GM to Pay $146 Million in Fines for Excess Emissions

July 3, 2024

General Motors (GM) has agreed to pay a fine of nearly $146 million to settle excess emissions from almost 6 million vehicles on U.S. roads. The Biden administration reached a settlement with GM after an investigation found that the company had sold vehicles emitting more carbon dioxide than claimed, violating federal regulations. The Environmental Protection Agency (EPA) found that GM's vehicles from model years 2012-2018 emitted over 10% higher carbon dioxide on average than initially reported. As part of the settlement, GM will give up approximately 50 million metric tons in carbon allowances and cancel more than 30.6 million fuel economy credits. The National Highway Traffic Safety Administration (NHTSA) separately announced that GM will pay a $145.8 million penalty for fuel economy compliance issues. GM stated that it has always complied with laws and regulations but believes settling with the federal government is the best course of action. Unlike the 2015 Volkswagen diesel emissions case, the EPA is not alleging that GM intentionally reduced emissions in testing, and it is not seeking a recall of the affected vehicles. The vehicles in question include 4.6 million full-size pickups and SUVs and approximately 1.3 million midsize SUVs. GM will also be retiring about 50 million metric tons of greenhouse gas credits. The EPA emphasized the importance of strong oversight to deliver public health benefits and uphold programs that reduce air pollution. The agency noted that the in-use testing program is essential to ensure the climate benefits of vehicle standards are realized. An EPA spokesman stated that the violations were unintentional. This settlement underscores the significance of compliance with emissions standards and the role of regulatory oversight in protecting the environment and public health.

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