GAC is the latest of China's state-owned automakers to be placed under investigation for alleged corruption. (Photo : Logok)
Municipal regulators in China are investigating the management of Guangzhou Automobile Group Co. (GAC) for possible corruption.
GAC is the third state-owned auto manufacturer being probed by the Communist Party for alleged corruption, following China FAW Group Corp. and Dongfeng Motor Corp.
The Party's corruption watchdog in the south China city of Guangzhou sent an inspection team to GAC on May 18, Automotive News China reported on Tuesday.
The team is investigating reports that GAC management allegedly "violated party discipline and regulations," the report said.
The team also summoned suppliers affiliated with GAC for questioning.
GAC, which is controlled by Guangzhou's municipal government, is headed by senior managers who are also members of China's Communist Party, with many now serving as key officials at the company's joint ventures with international automakers Toyota, Honda and Fiat Chrysler.
China has been cracking down hard on corruption among state-owned automakers in recent years, following President Xi Jinping's campaign to fight graft as well as reform state companies.
In April, Shi Tao, former deputy manager of FAW-Volkswagen Sales Co., a joint venture between FAW and German automaker Volkswagen, was sentenced to life in prison for taking 33 million yuan ($5.3 million) in bribes. Xu Jianyi, FAW's chairman, is also currently being investigated for corruption.
In December, Fan Zhong, a former senior executive at Dongfeng, was also placed under investigation by the Communist Party for alleged "serious disciplinary violations."
