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.
Article source: http://www.nytimes.com/2013/07/27/business/gm-dismisses-executives-after-india-begins-investigating-recall-of-vehicles.html?partner=rss&emc=rss