R10217 BCM2 Diagnostic Error May Cause A Loss of ABS, ESC – 2023 Volvo S60, V60, V60CC, V90CC, XC60, XC90, XC40, & C40

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OMB Control No.: 2127-0004 Part 573 Safety Recall Report 23V-012 The information contained in this report was submitted pursuant to 49 CFR §573 Manufacturer Name : Volvo Car USA, LLC Submission Date : JAN 19, 2023 NHTSA Recall No. : 23V-012 Manufacturer Recall No. : R10217 Manufacturer Information : Manufacturer Name : Volvo Car USA, LLC Address : 270 Three Point Drive Ridgeville SC 29472 Company phone : 201-768-7300 Population : Number of potentially involved : 27,457 Estimated percentage with defect : 100 % Vehicle Information : Vehicle 1 : 2023-2023 Volvo S60 Vehicle Type : LIGHT VEHICLES Body Style : 4-DOOR Power Train : GAS Descriptive Information : The recall population is determined via the serial number of the affected (Hardware) HW of BCM2. The recall products have a different Gated Driver Unit in the (Brake Control Module 2) BCM2. Concerned vehicles are Model Year 2023 S60, V60, V60CC, V90CC, XC60, XC90, XC40 and C40. There are 27,457 total affected vehicles. Production Dates : APR 11, 2022 – JAN 13, 2023 VIN Range 1 : Begin : 7JRH60FA1PG235043 End : 7JRL12TXXPG239279 ✔ Not sequential Vehicle 2 : 2023-2023 Volvo V60 Vehicle Type : LIGHT VEHICLES Body Style : STATIONWAGON Power Train : GAS Descriptive Information : The recall population is determined via the serial number of the affected (Hardware) HW of BCM2. The recall products have a different Gated Driver Unit in the (Brake Control Module 2) BCM2. Concerned vehicles are Model Year 2023 S60, V60, V60CC, V90CC, XC60, XC90, XC40 and C40. There are 27,457 total affected vehicles. Production Dates : APR 11, 2022 – JAN 13, 2023 VIN Range 1 : Begin : YV1H60EP0P1530474 End : YV1H60EPXP1536816 ✔ Not sequential Part 573 Safety Recall Report 23V-012 Page 2 The information contained in this report was submitted pursuant to 49 CFR §573 Vehicle 3 : 2023-2023 Volvo V60CC Vehicle Type : LIGHT VEHICLES Body Style : STATIONWAGON Power Train : GAS Descriptive Information : The recall population is determined via the serial number of the affected (Hardware) HW of BCM2. The recall products have a different Gated Driver Unit in the (Brake Control Module 2) BCM2. Concerned vehicles are Model Year 2023 S60, V60, V60CC, V90CC, XC60, XC90, XC40 and C40. There are 27,457 total affected vehicles. Production Dates : APR 11, 2022 – JAN 13, 2023 VIN Range 1 : Begin : YV4L12WB8P2109302 End : YV4L12WZXP2109492 ✔ Not sequential Vehicle 4 : 2023-2023 Volvo V90CC Vehicle Type : LIGHT VEHICLES Body Style : STATIONWAGON Power Train : GAS Descriptive Information : The recall population is determined via the serial number of the affected (Hardware) HW of BCM2. The recall products have a different Gated Driver Unit in the (Brake Control Module 2) BCM2. Concerned vehicles are Model Year 2023 S60, V60, V60CC, V90CC, XC60, XC90, XC40 and C40. There are 27,457 total affected vehicles. Production Dates : APR 11, 2022 – JAN 13, 2023 VIN Range 1 : Begin : YV4062NB1P1163651 End : YV4062NZXP1163936 ✔ Not sequential Vehicle 5 : 2023-2023 Volvo XC60 Vehicle Type : LIGHT VEHICLES Body Style : SUV Power Train : GAS Descriptive Information : The recall population is determined via the serial number of the affected (Hardware) HW of BCM2. The recall products have a different Gated Driver Unit in the (Brake Control Module 2) BCM2. Concerned vehicles are Model Year 2023 S60, V60, V60CC, V90CC, XC60, XC90, XC40 and C40. There are 27,457 total affected vehicles. Production Dates : APR 11, 2022 – JAN 13, 2023 VIN Range 1 : Begin : YV4062RA0P1283426 End : YV4L12RXXP1323530 ✔ Not sequential Vehicle 6 : 2023-2023 Volvo XC90 Vehicle Type : LIGHT VEHICLES Body Style : SUV Power Train : GAS Descriptive Information : The recall population is