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Wednesday
Dec312014

Nissan China joint venture swept up in anti-corruption campaign

Authorities are investigating a senior executive at Dongfeng Motor Co Ltd, a joint venture between China’s state-owned Dongfeng Motor Corporation and Japanese carmaker Nissan Motor Co.

Ren Yong, assistant general manager of Dongfeng and vice president of the joint venture, has been removed from his posts and is now being investigated for alleged disciplinary violations.

The 50-50 joint venture with Nissan was established in 2003 and is now headquartered in Wuhan, capital city of Hubei province in central China. Dongfeng’s partners also include Honda Motor Co, Korean KIA Motors, and French carmaker PSA Peugeot Citroen.

Dongfeng’s labor union chairman and deputy party chief, Fan Zhong, is also facing an investigation.

Ren and Fan are both linked to Dongfeng’s former deputy general manager Zhou Wenjie who was rumored to be expelled from the party for corruption, reports said.

The central discipline authorities sent inspectors to eight state-owned enterprises last month to spot corruption. Dongfeng, which was under scrutiny, said it has disciplined 34 executives who squandered public funds to pay for gift cards, banquets and sight-seeing tours, and abused public vehicles for private use. Three have been demoted for seriously violating anti-extravagance rules.

The auto industry has been a major target of the sweeping anti-corruption campaign with a number of high-profile arrests earlier this year at the state-owned FAW Group Corp and its joint venture FAW-Volkswagen Automobile Co.

Sources: Xinhua News, Wall Street Journal, People’s Daily (人民网), Economic Observer (经济观察网), Changjiang Times (长江商报).

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Hui Zhi is the Senior Manager for Content with the China Compliance Digest, where a version of this post first appeared.