China investigating IT suppliers linked with Apple for polluting rivers

Local authorities in China are investigating two electronics suppliers linked with Apple and also reportedly HTC of dumping heavy metals in the country's rivers after watchdog groups accused them of damaging the environment.

Last week, five Chinese environmental groups issued a report claiming that factories of Foxconn Technology Group and Unimicron Technology had been polluting rivers in the country's Taihu basin, where the cities of Shanghai and Kunshan are located.

The groups claimed the factories from the two suppliers had dumped large amounts of nickel and copper that had been poisoning the nearby water and soil, and threatening the health of local residents. At the Foxconn facilities, the water was described as black, and carrying an "awful stench". The affected soil had become yellow and red in color, and planted crops were also unable to grow. (A video of the report can be found here.)

On Friday, Kunshan's environmental protection bureau said it would investigate the matter, and monitor the water drained by the facilities. Any violations found will be dealt with, the city said in statement posted on the its official microblog account.

Taiwan-based Foxconn, which builds products for Apple, Microsoft and Sony, said it was aware of the claims made by the environmental groups, but said the waste treatment from its facility in Kunshan was in line with local regulations.

"The river that runs through the middle of that industrial park receives waste water discharges from a number of companies that are based in the park," the company said in a statement. Foxconn also said it was supporting government plans to protect the Taihu lake basin, and advocated other companies should do the same.

Unimicron, another Taiwan-based company, did not immediately respond to a request for comment.

The dumping of the heavy metals by electronic suppliers usually comes from the manufacturing of printed circuit boards, according to the Chinese environmental groups. Copper toxicity can cause the poisoning of fish and soil, and lead to cardiovascular illness in humans, while nickel is a known carcinogen, the groups added.

In its report, the environmental groups said they suspected Unimicron's facility in the lake basin of supplying to smartphone maker HTC.

In response, HTC said, "The company has been taking a proactive approach to ensure proper and prudent supply chain management," and works to ensure all of its suppliers follows the company's code of conduct.

In recent years, Chinese environmental groups have been critical of electronic manufacturers in the country for polluting. In the past, Apple was accused of failing to prevent its suppliers from damaging the environment. Apple later agreed to jointly audit one of its suppliers' factories in China with a prominent environmental group in the country. Apple did not respond when asked to comment on the investigations by Kunshan's environmental protection bureau.

G.M. Dismisses Executives as India Begins Investigating Recall of Vehicles

G.M. said on Friday that it had dismissed the employees for violating unspecified company policies. One of the executives was Sam Winegarden, a vice president in charge of engine programs, who retired this week after 44 years with G.M., the nation’s largest automaker.

The management shake-up came after the Indian government began an investigation into the recall this week of 114,000 Chevrolet Tavera utility vehicles sold by G.M. in India.

Indian news reports said the government was investigating whether G.M. had improperly manipulated the weight and engine performance in the Tavera during emissions testing and certification.

A G.M. spokesman, Greg Martin, declined to say whether the employees had been forced to leave because of the government investigation.

“General Motors’ investigation into our recall of the Chevrolet Tavera, which is built and sold exclusively in India, identified violations of company policy,” G.M. said in a statement. “G.M. subsequently dismissed several employees.”

One person briefed on the dismissals, who spoke on the condition of anonymity, said at least 10 employees, mostly in India, were involved. The highest-ranking employee was Mr. Winegarden, who is based in the United States and is the top engineer for the company’s engine operations worldwide.

The company, which said it was voluntarily recalling the vehicles, acknowledged that the Indian government was aware of “an emissions issue” with the Tavera, one of G.M.’s mainstream models in the country.

“G.M. India informed Indian government authorities of an emissions issue involving the Tavera BS3 meeting certain specifications on July 19,” the company said.

The company stopped production of the Tavera in India this month. It said it would make changes to vehicles built as far back as 2005 and perform the required engineering validation. It gave no timetable for notifying customers and doing the work.

The recall is a setback for G.M.’s growth plans in India, particularly if it damages the reputation of the American automaker.

“Our customers are at the center of everything we do,” said Lowell Paddock, head of G.M. India, when he announced the recall.

On Thursday, G.M. reported that its net income in the second quarter dropped 19 percent, partly because of smaller-than-expected profits in Asia.

G.M.’s chief financial officer, Daniel Ammann, said on Thursday that India was among the international markets where G.M. struggled during the quarter.

The decision to oust executives is in keeping with a zero-tolerance policy about violation of corporate ethics led by G.M.’s chief executive, Daniel F. Akerson.

“We take these matters very seriously and hold our leaders and employees to high standards,” the company said. “When those standards are not met, we will take the appropriate action to hold employees accountable.”

Last year, Joel Ewanick, G.M.’s chief marketing officer, was forced to resign after questions were raised inside the company about his handling of a sponsorship deal with a British soccer team.