General Motors could be slapped with a 3.4 Crore rupee fine

The fallout of General Motors India fudging emission details of the Chevrolet Tavera MUV, has expected-ly been massive. According to TheTimesOfIndia, the American car maker could be facing a 3.4 Crore Rupee fine by the Indian governmental authorities. The fine, if imposed, will be the biggest ever that an automaker has been slapped with, in India. 

General Motors is expected to pay a fine of 100 rupees for the first offence (fudging emission details), and 300 rupees for every subsequent offence. Also, these offences could attract criminal culpability. Each Tavera MUV sold by General Motors in India is expected to be treated as an individual violation, and the car maker has sold no less than 114,000 units of the MUV in the Indian car market. 

Even as General Motors awaits regulatory clearance to restart production of the Chevrolet Tavera MUV, heads have begun rolling at the car maker. General Motors will also recall 114,000 units of the Tavera to fix emission issues. A new catalytic converter is rumoured to be the fix that the car maker will issue for the 114,000 Taveras already sold in India. 

The fix will be made available free of cost, to existing owners of the Tavera. Meanwhile, firings have been taking place across General Motors's various offices across North America and India. Key executives, including the head of engines at the car maker's US headquarters, have been fired.

Firings have taken place at multiple locations in India, at Halol, Gujarat, and Talegaon, Maharashtra, where the American car maker's factories are situated. GM India's Gurgaon headquarters is also said to have seen its share of firings related to the Tavera controversy. General Motors has also stopped production of two recently launched cars, the diesel engined versions of the Sail hatchback and sedan.

The cars have also been pulled off showroom shelves. The official line maintained by General Motors for the Sail Diesel twin recall is that of "quality issues" in the 1.3 liter turbo diesel engine. Official communication on when production of the diesel powered Sail twins will be resumed, remains unavailable at this point in time. 

The Tavera MUV and the Sail diesel twins were General Motors's major volume baggers. With production halted for nearly two months now, the American car maker has seen its monthly volumes dip sharply, to an average figure of 6,500 units, from 8,500 units. Apart from the sales slump, the Tavera fiasco could dent General Motors India's image.