GM Fined $146 Million in the U.S. for Lowballing Vehicle Emissions

Published on July 4, 2024 in News by AFP

General Motors will pay nearly $146 million USD in penalties for underestimating emissions produced by its vehicles, federal regulators said Wednesday.

The American auto giant was fined after approximately 5.9 million vehicles were found to release more emissions than reported, a National Highway Traffic Safety Administration (NHTSA) spokesperson told AFP.

The vehicles in question, with model years between 2012 and 2018, showed more than 10 percent higher carbon dioxide emissions in tests, on average, than what GM reported, according to the Environmental Protection Agency (EPA).

Photo: Dominic Boucher

Additionally, GM agreed to write off greenhouse gas credits that equate to approximately 50 million tons of CO2, the EPA said, with a market value of hundreds of millions of dollars.

GM shares fell 0.51 percent Wednesday on the New York Stock Exchange.

Last year, GM paid the NHTSA a similar penalty of $128 million when pick-up trucks sold several year prior failed to meet fuel economy standards.

In March, the Biden administration issued more stringent automobile emission standards for vehicles produced in the United States.

The updated standards would progressively restrict the amount of emissions allowed as a way to incentivize automakers to pivot to producing more electric vehicles.

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