determined via the serial number of the affected (Hardware) HW of BCM2. The recall products have a different Gated Driver Unit in the (Brake Control Module 2) BCM2. Concerned vehicles are Model Year 2023 S60, V60, V60CC, V90CC, XC60, XC90, XC40 and C40. There are 27,457 total affected vehicles. Production Dates : APR 11, 2022 – JAN 13, 2023 VIN Range 1 : Begin : YV40621A0P1936719 End : YV4L12PVXP1962301 ✔ Not sequential Part 573 Safety Recall Report 23V-012 Page 3 The information contained in this report was submitted pursuant to 49 CFR §573 Vehicle 7 : 2023-2023 Volvo XC40 Vehicle Type : LIGHT VEHICLES Body Style : HATCHBACK Power Train : GAS Descriptive Information : The recall population is determined via the serial number of the affected (Hardware) HW of BCM2. The recall products have a different Gated Driver Unit in the (Brake Control Module 2) BCM2. Concerned vehicles are Model Year 2023 S60, V60, V60CC, V90CC, XC60, XC90, XC40 and C40. There are 27,457 total affected vehicles. Production Dates : APR 11, 2022 – JAN 13, 2023 VIN Range 1 : Begin : YV4ED3UK0P2005802 End : YV4L12UXXP2993886 ✔ Not sequential Vehicle 8 : 2023-2023 Volvo C40 Vehicle Type : LIGHT VEHICLES Body Style : HATCHBACK Power Train : HYBRID ELECTRIC Descriptive Information : The recall population is determined via the serial number of the affected (Hardware) HW of BCM2. The recall products have a different Gated Driver Unit in the (Brake Control Module 2) BCM2. Concerned vehicles are Model Year 2023 S60, V60, V60CC, V90CC, XC60, XC90, XC40 and C40. There are 27,457 total affected vehicles. Production Dates : APR 11, 2022 – JAN 13, 2023 VIN Range 1 : Begin : YV4ED3GK0P2033997 End : YV4ED3GMXP2048850 ✔ Not sequential Description of Defect : Description of the Defect : A certain diagnostic test case that checks the grounding may put the BCM2 in a faulty state potentially resulting in a loss of brake support functions. FMVSS 1 : NR FMVSS 2 : NR Description of the Safety Risk : A reduction in brake support functions can increase the risk of a crash. Description of the Cause : Lack of robustness in software compatibility with a specific BCM2 HW version. Identification of Any Warning that can Occur : This deviation may not occur during an ongoing brake event. If the deviation occurs the system will always enter hydraulic fallback ensuring that the vehicle maintain braking capability. The customer may experience a hard/stiff brake pedal and potential loss of brake support functions such as: • Brake-by-wire. • ABS, ESC, and traction control. • ACC (Adaptive Cruise Control), Pilot assist and OPD (One pedal drive) • All active safety and city safety functions described in the user manual that involve braking Part 573 Safety Recall Report 23V-012 Page 4 The information contained in this report was submitted pursuant to 49 CFR §573 The driver display will always warn the customer with DIM messages and malfunction indication lamps if this issue occurs. This is an intermittent issue, and the faulty state will remain through the drive cycle until the vehicle enters deep sleep. Volvo Cars centrally has not received any reports alleging injuries, fatalities, or crashes related to this condition. Involved Components : Component Name 1 : BCM2 Component Description : NR Component Part Number : NR Supplier Identification : Component Manufacturer Name : Continental Automotive Technologies Address : Guerickestrasse 7 Frankfurt Foreign States 604 41 Country : Germany Chronology : Considered as a critical concern by critical management team 2023.01.11; Field service action decision confirmed by Volvo Car Corporation 2023.01.18; Condition detected by market vehicle report; Number of vehicle reports with the conditions, reported to Volvo Cars from National Sales Company 68; Total number of cars included in Vehicle reports concerning the condition 71; Implementation date of