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Renault spy affair makes few waves at US auto show

Renault executive, China deny espionage charge
Paris (AFP) Jan 11, 2011 - A Renault executive suspected of spying on the French carmaker firmly denied Tuesday he had leaked secrets, as China angrily dismissed claims that it was involved in the scandal. "Renault is making very serious accusations against me which I totally refute. The facts were outlined to me and I refute them as well," Michel Balthazard told reporters. He made the denial after he was summoned to a meeting with Renault bosses along with two other senior managers suspected of industrial espionage, reportedly involving the company's electric car programme. "Today, I consider myself the victim of an affair that is beyond me," said Balthazard, promising to cooperate with any investigation and insisting that during his 30 years in the company he had always been loyal. Renault said after the meeting that it would be filing a formal legal complaint on Wednesday, but provided few details.

"Renault will file a complaint tomorrow," the company said in a statement sent to AFP. "From this date, the facts of this case will therefore be in the courts' hands." The company said it met the three managers "in conformity with labour legislation" in a "discussion in advance of a decision of dismissal for serious offences." Renault last week suspended the three executives over suspicions they had leaked strategic information. Reports said the secrets concerned details of the electric cars on which Renault has staked its future. Le Figaro newspaper reported on Tuesday that a Chinese firm had paid undisclosed sums into Swiss and Liechtenstein bank accounts opened by two Renault executives implicated in the inquiry. But Chinese officials angrily rejected such claims. "As for this so-called story that China is involved, we believe this is totally groundless, irresponsible and unacceptable," foreign ministry spokesman Hong Lei told reporters.

The reports of a Chinese bid to obtain Renault's secrets follow a long history of similar allegations widely attributed to Beijing's goal of closing the technology gap with the West. French government spokesman Francois Baroin has insisted Paris is not pointing the finger at any country in the affair. "It is a process of inquiry," Baroin told Europe 1 radio. "Renault, like others, is the victim of an economic intelligence war." Officials have said French intelligence services are monitoring the case. The firm says it did not lose any major trade secrets in the affair and has not commented on allegations about China. Renault number two Patrick Pelata told Saturday's Le Monde daily that its inquiries showed it had been targeted by an "organised international network." The trio summoned by Renault bosses included Matthieu Tenenbaum, the joint head of Renault's electric vehicles programme, whose lawyer on Tuesday alleged that an anonymous letter was at the heart of the allegations. The lawyer, Thibault de Montbrial, told journalists that his client was accused "on the basis of an anonymous letter... (that) indicated, conditionally, in an indirect and implicit way, that he had received bribes and committed unethical acts."
by Staff Writers
Detroit, Michigan (AFP) Jan 11, 2011
An alleged industrial espionage affair at French automaker Renault is making few waves at the Detroit auto show, with most firms saying they are protected from such woes.

Although most of the world's leading auto manufacturers have heard echoes of the scandal, most bosses here seemed little concerned by the news.

French automaker Renault has suspended three top managers for allegedly leaking secrets about its electric car program to China, despite angry denials from Beijing that it played any role in the incident.

"Our partner is very focused on making sure they understand what went wrong," said Carlos Tavares, chairman of Nissan's Americas division, one of the first to discuss the situation.

"We at Nissan trust that our partner Renault will do the right thing to fix it," he said, but refused to discuss the situation further as the investigation is still ongoing.

Top bosses from Germany's Daimler, which last year sealed a deal to make small cars with Renault-Nissan, were equally cautious about rushing to judgment.

Chief executive Dieter Zetsche told AFP he didn't know anything more than what he had read in the press, and added he was ready to boost collaboration with the company in making electric vehicles.

Reports have said the leaked secrets concerned details of the electric cars on which Renault has staked its future.

The firm says it did not lose any major trade secrets in the affair and has not commented on the allegations about China.

Tavares offered assurances that Nissan's electric cars projects were not affected by the affair. "Nissan has its own policy to make sure that we protect all the assets we're supposed to protect," he said.

"Of course we are cautious and we take into consideration everything we learn and what may have happened at Renault."

While any incident of industrial espionage is troubling and could give a competitor an unfair advantage, Nissan's electric vehicle program is at a less sensitive stage now that the all-electric Leaf is available to buyers.

"In the case of Nissan, our technology is already in the hands of our customers because we are already in the market," Tavares said.

Other leading players were equally reluctant to voice an opinion. Volkswagen chief executive, Martin Winterkorn, refused to be drawn.

The leading German automaker was caught up in an espionage scandal in the 1990s when a former boss at General Motors, Jose Ignacio Lopez de Arriortua, was accused of passing confidential GM documents to Volkswagen.

The scandal was eventually resolved with an amicable accord between the two companies.

Luxury sports car maker Porsche was also unruffled by the latest case of espionage. "Part of (our) contract is that you're not allowed to give information to the competitors," said chief executive Matthias Mueller.

He blamed any spying scandal on a "problem of company culture and compliance," saying affected firms needed to ensure that workers were not motivated to betray their company.

But at General Motors there was more understanding. General Motors' chief executive, Dan Akerson, said he is sure there are "attacks on GM's intellectual property" although he did not know of any specific examples.

"I worry about it every day," Akerson said, quoted by the British daily The Independent, and expressing sympathy with Renault's plight.

Prevention was key, automakers agreed. Companies needed "to safeguard" their intellectual property "whether it's through firewalls or through agreements," said Mark Reuss, president of GM North America.



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