Chinese Auto Leader Is Expelled From Communist Party

Exec May Return to Donfeng, a J-V Partner for Global Car Makers, But Will Be Demoted

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Zhu Fushou, the former general manager of Chinese auto maker Dongfeng Motor Corp., has been expelled from China's Communist Party for "having seriously violated" party discipline, the Communist Party's Central Commission for Discipline Inspection announced.

Dongfeng is Nissan's joint-venture partner in China, and also has joint-ventures there with with PSA Peugeot Citroen, Honda Motor Co., Kia Motors Corp. and Renault SA.

Mr. Zhu can return to work at Dongfeng, but he will be barred from any senior management role, the commission said in a statement on Friday. In November, the anti-corruption watchdog confirmed that it had opened an investigation, but the agency has not specified Mr. Zhu's crimes.

He is the third senior executive at Dongfeng probed for corruption. The two other executives are Ren Yong, VP of Dongfeng 's joint-venture with Nissan, and Fan Zhong, former vice secretary of the Chinese Communist Party's unit at Dongfeng.

In January, Dongfeng announced that company VP Ouyang Jie would be its new president. Mr. Ouyang, 59, has been VP at Dongfeng since 2003. Previously, he was head of Dongfeng's parts supply business division.

Mr. Zhu is the second top executive of a state-owned automaker to be ensnared in the anti-corruption campaign that Beijing initiated two years ago. In August, Xu Jianyi, the former chairman of China's FAW Group Corp., was expelled from the Communist Party for embezzling funds, taking bribes and improperly advancing the career of his son. Dongfeng, headquartered in Wuhan in central China's Hubei province, makes trucks as well as passenger vehicles.

--Automotive News China--

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