A senior Volkswagen executive has been deported from China, dealing another blow to the German group’s efforts to maintain its presence in the world’s largest car market. Jochen Sengpiehl, VW’s chief marketing officer and head of product strategy for China, was detained in China for about 10 days before being deported back to Germany. According to sources, he tested positive for drugs after returning from a holiday abroad. VW is currently conducting an internal review of the situation.
The incident comes at a challenging time for VW in China, where it has been facing increasing competition from local automakers. The company has been investing heavily in the market to try to regain its market share. In addition, VW is also facing negotiations with its Chinese joint venture partner SAIC over the future of a plant in Xinjiang, a province where human rights abuses have been reported.
It was reported that Sengpiehl tested positive for cannabis and cocaine, both of which are illegal in China, after returning from a holiday in Thailand. The reasons for the drug test are unclear at this time. While cannabis use has been decriminalized in Thailand, cocaine remains illegal in both countries.
VW declined to comment on the situation due to confidentiality obligations. Sengpiehl, who had been in his China role since 2022, did not respond to requests for comment. He previously held positions at Hyundai, WPP, Daimler, BBDO, and Nissan.
Foreign investors and business people in China have become increasingly concerned about their personal safety following crackdowns on espionage and tougher rules on state secrets. The country has a high conviction rate for drug offenses, with courts handing down severe sentences in recent years.