NHTSA Fines Volvo for Delaying Recalls

Volvo Car Corp. has agreed to pay a $1.5 million fine to the U.S. National Highway Traffic Safety Administration to settle charges that it failed to recall vehicles promptly. The company denies wrongdoing.

Volvo also promised to streamline its processes for investigating possible defects and deciding to launch a recall.

The penalties involve seven recalls covering about 32,000 vehicles in 2010 and 2012. About half those vehicles were recalled to fix air bags that might not deploy or stalling engines. In the case of the defective air bag system, Volvo notified NHTSA in May 2010 that it had discovered a "potentially critical" flaw and issued a technical service bulletin to dealers. The carmaker did not recall the vehicles until October.