California Air Resources Board

SACRAMENTO – The California Air Resources Board (ARB) announced today that Volvo Motors of North America has agreed to provide extended warranty coverage for the electronic throttle module (ETM) that was factory-installed on approximately 356,000 passenger cars sold in the United States and Canada during model years 1999 through 2002. Premature failure of this emissions component could cause an increase in smog-forming emissions and also affect the drivability of the vehicle.

"We believe this is a fair resolution for Volvo owners in California and across the United States and Canada, as well," said Catherine Witherspoon, ARB Executive Officer. "This action protects car owners as their vehicles accumulate higher mileage and the potential for problems increases."

Warranty coverage on the vehicle's ETM will be extended from the original period of 7 years/ 70,000 miles (whichever occurs first) to a period of 10 years / 200,000 miles, and will be applicable to Volvo owners in the United States and Canada. The action grew out of California's emissions warranty reporting requirements, during which Volvo reported unusually high failure rates for the ETM. Manufactured by Magnetti Marelli and installed on specific Volvo models, the faulty ETM will be replaced at no charge to the vehicle owner if it fails within the extended warranty period. Additionally, a corrective software package for Volvo on-board computers will be available in early 2006 as part of this action.

As part of the agreement negotiated with the ARB, Volvo has established a reimbursement procedure for Volvo owners who may have experienced out-of-pocket expenses associated with a previous repair or replacement of the ETM.

Volvo will begin sending notices to alert all affected owners of the provisions of the extended warranty agreement on December 5, 2005. For more information, owners can contact Volvo's Customer Care Center at (800) 458-1552.