Volvo Cars recalls over 400,000 US vehicles over rearview camera issue, NHTSA says

(Reuters) -Swedish automaker Volvo Cars is recalling 413,151 vehicles in the United States over an issue with the rearview camera, the U.S. National Highway Traffic Safety Administration (NHTSA) said.

The recall applies to a number of Volvo models including the 2021 to 2025 XC40, as the rearview camera image may not display when the vehicle is placed in reverse, increasing the risk of a crash. The remedy for the Volvo recall will be a software update conducted by a dealer or via over-the-air.

The Volvo recall comes a week after peer and Swedish electric vehicle maker Polestar recalled over 27,000 Polestar 2 vehicles in the U.S. due to a similar issue.

The Polestar 2, which is currently not available for orders in the U.S., was built on the same platform as some of Volvo's cars, stemming from a partnership between the automakers.

Volvo Cars on Wednesday also said it would cut 5% of the workforce at its Charleston plant in South Carolina in the U.S.

The company last month announced a restructuring of its American operations and a withdrawal of its earnings forecast due a hit from tariffs.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shailesh Kuber)