State-owned FAW has a joint venture with Volkswagen AG. The joint
venture is one of the two car-making ventures the German automaker
has in China.
An Dewu, FAW's former deputy general manager, was investigated for
"suspected serious violations of the law", the ruling Chinese
Communist Party's discipline watchdog said late on Friday.
The brief report did not give any details of the investigation. In
China, the term "serious violations of the law" can be used to
denote corruption. It was not possible to contact An or any of his
Officials at FAW could not be reached for comment. Li Pengcheng, a
spokesman for FAW-Volkswagen, said he "does not know" anything about
the investigation and referred all queries to FAW.
The investigation into An was announced several days after China's
corruption watchdog, the Central Commission for Discipline
Inspection, said it was investigating another former and one current
executive at the company for "seriously violating the law".
Volkswagen's luxury brand Audi and other foreign brands like Daimler
AG's Mercedes-Benz and Fiat SpA's Chrysler have been under
investigation in China over their pricing practices as Beijing steps
up enforcement of its anti-monopoly laws.
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Earlier this month, the National Development and Reform Commission
(NDRC), China's price regulator, said it would punish Audi and
Chrysler for monopoly practices.
It was not immediately clear if the two probes were related.
Separately, the party's corruption watchdog said late on Friday it
is also investigating Ren Runhou, the vice governor of northern
Shanxi province, for "suspected serious violations of the law". Ren
is the latest target amid an intensifying crackdown on graft in the
President Xi Jinping has said endemic corruption threatens the
Communist Party's very survival and has vowed to go after
high-flying "tigers" as well as lowly "flies".
(Reporting by Sui-Lee Wee; Editing by Paul Tait)
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