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GM committed fraud- India report
October 22, 2013, 9:50 am


GM is one of the largest automobile makers in the world [AP]

An Indian government panel has claimed that US car maker General Motors committed “corporate fraud” in the country, local media reported on Tuesday.

A three-member committee was appointed to investigate GM’s recall of over 126,000 Chevrolet Tavera vehicles in India and has discovered that the company’s top management, including CEOs and managing directors from 2005 to 2012, were involved in fraud, The Times of India said in a report.

The committee was set up to probe if the US car maker had a role in breeching the engine testing norms after it issued the largest ever recall for flouting the compliance of production norms.

The panel has submitted its report to the Indian Road Transport Ministry and Heavy Industries Ministry and recommended a penalty and a systemic clean-up to avoid recurrence of similar incidents in the future, the report said.

Companies have to produce vehicles and components that exactly match with the specification, performance and marking requirements approved by the testing agencies.

GM India is yet to comment on the probe panel’s report.

GM is one of the largest automobile makers in the world that produces cars and trucks in 30 different countries while it operates and sells vehicles in over 120 countries around the world.

The firm’s largest national market is China, followed by the United States and then Brazil.

Source: Agencies

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