Field Service Action 2023.01.19; In the beginning of October Volvo cars received the first report indicating issues with the brake pedal. In the middle of October one additional report was received indicating a similar issue. The reports increased during November and an investigation was initiated to review the customer symptom and a possible common root cause. In December the investigation was escalated to the Critical Concern Action Process (CCAP), the issue was concluded as potentially critical and the Critical Concern Management Team (CCMT) initiated a technical investigation to conclude customer symptom, risk assessment, testing, root cause etc. Part 573 Safety Recall Report 23V-012 Page 5 The information contained in this report was submitted pursuant to 49 CFR §573 On the 11th of January the technical investigation was completed, the CCMT team took the decision to start a recall preparation as it was judged as an increased risk towards motor vehicle safety. Description of Remedy : Description of Remedy Program : To remedy concerned vehicles, Volvo Cars will update the vehicle software with a new logic in the BCM2. This software update will also be available via OTA release at a later date. How Remedy Component Differs from Recalled Component : Concerned vehicles are certain model year 2023 S60, V60, V60CC, V90CC, XC60, XC90, XC40 and C40 vehicles. Introduction of the new BCM2 HW occurred on 2022.08.15. The previous HW was depleted therefore the introduction date varies between production plants. The new SW was introduced on 2023.01.12. Identify How/When Recall Condition was Corrected in Production : The production fix is software and will be implemented on February 20th, 2023. Recall Schedule : Description of Recall Schedule : Remedy Notices Planned Dealer Notification Date : JAN 19, 2023 – JAN 19, 2023 Planned Owner Notification Date : MAR 15, 2023 – MAR 15, 2023 * NR – Not Reported

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Service and Parts Business Quality Bulletin TITLE: Recall R10217: BCM2 Upgrade, Model Year 2023 S60, V60, V60CC, V90CC, XC60, XC90, XC40 and C40 GROUP: 52 CAT/NO: R10217 ISSUING DEPARTMENT: Product, Safety and Compliance CAR MARKET: United States and Canada REVISIONS: ISSUE DATE: 2023-01-20 STATUS DATE: 2023-01-20 Page 1 of 3 “Right first time in Time” Produced and printed in the USA and available as an electronic document. © 2023 VOLVO CAR USA, LLC A. RECALL R10217 DESCRIPTION B. VEHICLES INVOLVED C. PORT VEHICLES if applicable D. PARTS INFORMATION/PARTS RETURN if applicable E. OWNER NOTIFICATION F. VEHICLES IN RETAILER INVENTORY G. RETAILER RESPONSIBILITY H. TECHNICIAN COMPETENCY REQUIREMENT I. CAMPAIGN REIMBURSEMENT PROCEDURES & RETAILER ALLOWANCE A. RECALL R10217 DESCRIPTION Volvo Car USA LLC and Volvo Car Canada LTD on behalf of Volvo Car Group, have decided to launch Recall R10217 on certain model year 2023 S60, V60, V60CC, V90CC, XC60, XC90, XC40 and C40 vehicles. Volvo Cars Investigations have identified that a certain diagnostic test that checks the grounding circuits may put the Brake Control Module 2 (BCM2) in faulty state potentially resulting in a loss of brake support functions. A reduction in brake support functions can occur increasing the risk of a crash. The corrective action is to update the vehicle’s software with new logic in the BCM2. This software will also be available via Over-The-Air (OTA) early March. A total of 27,457 U.S. and 1,602 Canadian vehicles are eligible for this recall. Page 2 of 3 2023-01-20 Quality Bulletin R10217 ATTENTION Vehicles affected by R10217 can receive this update via Over-The-Air (OTA) sometime in March and may have the latest software already. Please check the current software version in Vehicle settings > System > System details > Software update. If the vehicle has 2.6 or later, then this action has been satisfied and