General Motors will pay the federal government over $145.8 million in penalties for selling nearly six million cars did not meet pollution regulations
The automaker’s 2012 to 2018 model-year cars did not comply with Obama-era tailpipe emissions standards designed to reduce pollution.
The Environmental Protection Agency (EPA) investigated and found GM sold about 4.6 million full-sized pickup trucks and SUVs and 1.3 million midsize SUVs, falsely claiming they met pollution standards.
EPA administrator Michael S. Regan said: “E.P.A.’s vehicle standards depend on strong oversight to deliver public health benefits in the real world.
“Our investigation has achieved accountability and upholds an important program that’s reducing air pollution and protecting communities across the country.”
GM has voluntarily retired approximately 50 million tons of carbon dioxide pollution credits.
These credits, issued by the EPA, help automakers comply with stringent federal tailpipe emissions standards.
GM estimates the loss of these credits to be worth about $300 million based on past values.
GM sold about 5.9 million vehicles, falsely claiming they met pollution standards
However, more recent estimates place their value at about $4.6 billion.
Several Chevrolet Silverado, Suburban, Equinox, Tahoe, Cadillac Escalade, and GMC Yukon models were cited for violations.
Despite the settlement, General Motors admitted no wrongdoing.
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The company said: “We believe this is the best course of action to swiftly resolve outstanding issues with the federal government regarding this matter.
“GM remains committed to reducing auto emissions and working toward achieving the Administration’s fleet electrification goals.”
The settlement coincides with the Biden administration’s efforts to tighten federal tailpipe pollution standards, which were finalized in March and are central to President Biden’s climate change strategy.
These new rules aim to significantly reduce emissions from vehicle tailpipes by accelerating the transition to hybrid and all-electric cars.
By 2032, most new passenger cars and light trucks sold in the US would be all-electric or hybrids, up from less than 10 percent last year.