Photo: General Motors
General Motors will offer debit cards to customers of certain vehicles that were sold with misprinted fuel economy ratings.
According to a report, GM will offer 135,000 owners of 2016 Buick Enclave, Chevrolet Traverse, and GMC Acadia models a choice of pre-paid debit cards or an extended protection plan.
The clients of leased vehicles will be offered the pre-paid debit card worth between $450 and $900, while those interested in keeping their cars for longer could get a 48-month/60,000 mile protection plan. Another 35,000 fleet customers will be managed individually.
According to ABC News, GM has already informed dealers of the deal, and letters will be sent to owners starting May 25, 2016.
In case you do not remember what happened, General Motors issued a stop-sale order on the three models mentioned above because it discovered the vehicles had shipped to dealers with misprinted MPG stickers.
The fuel economy estimates were inflated when compared to the correct ones, and General Motors has decided to compensate 135,000 customers of the 2016 model year vehicles affected by the matter.
The measure is expected to cost General Motors approximately $100 million, without any penalties from the EPA or any litigation. We mentioned the latter because the corporation should not exclude any future lawsuits for disgruntled owners. The company did not announce the total cost of the payments and warranties, but stated the procedure will not “materially affect earnings.”
As previously explained, the reimbursement is calculated for an annual driving mileage of 15,000 and with a gas price of $3 per gallon, for five years. The resulting figure will be the difference received by the owners of the affected vehicles, if they do not desire an extended care package.
General Motors representatives stated that the discrepancy comes from “new emissions control hardware,” and underlined that the error was “inadvertent.” The company recalculated the mileage for 2016, but the new figures were not printed on the window stickers.
Unlike other discrepancies found in other companies, GM discovered its mistake while working on the 2017 model labels and voluntarily informed the EPA on the matter.
The clients of leased vehicles will be offered the pre-paid debit card worth between $450 and $900, while those interested in keeping their cars for longer could get a 48-month/60,000 mile protection plan. Another 35,000 fleet customers will be managed individually.
According to ABC News, GM has already informed dealers of the deal, and letters will be sent to owners starting May 25, 2016.
In case you do not remember what happened, General Motors issued a stop-sale order on the three models mentioned above because it discovered the vehicles had shipped to dealers with misprinted MPG stickers.
The fuel economy estimates were inflated when compared to the correct ones, and General Motors has decided to compensate 135,000 customers of the 2016 model year vehicles affected by the matter.
The measure is expected to cost General Motors approximately $100 million, without any penalties from the EPA or any litigation. We mentioned the latter because the corporation should not exclude any future lawsuits for disgruntled owners. The company did not announce the total cost of the payments and warranties, but stated the procedure will not “materially affect earnings.”
As previously explained, the reimbursement is calculated for an annual driving mileage of 15,000 and with a gas price of $3 per gallon, for five years. The resulting figure will be the difference received by the owners of the affected vehicles, if they do not desire an extended care package.
General Motors representatives stated that the discrepancy comes from “new emissions control hardware,” and underlined that the error was “inadvertent.” The company recalculated the mileage for 2016, but the new figures were not printed on the window stickers.
Unlike other discrepancies found in other companies, GM discovered its mistake while working on the 2017 model labels and voluntarily informed the EPA on the matter.
Google News