Cadillac recall to cost GM $45 million

It'll cost GM $45 million in fines and repairs to fix cars that emit too much carbon monoxide. Some 470,000 Cadillacs are being recalled due to a computer chip the automaker added to the engine control module to correct a low-speed stalling problem with air conditioning systems running. GM, however, refutes claims by the U.S. Attorney General's office that the automaker added the chip knowing that the emissions would exceed legal pollution levels. Recalled are '91-'93 Sevilles, '91-'95 DeVilles, '91-'93 Eldorados and '91-'92 Fleetwoods, all with 4.9L engines that are no longer manufactured. The additional chip increases the richness of the fuel mixture when the air conditioning system is running, thereby hiking pollution levels. The government alleges that GM knew the device would increase carbon monoxide emissions to illegal levels and that the automaker did not, but should have, notified the Environmental Protection Agency of the change. GM's response is that the issue is a "matter of interpretation of current regulations regarding the complex issue of off-cycle emissions," and that the engine "meets all applicable standards." GM says that it did not violate regulations regarding disclosure but accepted $11 million in fines to avoid litigation. Fixing the emissions problem will cost $34 million.