General Motors Fined $146 Mln for Emissions Violations

General Motors (GM) will pay nearly $146 million in fines for underestimating the emissions produced by its vehicles, federal regulators announced on Wednesday.

The American automotive giant was penalized after it was discovered that nearly 5.9 million of its vehicles emitted more pollutants than reported, according to a spokesperson from the National Highway Traffic Safety Administration (NHTSA).

The affected vehicles, spanning model years 2012 to 2018, exhibited carbon dioxide emissions that were, on average, 10 percent higher than what GM had reported, the Environmental Protection Agency (EPA) stated.

Additionally, GM agreed to forfeit greenhouse gas credits equivalent to around 50 million metric tons of carbon dioxide, which holds a market value estimated in the hundreds of millions of dollars.

Following the announcement, GM shares dropped by 0.51 percent during Wednesday's trading on the New York Stock Exchange.

This is not the first time GM has faced such penalties. 

Last year, the automaker paid a $128 million fine to the NHTSA after its pickup trucks, sold in previous years, failed to meet fuel economy standards.

In March, the Biden administration introduced stricter automotive emissions standards for vehicles produced in the United States.

These updated regulations aim to gradually reduce permissible emission levels, encouraging automakers to increase their production of electric vehicles.