Skip to main content

GM to compensate SUV buyers up to $100M total for fuel economy discrepancies

2016 Buick Cascada
Image used with permission by copyright holder
In the aftermath of the overstating fuel economy on midrange SUVs, General Motors has announced how it will compensate buyers, according to Reuters. GM had to halt deliveries on approximately 60,000 vehicles earlier this month when the error was discovered. At the time, the company said it would work out how to compensate previous buyers of the 2016 models. Now we know: Buyers will be given a choice of prepaid debit cards or extended warranties.

The vehicles affected are 2016 model year Chevrolet Traverse, Buick Enclave, and GM Arcadia SUVs. In all, about 146,000 vehicles were sold in North America — 135,000 in the U.S. and 11,000 in Canada. Buyers will qualify for debit cards for $450-$900, or $1,000-$1,300 Canadian. The actual amounts will be based on a formula using a gasoline price of $3 per gallon and 15,000 miles per year for five years.

Recommended Videos

Owners will also have the choice of a 48-month, 60,000-mile extended warranty for the vehicles, which could be a better choice than a debit card for those who intend to keep their SUVs for a long time. People who leased one of the GM SUVs will receive the prepaid debit cards. GM is going to work out individual deals with rental car companies, commercial, and government buyers that purchased approximately 40,000 of the SUVs.

Please enable Javascript to view this content

The error occurred in calculating mileage. The engine and transmissions did not change from 2015 to 2016, but there were changes to the emission equipment which made a 1-2 mile per gallon difference. It wasn’t until GM engineers aware of the difference were working on paperwork for the window stickers for 2017 models that they noticed the error in the 2016 ratings. The data from new emissions equipment had not been included in the calculations.

As a result of the error, GM halted all deliveries of the three SUV models until dealers received corrected window stickers. The debit cards and extended warranty choices are for previous purchasers only and it is not known if the 1-2 mph rating change will affect future sales. The U.S. Environmental Protection Agency has started an investigation has asked for information from testing.

Bruce Brown
Bruce Brown Contributing Editor   As a Contributing Editor to the Auto teams at Digital Trends and TheManual.com, Bruce…
Mini’s infotainment system is very charming, but still needs work
Main screen of the Mini infotainment system

When you think Mini, you probably don’t think of infotainment. Personally, I think of the British flag taillights, the distinct exterior, and the surprising room on the inside. But after driving the Mini John Cooper Works Countryman over the past week, infotainment might well be something I think of more often when it comes to Mini. It’s charming.

It also, however, suffers from all the traps that other legacy automakers fall into when it comes to software design. Mini has something on its hands here — but it still needs some work.
Bringing the charm
The first thing that stood out to me about the system when I got in the car was how fun it was. That all starts with the display. It’s round! No, it’s not curved — the screen is a big, round display sits in at 9.4 inches, and I found it plenty large enough for day-to-day use.

Read more
Plug-in hybrids are becoming more popular. Why? And will it continue?
Kia Niro EV Charging Port

There's a lot of talk about the idea that the growth in electric car sales has kind of slowed a little. It's not all that surprising -- EVs are still expensive, early adopters all have one by now, and they're still new enough to where there aren't too many ultra-affordable used EVs available. But plenty of people still want a greener vehicle, and that has given rise to an explosion in hybrid vehicle sales.

That's especially true of plug-in hybrid vehicles, which can be charged like an EV and driven in all-electric mode for short distances, and have a gas engine as a backup for longer distances or to be used in combination with electric mode for more efficient driving.

Read more
EV drivers are not going back to gas cars, global survey says
ev drivers are not going back to gas cars global survey says screenshot

Nearly all current owners of electric vehicles (EVs) are either satisfied or very satisfied with the experience, and 92% of them plan to buy another EV, according to a survey by the Global EV Drivers Alliance.

The survey of 23,000 EV drivers worldwide found that only 1% would return to a petrol or diesel car, while 4% would opt for a plug-in hybrid (PHEV) if they had to replace their car.

Read more