Berlin: The bribery scandal engulfing giant German
carmaker Volkswagen AG has resulted in the group's chief,
Bernd Pischetsrieder putting on hold a decision on the
planned construction of a new factory in India, Germany's
business daily Handelsblatt has reported yesterday.
VW
has declined to comment on the reports.
The
burgeoning bribery scandal, which centres on VW's Czech-based
Skoda operations, has badly shaken the company and has
already triggered two high-profile resignations from
the company.
Skoda's
personal chief, Helmuth Schuster, left the company in
June amid allegations that he took bribes from potential
suppliers and that camouflage companies were used to
secure lucrative VW contracts abroad, notably in India
and Angola.
Last
week, the company was rocked again when the head of
VW powerful works' council, Klaus Volkert announced
that he was also stepping down.
VW,
which is also Europe's biggest carmaker, slumped into
the red last year and reported an operating loss of
Euro 53 million in the first quarter of 2005.
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