Lanzon Leads GM Powertrain After Emissions Scandal

MUMBAI – General Motors has tapped Vice President Jim Lanzon to lead its global GM Powertrain operations in Pontiac, MI, USA, after the sudden dismissal of his boss and several other employees accused of improper test procedures in attempting to meet emissions regulations in India.

Lanzon had been in charge of global transmissions and now replaces Sam Winegarden, who leaves after 44 years with GM. It is unclear whether Lanzon’s appointment is permanent. The auto maker says he will oversee powertrain “until further notice.”

The disciplinary actions followed revelations last week that GM has suffered losses in India due to warranty claims.The last batch of industry callbacks covered 114,000 Chevrolet Tavera multipurpose vehicles produced over the previous eight years.

“We uncovered some inconsistencies, and we took care of them with our customers,” Lowell Paddock, GM India’s managing director and president, tells The Economic Times newspaper in India.

Although General Motors India voluntarily reported the problem to authorities within the past week, government officials say they have known about the situation for more than a month.

GM India’s Tavera obtained invalid emissions certification after staffers refitted already approved engines in new Tavera models selected for inspection. In addition, weight was improperly stripped out of the selected models so they would pass a less stringent standard.

It is unclear how these vehicles became subject to testing when they are supposed to be selected at random. No employees at the testing agencies have been implicated. GM’s Paddock has said there was no collusion between the dismissed employees and testing agencies.

After a vehicle passed an emissions test, the approved engine was removed and kept aside for reuse in the next test, sources in India say.

Industry observers in India question whether GM’s Sail diesel hatchback also will be flagged for false certification processes. If so, further recalls and investigations may follow.

The Indian government is reviewing the entire selection and certification process as well as procedures used at the testing institutes.

There is a periodical review and confirmation of production (COP) requirement to ensure vehicles continue to meet the emissions levels certified in the tested samples. The COP system also is under scrutiny in an attempt to prevent abuse.

B V R Subbu, former president of Hyundai Motor India and an auto consultant now, says GM India “may not be alone in such breakdown of integrity.”

Says Jagdish Khattar, former chairman of Maruti Suzuki and currently CMD of Carnation Auto:  “The problems are not with the system, but it is some people who may have misused it.”

So far, there is no evidence of improper testing with regard to safety equipment such as brakes, but Indian officials want to extend the current investigation into that sector of vehicle development.

– with Tom Murphy in Detroit