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Posts Tagged ‘China spying’

Renault Apologizes in Spy Case

Senior execs under fire; wrongly accused execs to get “reparations.”

by on Mar.15, 2011

Renault COO Patrick Pelata offers to resign.

Renault’s top two execs have apologized to three other senior managers wrongfully accused in what was initially billed as a Chinese spy case – but which now appears to have been a scam by members of the French automaker’s own security team.

Renault’s second-in-command offered to resign on Monday, while authorities question a corporate security official who could reveal the details of what is now seen as an internal fraud.  Meanwhile, the three executives fired after being accused of spying are now set to receive “reparations,” according to Renault.

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The carmaker’s top two executives, Chief Executive Carlos Ghosn and Chief Operating Officer Daniel Pelata, said through a spokesperson that they “acknowledge the enormous personal harm that the (fired employees) and their families have suffered.”  As a result, “their honor in the public eye will be restored (and) reparations (will) be made.”

The mess began when Renault received an anonymous tip indicating the three managers, Michel Balthazard, Bertrand Rochette and Matthieu Tenenbaum, were secretly on the Chinese payroll and leaking information about Renault’s expansive electric vehicle program.  They were suspended on January 11, Renault claiming it had proof they were receiving “funds from a foreign source.”

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Renault’s Chinese Espionage Case May Have Been “Malevolent Hoax”

Will case bring down CEO Carlos Ghosn?

by on Mar.04, 2011

The "gravity" of the situation could be severe for CEO Ghosn if the intelligence investigation clears three Renault executives.

What appeared to be a major case of China espionage may actually be nothing more than what some are now describing as a “malevolent hoax,” the result of angry office politics at French automaker Renault.

An investigation by the French equivalent of the FBI has found no evidence that Renault employees were on the payroll of Chinese spymasters.  The report that could prove seriously embarrassing to both the maker and its outspoken CEO Carlos Ghosn, whose career could now be in jeopardy, according to some observers.

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The incident made headlines, last October, when a Renault committee received an anonymous “ethical alert” indicating three of its employees might have been getting cash for leaking details of the maker’s aggressive electric vehicle program to foreign interests.  Renault – along with Japanese alliance partner Nissan – is launching an array of battery vehicles and planning to expand production to more than 500,000 vehicles a year by mid-decade.

On January 3rd, the French maker suspended three executives, one of whom sat on its management committee.  The maker also said it would take legal action, which French government officials feared might set off an economic war with China.

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Ex Ford Engineer Arrested for Spying for Chinese

He allegedly copied thousands of sensitive documents.

by on Oct.16, 2009

The FBI has arrested a former Ford engineer and charged him with illegally copying thousands of secret documents he allegedly provided a Chinese company.

The FBI arrested a former Ford engineer who is charged with illegally copying documents, which he then provided to a Chinese company.

The Federal Bureau of Investigation has arrested a former Ford Motor Co. engineer on charges of stealing secrets from the automaker and selling them to a Chinese supplier.

Xiang Dong, aka Mike Yu, 47, of Beijing, China, was charged in a five-count federal indictment with theft of trade secrets, attempted theft of trade secrets and unauthorized access to a protected computer, Terrence Berg, US attorney for the Eastern District of Michigan said Thursday in announcing the charges, which followed an investigation by the Federal Bureau of Investigation. Yu was arrested on October 14, 2009 at O’Hare International Airport in Chicago after re-entering the United States following a visit to China.

Trade Secrets and Other Stories.

Trade Secrets and Other Stories.

Yu was a product engineer at Ford from 1997 to 2007 and he had access to Ford trade secrets, including Ford design documents.  Yu left Ford for a job with the American subsidiary of a Chinese company, according to the indictment handed down by a federal grand jury in Detroit.

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