Dongfeng Motor President Under Investigation in China
November 02 2015 - 6:50AM
Dow Jones News
SHANGHAI--The Communist Party's antigraft regulator said Monday
it is investigating the president of China's second-largest auto
maker by sales, in the latest anticorruption probe in the
industry.
The Central Commission for Discipline Inspection said in a
statement on its website that Zhu Fushou, president of state-run
Dongfeng Motor Corp., is being probed for an alleged "severe
disciplinary violation," a phrase that is typically used in China
in cases related to corruption.
Dongfeng has partnerships with several foreign car makers,
including Japan's Honda Motor Co. and Nissan Motor Co., as well as
France's PSA Peugeot and Renault SA. Officials at Dongfeng and its
listed unit, Dongfeng Motor Group Co., weren't immediately
available for comment.
Mr. Zhu, 53, joined Dongfeng in 1984 and became the company's
president in 2011. He led the Chinese auto maker's purchase of a
14% stake in PSA Peugeot last year. He couldn't be reached for
comment and it was unclear if he had a lawyer.
Mr. Zhu's detention is the latest in China's pursuit of
suspected corruption in the automotive industry, which is dominated
by state capital. In a campaign that began two years ago, party
leaders have sent investigative teams to look at state-run
companies, central government agencies and provincial
governments.
Dongfeng, FAW Group Corp. -- China's third-largest auto maker by
sales -- and some of their joint ventures with foreign partners
have come under scrutiny in recent years. In December last year,
Dongfeng removed Ren Yong from his post as assistant to the general
manager at the company and at its joint venture with Nissan after
the disciplinary agency placed him under investigation for
suspected corruption. Mr. Ren couldn't be reached for comment.
In March, the disciplinary agency said it put Xu Jianyi,
then-chairman of state-run FAW, under investigation for suspected
corruption. In October, Zhang Xiaojun, former general manager of
FAW's sales company, was expelled from the Communist Party after he
was accused of taking bribes. Mr. Xu and Mr. Zhang couldn't be
reached for comment.
Rose Yu
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(END) Dow Jones Newswires
November 02, 2015 06:35 ET (11:35 GMT)
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