General Motors has decided to oust the Managing Director of GM India, Lowell Paddock, after he was accused of “corporate fraud” by a government-appointed committee. Paddock will be replaced by Arvind Saxena, who currently serves as Managing Director of Volkswagen India, with sources familiar with the situation telling The Times of India Friday that Paddock is headed for a position at GM’s international office in Singapore.
Paddock joined GM two years ago and was one of the individuals who landed in hot water over falsified emission levels related to the Indian-market Tavera SUV, a situation that led to one of the biggest recalls in the history of India’s auto industry. The issue prompted an investigation by the Indian government, which eventually found GM guilty of corporate fraud, and resulted in the firing of GM global engine development chief Sam Winegarden.
Head of GM’s International Operations, Stefan Jacoby, admitted that some processes were not monitored properly, which led to the Tavera controversy. He said the company has since put systems and processes in place to prevent a similar event from happening in the future.
“There had been a lack of sufficient processes. These processes are now fixed and this will not happen again,” Jacoby said. “Its much, much more under control now… much more integrated into global processes and the emission applications are controlled and cleared by global engineering resources in Detroit.”