should not be performed. Vehicles will be manually marked if performed via Over-The-Air within 2 weeks. WHAT SHOULD YOUR CUSTOMERS DO NOW? We have no reports of incidents related to the issue; however, we encourage customers to contact their retailer and have this repair completed as soon as possible. B. VEHICLES INVOLVED NOTE: RETAILER MUST CONFIRM VEHICLE ELIGIBILITY PRIOR TO BEGINNING THE REPAIR FOR THIS RECALL. VEHICLES IN RETAILER INVENTORY MUST BE UPGRADED PRIOR TO SALE BY COMPLETING A PDS SOFTWARE INSTALLATION OR R10217 SOFTWARE. Vehicle eligibility must be confirmed: • Vehicle Inquiry – Warranty Vehicle Inquiry where the message “Recall R10217 BCM2 Upgrade” will appear for eligible vehicles, F4=History from the main Inquiry menu must be selected to confirm Recall R10217 has not been completed. Eligibility can also be confirmed in TIE. All vehicles must be checked for any incomplete recalls or service campaigns or service upgrades. All open Recall, Service Campaign or Service Action repairs must be completed. If you have any questions concerning this recall, send them to recall@volvocars.com. C. PORT VEHICLES R10217 affected vehicles will not receive the latest software at the Port. It is the retailer’s responsibility to check vehicle eligibility prior to delivery. D. PARTS / PARTS RETURN No parts are required to be returned for this recall. Please review Parts Bulletin R10217 once available. E. OWNER NOTIFICATION An owner notification will be sent out in mid-March that will notify the owner of this recall instructing them to contact their Volvo Retailer and request an appointment to have this repair completed if they choose not to accept the over-the-air (OTA) download. 2023-01-20 Page 3 of 3 Quality Bulletin R10217 F. VEHICLES IN RETAILER INVENTORY New Vehicles in Retailer Inventory It is a violation of federal law for a retailer to deliver any new Volvo that is eligible for a recall. Retailers are advised to check all vehicles in inventory for recall eligibility and repair immediately. Violation of this requirement by a retailer could result in a civil penalty of up to $22,723 per vehicle. Correct all vehicles in your new vehicle inventory before delivery. Used Vehicles in Retailer Inventory VCUSA is ordering the stop-delivery of affected vehicles in VCUSA, auction and dealer inventory until the recalled item can be repaired. Stopping the delivery of affected used vehicles until the recall is complete is consistent with Volvo’s commitment to safety. Additionally, while Federal law does not prohibit the sale of used vehicles with open recalls, the sale of such cars could violate certain state laws and create liability on behalf of the retailer. What does this mean for customers? The recall software is currently available, and customers can take delivery of their vehicle once the total upgrade has been performed per this recall. G. RETAILER RESPONSIBILITY All vehicles qualifying for this recall must be repaired prior to a customer taking possession of the vehicle at new car delivery and/or at any service appointment. H. TECHNICIAN COMPETENCY REQUIREMENT The technician competency requirement for this campaign repair is Quality/G0. I. REIMBURSEMENT PROCEDURES & RETAILER ALLOWANCE Recall R10217 claims should be submitted using the LONG FORM application only. Claim Type: R10217 Cause Code: 02 CSC Code: XW Main OP: 99940-2 Failed Part: 31493704 (S60, V60), 31654144 (V90), 31483292 (XC90, XC60), 31676056 (XC40, C40) Operation Number Repair Description Qty Labor Time 99940-2 Software update acc. To QB 1 0.5 *Labor times provided are current at the time of release and are subject to change: Claims will be paid at the time in effect on the repair date. *Volvo will be manually marking R10217 completed when PDS and 2.0 software has been installed on an eligible vehicle and the vehicle is reported retail delivered.

