China Link Investigated in Renault Spy Case
By DAVID GAUTHIER-VILLARS and SEBASTIAN MOFFETT
PARIS—Chinese interests may be behind a high-level corporate espionage case related to Renault SA’s electric car program that has led to the suspension of three company managers, according to a person familiar with the matter.
Renault hasn’t given any details as to why it suspended the three managers earlier this week, saying only that they had been involved in a serious breach of confidentiality that put important company assets at risk. In addition to conducting its own internal probe into the breach, the car maker is also expected to file a criminal complaint against the three as early as Monday, said the person familiar with the matter.
The French government, which owns 15% of Renault, is taking a close interest in the case. While Renault hasn’t formally filed a complaint with authorities, France’s secret services began looking into the matter after receiving information suggesting Chinese interests may be involved, according to the same person.
It was unclear Friday whether the French government is looking into Chinese companies or individuals.
Renault declined to make any comment on the case on Friday. The car maker has not revealed the identities of the three managers, citing French corporate law.
The case has alarmed French politicians. France’s Industry Minister Eric Besson, on Thursday called the case “economic warfare.”
On Friday, a Renault manager identified himself as one three suspended over the matter. Matthieu Tenenbaum said via his lawyer that he was stunned by the suggestion of espionage, and that he is waiting to hear any official accusations.
Mr. Tenenbaum, a manager in Renault’s electric vehicle program, had been expelled from his workplace on Monday, his lawyer, Thibault de Montbrial said in an interview. This was done “without any explanation apart from a short, enigmatic: ‘We know what you’ve done. You had best confess,’” said Mr. de Montbrial, who declined to comment on other details of the matter.
Renault declined to comment on Mr. de Montbrial’s statement.
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It is still not clear exactly what technology may have been divulged. The core component of an electric vehicle is the battery and associated electronics, which determine how far it can drive before being recharged. However, the high cost of batteries is a major barrier to turning electric vehicles into a mass market product.
Electric vehicles require a host of surrounding technologies—for example to connect the battery to the power train that propels the car. Charging and swapping run-down batteries are another challenge the industry must meet in order to make the vehicles popular.
Renault and its Japanese partner, Nissan Motor Co., which share the same CEO, Carlos Ghosn, have invested a combined €4 billion ($5.19 billion) into electric vehicles. Mr. Ghosn has forecast that electric vehicles will represent 10% of global automobile sales in 10 years.
One Nissan official said he was afraid that the accused Renault managers might have shared crucial know-how with outsiders.
But another Nissan official said that Nissan provided Renault with key battery technology on a “black box basis,” meaning Renault is not party to the battery’s chemistry or intellectual property.
Renault plans to roll out four models over the next year or two. The Fluence compact sedan and an electric version of the Kangoo small van are scheduled to go on sale later this year. Nissan released its Leaf electric car in Japan and the U.S. at the end of last year.
—David Pearson and Chester Dawson contributed to this article.
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Car spy case: Renault’s Patrick Pelata remains upbeat
Mr Pelata said Renault had been the victim of an organised international network
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Global Car Industry
Patrick Pelata told Le Monde newspaper data about Renault’s electric car programme may have leaked, but its vital technology secrets were safe.
Renault suspended three senior managers on Monday after an investigation into the possible leaking of electric vehicle secrets to rivals.
France’s industry minister refused to speculate whether China was involved.
Eric Besson had previously described the case at Renault, which is 15% state-owned, as “economic warfare”, and French President Nicolas Sarkozy has asked the intelligence service to investigate.
Sources within Renault suspect the final recipient of the stolen information was likely to have been a rival in China.
Advanced technology
Without pointing fingers, Mr Pelata said the theft, which was detected last August and led to four months of internal investigations, was “the work of professionals”.
“Renault is the victim of an organised international network,” he told Le Monde’s weekend edition.
Renault and its partner Nissan have invested extensively in electric vehicle technology
“After a few weeks, we came to the conclusion that we were facing an organised collection of economic, technological and strategic interests located to serve abroad,” added Mr Pelata.
He said the theft may have included details about the costs and economic model of Renault’s high-profile multi-billion euro electric vehicle programme, but not the “golden nuggets” of its technology, including some 200 patents that are being lodged.
Mr Pelata said the theft involved three key Renault executives, whose identities he did not wish to confirm.
One of the three - whom he said would face a preliminary hearing before facing a likely dismissal and possible criminal charges - is reportedly a member of the carmaker’s management committee.
The right-leaning Le Figaro newspaper had reported earlier that the information passed on relates to the technology in the battery and the engine of electrical vehicles that will be rolled out after 2012.
But Mr Pelata said “nothing critical” about the company’s innovative technology had been leaked.
“It’s serious, but not as bad as if it had been the technology,” he said. “Whether it’s the chemistry of the electrodes, the structure of the batteries, the different elements of assembling, be it the charger or the engine itself, we feel ok.”
He added that the programme had not lost “one day” as a result of the theft and was still on schedule.
The BBC’s Christian Fraser, in Paris, says it is a mark of how seriously the French government is taking this breach of trust that it has asked the intelligence service to investigate.
Car manufacturing is an important part of the French economy, and a major employer, our correspondent says.
One of the biggest advantages that Western carmakers have is their advanced technology, which enables them to compete against cheaper labour costs outside Europe.
The carmaker, alongside its partner Nissan, has invested heavily in electric vehicle technology.
Both plan to launch a number of new electric vehicles over the next two years.
bbc.co.uk/news/world-europe-12142299
