GM News: General Motors Details Compensation Plan For Crossover Owners

[William Maley]

Earlier this week, we reported that General Motors was working on a compensation plan for owners of 2016 Buick Enclave, Chevrolet Traverse, and GMC Acadia crossovers that had inflated fuel economy numbers. Yesterday, the company unveiled the plan.

 

Automotive News and Reuters reports that GM will offer buyers the choice of either debit card (ranging from $450 to $1,500) or a 48 month/60,000 mile extended warranty. Those who are leasing the crossovers in question will only get the debit card. The amount a person will get will vary due to various factors including the difference between the inflated and actual fuel economy figures.

 

“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,” said a GM spokesman in a statement.

 

How much will this cost GM? A source tells Reuters that it will be about $100 million.

 

Source: Automotive News (Subscription Required), Reuters

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[Drew Dowdell]

If you're driving a Lambda and you own it.... take the extended warranty.

[smk4565]

100,000+ vehicles at $1,000 average, that is a $100 million mistake.  Whether they faked the label or just did it by accident costly either way.  

[riviera74]

If you're driving a Lambda and you own it.... take the extended warranty.

 

While I do agree with you, what is the reason people should take the extended warranty if purchased instead of the debit card?

 

I know from elsewhere that leased customers will only receive the debit card.

[Drew Dowdell]

 

If you're driving a Lambda and you own it.... take the extended warranty.

While I do agree with you, what is the reason people should take the extended warranty if purchased instead of the debit card?

I know from elsewhere that leased customers will only receive the debit card.

They have some unresolved engine issues that can be very costly to repair. GM's response has been to shorten the oil change interval, but that doesn't really address the issue... It just pushes it out passed the warranty period.

[daves87rs]

Agree with Drew...would be wise to get the plan if you bought it...

 

Most of these bad boys get leased anyways....not sure if I'd buy one used anyways. The 3.6 is very hard of oil, and most owners barely get the oil changed. That, and they suck gas....there are 2 of these monsters on side side of my family alone! They hold up well for those who care for them though...

[oldshurst442]

Agree with Drew...would be wise to get the plan if you bought it...

 

Most of these bad boys get leased anyways....not sure if I'd buy one used anyways. The 3.6 is very hard of oil, and most owners barely get the oil changed. That, and they suck gas....there are 2 of these monsters on side side of my family alone! They hold up well for those who care for them though...

They do hold up well from those owners that actually take care of them.

My partner's wife's 2006 GMC Acadia was bought the first year it came out, its still going on strong and she loves it to death.

 

He...has bought recently a Tesla Model S, she....refuses to part with her GMC Acadia.

[Cmicasa the Great]

100,000+ vehicles at $1,000 average, that is a $100 million mistake.  Whether they faked the label or just did it by accident costly either way.  

 Even if its a $100M issue... the penalty if they didn't act fast would be much higher. Nonetheless, the Lambdas are MINTS. Being around since 2007 pretty much unchanged, and still selling like hotcakes has its rewards. In truth.. I see zero reason why GM would abandon the platform. They simply should pull a "Toyota Corolla/Camy" and keep it going for another decade with a few updates to the inside. This is one platform where driving dynamics mean zero 

[Drew Dowdell]

 

100,000+ vehicles at $1,000 average, that is a $100 million mistake.  Whether they faked the label or just did it by accident costly either way.  

 Even if its a $100M issue... the penalty if they didn't act fast would be much higher. Nonetheless, the Lambdas are MINTS. Being around since 2007 pretty much unchanged, and still selling like hotcakes has its rewards. In truth.. I see zero reason why GM would abandon the platform. They simply should pull a "Toyota Corolla/Camy" and keep it going for another decade with a few updates to the inside. This is one platform where driving dynamics mean zero 

 

 

The program to replace them is already well under way.  The big thing is weight.  I'm hoping that the weight loss the Acadia got translates well into the larger Traverse and Enclave once they are released.   One of the reasons they get such terrible mileage in the first place (even the overstated MPG stickers weren't great) is due to the fact they weigh so much and the 3.6 has to work hard all the time to moved these beasts around.  They could really do well with a smaller displacement V6 with a turbo tuned for torque rather than horsepower to get the low end grunt needed to move the mass.

 

My experience with the Lambda fuel economy over the years seems to have been validated with this story though.... I've always struggled to get even close to the sticker rating on the highway and in the Suburban/Tahoe I have always beaten the Lambdas in that regard.

[Cmicasa the Great]

 

 

100,000+ vehicles at $1,000 average, that is a $100 million mistake.  Whether they faked the label or just did it by accident costly either way.  

 Even if its a $100M issue... the penalty if they didn't act fast would be much higher. Nonetheless, the Lambdas are MINTS. Being around since 2007 pretty much unchanged, and still selling like hotcakes has its rewards. In truth.. I see zero reason why GM would abandon the platform. They simply should pull a "Toyota Corolla/Camy" and keep it going for another decade with a few updates to the inside. This is one platform where driving dynamics mean zero 

 

 

The program to replace them is already well under way.  The big thing is weight.  I'm hoping that the weight loss the Acadia got translates well into the larger Traverse and Enclave once they are released.   One of the reasons they get such terrible mileage in the first place (even the overstated MPG stickers weren't great) is due to the fact they weigh so much and the 3.6 has to work hard all the time to moved these beasts around.  They could really do well with a smaller displacement V6 with a turbo tuned for torque rather than horsepower to get the low end grunt needed to move the mass.

 

My experience with the Lambda fuel economy over the years seems to have been validated with this story though.... I've always struggled to get even close to the sticker rating on the highway and in the Suburban/Tahoe I have always beaten the Lambdas in that regard.

 

 

 

I kno. the weight. But in we all have to keep in mind that these vehicles were a safe measure for GM as possible replacements for GMT900s back in the day.. thus the size. I hope they retain that size too in the Buick and Chevy versions.. but after seeing the strides made in the K2xx and the new Acadia.. I am confident that the situation is covered pertaining to F/E

[hyperv6]

Weight is the new HP War and GM has about the best handle on it now of any MFG. 

 

They will lose the weight and employ the aluminum steel construction along with just good old engineering the weight out. GM really had done well with this part alone. 

 

These models will do fine and only get better. 

The $100M is not cheap but it could have been much worse financially and also been much worse PR wise. As it is this has gone under the radar of most media outlets and will be forgotten soon. In fact I suspect few owners ever complained as it was something never much of an issue on the web forums over other issues.