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Service and Parts Business Parts Bulletin TITLE: Recall R10217: BCM2 Upgrade Model/Year 2023 S60, V60, V60CC, V90CC, XC60, XC90, XC40 and C40 GROUP: 52 CAT/NO: R10217 CAR MARKET: United States and Canada REVISIONS: ISSUE DATE: 2023-01-20 STATUS DATE: 2023-01-20 Page 1 of 1 “Right first time in Time” Produced and printed in the USA and available as an electronic document. © 2023 VOLVO CAR USA, LLC Reference Bulletins: QB R10217 Volvo Car USA LLC and Volvo Car Canada LTD on behalf of Volvo Car Group, have decided to launch Recall R10217 on certain model year 2023 S60, V60, V60CC, V90CC, XC60, XC90, XC40 and C40 vehicles. Volvo Cars Investigations have identified that a certain diagnostic test that checks the grounding circuits may put the Brake Control Module 2 (BCM2) in faulty state potentially resulting in a loss of brake support functions. A reduction in brake support functions can occur increasing the risk of a crash. The corrective action is to update the vehicles software with new logic in the BCM2. This software will also be available via Over-The-Air (OTA) early March. A total of 27,457 U.S. and 1,602 Canadian vehicles are eligible for this recall. The following part numbers apply: Part Number Description Qty 31493704 Total Upgrade S60, V60 1 31654144 Total Upgrade V90 1 31483292 Total Upgrade XC90, XC60 1 31676056 Total Upgrade XC40, C40 1

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Vincent D’Auria Senior Manager Product, Safety & Compliance – Regulatory & Compliance January 19, 2023 Subject: Recall R10217 TO: All U.S. and Canadian Volvo Retailers NEW VEHICLES IN RETAILER INVENTORY It is a violation of federal law for a retailer to deliver any new Volvo that is eligible for a recall. Retailers are advised to check all vehicles in inventory for recall eligibility and repair immediately. Violation of this requirement by a retailer could result in a civil penalty of up to $22,723 per violation. Correct all vehicles in your new vehicle inventory before delivery. USED VEHICLES IN RETAILER INVENTORY Volvo Car USA is ordering the stop-delivery of affected vehicles in auction and retailer inventory until the recalled item can be repaired. Stopping the delivery of affected used vehicles until the recall is complete is consistent with Volvo’s commitment to safety. Additionally, while Federal law does not prohibit the sale of used vehicles with open recalls, the sale of such cars could violate certain state laws and create liability on behalf of the retailer. What does this mean for customers? The recall software is currently available, and customers can take delivery of their vehicle once the total upgrade has been performed per this recall. When will this be resolved? Volvo Car USA LLC and Volvo Car Canada LTD on behalf of Volvo Car Group, have decided to launch Recall R10217 on certain model year 2023 S60, V60, V60CC, V90CC, XC60, XC90, XC40 and C40 vehicles. Volvo Cars Investigations have identified that a certain diagnostic test that checks the grounding circuits may put the Brake Control Module 2 (BCM2) into a faulty state potentially resulting in a loss of brake support functions. A reduction in brake support functions can occur increasing the risk of a crash. The corrective action is to update the vehicles software with a new logic in the BCM2. This software will also be available via Over-The-Air (OTA) early March. Volvo Cars centrally has not received any reports alleging injuries, fatalities, or crashes related to this condition. Volvo Car USA LLC Page 1 of 2 270 Three Point Drive Ridgeville, SC 29472 Telephone +1-201-768-7300 volvocars.us A total of 27,457 U.S. and 1,602 Canadian vehicles are eligible for this recall. Vehicle eligibility must be confirmed: • Vehicle Inquiry – Warranty Vehicle Inquiry where the message “Recall R10217 BCM2 Upgrade” will appear for eligible vehicles, F4+History from the main Inquiry menu must be selected to confirm Recall R10217 has not been completed. Eligibility can also be confirmed in TIE. • Recall R10217 eligible vehicles not yet delivered to end customers must be corrected prior to delivery. All vehicles must be checked for any incomplete recalls or service campaigns or service upgrades. All open Recall, Service Campaigns or Service Action repairs must be completed. If you have any questions concerning this recall or your retailers’ affected vehicles, please send an e-mail with your retailer code to recall@volvocars.com. OWNER NOTIFICATION An owner notification letter will be sent out in mid-March that will notify the owner of this recall. PORT VEHICLES R10217 affected vehicles will not receive the latest software at the Port. It is the retailer’s responsibility to check vehicle eligibility prior to delivery. PARTS / PARTS RETURN Please review Parts Bulletin R10217 once available. As the safety of our customers is our upmost priority, we are taking full responsibility to ensure the highest quality and safety standards for our cars. If you have any questions about this recall or any other field service action, please send an e-mail with your retailer code to recall@volvocars.com. CLAIM SUBMISSION Claim submission instructions will be made available in the Quality Bulletin. RETAILER RESPONSIBILITIES Retailers must perform this recall campaign on eligible vehicles regardless of miles/kilometers or vehicle age. All work performed under this recall is free of charge to the owner. As the safety of our customers is our upmost priority, we are taking full responsibility to ensure the highest quality and safety standards for our cars. If you have questions about this recall or any other field service action, please contact me or any member of the Product Safety and Compliance office. Your cooperation in completing this important recall is greatly appreciated. Drive Safely, Vincent D’Auria Senior Manager Product, Safety and Compliance – Regulatory & Compliance 201-647-0004 vincent.dauria@volvocars.com Page 3 of 3

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