Probe panel: Chevy Tavera emission fudging "Corporate Fraud"

General Motors India was found fudging emissions of the Chevrolet Tavera by the Automotive Research Association of India (ARAI), in a routine compliance of production (COP) inspection. This discrepancy led to the recall and stoppage of production of this popular MUV. After firing officials said to be responsible for the Tavera emission fudging scam, General Motors India made the required changes to the MUV and sought approvals for the same. While the governmental approval for restarting production of the BS-3 variants of the Tavera has come through, the same for the BS-4 variant is awaited. GM India has since restarted production of the BS-3 Tavera variants. 

Even as General Motors stopped production and issued a recall notice for over 1.14 lakh Tavera MUVs sold in India, the Indian government's transport ministry instituted its own 3 member panel to probe the Tavera emissions scam. The panel, headed by NATRiP Chief Mr Nitin Gokarn, has returned with its findings, terming the emissions fudging scam as "corporate fraud". Apart from this usage of strong language against the automaker, the probe panel has also held General Motors India, and its former managing directors and CEOs (between 2005 and 2012) responsible for the "corporate fraud". The panel, while exonerating ARAI, has also recommended the imposition of a penalty, the exact details of which are yet to be made available.  

Lowell Paddock, the current managing director of GM India, is said to have claimed to the panel that the Tavera emissions scam was unearthed due to his efforts. A cloud of doubt hangs over the likes of Mr Rajeev Chaba and Mr Karl Slym, two former MDs at General Motors, between 2005 and 2012. Mr Chaba, upon the unearthing of the Tavera emissions scam, was dismissed by GM from his position as vice president of sales and marketing, GM China.  Mr Karl Slym continues to head Tata Motors as its managing director, a position that could become untenable in light of the government panel's latest findings. 

The probe panel has also suggested the following remedial measures to be taken in order to prevent future scams:

• Government to monitor recalls with random samples picked out to ensure proper rectification
• Random check on dealer samples mooted instead of the present practice of manufacture samples being tested
• COP date notification to be be fixed by ARAI instead of the current practice of ARAI and auto manufacturers jointly arriving at a COP inspection date  
• COP process to cover entire vehicle rather than just auto parts
• Type approval to be withdrawn in case of non compliance of COP

Source TheTimesofIndia