Paris - An appeals court in the eastern French city of Colmar on Thursday confirmed a 200,000-euro (292,000-dollar) fine imposed on Volvo for the deaths of two children in a 1999 accident.

The court found that the Volvo 850 TDI driven by a French teacher ran over the two children, aged 9 and 10, because its brakes had not functioned correctly.

The children had been on the way to school when the fatal accident occurred. A third child was seriously injured.

The driver, who was given a suspended sentence of six months in prison for the incident, testified that the brake pedal had suddenly become "hard" and that the brakes had not reacted on the steep road.

Experts who examined the vehicle agreed that a part of the braking system had not functioned properly.

Volvo had apparently known of the problem but had not recalled the affected cars to carry out the necessary repairs. (dpa)