Missing Canadian businessman's 'body found in Mexico'

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image captionMr Dion, shown with daughter Catherine-Elizabeth, was last seen leaving a restaurant in Acapulco

A Canadian man's charred corpse has been found in the boot of a burnt-out rental car in Mexico, more than a week after he went missing, relatives said.

Daniel Dion, 51, disappeared on a business trip to Acapulco, a coastal resort city plagued by drug violence.

His family found the car using GPS data and say a blackened watch on the corpse belonged to him.

Forensic testing on the body is under way. A family member said police have confirmed Mr Dion was kidnapped.

Mr Dion, 51, headed EcoPurse Mexico, a company that employed Mexican prisoners and labourers to sew eco-friendly purses and said it aimed to improve the lot of poor Mexicans.

His family grew alarmed when he missed a plane back to Canada, where he lived near Ottawa.

Family's detective work

Frustrated with Mexican authorities' progress on the search, family members travelled to Acapulco to hunt for him themselves.

Canadian media reported the family obtained GPS tracking information for the rental car and - escorted by armed police - on Saturday located the burnt-out wreck with the remains inside in Chilpancingo, about 83km (51 miles) from Acapulco.

"They beat him to death and burned the car," Mr Dion's daughter Catherine-Elizabeth Dion told the Ottawa Citizen newspaper.

Acapulco, a storied tourist destination on Mexico's Pacific coast, has been racked by the drug violence that has devastated the country in recent years.

Mayor Jose Luis Avila recently warned residents to stay indoors after dark, Reuters reported.

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