China automaker Dongfeng Motor Group Co. has announced the ouster of Zhu Fushou as president after he was reportedly caught up in President Xi Jinping’s crackdown on corruption that has rocked the automotive industry there. The move follows a similar action in which the former chairman of China FAW Group Corp. was thrown out of the Communist Party for graft earlier this year. Li Shaozhu, an executive director, has been chosen to replace Zhu as Dongfeng’s authorized representative, according to a stock exchange filing.
Dongfeng Motor Corporation, which is owned by the is the second-largest automaker in China, having produced more than 3.5 million whole vehicles in 2014, while also building parts in partnership with a number of foreign car companies including Renault, Peugot, Nissan, Kia, Honda and Citroën. Other brand names associated with Dongfeng include Fengshen, Infiniti, Luxgen, and Venucia. It was also reported that Dongfeng produced more commercial vehicles (including trucks and buses manufactured in partnership with Volvo) than any other of the country’s domestic automakers.
Dongfeng, (or “East Wind” in Chinese) was founded in 1969 as Second Automobile Works as part of Mai Zedong’s:”Third Front” strategy, and later expanded under ecomonic reforms instituted by Deng Xiaoping between 1978-1985. In fact, its assets had tripled in 1985 from those initially given to it by the state . However, by 1995 it was experiencing financial difficulties and a restructuring of the company was made in 1999. Since then, the company has become a major economic force in China.along with Chang’an Motors, FAW Group, and SAIC Motor.