Chamco in disarray
Chamco Auto made headlines some time back when it was created, as it was the first formal launching of an initiative to sell Chinese cars in the U.S. Some months later they announced their plan of attack: first Mexico, then the U.S.
Chamco partners with China's Hebei Zhongxing Automobile Company, Ltd. who will produce the cars to be sold.
But there's trouble afoot.
The company's board has fired chairman Bill Pollack (pictured), president Sam Tropello and consultant E. Michael Daspin, husband of the company's largest shareholder.
Daspin is alleged to be the company's de facto leader, a fact concealed to cover up a past felony fraud conviction.
A new executive team was installed on March 3, led by Mario Ferla as new CEO.... the bad news is that top officers and shareholders have now filed a civil suit for fraud, mismanagement and diversion of corporate funds by the company's former managers.
Automotive News says:
"CEO Mario Ferla and his allies have sued owners and managers for fraud, alleging they skimmed millions from Chamco through bogus fees and excessive commissions."
A little off-topic, I found this reassuring tidbit on Chamco's website:
"CHAMCO AUTO will not launch any vehicle unless and until it is proven to get on the road and stay on the road."
Read more at Automotive News.
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Tags: automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry, Chamco, Chamco Auto, Bill Pollack, Sam Tropello, E. Michael Daspin, Hebei Zhongxing Automobile Company
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