GM sacks several execs in US after Indian Tavera fiasco

The recall by GM India of its Travera utility vehicle, and the probe initiated by the union government into the issue on Thursday, has led to a serious shake-up at General Motors' US headquarters. Several executives and managers, including the head of its global engine operations, have been sacked as the company's recall of vehicles in India raises questions about improper emissions tests.

GM 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 GM, America's largest automaker.

One report said more than 20 executives, including four top managers, are being asked to leave the company

After the recall of 114,000 units of the Tavera, the Indian government indicated that the problem with the vehicle may be more critical than previously believed.

''It is not a case of malfunctioning but a very basic problem with the engine,'' said Vijay Chhibber, secretary, ministry of road transport and highways. ''GM has accepted that they have defaulted on the vehicle.''

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

A GM 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,'' GM said in a statement. ''GM subsequently dismissed several employees.''

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 GM's mainstream models in the country.

''GM India informed Indian government authorities of an emissions issue involving the Tavera BS3 meeting certain specifications on 19 July,'' 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 GM's growth plans in India, particularly if it damages the reputation of the American automaker.

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

The decision to oust executives is in keeping with a zero-tolerance policy about violation of corporate ethics led by GM'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, GM'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.