for their actions.

So did the company walk away with a head full of lessons learned? According to a statement, Volvo said that “dedication to quality and consumer safety is paramount. After several conversations with NHTSA about its reporting rules, Volvo Car Corp. has taken steps to improve the review process and analysis of potential quality and safety issues with our vehicles. We are in agreement with NHTSA’s objective to communicate with the agency and consumers in a timely manner. It’s important to note that, in each of the subject cases, a voluntary recall had been conducted and no injuries, fatalities or property damage claims were reported.”

In short, probably not. Unless, of course, the lesson was to not get caught doing anything wrong. However, the settlement did say that Volvo has “streamlined the internal investigation and recall decision-making process to improve the timeliness of necessary notifications to NHTSA.”

  • CDF

    Volvo’s a dead brand. You’d have to be brain-dead to buy one new.

    • christopher irby

      i thought they had more problems when they were with Ford.. The volvo s80 1999-2003 was terrible.

    • scpope

      Sales up 20% in 2011 means a dead brand?

    • Tomasie

      I kind of agree with you. You’d have to be brain dead to buy ANY new car. I bought a pre owned Volvo in 2008. The car had a better warranty than a new one! It’s now 2012 and I have 120,000 miles. No problems. Thing runs like one of my Toyotas! Wish I could say the same about my VW. That thing was always in the shop.

    • George

      Yes, I know that Volvo is owned by the Chinese now, yet Volvos still possess a sense of style, and that counts for something. Judging from their current models, Sweden must still do most of the design work. I mean, you really can’t mistake a Volvo for a Honda or Toyota. And, can you really compare the looks of a Honda Pilot to a new S60? My two cents, but I opt for aesthetics over reliability in most cases.

  • George

    Despite all this, some of the new Volvos are beautiful to look at… makes Toyotas and Hondas look like a ham sandwich. I’d rather contact bird flu than drive one of those bland Asian boxes.

    • mike

      Um, George….Volvo is now owned by the Chinese. This article would have been whole lot more informative if the author had shown how these problems link or don’t link to Chinese management. I drive a 1995 960 (Made in Sweden by the REAL Volvo Corp) with over $250,000 miles and it runs like a top. It gets regular maintenance from a Volvo Certified place and it has been across country several times. In September we paln to drive it from Chicago to British Columbia. I don’t believe that today’s Chinese made Volvos are anything even remotely comparable to the original.

  • MJ

    I’ve had 2 Volvo V70s…no issues. My current one has 130,000+ miles and never has had any problems. My husband’s Mazda has been in the shop 2X with issues and he has less than 40,000 miles!

    • http://www.paytonsmom.blogspot.com delicia

      Ford owns Mazda, any product Ford touches turns to crap, and your lucky to get out alive. I received a recall notice 9 months after my son burned alive driving a Lincoln. A 21.00 part was defective, but Ford chose to delay the recall for a decade, hoping the switches would not be found after the car fires.

  • dave

    We had a 2001 V70 Volvo wagon. The sunroof EXPLODED while we were driving on I25 in Denver. Glass in our eyes, down our shirts in the seat – everywhere. Only car I’ve ever had that tried to kill me!

    • http://www.paytonsmom.blogspot.com delicia

      Ford Motor Company owned Volvo in 2001 and A Lincoln did kill my son, burned him and his girlfriend alive, count your blessings, and stay away from anything Ford Motor Company touches.

  • http://www.paytonsmom.blogspot.com delicia

    Anything that Ford Motor Company puts it’s finger into turns into a disaster. I use to love Volvo’s but even though Ford no longer owns a share of Volvo the fingerprint is still there. Ford tampers with products, for the simple reason lower coat more money for the big boys. Ford does not care about the safety of it’s consumers, like the old Volvo Company did.

  • eric

    as long as the volvo you buy is out of gutenburg sweden, which they all are now, your still getting a volvo. if volvo splits and has the western market volvo produced in sweden and the asian market in china we will still get a volvo. but if cars start comming out of china they can kiss the american market good bye. hell they were plowing fields with mules 15 years ago. that makes it imposible for china to make a volvo we americans have come to love. bummer.this is what i hate about the stock market. two great auto manufactures in sweden will more than likly be done. the volvo coming dowm the pike looks like a chinnesse car, certainly not a scandinavian rig.