According to a senior government official, an Indian government-appointed panel reviewing General Motors Co’s recall of 114,000 Chevrolet Tavera vehicles has concluded the US company disregarded testing standards.
GM India also said in a statement it had been able to find the exact violations of company policy and those responsible for them. The automaker risks fines of around 100 million rupees ($1.6 million) under the current regulations, the official said.
“The report has pointed out that it is in the nature of corporate fraud,” says the government official, who asked not to be identified discussing privileged information. “It says only the OEM (original equipment manufacturer) was responsible for whatever happened,” and that the testing labs were clear of any wrongdoing, the official added.
The report, which will be delivered to the Indian roads ministry, does not name any specific GM officials, he said. The case is closely related to the July recall of 114,000 India-made Tavera sport utility vehicles (SUVs) over problems caused by the cars that were not in compliance with emission standards and other regulatory specifications. Production of the model was also halted. GM in the meantime has restarted production of the Tavera sport-utility vehicles in India after receiving the regulatory approvals, a company executive told Reuters on Saturday.