• AB Volvo’s Volvo Group North America reached a settlement with the California Air Resources Board over allegations tied to disclosures about emission controls on 2010-2016 engines sold in California.
• The agreement calls for USD 12.5 million in civil penalties, USD 71 million to an air-pollution fund, USD 108 million in California emission-reduction projects, and USD 5 million in cost reimbursement.
• Operating income in Q2 2026 will take a USD 196.5 million hit, excluded from adjusted operating income; operating cash flow will fall USD 89 million in the quarter, with remaining cash impacts spread over five years.
• The settlement includes software updates and a partial warranty extension for about 7,200 model year 2014-2016 engines in California.
• The company said the settlement is without admission of liability and it is not aware of additional US emissions compliance investigations.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. AB Volvo published the original content used to generate this news brief via Cision (Ref. ID: 202605181200BITN____UKPR__EN_20260518-BIT-3763-0) on May 18, 2026, and is solely responsible for the information contained therein.