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GM News: GM Readies A Plan To Compensate Crossover Owners


William Maley

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Last week, General Motors issued a stop sale on the 2016 Buick Enclave, Chevrolet Traverse, and GMC Acadia due to the window stickers having overstated fuel economy numbers by one to two mpg. All-wheel drive models had an incorrect label showing ratings of 17 City/24 Highway/19 Combined. The correct label has ratings of 15 City/22 Highway/17 Combined.

 

But what about the folks who bought one of GM's large crossovers with the incorrect ratings? How did this happen in the first place? We have answers.

 

In a statement to Automotive News, GM explained the 2016 models were equipped with new “emissions-related hardware,” which meant new tests needed to be done.

 

“The fuel economy data from these tests were not captured in calculations made for EPA fuel economy labels ... causing 2016 model year fuel economy numbers to be overstated,” said GM.

 

The error was found when engineers were working on the labels for the 2017 models. This issue was immediately reported to EPA. At the moment, GM is working with the EPA on this issue.

 

As for what will happen to the nearly 170,000 owners of affected crossovers, GM is working on a compensation plan. Sources tell Reuters that GM is working out a program to compensate owners for the difference in fuel economy figures. Out of the 170,000 owners, more than 130,000 will qualify for the program (the remainder of vehicles belong to fleets). The plan will be announced in the coming week.

 

Not surprisingly, an owner of one of the affected models has filed a class-action lawsuit against GM, alleging that the company concealed the actual fuel economy figures.

 

Source: Automotive News (Subscription Required), Reuters
Pic Credit: William Maley for Cheers & Gears


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Good for GM to jump on this when discovered. The IDIOT who filed the class-action lawsuit is just looking at money. The judges need to throw this out.

 

I applaud GM for being proactive and for clearly letting the engineers bring the issue to light of day.

 

I take this as a basic mistake that happens and not Like Mitsubishi who deceived for decades.

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I understand WHY they would go the class action route but as long as GM knows and is working on a plan I don't understand that. Now... May GM have decided to start throwing a compensation plan after this individual decided to sue or did they decide to sue after GM announced they were working on a compensation plan?

Regardless, I'm glad GM is taking care of their customers like they should be.

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Class action is BS. 

All Class Action does is make lawyers rich for their claimed legal fees and leave those foolish enough to think they are going to get anything with a future discount on a GM car or a free Oil change at best. 

 

In the end we all end up paying for the results in higher car prices. 

 

There are no free rides in life. You can be given something free but at some point a company or the government is going to take from you to pay for it.  

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+1 Hyper Nailed that on the head. :D

Need to nail some lawyers over the head with tort reform that is fair to both sides and end corporate blackmail. 

 

I see it everywhere and even at work where it is cheaper to settle a lawsuit than to fight it to win. You lose in cost even with a good case and so many lawyers take it just to win a settlement. 

 

In class actions they take millions in fees to represent people with no clue and then reward the brainless with a free  air freshener or discount on a cruise they will never take anyways. 

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A lot of large corporations are pursuing the idea that courts are to be replaced with mandatory arbitration, especially in the technology sector.  Since you seem to believe that tort reform is the answer to this and other issues, are you willing to push for mandatory arbitration?

 

Just remember that mandatory arbitration is completely biased in favor to those who pay the arbitrator, and very seldom said arbitrator is pro-plaintiff.

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      Source: Wall Street Journal (Subscription Required), Automotive News (Subscription Required)
      H/T to @balthazar for alerting us to this story

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