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China investigates executives at VW for corruption.

1K views 7 replies 8 participants last post by  vxl 
#1 ·
BBC NEWS
26 August 2014 Last updated at 15:53



China's corruption watchdog is investigating one former and one current executive at one of Volkswagen's joint ventures for "seriously violating the law".

The two are from FAW-Volkswagen, a joint venture in China between VW and the state-owned FAW Group.

The Central Commission for Discipline Inspection of the Communist Party of China is carrying out the investigation.

Volkswagen has declined to comment.

Foreign carmakers looking to operate in China are required to team up with local companies. Aside from FAW, Volkswagen also has a joint venture with Chinese carmaker SAIC.

Chinese officials have identified former FAW-Volkswagen deputy general manager Li Wu and Zhou Chun, deputy general manager of Volkswagen's Audi sales division, as the two executives being investigated.

The German carmaker counts China as its biggest market. Its luxury Audi brand generates almost one third of its global sales from China and its cars are widely used by high-ranking government officials.

Anti-trust probes
China has been investigating several foreign carmakers over possible violations of the country's anti-monopoly laws.

Audi has already come under scrutiny for its pricing practices as an anti-corruption crackdown in China gathers pace, although it is not clear if the latest case is related to the anti-trust probe.

Earlier this month, China's pricing regulator the National Development and Reform Commission (NDRC) said it found evidence that Daimler's Mercedes-Benz and Fiat's Chrysler units had manipulated prices.

The firms have been accused of overcharging customers for spare parts and other services, and may have to pay heavy fines.

China has said it will "punish" companies found to have broken anti-trust laws and profited from their market dominance.
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Wow, a VW fine will be massive as they are No1 in China.
 
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#5 ·
LOL. Funny. Will Jimmy Kimmel pick this up? :lmao:

China investigates foreign companies for corruption.... boy, that's the pot calling the kettle black.
China insists on local car makers partnering with foreign companies, basically splitting any profit,
it's the closest thing to daylight robbery you'll ever see...

and then China wonder why parts are so expensive..
:lmao: Unfortunately the Chicommies left the reservation when Chairman Bill let them have missile tech that allowed them to hit something other than nearby villages with their rockets.

China investigating foreign companies for corruption; now that's rich!
:lmao:

In a related headling, "VW requests investigation from WTO regarding rampant Chinese government corruption":lmao:

I think I saw one story regarding GM possibly being investigated by China, but otherwise it seems most of the Chinese investigations are centering around other car makes. I wonder why? Or are we just a day away from a massive investigation announcement against GM?
I didn't know the Chicommies were such late night material.
 
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#4 ·
In a related headling, "VW requests investigation from WTO regarding rampant Chinese government corruption"

I think I saw one story regarding GM possibly being investigated by China, but otherwise it seems most of the Chinese investigations are centering around other car makes. I wonder why? Or are we just a day away from a massive investigation announcement against GM?
 
#6 · (Edited)
Actually, I think the Chinese government is investigating these executives for having NOT met their assigned bribe quota.

But don't worry, I'm sure that they will appoint some fine lawyers to appeal their convictions. What? Well of course they'll be convicted, Chinese courts don't try innocent criminals. Duh.

"Congratulations Mister Volkswagen executive, we got the court to agree to wait to deport you, until after the firing squad. You're welcome."
 
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