Volvo to challenge $72M penalty image

Volvo AB is planning to appeal a $72 million penalty that is imposed on the truck-engine unit of the manufacturer.

A few days before a federal judge stated that the company had violated a 1999 emissions-control agreement. The company was having an agreement with the U.S. Environmental Protection Agency. However, Volvo Powertrain Corporation is now looking for reversal of the ruling made on April 13 that it gave away a consent decree to the heavy-duty diesel engines about their emissions standards.

Also, the U.S. District Judge Royce Lamberth had ruled that almost 8,354 engines were not following the emission standards.
The company spokesperson shared that they believe the consent decree provided to them covers few engines that are specifically referenced. Most of them are Volvo Construction Equipment non-road and Volvo Powertrain on-highway engines.

Other than Volvo there are six more manufacturers dealing in heavy diesel engines who have agreed to shell out $1 billion to settle charges laid on them. When announced, the settlement, which was approved by a federal judge in 1999, it was the one of the biggest environmental enforcement penalties.