China investigating managers at VW joint venture

AP News
Posted: Aug 26, 2014 6:27 AM

BEIJING (AP) — The Chinese anti-corruption agency said Tuesday it is investigating one current and one former manager at Volkswagen's main joint venture in China.

A former deputy general manager of First Auto Works-Volkswagen, Li Wu, and a deputy sales manager of the venture's Audi division, Zhou Chun, are suspected of "serious violations," according to the Central Commission for Discipline Inspection said.

The one-sentence announcement gave no details. There was no indication Volkswagen AG was a target of the investigation.

A Volkswagen spokeswoman in Beijing declined to comment.

FAW-Volkswagen is a joint venture between the German automaker and state-owned FAW Group Corp. Phone calls to FAW and to VW spokespeople were not answered.

Global automakers are under scrutiny by Chinese anti-monopoly regulators. An official said earlier that Audi, Volkswagen's luxury unit, would face unspecified punishment for violating the anti-monopoly law.

A number of Chinese executives at major companies including PetroChina Ltd., Asia's biggest oil and gas producer, have been detained in a sweeping anti-corruption crackdown.