Dongfeng Motor President Under Investigation in China

SHANGHAI--The Communist Party's antigraft regulator said Monday it is investigating the president of China's second-largest auto maker by sales, in the latest anticorruption probe in the industry.

The Central Commission for Discipline Inspection said in a statement on its website that Zhu Fushou, president of state-run Dongfeng Motor Corp., is being probed for an alleged "severe disciplinary violation," a phrase that is typically used in China in cases related to corruption.

Dongfeng has partnerships with several foreign car makers, including Japan's Honda Motor Co. and Nissan Motor Co., as well as France's PSA Peugeot and Renault SA. Officials at Dongfeng and its listed unit, Dongfeng Motor Group Co., weren't immediately available for comment.

Mr. Zhu, 53, joined Dongfeng in 1984 and became the company's president in 2011. He led the Chinese auto maker's purchase of a 14% stake in PSA Peugeot last year. He couldn't be reached for comment and it was unclear if he had a lawyer.

Mr. Zhu's detention is the latest in China's pursuit of suspected corruption in the automotive industry, which is dominated by state capital. In a campaign that began two years ago, party leaders have sent investigative teams to look at state-run companies, central government agencies and provincial governments.

Dongfeng, FAW Group Corp. -- China's third-largest auto maker by sales -- and some of their joint ventures with foreign partners have come under scrutiny in recent years. In December last year, Dongfeng removed Ren Yong from his post as assistant to the general manager at the company and at its joint venture with Nissan after the disciplinary agency placed him under investigation for suspected corruption. Mr. Ren couldn't be reached for comment.

In March, the disciplinary agency said it put Xu Jianyi, then-chairman of state-run FAW, under investigation for suspected corruption. In October, Zhang Xiaojun, former general manager of FAW's sales company, was expelled from the Communist Party after he was accused of taking bribes. Mr. Xu and Mr. Zhang couldn't be reached for comment.

Rose Yu

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November 02, 2015 06:35 ET (11:35 GMT)

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