GM faces hefty fines for misreporting vehicle emissions
(MENAFN) General Motors (GM) will pay substantial fines totaling nearly USD146 million as a result of underestimating the emissions produced by approximately 5.9 million vehicles, federal regulators announced on Wednesday. The penalties were imposed after it was revealed that these vehicles emitted more carbon dioxide than GM had reported to the National Highway Traffic Safety Administration (NHTSA).
The affected vehicles, spanning model years from 2012 to 2018, were found to have carbon dioxide emissions averaging 10 percent higher than initially disclosed by GM, according to the Environmental Protection Agency (EPA). As part of the settlement, GM has also agreed to forfeit greenhouse gas credits equivalent to approximately 50 million tons of carbon dioxide, valued at hundreds of millions of dollars in the market.
The news had an impact on GM's stock performance, with shares declining by 0.51 percent during Wednesday's trading session on the New York Stock Exchange. This financial penalty marks another significant regulatory setback for GM, following a similar USD128 million fine paid to the NHTSA last year for failing to meet fuel economy standards with certain pickup truck models sold in previous years.
In a broader regulatory context, the Biden administration has recently implemented stricter vehicle emissions standards aimed at reducing carbon emissions from cars manufactured in the United States. These updated standards are designed to gradually lower permissible emissions levels, incentivizing automakers like GM to prioritize the production of electric vehicles as part of efforts to combat climate change and enhance environmental sustainability.
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