G.M. Dismisses Executives as India Begins Investigating Recall of Vehicles

[Vikrant]

General Motors has forced out several executives and managers, including the head of its global engine operations, as the company’s recall of vehicles in India raises questions about improper emissions tests.

G.M. said on Friday that it had dismissed the employees for violating unspecified company policies. One of the executives was Sam Winegarden, a vice president in charge of engine programs, who retired this week after 44 years with G.M., the nation’s largest automaker.

The management shake-up came after the Indian government began an investigation into the recall this week of 114,000 Chevrolet Tavera utility vehicles sold by G.M. in India.

Indian news reports said the government was investigating whether G.M. had improperly manipulated the weight and engine performance in the Tavera during emissions testing and certification.

A G.M. spokesman, Greg Martin, declined to say whether the employees had been forced to leave because of the government investigation.

“General Motors’ investigation into our recall of the Chevrolet Tavera, which is built and sold exclusively in India, identified violations of company policy,” G.M. said in a statement. “G.M. subsequently dismissed several employees.”

One person briefed on the dismissals, who spoke on the condition of anonymity, said at least 10 employees, mostly in India, were involved. The highest-ranking employee was Mr. Winegarden, who is based in the United States and is the top engineer for the company’s engine operations worldwide.

The company, which said it was voluntarily recalling the vehicles, acknowledged that the Indian government was aware of “an emissions issue” with the Tavera, one of G.M.’s mainstream models in the country.

“G.M. India informed Indian government authorities of an emissions issue involving the Tavera BS3 meeting certain specifications on July 19,” the company said.

The company stopped production of the Tavera in India this month. It said it would make changes to vehicles built as far back as 2005 and perform the required engineering validation. It gave no timetable for notifying customers and doing the work.

The recall is a setback for G.M.’s growth plans in India, particularly if it damages the reputation of the American automaker.

“Our customers are at the center of everything we do,” said Lowell Paddock, head of G.M. India, when he announced the recall.

On Thursday, G.M. reported that its net income in the second quarter dropped 19 percent, partly because of smaller-than-expected profits in Asia.

G.M.’s chief financial officer, Daniel Ammann, said on Thursday that India was among the international markets where G.M. struggled during the quarter.

The decision to oust executives is in keeping with a zero-tolerance policy about violation of corporate ethics led by G.M.’s chief executive, Daniel F. Akerson.

“We take these matters very seriously and hold our leaders and employees to high standards,” the company said. “When those standards are not met, we will take the appropriate action to hold employees accountable.”

Last year, Joel Ewanick, G.M.’s chief marketing officer, was forced to resign after questions were raised inside the company about his handling of a sponsorship deal with a British soccer team.

http://www.nytimes.com/2013/07/27/b...ns-investigating-recall-of-vehicles.html?_r=0

 

[waltky]

Not after people died `cause they delayed to fix the problem...

Is GM Being Blamed Too Aggressively?
April 19, 2014 — The New York International Auto Show began this past week, and the biggest star was the CEO of GM, Mary Barra - who took the company helm last December. But the attention was not because of the new automobile models on display.

It was because of GM's past faulty workmanship, which caused a safety defect - faulty ignitions that shut off power to the car. This loss of power caused the driver to lose control of the vehicle which, in some cases, led to fatalities.

While GM is the main culprit and bears full responsibility for its actions - there are some questions as to the responsibility of others. The government of the United States bailed out GM in 2009. The company was going broke - in part precisely because it produced a substandard product. The Obama administration engaged in controversial bailout scheme and GM became born again.

Because GM went bankrupt in June 2009, the company is no longer liable for the claims of victims that were caused by the faulty ignitions before then. This is seen as an injustice to some. But what about the National Highway Traffic Safety Administration (NHTSA)? There is evidence that the agency ignored warnings about the ignition switch problems.

As the Safety Record, a nonprofit, consumer safety organization in Massachusetts, said, we should be most "most interested in understanding why NHTSA declined to investigate the defective ignition modules in early model year Chevy Cobalts and other models, after two Special Crash Investigations, 29 complaints, four deaths and the considered opinion of Defects Assessment Division (DAD) Chief."

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