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General Motors will reportedly offer compensation to about 170,000 owners, lessees and rental car customers because of overstating fuel economy on 2016 Buick Enclave, Chevrolet Traverse and GMC Acadia SUVs.
GM hasn't released official details of what will be offered to customers, but its likely to be in the form of cash, debit cards or some other compensation.
GM determined the SUVs were sold with an overstated fuel economy of 1 to 2 miles per gallon, so compensation will be offered based on the difference between advertised and actual miles per gallon. Estimates are 130,000 customers purchased or leased the SUVs and 40,000 more vehicles are currently used for corporate and rental vehicles.
GM says it discovered the problem while working on new window stickers (Monroney labels) for model year 2017 vehicles. The automaker blames the problem on a simple mistake caused by new emissions software in the 2016 SUVs that should have meant new emissions tests. Instead, the window stickers went out with the SUVs without any new emissions tests performed on the vehicles.
The Environmental Protection Agency (EPA) is working with GM to guarantee the SUVs are marketed and sold with correct fuel economy estimates. However, the EPA has not announced if it will take legal action against the automaker.
Although compensation details are currently unknown, it's possible accepting an offer from General Motors will waive the right to sue GM, something a Florida man has already done in court.
Sean Tolmasof, who purchased a 2016 Chevrolet Traverse, alleges he and other GM owners now have SUVs with decreased monetary values because of the window stickers. Tolmasoff claims he wouldn't have purchased the Traverse if he would have known about the 1 to 2 mpg discrepancy.
NHTSA Oversight of GM Extended
The GM SUV fuel economy problems occurred near the same time the National Highway Traffic Safety Administration (NHTSA) sent GM a letter informing the automaker it will be watched closely for another year. NHTSA says it is extending by a year its federal oversight of GM's decision-making concerning safety issues and recalls.
GM agreed to the consent order in 2014 after the mess caused by hiding defective ignition switches for at least 10 years. NHTSA says GM has performed well the past two years and the automaker believes the oversight has helped improve safety.
As part of the 2014 consent order, General Motors must provide written safety reports every month to the government, including for safety issues that don't involve recalls.
Under the terms of the agreement, this will be the third and final year NHTSA will monitor GM.
