General Motors has agreed to pay close to $146 million in penalties to the federal government due to about 5.9 million of its older vehicles not meeting emissions and fuel economy standards. The National Highway Traffic Safety Administration announced Wednesday that certain GM vehicles from the model years 2012 to 2018 did not comply with federal fuel economy requirements. This penalty stems from the Environmental Protection Agency’s findings that GM pickup trucks and SUVs emitted over 10% more carbon dioxide on average than what GM’s initial compliance testing had indicated.
The EPA stated that these vehicles will remain on the road and are not able to be repaired. While GM vehicles, on average, consume at least 10% more fuel than the window sticker numbers suggest, the company will not be required to adjust the miles per gallon on the stickers, the EPA mentioned. EPA Administrator Michael Regan emphasized that the investigation led to holding General Motors accountable and maintaining a program crucial for reducing air pollution and safeguarding communities nationwide.
GM defended itself by stating that it followed all regulations concerning pollution and mileage certification for its vehicles. The company denied any wrongdoing or failure to comply with the Clean Air Act. According to GM spokesman Bill Grotz, the issue arose from a change in testing procedures implemented by the EPA in 2016, with no defect present in the vehicles requiring owners to take any action.
The penalty notably affects around 4.6 million full-size pickups and SUVs and approximately 1.3 million midsize SUVs, including models like the Chevy Tahoe, Cadillac Escalade, and Chevy Silverado. GM will have to relinquish credits used to ensure their greenhouse gas emissions are below the fleet standard for emissions applicable for each model year. The anticipated total cost to address the matter, as per GM’s filing with the Securities and Exchange Commission, is estimated at $490 million.
Despite GM addressing the excess emissions voluntarily, the EPA stated that a formal determination regarding the reasons for the excess pollution was unnecessary. Critics like David Cooke of the Union of Concerned Scientists questioned how GM could overlook pollution exceeding initial tests by over 10%, while Dan Becker from the Center for Biological Diversity emphasized the importance of strong pollution rules.
Previous cases have seen automakers fined under the Clean Air Act for similar violations. While the Justice Department typically gets involved in such instances, it declined to comment on GM’s case. GM settled with the government, resolving all claims. Cooke mentioned that GM owners might have grounds to sue the company for receiving lower gas mileage than advertised.
In earlier cases, automakers like Hyundai, Kia, and Volkswagen faced penalties and legal actions for violations related to emissions and fuel economy standards. Ultimately, these incidents highlight the significance of complying with regulations to reduce air pollution and uphold industry standards.
