Chery Contests Allegations of Misclaimed Green Vehicle Subsidies
Chery, a Chinese automaker, refutes claims of improper government subsidies for eco-friendly vehicles after an audit disqualifies declarations for $53 million in subsidies by Chery and BYD. The audit found missing documentation and unmet mileage thresholds but no fraud was alleged. Chery contests the findings, citing previous consultations with authorities.
Chinese automaker Chery has rejected allegations of improperly claiming government subsidies for environmentally friendly vehicles. The denials come after an audit by the Ministry of Industry and Information Technology disqualified subsidy claims by Chery and BYD, totaling $53 million, for vehicles sold within the five years leading up to 2020.
The audit found issues like missing documents and unmet mileage requirements but did not accuse the companies of fraud. Chery stated that it had consulted with government officials due to challenges related to missing receipts, as the cars were sold over five years ago, and that it followed official advice.
BYD did not respond to requests for comment on the audit, which was conducted to scrutinize subsidy applications. While thousands of vehicles were disqualified from receiving subsidies, no penalties have been announced. Chery maintains that these subsidies were not prepaid and thus do not require repayment.
(With inputs from agencies.)
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