SAIC may be sued for Ssangyong tech leakage

Shanghai, December 8 (Gasgoo.com) China's auto giant SAIC is faced with a possible lawsuit by South Korea’s Procuratorate, who claims Ssangyong Motors, Korean subsidiary of SAIC, is involved with immoral business by leaking out all technologies to its majority shareholder, the Economic Observer reported today.

Early in July, the Korean media revealed that Ssangyong Motor Co. was under investigation by Korea’s prosecutors for possible leak-out of car-related technologies to its majority shareholder SAIC.

The involved hybrid car-related technologies were reportedly supported by the Korean government with one million dollars.

An unnamed source said Ssangyong Motor and SAIC had both commissioned a famous German engineering company to research and develop the hybrid technology, but they couldn’t share the technology as Ssangyong planned for diesel engines while SAIC for petrol engines. Besides, SAIC didn’t need the so-called technology as the Chinese automaker always stepped faster than Ssangyong on hybrid research and development, the source told.

Korean prosecutors reportedly have received an email saying that SAIC asked for the technology from Ssangyong. But there is no direct evidence showing SAIC has got the technology.

SAIC is in talks with the Korean government and is reporting the case to China Commercial Ministry and Foreign Ministry in hopes of solving the problem through government negotiations.

SAIC acquired a 51 per cent stake in Ssangyong in 2004.