Volvo to pay $197 million to California to settle emissions violation case involving 10,000 truck engines

Volvo Group North America, LLC has agreed to pay nearly $200 million to settle California Air Resources Board (CARB) allegations of violations of emissions and certification requirements.

On May 18, 2026, Volvo announced it would pay close to $197 million to resolve CARB allegations regarding undisclosed auxiliary emission control devices (AECD).

Volvo’s settlement includes $12.5 million in civil penalties, $71 million to go towards CARB’s Air Pollution Control Fund, $108 million in California emission-reduction projects, and $5 million for reimbursement of CARB’s costs. 

CARB alleged that 10,000 Volvo model year 2010 through 2016 diesel engines used in heavy-duty trucks were equipped with “AECDs that were not adequately disclosed during the required emissions certification process,” in violation of California’s heavy-duty truck engine regulations.

“This case underscores why CARB’s compliance testing and strong enforcement are essential to protecting the state’s air quality and public health. Our responsibility goes beyond adopting regulations — we are committed to upholding them by identifying violations and holding companies accountable for meeting emissions standards,” said CARB Chair Lauren Sanchez.

Volvo said that an internal review “found no evidence that anyone acted in bad faith, and the settlement is explicitly without admission of liability.”

“Volvo Group proactively disclosed the issues that were the subject of CARB’s concerns nearly a decade ago and has worked cooperatively with CARB to resolve the matter. Volvo Group will make available software updates and a partial warranty extension for about 7,200 model year 2014-2016 engines in California as part of the settlement. The Volvo Group is not aware of any additional investigations related to its engines’ emissions compliance in the US,” the company said.