BAIC employee accused of trade theft on leave in US

Shanghai, October 19 (Gasgoo.com) A Chinese national employed by Beijing Automotive Industry Holding Corp (BAIC) has been accused of stealing trade secrets from Ford Motor, but BAIC said today that the man was in the U.S. on personal leave when he was arrested last Wednesday, Reuters reported.

BAIC issued a statement saying the employee, named by U.S. prosecutors as Xiangdong Yu, had worked in BAIC's research division for 11 months before leaving on a personal trip to the United States in mid-October. The fifth-biggest Chinese automaker said it would continue to monitor the development of the incident.

BAIC has agreed a deal with supercar manufacturer Koenigsegg to help fund its purchase of General Motors' Swedish unit Saab. In addition to its investment in Saab, BAIC made a failed bid for GM's European brand Opel and has been linked with the sale of Ford's Swedish unit, Volvo.

U.S. authorities Wednesday arrested Yu, a product engineer at Ford from 1997 to early 2007, on charges he attempted to steal Ford trade secrets, stole some documents and used them to try to get work with Chinese automotive companies.

Yu is accused of copying designs including Ford's engine and transmission mounting subsystem, front and rear side door structure, steering wheel assembly and the instrument panel and console subsystem, among others, said the indictment.

In late 2008, he accepted a position at BAIC, which makes cars in tie-ups with Daimler AG and Hyundai Motor Co but is making efforts to create a brand of its own.