Volvo, the Swedish automaker that built its reputation upon occupant safety, has just been charged with a $1.5 million fine from the National Highway Traffic Safety Administration (NHTSA) for its failure to report safety issues and defects in a timely manner.
According to the NHTSA, Volvo, which is currently owned by China's Geely, has tried to conceal safety defects during seven recalls. Six of these recalls occurred in 2010 while the last one was issued earlier this year.
Even though Volvo acknowledged and apologized for the delays, the company denied any wrongdoing and defended that delays were not intended to cause harm. That said, Volvo will pay the $1.5 million penalty to "avoid a protracted dispute and possible litigation."
In a statement, Volvo said, "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,k in each of the subject cases, a voluntary recall has been conducted and no injuries, fatalities or property damage claims were reported."
In total, Detroit News has reported that 31,000 vehicles are affected by the seven recalls.
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