Volvo Group North America settles CARB emissions case for USD 196.5 million impact

  • AB Volvo’s North America unit reached a settlement with the California Air Resources Board over engine emissions compliance issues.
  • The deal totals USD 196.5 million, including USD 12.5 million in civil penalties, USD 71 million paid to CARB’s Air Pollution Control Fund, USD 108 million earmarked for California emission-reduction projects, and USD 5 million to reimburse CARB costs.
  • Second-quarter 2026 operating income will take a USD 196.5 million hit, excluded from adjusted operating income; operating cash flow will fall USD 89 million, with remaining cash outflows 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 group flagged no additional US emissions compliance investigations tied to its engines.


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