GM sold millions of cars that polluted more than allowed, EPA says

The Biden administration reached a settlement with General Motors after it was determined the automaker sold nearly 6 million vehicles that emitted more carbon dioxide than the company claimed, in violation of federal regulations.

GM must pay more than $145.8 million in fines for selling vehicles between the 2012 and 2018 model years that were required to meet Obama-era vehicle emissions standards meant to combat global warming.

An investigation by the Environmental Protection Agency found that during those years, GM sold about 4.6 million large pickup trucks and SUVs and 1.3 million midsize SUVs that the company claimed met pollution standards but in fact did not.

“EPA’s vehicle standards depend on rigorous oversight to deliver real-world public health benefits,” said EPA Administrator Michael S. Regan. “Our investigation has led to accountability and supports an important program that reduces air pollution and protects communities across the country.”

The company has also voluntarily withdrawn about 50 million tons of carbon dioxide pollution credits, which are issued by the EPA and used by auto companies to make it easier to meet increasingly stringent federal emissions standards. While the market value of those carbon credits varies, a government estimate of $86 per credit estimates the value of the loss of the credits at approximately $4.6 billion.

Among the vehicles fined for the violations were several models of the Chevrolet Silverado, which has historically been one of the country’s best-selling passenger carsalong with various models of the Chevrolet Suburban, the Chevrolet Equinox, the Chevrolet Tahoe, various models of the Cadillac Escalade and the GMC Yukon.

In a statement, the company admitted no wrongdoing or non-compliance with laws or regulations. “We believe this is the best course of action to quickly resolve the outstanding issues with the federal government regarding this matter. GM remains committed to reducing auto emissions and working toward achieving the administration’s goals for fleet electrification,” the statement said.

The settlement comes as the Biden administration has significantly tightened federal standards on tailpipe pollution. The new rules, finalized in March, are the centerpiece of President Biden’s strategy to combat climate change. They are designed to dramatically reduce climate-warming emissions from vehicle tailpipes by accelerating the nation’s transition away from fossil fuels and toward hybrids and all-electric cars.

Once fully implemented, the new rules should ensure that by 2032, most new passenger cars and light trucks sold in the United States will be all-electric or hybrid, up from less than 10 percent last year.

The loss of GM’s carbon credits in the settlement could make it harder or more expensive for the company to comply with the new rules.

The credits are intended to make it easier for automakers to meet the standards: if, for example, a company is unable to fully meet the standards in a given year, it can make up the difference by buying credits from another company that exceeded them that year. GM’s loss of credits means it could be forced to meet the standard by building and selling more polluting or fully electric vehicles than it otherwise would have, or by buying even more expensive credits.