GM said to pay $100 million over SUV fuel economy issue

Devesh

Core Member
General Motors Co. will spend about $100 million to reimburse customers who bought 2016 Chevrolet Traverse, GMC Acadia and Buick Enclave sport utility vehicles with overstated fuel economy figures, said a person familiar with the matter.

Fuel economy was overstated by 1 to 2 miles per gallon because the company failed to reflect new emissions-related hardware in calculations of efficiency for window stickers, according to a statement. The 135,000 owners of the SUVs will receive a debit card or a 48-month, 60,000-mile protection plan, GM said in an email. The company notified dealers today and will start sending letters to vehicle owners on 25 May.

The auto industry’s credibility has been strained following Volkswagen AG’s September admission that it rigged diesel-engine software to pass emissions tests, prompting Germany to set up a commission to dig further. Mitsubishi Motors Corp. has since acknowledged that it manipulated fuel-economy tests. Suzuki Motor Corp. said it improperly applied the Japanese tests, though not enough to affect the ratings. And GM’s Opel was accused by German media and an environmental advocacy group of manipulating pollution controls, which the brand has denied.

GM said to pay $100 million over SUV fuel economy issue - Livemint
 
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