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Dongfeng faces corruption probe from Chinese authorities

Central Commission for Discipline Inspection of the Communist Party- Dongfeng faces corruption probe from Chinese authorities

Chinese government officials are investigating executives at state-owned automaker Dongfeng Motor Corp. for possible corruption.

Dongfeng has a joint venture in China with PSA/Peugeot-Citroen that builds vehicles for the Peugeot and Citroen brands. The Chinese carmaker took a 14 percent share in PSA earlier this year along with the French government as part of a 3 billion euro ($4.1 billion) capital increase at the French company.

Investigators will stay at Dongfeng for a month to conduct the corruption probe, according to the Central Commission for Discipline Inspection of the Communist Party of China, China’s corruption watchdog.

During the inspection, which began Thursday, the team will listen to complaints filed against the company’s management and summon executives for questions.

Dongfeng is the second major state-owned automaker Beijing has investigated.

Earlier this year, the government’s anti-corruption taskforce targeted China FAW Group Corp., China’s oldest state-owned automaker.

A former vice chairman of FAW and five executives at the sales company of FAW’s joint venture with Volkswagen Group were under investigation for corruption.

Dozens of other executives at FAW and the sales arm of its VW joint venture were disciplined.

At the behest of President Xi Jinping, the central government has investigated central government agencies, provincial governments and dozens of major state-owned companies.

China’s anti-corruption campaign has led to the arrest of hundreds of senior government officials and executives of state-owned companies over the past year. Many officials have been convicted and sent to prison.