General Motors will pay a $145.8 million fine and forfeit credits valued at hundreds of millions of dollars following a US government inquiry that revealed excessive emissions from about 5.9 million GM vehicles.
The Environmental Protection Agency (EPA) announced on Wednesday that GM agreed to retire around 50 million metric tons in carbon allowances.
The investigation found that vehicles from model years 2012-2018 emitted over 10% more carbon dioxide on average than initially reported in GM’s compliance filings.
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GM said Wednesday that the figure is “consistent with the costs of the final resolution of these matters with the federal government.”
Earlier this year, GM revealed ongoing discussions with the EPA and other regulators about adjustments to its credits.
The company disclosed that through 2023, it had expensed $450 million related to the issue, reflecting its “current best estimate of the probable loss.” This estimate suggests the forfeited credits are valued at approximately $300 million.
“GM’s admission that they cheated on federal emissions and mileage rules shows why automakers can’t be trusted to protect our air and health and why we need strong pollution rules,” Dan Becker, director of the Center for Biological Diversity’s Safe Climate Transport campaign, told Reuters.
In June 2023, NHTSA announced that GM paid $128.2 million in penalties for failing to meet fuel economy requirements for 2016 and 2017. This marked GM’s first fine under the 40-year-old fuel economy program.
Initially planning to use credits to cover the compliance gap, GM ultimately chose to pay the penalties instead, according to NHTSA.
