General Motors (NYSE:GM) has agreed to pay a $145.8M penalty to the National Highway Safety Administration and retire 50 million metric tons of greenhouse gas credits to the Environmental Protection Agency after government regulators found excess CO2 emissions from ~5.9M GM (GM) vehicles made between 2012 and 2018.
Automakers are required to test vehicles that have been on the road for one year and again at four years and submit results to the EPA. Tests conducted by both the EPA and GM (GM) showed vehicles were emitting more than 10% higher CO2 on average than GM’s initial compliance reports claimed.
“EPA’s vehicle standards depend on strong oversight in order to deliver public health benefits in the real world,” EPA Administrator Michael Regan said.
GM (GM) said in a statement it has at all times “complied with and adhered to all applicable laws and regulations,” but finds that the carbon retirement “is the best course of action to swiftly resolve all outstanding issues with the federal government.”
No vehicles will be recalled as a result of the violation.
GM (GM) shares closed Wednesday’s shortened session down 0.7%.