(RightWing.org) – If the price of your new GM car seems higher than it should be, blame the federal government. The National Highway Traffic Safety Administration (NHTSA) has just fined the Detroit giant a nine-figure sum; claiming the company sold millions of vehicles that don’t meet emissions and fuel economy rules.
On July 3, the NHTSA said Environmental Protection Agency (EPA) tests had shown that several GM models sold between 2012 and 2018 emit over 10% more carbon dioxide than the company claimed, as well as using at least 10% more gas. Almost six million vehicles are affected, including 1.3 million midsize SUVs and 4.6 million full-size SUVs and trucks. The offending models include two Chevys — the Tahoe and Silverado — and the Cadillac Escalade.
The company denies any wrongdoing. Spokesman Bill Grotz says the mismatch in the figures is because the EPA changed its testing methods in 2016, meaning vehicles that complied with emissions rules using the old test suddenly seemed to be in violation. Grotz said owners don’t need to do anything because there’s nothing wrong with their cars.
While GM isn’t admitting fault, it’s going to pay a heavy price for the confusion. The headline consequence is almost $146 million in penalties. That’s bad enough, but there’s much worse. The company will also have to give up carbon credits that count against its overall emissions — and that’s likely to mean much heavier penalties for exceeding its carbon dioxide quota. In total, GM expects to end up paying around $490 million.
Despite the massive cost, GM may have gotten off lightly. Other car makers that have violated EPA regulations — including Hyundai, Kia, and Volkswagen — have been prosecuted by the Department of Justice. It looks like that won’t happen this time; although the Justice Department refused to comment, GM says the settlement satisfies the government’s claims against it.
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