GM to Dole Out Cash to SUV Owners Affected by False Fuel Labels
Extended factory warranty also on the table
According to Automotive News, GM is offering debit cards valued at $450 to $1,500 to cover the discrepancy between the overstated fuel economy ratings and the official EPA numbers. GM last week discovered fuel labels on the aforementioned crossovers were overstated by 1 to 2 mpg. The automaker made emission-related hardware changes for those model-year 2016 crossovers, which required recalculation of fuel economy figures. A "data transmission" error, however, prevented the new numbers from reaching the EPA and GM's marketing material, including new-car window stickers that fuel economy ratings.
Owners of those crossovers will be offered debit cards with an amount based on the discrepancy. Those owners have the option to forego the cash in favor of an extended factory warranty that would bump their coverage from 3 years/36,000 miles to 4 years/48,000 miles. Those who leased their vehicles won't have the extended warranty option and will likely get a lower cash amount, which will vary depending on lease terms.
GM says about 135,000 retail customers are affected and qualify for compensation. Another 35,000 vehicles were sold to fleet customers, though the automaker hasn't decided how or if they will be compensated. Around 60,000 unsold units on dealer lots were placed on a stop-sale last week, but have since received new window stickers with correct fuel economy ratings. All three crossovers are EPA-rated at 15/22/18 mpg city/highway/combined for front-wheel-drive versions and 15/22/17 mpg with all-wheel drive.