What’s new: An Jin, former chairman of state-owned Anhui Jianghuai Automobile Group Corp. Ltd. (JAC) (600418.SH), is being investigated by local graft busters as China steps up its crackdown on corruption in the auto industry.
An, also former Communist Party chief of JAC, is suspected of “serious violations of (party) discipline and law,” Anhui’s discipline inspection commission said in a brief statement Tuesday. The phrase is a common euphemism for corruption.
Shares of the carmaker fell sharply following the announcement of the probe, closing down 3.9% Tuesday.
An, who retired three years ago, is the latest in a string of auto industry executives caught in the country’s sweeping anti-graft dragnet. Others include executives at state-owned Dongfeng Motor Group Co. Ltd., China FAW Group Co. Ltd. and Beijing Automotive Group Co. Ltd., according to official statements published this and last year.
The background: An stepped down as chairman of JAC in April 2021 after more than nine years at the helm, according to a company filing with the Shanghai Stock Exchange.
During An’s tenure, the commercial-vehicle maker sought to diversify its business to tap into the passenger-car market, but several of the models it developed performed poorly, domestic media reported. JAC’s revenue fell 9.42% to 42.8 billion yuan ($6.2 billion) in 2020, according to a company filing.
To remedy the situation, JAC found partners in Volkswagen AG and Nio Inc., as well as Huawei Technologies Co. Ltd., which is accelerating efforts to grow its smart car business amid continued pressure from U.S. sanctions.
Contact reporter Wang Xintong (xintongwang@caixin.com) and editor Jonathan Breen (jonathanbreen@caixin.com)
