GM Korea to compensate for mileage overstatement

Chevrolet Cruze

Fuel economy of Cruze adjusted downward

By Park Jin-hai

GM Korea, the Korean unit of U.S. auto giant General Motors, lowered its Cruze compact’s promised fuel efficiency and announced it would provide cash compensation to owners.

Through its voluntary readjustment announcement released Monday, the company admitted that the previously claimed mileage for the 1.8-liter Chevrolet Cruze, model years 2010-2014, did not comply with the more updated government mileage testing rules.

The vehicle has been subject to fuel efficiency testing this year, along with 13 others, by the Ministry of Land, Infrastructure and Transport (MOLIT).

It has downgraded the Cruze sedan’s mileage from 12.4 kilometers per liter of fuel to 11.3, while its hatchback’s mileage was lowered to 11.1 kilometers per liter from 12.4.

“Following internal test results, we decided to immediately make the necessary rating changes,” said GM Korea President and CEO Sergio Rocha, offering an apology to all impacted customers.

The regulation on automobiles’ fuel efficiency and grade systems validates vehicle's efficiency only if it comes within a 5 percent plus or minus margin.

He added that on the foundation of customer-centered corporate culture, GM Korea will do its best to provide accurate product information.

It sold some 82,000 vehicles that are affected by the latest decision.

The car, currently sold under the Chevrolet badge, was called the Lacetti Premiere before March 2011.

Owners of all affected vehicles could receive up to 431,000 won in monetary compensation.

The money aims to cover the difference between the previously stated and revised fuel economy, and inconveniences it caused over the past five years.

The compensation will cost the company as much as 32 billion won, but it will also have to pay a penalty for the mileage overstatement that could be up to 1 billion won under the current law.

The company set up a website (https://www.chevrolet.co.kr/compensation-index.gm) to handle the compensation process.

GM Korea said that changes to fuel economy will not affect Cruze vehicles sold abroad since they are all certified based on standards outlined by individual countries.

“As the ministry has become stricter on testing, aiming for customer protection, car manufacturers are coming forward and reporting their mileage overstatements,” said a MOLIT official. “We are now witnessing the positive effects of a new stricter fuel-efficiency testing.”