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China's electric vehicle subsidy fraud scandal spreads

China has accused more than 20 additional car makers, including Nissan and Hyundai, of breaking rules on green car subsidies, widening a scandal over a $4.5 billion annual payout program, Reuters reports.  On Thursday, China’s Ministry of Finance punished at least five car makers, accusing them of cheating its program to subsidize electric and plug-in hybrid vehicles, receiving roughly $150 million in illegal subsidies. The ministry said it would revoke the production license of Suzhou Gemsea Coach Manufacturing, while the other four firms would be fined. The scandal has cast a pall over China’s drive to use subsidies to combat heavy pollution, which helped sales of electric and plug-in hybrids more than quadruple last year to 331,000 vehicles.

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