Wednesday, May 18, 2016

Report: GM to Compensate Owners for Misstated Fuel Economy

CARS.COM - GM is reportedly putting together a plan to compensate nearly 170,000 consumers who bought three popular SUVs - the 2016 Chevrolet Traverse, GMC Acadia and Buick Enclave - with misstated gas-mileage ratings. Automotive News, citing three unnamed sources, said GM will announce a plan to dealers and owners by May 25.

Related: Why GM's SUV Mileage Dropped

GM spokesman Jim Cain would not comment directly on Automotive News' story.

"We're working on our communications to customers about this issue," Cain told Cars.com. "We don't have anything sent out at this time."

It comes a day after law firm McCuneWright filed a class-action lawsuit against GM on behalf of a Florida man who purchased a 2016 Traverse on April 23. Documents posted by the firm claim that if the Traverse owner and other buyers had known of the revised mileage ratings, they wouldn't have bought or leased the SUVs, or paid "substantially less."

What's still unclear is what type of compensation current owners will get. This isn't the first time an automaker has compensated owners over a mileage discrepancy.

In late 2013 when Hyundai-Kia restated mileage on more than two-dozen 2011-2013 models, the affiliated Korean automakers compensated some 900,000 U.S. owners with reloadable debit cards that factored in the mileage difference plus an extra 15 percent in apology cash. The cash you got depended on how much you drove, which required periodic odometer readings at dealerships. A subsequent lawsuit gave a lump-sum option, which averaged $353 per affected Hyundai and $667 per affected Kia.

When Ford cut the mileage ratings for its 2013 C-Max Hybrid in mid-2013, it offered a lump-sum option up front: $550 for owners or $325 for lessees.

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