Chinese EV maker Xpeng suspends supply chain VP after corruption probe
Chinese EV maker Xpeng suspends supply chain VP after corruption probe

The Xpeng G9 SUV was displayed at the 20th Shanghai International Automobile Industry Exhibition held at the Shanghai National Convention and Exhibition Center on April 18, 2023.

Visual CG | Visual China Group | Getty Images

Chinese automakers Xpeng The company said on Tuesday that Li Feng, the company’s vice president in charge of supply chain, had been suspended due to a corruption investigation.

“Xpeng Motors takes a strict stance against corrupt activities. We are always vigilant to detect and correct any corrupt behavior in a timely manner,” a company spokesperson told CNBC.

“We would like to clarify that the internal anti-corruption measures recently implemented by the company are part of our ongoing commitment to promote ethical behavior and integrity and that the impact of this incident will be limited and will not disrupt our business or production processes.”

Feng oversees procurement for the Chinese electric vehicle maker.

Xpeng Motors shares rose about 2% in pre-market trading on Wednesday.

However, the company’s shares fell more than 10% on Tuesday as investors reacted to the conflict between Israel and the Palestinian militant group Hamas. Xpeng delivered 750 vehicles to Israel earlier this month as part of its international growth efforts, but the evolving conflict weighed on investor sentiment.

This year, Xpeng Motors has struggled with increasing competition and price wars in China. Teslaharming the company’s profitability.

The company’s vehicle deliveries have risen recently. In September, Xpeng Motors delivered 15,310 electric vehicles, an increase of 81% over last year.

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