FAW-VW Sales VP being investigated by Chinese authorities for corruption

Gasgoo.com (Shanghai June 6) - FAW Volkswagen Vice President of Sales Jing Guosong has been retained by authorities on suspicion of corruption, 21st Century News Group reported today. The case reportedly involves tens of million of yuan.

There have been allegations that Mr. Jing (pictured) has personally taken advantage of supply shortages of certain VW models. According to reports, there have been over 170 not for sale vehicles sold from 2007 to 2010 that were not properly accounted for in FAW-VW's record books. Departments close to the matter confirmed that Mr. Jing had personally dealt with some of those sales.

One of the first events that aroused suspicion was Mr. Jing's decision to promote the New Bora in 2008 by selling vehicles originally not intended for sale at premium prices to various dealerships. Those dealerships were then able to pass the cars off to consumers at much lower prices than normal. Sales of the Bora, which made its debut the previous year, were failing to live up to expectations. Mr. Jing's strategy saw 200 Boras sold in Beijing dealerships at the premium price of 97,800 yuan ($14,286). While the sales tactic was heralded by many, it also put Mr. Jing under scrutiny, since he acted without the approval of his superiors.

According to a source close to the JV, Mr. Jing was able to personally control the distribution of a certain number of vehicles. Therefore, it is very possible that dealerships looking for certain models may have gone directly to him for help. "As VW models are currently top sellers in the country, Mr. Jing may have gained some advantages via [control of] vehicle distribution," a dealership was quoted as saying. FAW-VW has refused to comment on the matter.

Mr. Jing joined FAW-VW as a salesman in 1997. Due to his outstanding performance, he quickly rose up the ranks, becoming one of the JV's key figures. "Mr. Jing is a very strong character," one of his former colleagues commented, adding that he was very committed to instilling team spirit, regularly taking his staff to play basketball.

In a related story, the head of FAW-VW's department responsible for key accounts committed suicide by jumping off a building. His department was also under Mr. Jing's authority. A colleague of his confirmed that all details of the case have been transferred to Jilin provincial authorities.