Volvo Pays $197M California Settlement for Undisclosed Emissions Controls

Key Details Volvo Group North America has agreed to pay nearly $197 million to settle California Air Resources Board (CARB) allegations involving 10,000 diesel truck engines. The May 2026 settlement addresses charges that model year 2010-2016 engines used undisclosed auxiliary emission control devices (AECDs) during the certification process. Breakdown of Settlement The payment includes $12.5 million in civil penalties, $71 million for CARB's Air Pollution Control Fund, $108 million directed to California emission-reduction projects, and $5 million reimbursing CARB's investigation costs. Volvo will provide software updates and partial warranty extensions for approximately 7,200 model year 2014-2016 California engines. Volvo's Response The company stated an internal review found no evidence of bad faith and emphasized the settlement includes no admission of liability. Volvo noted it proactively disclosed the issues nearly a decade ago and cooperated with CARB throughout the process. The company confirmed it is unaware of additional U.S. emissions investigations related to its engines. Why It Matters This settlement reinforces California's strict enforcement of heavy-duty truck emissions standards. For drivers, it demonstrates regulators' commitment to protecting air quality while highlighting the importance of maintaining certified emission equipment.