Allegations of bribery at Volkswagen AG have led the company’s chairman Bernd Pischetsrieder to postpone a decision on the planned construction of a new factory in India, AFX News reported, citing German business daily Handelsblatt.
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The report noted that the personnel chief at VW’s Czech arm Skoda, Helmuth Schuster, resigned last month amid reports alleging payments from potential suppliers and claims camouflage companies were used to secure lucrative VW contracts abroad, notably in India and Angola.
Handelsblatt reportedly cited sources close to suppliers as saying Pischetsrieder has put the building plans for the Indian plant on ice until allegations about the construction of the plant have been cleared up.
According to AFX News, the regional Berlin daily Tagesspiegel also reported that the planned construction of an assembly plant in Angola has also been put on hold.
Both newspapers reportedly said VW has declined to comment on the information.
VW last week said it is hiring independent auditors KPMG to review the situation, AFX News said.
That reportedly followed another resignation last week, that of the long-serving head of VW’s general works council Klaus Volkert, who stood down nine months early but has rejected media reports linking him to the allegations.
