American carmaker General Motors announced on Friday that it will compensate customers who bought a 2016 model GM SUV after it had overstated the fuel efficiency for its new vehicles.
The company discovered that certain 2016 models of its GMC Acadia, Buick Enclave and Chevrolet Traverse vehicles had been given the wrong fuel economy sticker. About 135,000 car owners were able to buy these vehicles and are now the subject of GM's $100 million compensation program.
Under the program, owners of affected models can choose to receive a debit card worth $450 to $900 or a vehicle protection plan good for 48 months or 60,000 miles. The protection plan will be added on top of the 36-month/36,000 warranty that GM offers, and it will begin after the original factory warranty of the vehicle expires.
Customers who are leasing one of the vehicles covered by the GM's compensation will only be provided with the debit card. The program is designed to reimburse car owners who may be spending more money on fuel than what they expected for their vehicle as a result of the incorrect fuel economy stickers.
According to GM, the value of the debit card that will be offered to customers will depend on certain factors such as whether the vehicle was bought or leased or whether it is a front-wheel or all-wheel drive.
Car owners who bought the GM vehicle or those who are on long-term lease will receive the largest payouts, while those who are on short-term lease will receive the smallest compensation values.
General Motors will send out letters regarding its compensation offer to affected customers beginning on Wednesday, May 25.
GM is the latest auto company to encounter issues with overstating vehicle fuel efficiency in recent years.
Last month, Japanese carmaker Mitsubishi admitted that it had overstated the fuel efficiency of four of its vehicle models that were sold in Japan.
Meanwhile, Korean companies Kia and Hyundai had to pay the U.S. government penalties worth up to $350 million for overstating the fuel economy rating of 1.2 million of its cars in 2014.
That same year, Ford had to reimburse its customers for lowering the fuel economy rating of six of its vehicles.
