China launches criminal case against former FAW executive

Chinese prosecutors have launched a criminal bribery investigation into a former senior executive at FAW Group Corp, a Chinese partner of Volkswagen AG and Toyota Motor Corp, China's procurator said on Wednesday.

The Jilin Provincial People's Procuratorate opened the case against An Dewu, who is suspected of accepting bribes, China's Supreme People's Procuratorate said in a statement.

An Dewu, former deputy general manager of FAW.

The country's graft watchdog said last week that it was investigating An Dewu, former deputy general manager of FAW, for "suspected serious violations of the law".

The involvement of state prosecutors means the probe has now escalated into a serious criminal case.

Efforts to reach An for comment were unsuccessful. FAW could not be reached for comment on Wednesday, but on Tuesday the company said it has punished eight managers for misusing company funds.

One of China's biggest automakers, FAW is among the latest batch of State-owned firms and government units being targeted by China's anti-graft body as President Xi Jinping vows to bring down "tigers and flies" in a deepening anti-corruption drive.

The Central Commission for Discipline Inspection, China's corruption watchdog, launched a separate inspection into FAW recently. It is investigating one former and one current executive at FAW-Volkswagen Automotive Co Ltd, FAW's joint venture with Volkswagen for "seriously violating the law".

Analysts say Chinese carmakers like FAW have too much power over dealers who are often forced to compete fiercely for authorization to sell popular car models. This, in part, has made the industry a hotbed for corruption.

China's anti-trust regulator is also investigating carmakers including Daimler AG's Mercedes-Benz and Fiat SpA's Chrysler over pricing practices and possibly violating China's anti-monopoly law.

Supercars turn the heat at Chengdu Motor Show	China to exempt new energy cars purchase tax from Sept 1