Spartan Motors USA Inc., an arm of Charlotte, Mich.-based Spartan Motors Inc., has agreed to pay a $1 million fine over a three-year period to the National Highway Traffic Safety Administration (NHTSA) and will complete performance obligations including compliance and regulatory practice improvements, and industry outreach, valued at $3 million.

The company reported in a release that under the terms of the settlement, an additional $5 million will be held in abeyance for three years, and will be forgiven following the fulfillment of the obligations agreed upon with the NHTSA.

“This announcement pertains to our early warning and defect reporting. Spartan has not received any reports involving crashes, fires, injury incidents or fatalities associated with this matter,” said Daryl Adams, president and CEO, Spartan Motors Inc. “We regret that the company’s historic performance did not meet NHTSA expectations and accept this $1 million penalty. Spartan will implement a number of improvements to our internal processes, apply best practices and expand training throughout the company.

“We worked closely with NHTSA in defining the path forward, and look forward to this opportunity to drive education at industry events and activities.”