GM to Pay $146 Million Penalty for Emission Violations

This week, AP and WMAR Baltimore reported that GM would have to pay the government over $146 million in penalties due to 5.9 million of its older vehicles not complying with emissions and fuel standards. 

The report said that the National Highway Traffic Safety Administration announced on Wednesday that specific GM vehicles from the 2012 to 2018 model years failed to meet federal fuel economy standards.

The EPA found that GM pickup trucks and SUVs emit over 10% more CO2 than initially claimed. These vehicles consume at least 10% more fuel than stated on window stickers but won't be repaired or have their MPG ratings adjusted.

EPA Administrator Michael Regan said: "Our investigation has achieved accountability and upholds an important program that's reducing air pollution and protecting communities across the country."

GM spokesman Bill Grotz said owners don't have to take any action: "We believe this voluntary action is the best course of action to resolve the outstanding issues with the federal government."

GM stated that it complied with all pollution and mileage regulations and denied any wrongdoing or Clean Air Act violations. According to GM spokesman Bill Grotz, the issue arose from a testing procedure change implemented by the EPA in 2016.

In other words, its an issue that would have just gone away on its own, but the government needed to take its bureaucratic pound of flesh first. 

The EPA's enforcement action affects about 5.9 million GM vehicles, including the Chevy Tahoe, Cadillac Escalade, and Chevy Silverado. GM will forfeit credits used to meet emission standards, with an estimated resolution cost of $490 million.

GM claims compliance with regulations and attributes the issue to a 2016 EPA testing change. Despite addressing excess emissions, critics like David Cooke and Dan Becker argue GM should have known about the pollution discrepancy and emphasize the need for strict pollution rules.

Historically, similar cases led to fines and Justice Department involvement, as seen with Hyundai, Kia, and Volkswagen. While the Justice Department declined to comment, GM stated the settlement resolves all government claims. Potential lawsuits from GM owners for lower-than-advertised gas mileage remain possible.

By Zerohedge.com

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