GM to compensate owners over the wrong fuel economy stickers blunder, sources say image

As expected, overstating the fuel economy labels will force General Motors to compensate the affected customers in the United States.

General Motors is finalizing a plan to offer owners some sort of compensation, a programme expected to be revealed as soon as next week, according to sources familiar with the matter. There are around 130,000 customers which have bought the affected models, while an additional of around 40,000 vehicles have been purchased by rental, commercial and fleet buyers. However, it is still unknown if General Motors is paying damages to these latter owners as well. GM is also expected to propose a similar cash compensation plan in Canada.

General Motors halted sales of about 60,000 2016 Chevrolet Traverse, GMC Acadia and Buick Enclave large crossovers because they overrated the fuel-economy stickers by 1 to 2 miles a gallon. However, this issue could expand even further, as Consumer Reports said the mileage readings on those crossovers and also on the discontinued Saturn Outlook may have been wrong for years. If it is so, there are 2 million more cars affected.

It remains to be seen how costly the “inadvertent error” will be for the company. Claims have already started to roll out, as a Florida owner of a 2016 Chevrolet Traverse filed a class-action suit in Detroit, against GM on behalf of owners who bought vehicles with overstated fuel economy ratings.

Hyundai agreed to pay 350 million dollars in penalties in 2014 to the US government for overstating fuel economy ratings in about 1.2 million vehicles and also paid extra 395 million dollars over customers’ claims.

Via Reuters