General Motors under scrutiny for diesel emissions

Published: Friday, May 26, 2017[image: General Motors showroom]

General Motors Co. is denying claims that its heavy-duty diesel pickup
trucks cheated on emissions tests. Jose Ongpin/Flickr

Auto giant General Motors is now facing the same accusations as other
automakers about possible extra emissions from its diesel vehicles.

The same law firm that represented owners of Volkswagen and Fiat Chrysler
diesel vehicles, Hagens Berman, filed a class-action lawsuit
<https://www.eenews.net/assets/2017/05/26/document_gw_03.pdf> in federal
court in Detroit yesterday against the automaker.

The complaint accuses General Motors of exceeding legal emissions limits in
2011-16 Chevrolet Silverado and Sierra heavy-duty pickup trucks. Around
705,000 vehicles on the road could contain the faulty emission control
systems, according to the complaint.

General Motors is denying claims that it used "defeat devices." Share
prices of the company dropped more than 3 percent on the news yesterday but
have partly recovered today.

"These claims are baseless, and we will vigorously defend ourselves," said
Dan Flores, a GM spokesman. He added that the Duramax Diesel Chevrolet
Silverado and GMC Sierra comply with U.S. EPA and California Air Resources
Board emissions regulations.

General Motors joins Volkswagen AG and at least four other automakers —
Mercedes-Benz parent Daimler AG, Fiat Chrysler Automobiles NV, Peugeot SA
and Renault SA — whose diesel vehicles have been scrutinized by regulators
or consumers. This week, the Justice Department sued Fiat Chrysler over
accusations that it used defeat devices on its diesel trucks, seeking to
join an existing class-action lawsuit.

The law firm behind the General Motors complaint did its own on-road
emissions testing to find that the trucks emit higher pollution at
temperatures below 68 degrees or above 86 degrees. The excess emissions
could reach four or five times allowable limits, according to the suit.

EPA and ARB have not yet made any move to further test the diesel trucks or
take any action against General Motors.

Brian Johnson, a financial analyst at Barclays Capital, wrote that the
lawsuit could be "fishing" for a settlement from GM in a research note to
clients.

"We'd only know that it's more serious if the EPA steps in," he wrote.

John German of the International Council on Clean Transportation said more
lab testing would be required to determine whether GM did deceive
regulators or exceed legal emissions limits.

"It's still unclear to me whether this is a genuine violation or something
that's conceivably part of a normal operating standard, but there's
certainly major questions being raised by the data," he said.

The increased scrutiny of diesel vehicles since Volkswagen was found to be
deliberately misleading regulators on emissions has largely focused on the
light-duty vehicles marketed as using "clean" diesel. Car companies have
increasingly introduced these vehicles in the past decade in part to meet
stringent standards — but they make up only a tiny fraction of total sales.

The use of diesel has been more common for a longer time in the heavy-duty
sector, which can range from large pickups like the Silverado and Sierra
identified in the complaint to 18-wheelers and garbage trucks.

That means regulators and heavy-duty manufacturers have presumably had more
time and experience to develop technologies that meet the standards, German
said.

In the late 1990s, EPA sued manufacturers of heavy-duty engines for using
defeat devices leading to nitrogen oxide emissions three times the
allowable level on highways. At the time, it was the largest Clean Air Act
enforcement action in history. Seven manufacturers of heavy-duty diesel
engines, comprising 95 percent of the U.S. heavy-duty diesel engine market,
spent more than $1 billion to settle the charges in 1998.
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