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GM's MPG overstatement could affect 2 million vehicles

Late last week, GM admitted that three of its large SUVs fuel economy window stickers did not match their actual efficiency ratings, and so the vehicles couldn't be sold. The stickers on the 2016 Chevy Traverse, GMC Acadia, and Buick Enclave said their ratings were one to two miles per gallon better than they should have been. Officially, the number of affected vehicles sits at about 60,000. But Consumer Reports makes a good point: what's up with all of the previous model year SUVs that are basically the same vehicle? To wit: the 2016 model year vehicles are not substantially different than the 2015 or the 2014, or even going all the way back to 2007. On the EPA's fuel economy website, all of these older models will "have better stated fuel economy numbers than the new vehicles in GM's dealerships," Consumer Reports noted. CR's best point, and the one that makes the 60,000 number potentially grow to 2 million if all of the vehicles built on this platform are affected, is that "[i]t seems unlikely that the company would change the powertrain on these carryover models so late in their model cycles in a way that would cause a dramatic, negative impact on fuel economy." GM says that earlier model year SUVs are not affected and the EPA did not respond to CR's question about the potential for more discrepancies. We've seen automakers reverse course before, so if GM has to come out with a mea culpa soon, don't be surprised. GM is rushing corrected stickers to dealers so that the SUVs can be sold again, but a fix for the already-sold vehicles could be trickier to solve. Related Video: Related Gallery 2013 GMC Acadia View 16 Photos News Source: Consumer Reports Government/Legal Green Buick Chevrolet GMC Fuel Efficiency mpg gmc acadia chevy traverse

GM seatbelt recall affects over 1m Silverados and Sierras

The Basics: General Motors will recall 895,232 examples of the 2014-2015 Chevrolet Silverado and GMC Sierra 1500 pickups in the US. The campaign will also affect the trucks in markets worldwide, and the total number the company will recall is 1,037,982. The Problem: A steel cable connects the seatbelt to the vehicle, but over time repeated bending can cause the part to fatigue and separate. Injuries/Deaths: None reported. The Fix: Dealers will enlarge the side shield opening and install a pusher bracket on the tensioner. Technicians will also replace the entire tensioner assembly if necessary. If You Own One: GM will contact owners about the recall. The company hasn't said when those notifications would begin. More Information: There are still about 3,000 new examples of these older pickups at dealerships. Until mechanics fix the problem, these vehicles are subject to a stop-sale. Similar problems have affected the General's vehicles in the past. In 2015, the company recalled over 400,000 units of the 2011-2012 Chevrolet Malibu for fatiguing cables. It also hit over a million Lambda platform crossovers in 2014. GM Recalling Certain 2014-15 Pickups to Repair Seat Belts DETROIT – GM is voluntarily recalling 895,232 model year 2014-15 Chevrolet Silverado and GMC Sierra 1500 pickups in the United States because the flexible steel cable that connects the seat belt to the vehicle can fatigue and separate over time as a result of the driver repeatedly bending the cable when entering the seat. This issue was discovered through warranty data, and there have been no reports of crashes, injuries or fatalities related to this issue. For trucks in the field, dealers will enlarge the side shield opening, install a pusher bracket on the tensioner, and if necessary, replace the tensioner assembly. The recall in the United States includes a stop-sale of approximately 3,000 new 2014 and 2015 model year pickups still on dealer lots. Dealers will repair the vehicles prior to delivering them to customers. Customers will be notified by General Motors. They also can look up their vehicle identification number (VIN) at either https://vinrcl.safercar.gov/vin/ website or at https://my.gm.com/web/portal/ownercenter to see if their vehicle is part of the recall. GM also will voluntarily recall and repair these models in other countries where they are sold, including Canada, Mexico, and several countries in Latin America and the Middle East.

GM won't pay owners of recalled cars for lost value

Kenneth Feinberg, the man in charge of the General Motors compensation fund dealing with the its widespread ignition switch woes, has issued an informal, two-letter response to the plaintiffs in more than 70 lawsuits seeking redress for lost resale value of their Cobalts: "No." The cases were recently combined into one, but Feinberg told The Detroit News that the fund will deal "only with death and physical injury claims," and that "perceived diminished value" will get no consideration.
ALG, the firm specializing in establishing residual values, determined that Cobalt owners had lost $300 compared to the segment competition and doesn't envision any long-term effects from the recall situation. Feinberg's statement comes in advance of public details on how the compensation fund will work and adheres to GM's long-held position on the matter. The company has already asked a judge to throw out such suits using the pre-bankruptcy defense, even as it stopped using that defense in cases of injury and death.
With plenty of potential gain from the GM suit, however, don't expect the plaintiffs to give up yet. When Toyota was sued for the same reason during the unintended acceleration debacle, it eventually settled the case for between $1 billion and $1.4 billion just to get it over with. Since the 85 law firms involved in the Toyota litigation took home more than $250 million of that total, we shouldn't expect the attorneys to give up on a GM payout, either.