Chinese carmaker Tianma denies involvement with Kia espionage

Investigations of the leaked Kia Motors's corporate secrets are still up in the air. The South Korean company has no immediate plan to take any action against two Chinese automakers who reportedly bought the information. Meanwhile, Tianma Auto, the rumored Chinese carmaker defended its innocency.

Earlier this month, the National Intelligence Service said among the leaked corporate secrets, files on welding, assembly and quality control were handed over to some Chinese automakers, of which Tianma, located in Baoding city, north of China, was suspected. Five former and present employees of Kia were indicted and arrested for industrial espionage.

Since last Nov., the seven Kia workers allegedly delivered 57 corporate secrets, including the technology to assemble Sorento, a SUV model, and plans for a new model, to a local consulting firm established by some of Kia’s former workers. Then the consulting firm sold these to an unidentified Chinese carmaker. But the core technology was luckily untouched, announced the company.

As its Yingxiong (Hero) was found to resemble the Kia Sorento,  Tianma Auto drew lots of speculation of copying the Kia. However, Tianma insisted that it had obtained several patent rights of the exterior design for its product, and the over-17 core technologies are all self-developed. "As there're many differences with Sorento from the exterior to the interior, it's unesseasry?)to buy the technology that doesn't fit us," the company's official told a domestic media, the Oriental Morning Post.

"The exact figure of losses in the China market is difficult to stipulate in a short period," an anonymous official from Kia China said.

Kia is affiliated with Hyundai-Kia Automotive Group, South Korea's largest automaker. Together they form the world's sixth-largest automotive group and aspire to become the fifth biggest by 2010. Kia has one factory in China and is building another.