General Motors (GM) will pay nearly $146 million in penalties to settle claims by the federal government regarding emissions and fuel economy standards for approximately 5.9 million of its older vehicles. The National Highway Traffic Safety Administration (NHTSA) announced on Wednesday that certain GM vehicles from model years 2012 through 2018 did not comply with federal fuel economy requirements.
The penalty follows findings by the Environmental Protection Agency (EPA) that GM’s pickup trucks and SUVs emitted over 10% more carbon dioxide on average than what GM’s initial compliance testing had indicated. These vehicles, while remaining on the road, were found to consume at least 10% more fuel than the figures stated on their window stickers. Despite this, GM will not be required to revise the miles per gallon numbers on these stickers.
EPA Administrator Michael Regan emphasized the accountability achieved through the investigation, stating it upholds vital programs aimed at reducing air pollution and safeguarding communities.
In response, GM asserted its compliance with all regulations concerning pollution and mileage certification of its vehicles. The company clarified that it does not admit to any wrongdoing nor to failing to comply with the Clean Air Act. GM spokesperson Bill Grotz attributed the issue to changes in EPA testing procedures implemented in 2016, adding that vehicle owners do not need to take any action as there are no defects in the vehicles.
The enforcement action affects approximately 4.6 million full-size pickups and SUVs, along with 1.3 million midsize SUVs, encompassing various models such as the Chevy Tahoe, Cadillac Escalade, and Chevy Silverado. GM will forfeit credits used to ensure its greenhouse gas emissions remain below the fleet standard for the affected model years, as stated by the EPA. In its quarterly filing with the Securities and Exchange Commission, GM estimated the total resolution cost at $490 million.
David Cooke from the Union of Concerned Scientists raised concerns over how GM could overlook emissions exceeding initial tests by such a significant margin across numerous vehicle models. Meanwhile, environmental advocate Dan Becker underscored the violations as evidence necessitating stringent pollution regulations.
This settlement, resolving all government claims, echoes previous cases where automakers faced penalties under the Clean Air Act for emissions-related infractions. Cooke suggested potential legal actions by GM owners due to discrepancies in advertised versus actual gas mileage.
The history of such cases includes Hyundai and Kia’s $100 million settlement in 2014 for overstated gas mileage and Volkswagen’s admission in 2015 to intentionally circumventing emissions tests, resulting in substantial fines and legal consequences.
In conclusion, GM’s agreement to address excess emissions with the EPA precludes the need for further determinations on the causes behind the pollution discrepancies, marking a significant development in regulatory compliance and automotive accountability.