GM India is likely to be fined over Rs 1.5 crore for weight-fudging issues and recall of 1,14,000 Tavera earlier this year.
An estimated penalty of over Rs 1.5 crore under the Central Motor Vehicle Rules, under the auspices of the Ministry of Road Transport and Highways, is likely to be imposed on General Motors India for weight-fudging issues and subsequent recall of 1,14,000 Taveras in July this year.
Besides, a police case may be initiated in Gujarat and Maharashtra where GM India has its two manufacturing facilities, says Ambuj Sharma, additional secretary in the Ministry of Heavy Industries and Public Enterprises.
Sharma told our sister publication, Autocar Professional, that state governments, RTOs and the state transport commissioners have already initiated steps in this regard a month ago. They are the competent authorities to finalise the fine amount, he added. He said that the first offence means the first defaulting vehicle will draw a fine of Rs 1,000 with subsequent offences attracting a penalty of Rs 500 per vehicle.
The Taveras were recalled in July for irregularities in exhaust emissions tests. The company subsequently initiated an internal probe under which employees were asked to leave.
The panel’s report also recommends two steps to prevent the recurrence of such malpractices, first on the part of the testing agencies and second, by an OEM. For the testing agency in this respect, ARAI Pune, there are suggestions to improve test procedures and methodology. It recommends random sampling, ascertaining the number of critical parts in the vehicle, strengthening the manpower conducting the tests and introducing the surprise element in the checking between intimation of the test to the car major and in the conduct of the actual test.
“All possible variants of one model have to be tested so that fudging of weight is not possible. In the case of General Motors India, a weight difference of 15-20kg helped them pass the COP,” says Sharma. Hence, the report recommends that all possible weight categories be tested in the COP (compliance of production).
Further, variations in manufacturing usually come from the thousands of machined parts that have to be built with micron-perfect accuracy. A lot of these critical parts have to be outsourced, sometimes to various suppliers, and hence it becomes difficult to ensure consistency in manufacturing. Therefore, the need to check the critical parts as well.
The report comes just a day after GM India announced that it has resumed production of the Tavera. Headed by Nitin R Gokarn, CEO of NatriP (National Automotive Testing and R&D Infrastructure Project), the investigating committee checked GM India’s recall of over 1,14,000 Tavera vehicles holding the company responsible of committing ‘corporate fraud’. Gokarn has said GM India’s top management — including CEOs and managing directors and those at the engineering level from 2005 to 2011-12 — could not be unaware of this offence and were allegedly involved in it.
In its report submitted to the road transport and heavy industry ministries, the three-member panel has recommended imposition of a penalty, apart from a systemic clean-up to avoid recurrence of similar incidents in future. The panel has suggested that action be taken against the company as well as executives involved, leaving it to the concerned ministries to decide on the level of penalties.
The committee was set up to investigate if the OEM had a role in violating the engine testing norms after it issued what was then the largest-ever recall for flouting the COP norms. Under COP, companies have to manufacture vehicles and parts that conform to the specification, performance and marking requirements approved by the testing agencies.
Meanwhile, P Balendran, vice-president, GM India, has confirmed that the production and sale of BS III Tavera 7-,8-, 9- and 10- seater variants has commenced at its Halol facility. “We also expect to start production of the BS IV variant soon after receiving required approvals. Production of the Tavera BS III is in line with market conditions and will be ramped up as per demand,” he said.[/img][/SIZE][/I]
An estimated penalty of over Rs 1.5 crore under the Central Motor Vehicle Rules, under the auspices of the Ministry of Road Transport and Highways, is likely to be imposed on General Motors India for weight-fudging issues and subsequent recall of 1,14,000 Taveras in July this year.
Besides, a police case may be initiated in Gujarat and Maharashtra where GM India has its two manufacturing facilities, says Ambuj Sharma, additional secretary in the Ministry of Heavy Industries and Public Enterprises.
Sharma told our sister publication, Autocar Professional, that state governments, RTOs and the state transport commissioners have already initiated steps in this regard a month ago. They are the competent authorities to finalise the fine amount, he added. He said that the first offence means the first defaulting vehicle will draw a fine of Rs 1,000 with subsequent offences attracting a penalty of Rs 500 per vehicle.
The Taveras were recalled in July for irregularities in exhaust emissions tests. The company subsequently initiated an internal probe under which employees were asked to leave.
The panel’s report also recommends two steps to prevent the recurrence of such malpractices, first on the part of the testing agencies and second, by an OEM. For the testing agency in this respect, ARAI Pune, there are suggestions to improve test procedures and methodology. It recommends random sampling, ascertaining the number of critical parts in the vehicle, strengthening the manpower conducting the tests and introducing the surprise element in the checking between intimation of the test to the car major and in the conduct of the actual test.
“All possible variants of one model have to be tested so that fudging of weight is not possible. In the case of General Motors India, a weight difference of 15-20kg helped them pass the COP,” says Sharma. Hence, the report recommends that all possible weight categories be tested in the COP (compliance of production).
Further, variations in manufacturing usually come from the thousands of machined parts that have to be built with micron-perfect accuracy. A lot of these critical parts have to be outsourced, sometimes to various suppliers, and hence it becomes difficult to ensure consistency in manufacturing. Therefore, the need to check the critical parts as well.
The report comes just a day after GM India announced that it has resumed production of the Tavera. Headed by Nitin R Gokarn, CEO of NatriP (National Automotive Testing and R&D Infrastructure Project), the investigating committee checked GM India’s recall of over 1,14,000 Tavera vehicles holding the company responsible of committing ‘corporate fraud’. Gokarn has said GM India’s top management — including CEOs and managing directors and those at the engineering level from 2005 to 2011-12 — could not be unaware of this offence and were allegedly involved in it.
In its report submitted to the road transport and heavy industry ministries, the three-member panel has recommended imposition of a penalty, apart from a systemic clean-up to avoid recurrence of similar incidents in future. The panel has suggested that action be taken against the company as well as executives involved, leaving it to the concerned ministries to decide on the level of penalties.
The committee was set up to investigate if the OEM had a role in violating the engine testing norms after it issued what was then the largest-ever recall for flouting the COP norms. Under COP, companies have to manufacture vehicles and parts that conform to the specification, performance and marking requirements approved by the testing agencies.
Meanwhile, P Balendran, vice-president, GM India, has confirmed that the production and sale of BS III Tavera 7-,8-, 9- and 10- seater variants has commenced at its Halol facility. “We also expect to start production of the BS IV variant soon after receiving required approvals. Production of the Tavera BS III is in line with market conditions and will be ramped up as per demand,” he said.[/img][/SIZE][/I]
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