Quality Weenie

Ethics? They Don't Need No Stinking Ethics

American car companies have a problem with trying to break into markets other than the U.S. and Europe. Other countries do limit that number of cars American car companies can sell there (Japan for example) but other countries prefer to do business another way, a way in which American car companies don't wish to do business.

Kia Motors President Chung Eui-sun has been reportedly barred from leaving the country amid a widening probe into suspicions that Kia and its parent Hyundai Motor may have created slush funds to bribe government officials.

Chung Eui-sun is the only of Hyundai Motor Chairman Chung Mong-koo, who recently flew to the U.S. in what appears to be a move to avoid expanding investigation into the two automakers.

Prosecutors have raided offices of the two automakers and their affiliates - Kia, logistics unit Glovis Co., and parts maker Hyundai Autonet. They later questioned key officials of the companies.

Glovis is suspected of embezzling company money to create slush funds.

Company officials said Chung's one-week trip, which includes a visit to its Alabama plant, had been planned before the investigation was launched last month.

Hyundai Motor is suspected of paying a lobbyist billions of won (millions of dollars) from slush funds to use his influence to acquire construction approvals and business permits.

At least American car companies have ethics about something.

Hattip: The Car Connection

Posted by Quality Weenie at April 7, 2006 07:07 AM | TrackBack