Nissan, Hyundai Named in China’s Green Car Subsidies Scandal
China has accused more than 20 additional car makers, including Nissan and Hyundai, of breaking rules on green car subsidies, according to a state media report, widening a scandal over a $4.5 billion annual payout program.
The ministry said it would revoke the production license of Suzhou Gemsea Coach Manufacturing, while the other four firms would be fined. The companies named included a subsidiary of Chery Holding, owner of the seventh most popular Chinese passenger car brand.
China’s official Securities Daily newspaper reported on Friday that there was a list of an additional 20 companies who were also found to have committed violations.
Nissan did not immediately respond to requests for comment. A Hyundai spokeswoman said the company was “checking with the relevant internal departments” and would respond with comment as soon as possible. Geely declined to comment.
A BYD spokeswoman said the firm had not received any official notification from authorities. “Right now we do not have any idea where the suspected list is coming from.”
A spokesman for JAC Motor, which this week announced it was exploring a potential joint venture focused on electric vehicles with German carmaker Volkswagen VLKAY -0.47% , said the firm did not have an immediate comment. – Fortune