Xpeng emphasised that the transfer doesn’t have an effect on companies together with commerce and manufacturing. The corporate fell greater than 10 p.c within the US on Monday.
(Picture credit score: CnEVPost)
Xpeng (NYSE: XPEV) confirmed it’s shifting forward with an inner anti-corruption drive, after rumors in a single day that the corporate had purged its procurement workforce brought about its shares to plunge within the US.
Xpeng’s head of procurement, Li Feng, has been suspended within the firm’s inner anti-corruption investigative actions, and a lot of workers are cooperating with the investigation, native media outlet Wallstreetcn reported right this moment.
These actions are regular anti-corruption habits and Xpeng doesn’t condone such habits, the report cited the corporate’s response as saying.
The difficulty is small in scope and doesn’t have an effect on companies together with commerce and manufacturing, Xpeng emphasised.
Xpeng has been strengthening its provide chain administration this yr, with a few of its workers being investigated, in response to the report.
Li, who was beforehand the corporate’s vp accountable for the procurement division, is the primary core government to be suspended within the investigation at Xpeng, the report famous.
Late final night time, a number of automotive bloggers mentioned on Weibo that Xpeng was rumored to have purged its buying division, and {that a} greater shakeup might observe.
Shares of Xpeng traded within the US fell 10.3 p.c to $16.29 on the shut of the US inventory market on Monday, the most important one-day drop since July 31, because the rumors could have sparked investor issues in regards to the stability of the corporate’s provide chain.
In 2021, Li had been acknowledged internally by Xpeng for his vital contributions in coordinating provide chain sources and discovering alternate options when China’s EV provide chain was hit by detrimental components, together with chip shortages and Covid management, Caixin famous in one other report (behind paywall) right this moment.
Xpeng restructured its provide chain division on the finish of 2022, merging the previous provide chain companies, advertising and marketing companies procurement and components procurement departments into the procurement division, with the brand new division headed by Li, Caixin mentioned.
At an inner assembly held on October 9, Xpeng introduced the suspension of Li, and a lot of different named workers have been requested to cooperate with the investigation, in response to Caixin.
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