General Motors Preparing Compensation Packages For Overstated Fuel Economy Numbers13
General Motors is taking action quickly, in hopes to smooth over relations with customers who purchased a 2016 GMC Acadia, Chevrolet Traverse or Buick Enclave. The three full-size crossovers received a stop sale order, after GM disclosed to the EPA it had overstated fuel economy ratings on the crossovers.
Automotive News reports GM is preparing to compensate some 170,000 owners who purchased a 2016 model year Acadia, Traverse or Enclave. Being the land of the lawsuit, a class action lawsuit has also already been filed against GM and the issue as well.
The lawsuit was filed in U.S. District Court for the Eastern District of Michigan, and alleges GM concealed the actual fuel economy of the crossovers and that customers overpaid for them. Law firm McCuneWright filed the complaint on behalf of Sean Tolmasoff, a Florida resident who purchased a 2016 Chevy Traverse in April. Tolmasoff stated he would not have purchased his Traverse, or would have paid significantly less, if he was aware of the true fuel economy ratings.
McCuneWright is the same firm tasked with taking the Hyundai-Kia fuel economy overstatements to court.
GM dealers have begun selling the 2016 model year crossovers again with updated window stickers showing correct fuel economy. GM provided insight as to how the mishap occurred, blaming new “emissions-related hardware” onboard. The new hardware required new testing.
“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,” GM said in a statement.
Sources inside GM said the automaker will announce a compensation package for owners within a week.
- Sweepstakes Of The Month: Win a 2023 Corvette Z06 Convertible. Details here.
Its very sad that you have to sue inorder to get GM to do the right thing. They have been over estimaing their mpg in most models not just the ones stated above. They put these very high hwy mpgs on their vehicles and in real world use, the vehicles don’t come close to it.
Case in point, cobalt LS 5sp eco was listed to get 37 on the hwy. The car never got more then 34 even at a steady 60mph for almost 280 miles. Its Texas. Windows up and no ac (it was winter). It would be nice to actual get the hwy numbers they state just once or heven forebide get above the number but it will never happen. Wouldn’t it be nice to get positive feedback from consumers and the press for your vehicles doing better then advertised for once. If you did that, cars would sale them selfs…more money for the company.
You do realize the ratings on window stickers are government ratings from government testing, right?
This occurred because the new ratings from a new testing system never filtered down to the window sticker printing process. Yes, someone’s going to pay for this with their job as they should.
EPA, needs too have better guidelines, to there system. The new EPA settings, are now set too be lower, then before. Few years ago ford with throught these same, thing with these epa fuel guide lines. All manufacture go throught this, it’s not that easy, getting right.
This shows a new GM. Before a lawsuit could be announced they brought forward the desire to have a compensation package. The old GM would have had execs kicking and screaming to not pay people for their mistake.
I’m convinced GM was not attempting to deceive purchasers of these vehicles as some have alluded. This was strictly a situation of not being able to address the normal details of selling vehicles in this country.
A public release by a spokesman of GM indicated recalculations were done for the 2016 vehicles and the information never made it to the window sticker.
Someone’s head should roll for this! It will likely cost GM more than a couple of million dollars(170,000 vehicles and going to assume couple hundred dollars each), with the more far reaching negative being a blemish on GMs reputation, a constant battle since the bankruptcy. Things apparently are not under control at GM.
Ford, kia/hyundai, etc, heads should there too, because something happen there, and not under control as well.
I’m wondering what new emissions hardware was added that made the MPG’s so much worse – the Traverse is no better than a V8 Tahoe. The Traverse still runs an older version of the 3.6, seems odd that such a major change was made in what’s probably the last year for the current gen vehicle and engine.
It was the new guidelines that the EPA set that made the change in MPG.
To be honest they are no better or worse just the vague EPA guidelines changed.
There are cases like Suzuki, Mitsubishi and Hyundai that did try to fudge the system knowingly but the changes here were just clerical and a mistake on only a limited number of models. Many of these were fleet sales so they will be handled differently.
One report had 170,000 models but 40,000 of them were fleet sales that are not in this program.
Odds are they will get some small token but this is not going to be any major refund or offer.
I could see them offering free number of oil changes etc that are of greater value to the customer but generally are cheap labor to GM.
I think GM may offer upto $1000 additional discount on a purchase of a new vehicle pr $500 in OEM accessories (Similar to the Hyundai/KIA settlement). With the current price of gas it wont be a large amount for sure. The oil changes are usually offered only on brand new cars under their regular LOF or to bring older vehicles back to their service drive as in the case with the older Malibus, Cobalts etc to bring more walk ins to the dealerships.
According to USA Today estimate of $91million for debit cards. Hardly chump change and responsible individuals should be called on the carpet!
I’m just curious if this situation applies only to Lambda crossovers, or maybe to some other GM vehicles equipped with 3.6 V6 as well, for example, to relatively big and heavy sedans with 3.6 V6, such as 2016 2nd gen LaCrosse and 2016 last gen Impala? These two GM sedans are being equipped with 3.6 V6 (though it’s newer LFX engine, and not LLT engine as in Lambda crossovers). LaCrosse and Impala are still not so gas thirsty as Lambda crossovers, of course, because they weigh less and have less drag area (this mostly matters on the highway), but they are also no gas sippers for sure, I can tell you, especially in the city stop-start driving. So, maybe their mpg ratings should be also adjusted by approx. 1 mpg highway and up to 2 mpg city (probably, 1 mpg total).
should i cash in on the $500 debit card offer? i have a lease with 12,000 miles/year. if i accept, i waive all rights against Buick.
I’m not looking to sue, I just wonder if I turn in my car in 2 1/2 years, if I can negotiate some better terms on a new lease or get some forgiveness of mileage overage. Thoughts?
Wondering the same as Doug…Are people waiving their place in the lawsuit and taking the cash/debit card? I really am annoyed, because I was told and led to believe that this vehicle would get the same MPG as my Jeep Wrangler, which was 19/23. I thought I was going crazy, having to fill the gas tank so often…THANKING YOU IN ADVANCE FOR YOUR THOUGHTS!!!