General Motors India appears to be up to some shenanigans. In July, the company had its first vehicle recall since 1995 when 114,000 Chevrolet Tavera sport utility vehicles needed to be brought in over "emission standards and other regulatory specifications," according to Reuters. A government official who declined to be named told Reuters that the global automaker has been flouting testing regulations since that time.

"The report has pointed out that it is in the nature of corporate fraud," the government official said. It looks like all of the alleged cover up was being done by GM India, and that the testing labs were not implicated in the wrongdoing, the official said.

GM India agreed to the recall last summer after a few of its employees were identified as manipulating local emissions testing to make sure Tavera engines would make the grade. More than 10 GM employees were let go during the investigation, including Sam Winegarden, VP of global engineering; Winegarden had been with the company since 1969 and had played a leading role at some of GM's marquee powerplants.

GM had restarted production of the Traverse earlier this month after receiving regulatory approval. An Indian government-appointed panel has been investigating the recall of the Tavera SUVs for emissions standards and other regulatory specifications. GM could be fined about 100 million rupees ($1.6 million), according to the government official. GM India emailed a statement to the Times of India and the Hindustan Times on the panel's findings. There was an emissions problem and staff had been held accountable, which was reported to Indian authorities. "Beyond that, we're not able to comment as we've not heard from the government or seen the report," the company said.


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    • 1 Second Ago
  • 7 Comments
      Anonymous
      • 8 Months Ago
      Who knew India had emissions regulations? The rest of us thought India was stuck in 1950 when it came to Automotive safety and emissions regulations. This is the country that sells the Tata Microcar, for crying out loud!
        Jay Temkar
        • 8 Months Ago
        @Anonymous
        India has emissions regulations...at present India's "Bharat 4" standard is equivalent to Euro 4 standards..
      Jay Temkar
      • 8 Months Ago
      Is this joke..? only 1.6 Million Dollars? ..I am from India and 100 million Rupees is very small amount..seems GM successfully managed the investigation...They found the scapegoat, blamed them, bribed the investigating officials and got Scot free. Also nobody is punished...This type of greedy capitalism really hurts..
      Spec
      • 8 Months Ago
      Well it is India. The probably assumed it would have been rude to follow the rules instead of breaking them and paying a bribe.
        Rotation
        • 8 Months Ago
        @Spec
        Seriously. Can you imagine the certification official? "This man says he doesn't have to pay a facilitation fee?! Does he not understand the system?"
      DaveMart
      • 8 Months Ago
      Surely not! Not the company which put the lead in your petrol? Or the one which today builds cars for South America with much weaker welds than for Europe and North America, on the grounds that presumably South Americans don't need them, the much higher death rate notwithstanding - profits there are outstanding, much higher than in the boring old markets where customers are reluctant to buy cars which do not disintegrate in a crash, or the legislature to allow their sale. Go GM! They will never pin criminal liability on any of your directors!
        BYALTF
        • 8 Months Ago
        @DaveMart
        I've never seen GM on the list of World's Most Ethical Companies.Maybe there's a connection. Interestingly, Ford is on the list every year.
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