Govt panel to suggest steps to tighten auto testing norms

The three-member committee might also examine the former leadership of General Motors India

Sharmistha Mukherjee New Delhi
Last Updated : Aug 07 2013 | 9:48 AM IST
A panel constituted by the government to probe the recall of Tavera by General Motors is set to evaluate the conformity-of-production (CoP) processes followed by testing agencies and automobile companies and recommend measures to tighten those.

“The panel will look into the GM recall to ascertain how the lapse (in testing procedures) had taken place. It will also suggest measures to strengthen CoP requirements,” said a senior government official.

ALSO READ: An 'official' recall policy? Whatever for!

In one of the largest vehicle recalls in India, General Motors India had on Wednesday announced it was recalling 1,14,000 units of its multi-purpose vehicle, Chevrolet Tavera, manufactured between 2005 and 2013.

The three-member committee might also examine the former leadership of General Motors India to ascertain what led to executives in the company flouting regulations and re-fitting pre-approved engines on new Tavera models sent for inspection. In a letter to authorities on July 18, the company had admitted an internal probe revealed that to  meet emission norms, executives had tinkered with the weight of the BS-III and BS-IV variants of the Tavera sent for testing.

“We have not taken a final call yet. But we have not ruled out examining the former leadership of General Motors,” said the official.

ALSO READ: Mandatory recall policy on cards; auto makers to face penalty

Aditya Vij had led the company from August 2000. In June 2005, he was replaced by Rajesh Chaba. In October 2007, Karl Slym assumed charge as General Motors India managing director and president. Slym headed the company till 2011, before joining Tata Motors as managing director. Currently, Lowell Paddock heads the operations of General Motors India.

Globally, General Motors is said to have dismissed about 25 employees since the Tavera recall. These include Sam Winegarden (vice-president for global engine engineering) and Anil Mehrotra (chief financial officer for India). Reportedly, Rajesh Chaba, involved in the company’s operations in China, has also been dismissed. A questionnaire to the company seeking details of the action taken since the company found irregularities in the Tavera testing norms in India remained unanswered.

Senior industry sources said a subversion of the scale in testing procedures, as reported by General Motors India, was “surprising and needs immediate rectification”. On condition of anonymity, a senior executive in an automobile company said, “Inspection teams from testing agencies randomly select vehicles. The fact that the test vehicles were fudged hints at possible collusion across departments in the company and the testing agency. Manufacturers have regular internal checks and in this case, the problem remained undetected for almost eight years, which is surprising.”


To probe the matter, the Department of Heavy Industry, along with the Ministry of Road Transport and Highways, had constituted a committee headed by Nitin Gokarn, chief executive officer, National Automotive Testing and R&D Infrastructure Project (Natrip). Besides Gokarn, the committee has representatives from the Department of Heavy Industry, as well as the ministry. The panel, which held its first meeting on Tuesday, received suggestions to strengthen CoP procedures from the six testing centres functioning under the aegis of Natrip. It would respond to the recommendations next week.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Aug 07 2013 | 12:50 AM IST

Next Story