GM Halts Sales of 60,000 SUVs for Incorrect EPA Labels

An “inadvertent error” listing an incorrect EPA fuel economy rating on about 60,000 crossovers from General Motors Co. (NYSE: GM) led the company to tell dealers to stop selling the vehicles until the labels can be replaced. The incorrect labels overstate the vehicle’s fuel economy rating by one to two miles per gallon.

The company has stopped all sales of its 2016 Chevy Traverse, GMC Acadias and Buick Enclaves. According to Automotive News, the number of vehicles involved totals 59,823, and dealers may not deliver the vehicles to customers until the incorrect label has been replaced by the correct one.

The incorrect labels list the vehicle’s fuel economy ratings as 17 city, 24 highway and 19 combined. The correct labels for all three models with all-wheel drive give fuel economy ratings of 15 city, 22 highway and 17 combined. Labels on front-wheel drive models were also incorrect and are being replaced.

A GM spokesman told Automotive News that an inadvertent “data transmission” caused the mistake, and that the company is working quickly to get correct labels printed and shipped to dealers. The error was discovered when GM engineers were reviewing the label for the 2017 model year versions of the vehicles.
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Following on the diesel emissions cheating scandal that has hammered Volkswagen and the recent revelation that Mitsubishi manipulated fuel-economy tests, GM faces the usual questions of what the company knew and when they knew it. This may be the first serious test of GM’s commitment to facing unpleasant news quickly and forthrightly rather than hiding it for years, as happened with the faulty ignition switch.

GM notified the U.S. Environmental Protection Agency (EPA) that the company is sending out new labels, but has not yet announced a plan to address complaints that may come from customers who purchased the mislabeled vehicles. The EPA told Automotive News that it has asked the company “to provide all relevant information to the agency.”

According to Kelley Blue Book, GM has sold 39,105 Chevy Traverses, 25,575 GMC Acadias and 17,457 Buick Enclaves in the first four months of 2016. Most would have been 2016 model year versions and all would have had the incorrect fuel economy label attached.