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GM will compensate SUV owners for fuel-economy error [UPDATE]

General Motors will offer debit cards to owners of some of its crossover SUVs after it was discovered that GM overstated the vehicles' fuel economy on window stickers, Automotive News says. GM will offer reimbursements to about 135,000 customers that are worth between $450 and $1,500 each. Some owners will also have the option of being provided with an extended warranty free of charge instead of the debit card. GM overstated fuel economy on about 170,000 vehicles by one to two miles per gallon because of what it has said was an inadvertent error stemming from not factoring the impact of emissions-related hardware into the EPA window-sticker figures. As a result, GM put a temporary stop-sale on the Chevy Traverse, GMC Acadia, and Buick Enclave before switching out the window stickers on about 60,000 vehicles. Automotive News says letters and debit cards will be sent out next week, and Reuters is estimating that the reimbursement program will cost GM about $100 million. With automakers ranging from Hyundai/Kia to Ford to, more recently, Volkswagen and Mitsubishi being ensnared by emissions or fuel-economy-rating issues, GM is working quickly to address the problem. For those curious, the reimbursement totals, factoring in current gas prices, the SUVs' combined fuel economy, and typical driving of about 12,000 miles a year, will provide between three and 12 months worth of free gas for those drivers (the models get either 17 or 18 miles per gallon combined, depending on front- or four-wheel-drive configuration). While about 135,000 customers will be reimbursed, Automotive News says the fleet buyers of about 35,000 crossovers haven't been addressed yet. UPDATE: GM spokesman James Cain, in an e-mail to Autoblog on Sunday, confirmed that the company will reimburse about 135,000 customers. Purchase customers will be given the option of a pre-paid debit card or a 48-month/60,000-mile protection plan, while lease customers will be offered the pre-paid debit cards. Most of the cards will have a value of between $450 and $900 on them. "We want all of our customers to have a great ownership experience, so we designed this reimbursement program to provide full and fair compensation in a simple, flexible, and timely manner," he wrote.

Huge, pricey trucks haul jobs and profits for the Detroit Three

DECATUR, Texas — Mickey McMaster is on his 12th pickup truck. The 61-year old farm equipment dealer in Decatur, Texas, two weeks ago treated himself to a 2019 GMC Denali for around $69,000 — a reward for long hours at work. "For me this is the Cadillac of trucks, it's a real luxury vehicle," McMaster said. "I've worked my way up to afford a truck like this and it shows that I've earned it." McMaster is the kind of customer General Motors Co is banking on as it plans to add 1,000 jobs at a plant in Flint, Michigan that will build a new generation of its largest pickups. Demand from Texas and other heartland states for big pick-ups is providing a lifeline to many workers the No. 1 U.S. automaker is laying off at plants elsewhere. The Detroit Three automakers and thousands of their U.S. workers are counting on customers like McMaster to keep buying bigger and more luxurious pickup trucks even if overall U.S. vehicle demand weakens this year, as most analysts predict. At Flint, GM will build a new generation of its heavy-duty Chevrolet Silverado and GMC Sierras, including luxury models that are some of the most profitable vehicles on the planet. GM, Ford Motor Co and Fiat Chrysler Automobiles NV's Ram division own the segment and are each doubling down with new or redesigned models launching this year. Sales of heavy-duty pickups in the United States have grown to more than 600,000 vehicles a year, up more than 20 percent since 2013, according to industry data. Prices for luxury models can easily top $70,000. GM on Tuesday celebrated the launch of a new generation of heavy-duty GMC and Chevrolet pickups at the assembly plant in Flint, Michigan, that is now building all such trucks for the company. At the same time that GM is laying off thousands of U.S. workers and planning to shutter five North American factories, Flint is hiring. The plant runs on three daily shifts, six days a week. As the new model's assembly system ramps up, the plant's capacity will increase by more than 25 percent, plant manager Mike Perez told Reuters. The Flint plant plans to add 1,000 workers, more than half of the 1,500 factory workers who have asked to transfer from plants GM has targeted for shutdown as part of CEO Mary Barra's restructuring plan. "We're bringing in 50 to 100 people every week," said Perez. Workers last week were still finishing the job of retooling the Flint factory to build the new heavy-duty trucks as part of a $1.5 billion investment project.

GM recalling 22K Silverado and Sierra trucks for seat issue

General Motors will recall 21,721 of its new 2014 Chevrolet Silverado and GMC Sierra pickups over front seats that could move if the vehicle is hit from behind. Affected vehicles all feature manual adjustments for the two front seats, according to a report from Automotive News.
Of the nearly 22,000 vehicles covered under the action, the overwhelming majority - 18,972 -- were sold in the United States. A further 2,575 were sold in Canada, while 103 were shipped south of the border to Mexico. Finally, another 71 were sold outside North America altogether. As of right now, there are no reports of injuries due to the defect.
Naturally, Chevy and GMC dealers will make the repairs free of charge, although it's not clear as of this writing if GM will be notifying owners or just addressing the issue at the truck's first service.