GM Stops Sale of Crossover Wagons to Correct Mileage Labels
May 13 2016 - 4:20PM
Dow Jones News
General Motors Co. earlier this week halted sales of roughly
60,000 large crossover wagons in the U.S. to replace window
stickers that overstated fuel economy on the affected vehicles by
up to 2 miles a gallon.
The move, which dealers learned of on Wednesday, grounded the
Detroit auto maker's entire stock of 2016 Chevrolet Traverse, GMC
Acadia and Buick Enclave crossovers, a GM spokesman said. GM is
scrambling to print and quickly send out new labels to dealerships
so the vehicles can again be sold.
The spokesman attributed the problem to an "inadvertent error"
that resulted in labels overstating the Environmental Protection
Agency's estimated mileage for the vehicles by 1 to 2 miles a
gallon.
"GM discovered an inadvertent error which affected the fuel
economy information on the fuel economy labels on the 2016 model
year Acadia, Enclave and Traverse vehicles," the GM spokesman said.
He declined to elaborate on what led to the mistake.
"The error caused the EPA estimated fuel economy to be listed on
the window label as 1-2 mpg higher than it should have been. GM is
stopping sale of the affected models until a corrected label is
printed and affixed," the spokesman added. GM discovered the error
and notified the EPA promptly, the spokesman said.
There isn't any evidence that the fuel-economy labels were
deliberately incorrect, and they affect a relatively small number
of vehicles. Unless other evidence emerges, GM isn't likely to face
government penalties for the miscue.
"EPA has been notified by General Motors that the company is
correcting fuel-economy labels on its model year 2016 Buick
Enclave, Chevrolet Traverse, and GMC Acadia vehicles," a
spokeswoman said. "We have asked the company to provide all
relevant information to the agency."
Automotive News earlier reported on the incorrect labels.
Write to Mike Spector at mike.spector@wsj.com
(END) Dow Jones Newswires
May 13, 2016 16:05 ET (20:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
General Motors (NYSE:GM)
Historical Stock Chart
From Aug 2024 to Sep 2024
General Motors (NYSE:GM)
Historical Stock Chart
From Sep 2023 to Sep 2024