UPDATE 1-GM to unveil plan to compensate owners on fuel economy claims

(Adds details of plan, background)
By David Shepardson
WASHINGTON, May 18 (Reuters) - General Motors Co (NYSE:GM) is expected
to announce plans to compensate about 130,000 individual U.S.
owners of SUVs that had inflated fuel economy labels, sources
briefed on the plans said on Wednesday.
The Detroit automaker said on Friday it was temporarily
halting sales of about 60,000 new 2016 U.S. SUVs because the
vehicles' labels overstated their fuel efficiency. GM plans to
compensate owners for the difference in miles per gallon and
announce the program in the coming week, the sources said.
GM resumed sales once the new labels with the correct labels
arrived at dealerships starting Saturday.
GM is expected to offer a cash compensation program to
address the extra costs of driving based on the lower fuel
economy, the sources said.
GM Canada is expected to offer a similar compensation
program, but it is not clear how many owners are impacted.
GM has sold about 170,000 2016 SUVs in the United States,
and about 130,000 are retail sales which will qualify for the
compensation program. The remainder of the vehicles were sold to
rental car, commercial and fleet buyers. It is not clear how GM
will address those owners.
A GM spokesman declined to confirm the program.
GM said in a statement Wednesday that the error only impacts
2016 SUVs.
GM said in a statement Wednesday that the 1-2 miles per
gallon mileage overstatement was the result of improper
calculations. It said the inclusion of new emissions-related
hardware in the 2016 Chevrolet Traverse, GMC Acadia and Buick
Enclave SUVs required new emissions testing, but the fuel
economy data from these tests were not captured in calculations
made for EPA fuel economy labels. The error was discovered as GM
engineers worked on the 2017 model year labels.
On Tuesday, a Florida owner of a 2016 Chevrolet Traverse
filed a class-action suit in U.S. District Court in Detroit
against GM on behalf of owners who bought vehicles with
overstated fuel economy ratings.
The Environmental Protection Agency spokeswoman said Friday
it has asked GM "to provide all relevant information to the
agency."
The incident is the latest in a multitude of issues in
recent years involving the auto industry overstating vehicle
fuel efficiency.
In April, Mitsubishi Motors Corp 7211.T admitted to
overstating the fuel economy of four car models sold in Japan.
In 2014, Korean carmakers Hyundai Motor Co 005380.KS and
affiliate Kia Motors Corp KIAMMG.UL agreed to pay $350 million
in penalties to the U.S. government for overstating fuel economy
ratings in about 1.2 million vehicles.
In June 2014, Ford Motor (NYSE:F) Co F.N lowered the fuel economy
ratings on six models and agreed to reimburse owners for the
difference.