Volvo to pay fine

Volvo to pay $US1.5 million fine

Volvo will pay $US1.5 million ($A1.47 million) in civil penalties after US federal regulators say the car manufacturer failed to report safety defects in a timely manner.

THE National Highway Traffic Safety Administration on Tuesday announced that Volvo Cars North America LLC had agreed to make the payment.

In January 2011, NHTSA began investigating whether Volvo had adequately notified the agency about concerns regarding the improper or non-deployment of driver's side air bags in 35,000 model-year 2010 Volvos.

Eventually, the investigation would involve a review of six recalls in 2010 and another this year, uncovering "evidence that Volvo failed to report safety defects and noncompliances to the agency in accordance with federal law," NHTSA said.

According to the agency, Volvo did not report known safety defects to the government within five days as required by law.

As part of the settlement, Volvo will change its recall decision-making process and ensure timely reporting to consumers and the federal government.