Reply #17: Scandal widens in European car sector

[54anickel]

http://www.iht.com/articles/2006/08/02/business/parts.php

The chief executive of a leading French auto parts supplier stepped down Wednesday amid charges by prosecutors that he was aware of bribes allegedly paid to Germany's top automakers to win their business.

Directors at Faurecia, one of the biggest European makers of automotive interiors, met late Wednesday and announced the resignation of Pierre Lévi, saying that his departure was "in the best interests of the group."

Prosecutors in Frankfurt had said last week that they were investigating Lévi in connection with up to €800,000, or $1 million, worth of bribes that they suspected were paid to managers at Volkswagen, Audi and BMW. Other investigations are under way into suppliers in Germany as well as Lear, which is based in the United States.

Faurecia is majority-owned by PSA Peugeot Citroën, a leading French car manufacturer, and employs 60,000 people worldwide.

The fresh allegations come as competition is stiffening in Europe's blue- chip - but scandal-marred - automotive industry. Parts makers have consolidated and are increasingly seeking contracts with big car manufacturers outside their home markets.

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