GM Has a VW-Sized Scandal Brewing

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GM Has a VW-Sized Scandal Brewing


Investors in GM need to be worried today. The company has a potentially VW-sized scandal brewing. A new lawsuit from the owners of over 705,000 GM trucks alleges that the company used "defeat devices" to cheat on emissions tests just like VW. The suit alleges the environmental damage, wrought by GM using such devices on two models of truck, could surpass that of VW's infraction. Emissions were alleged to be two to five times the legal limit, and the case was filed at home in Detroit. GM is denying the claims they call "baseless" and says they will vigorously defend themselves.

FINSUM : In our view a suit of this size would probably not be brought if there was not some evidence to back up the claims. This makes us believe this scandal will grow.

Source: Bloomberg

  • stocks
  • GM
  • vw
  • defeat device
  • emissions

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This article appears in: Investing , stocks

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