A senior government official in India said that General Motors violated testing regulations. GM is being investigated by a government-appointed panel for its recall of 114,000 Tavera vehicles. The government official, who asked to be anonymous because the information is not public, informed Reuters that the report indicates that it is “in the nature of corporate fraud."
The official added that GM was responsible for whatever happened and that the testing labs made no wrongdoing. In a statement, GM India said that those responsible and the violations of company policy have been identified. He said that under the present provisions, the company may be fined around 100 million rupees ($1.6 million).
He added that the report, which India's roads ministry will use, doesn’t give the names of GM officials. The case is linked to the recall last July of 114,000 India-built Tavera SUVs due to issues related to emission standards and other regulatory specifications. Production also stopped. Last July, The Economic Times reported that GM had informed the government that workers had installed low-emission engines in the vehicles sent to be inspected.
GM terminated several workers, which include Sam Winegarden (vice president for global engine engineering), in July after an internal probe into the recall discovered company policy violations. The findings of this panel were reported last Tuesday on The Times of India and the Hindustan Times newspapers.
In a statement last Tuesday, GM India said that it determined there was an “emissions problem” and that people were held accountable and that Indian authorities have been advised. However, GM India said that it can’t comment further as it hasn’t received a copy of the report or been contacted by the government.