The US government has announced a settlement with General Motors (GM) over allegations that some of the company’s cars were emitting more carbon dioxide (CO2) than initially claimed. As part of the settlement, GM will pay a $145.8 million fine and forfeit approximately 50 million tons of carbon credits, worth hundreds of millions of dollars in the market.
This case involves around 5.9 million pickup trucks and SUVs built between 2012 and 2018, where tests revealed that CO2 emissions from these vehicles were on average more than 10 percent higher than what GM had promised. The new stricter emissions standards for cars implemented by the Biden administration earlier this year have prompted this settlement, as it encourages manufacturers to transition to electric fleets gradually.
In June 2023, GM had already agreed to pay $128.2 million for failing to meet fuel economy targets for pickup trucks sold in 2018 and 2019. This settlement is an effort by the company to rectify its non-compliance with environmental regulations and improve its practices moving forward.
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