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General Motors (GM) Stock Stumbles on Diesel Emissions Cheating Lawsuit
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On Thursday, shares of American auto manufacturer General Motors (GM - Free Report) are falling, down over 2% in afternoon trading after the company was named in a lawsuit alleging that it uses a device in its diesel-powered vehicles in order to cheat on emissions tests.
If this feels familiar, it’s because GM is the fifth carmaker to be accused of cheating on diesel emissions tests since blockbuster allegations against Volkswagen surfaced back in 2015, joining Daimler AG , Fiat Chrysler , Peugeot SA, and Renault SA.
The class-action lawsuit was filed Thursday in federal court in Detroit, and accused GM of used “defeat devices,” similar to the ones used by Volkswagen, on over 700,000 of the company’s Chevy Silverado and GMC Sierra Duramax diesel-powered pickup trucks produced between 2011 and 2016. The suit claimed that the trucks emit between two and five times the legal limit of nitrogen oxide pollutants.
"GM's representations are deceptive and false, and GM sold these vehicles while omitting information that would be material to a reasonable consumer that GM has programmed its Silverado and Sierra Duramax vehicles to significantly reduce the effectiveness of the NOx reduction systems during real-world driving conditions," the suit said.
The lawsuit also named German auto parts maker Bosch, saying the company was “an active and knowing participant in the scheme,” as it supplied GM with electronic diesel controls in order to implement defeat devices.
“These claims are baseless and we will vigorously defend ourselves,” GM said in a statement on its website. The company said its diesel Chevrolet Silverado and GMC Sierra pickups obeys all U.S. EPA and California Air Resources Board emissions regulations.
Bloomberg, which originally reported on the allegations, said that the 190-page complaint referenced Volkswagen over 80 times; the suit also states that the potential environmental damage from GM’s diesel emissions cheating could be greater than that of the German automaker.
Volkswagen is set to pay back more than $24.5 billion in fines and penalties across North America as a result of its use of defeat devices.
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General Motors (GM) Stock Stumbles on Diesel Emissions Cheating Lawsuit
On Thursday, shares of American auto manufacturer General Motors (GM - Free Report) are falling, down over 2% in afternoon trading after the company was named in a lawsuit alleging that it uses a device in its diesel-powered vehicles in order to cheat on emissions tests.
If this feels familiar, it’s because GM is the fifth carmaker to be accused of cheating on diesel emissions tests since blockbuster allegations against Volkswagen surfaced back in 2015, joining Daimler AG , Fiat Chrysler , Peugeot SA, and Renault SA.
The class-action lawsuit was filed Thursday in federal court in Detroit, and accused GM of used “defeat devices,” similar to the ones used by Volkswagen, on over 700,000 of the company’s Chevy Silverado and GMC Sierra Duramax diesel-powered pickup trucks produced between 2011 and 2016. The suit claimed that the trucks emit between two and five times the legal limit of nitrogen oxide pollutants.
"GM's representations are deceptive and false, and GM sold these vehicles while omitting information that would be material to a reasonable consumer that GM has programmed its Silverado and Sierra Duramax vehicles to significantly reduce the effectiveness of the NOx reduction systems during real-world driving conditions," the suit said.
The lawsuit also named German auto parts maker Bosch, saying the company was “an active and knowing participant in the scheme,” as it supplied GM with electronic diesel controls in order to implement defeat devices.
“These claims are baseless and we will vigorously defend ourselves,” GM said in a statement on its website. The company said its diesel Chevrolet Silverado and GMC Sierra pickups obeys all U.S. EPA and California Air Resources Board emissions regulations.
Bloomberg, which originally reported on the allegations, said that the 190-page complaint referenced Volkswagen over 80 times; the suit also states that the potential environmental damage from GM’s diesel emissions cheating could be greater than that of the German automaker.
Volkswagen is set to pay back more than $24.5 billion in fines and penalties across North America as a result of its use of defeat devices.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>