SAIC-Ssangyong venture delayed by tech leak rumor

Shanghai, July 11 (Gasgoo.com) Shanghai Automotive Industry Corporation (SAIC) and its majority-owned Ssangyong Motor may have to further postpone their joint venture plan for several months as the latter is claimed to have leaked hybrid car-related technologies to SAIC, Beijing Times newspaper reported Thursday.

Investigations by South Korea's judicial authorities into the matter will last for some months, and during this period Sssangyong's overseas technology transfer activities will be restrained by police, the report said.

Last Sunday Dow Jones Newswire cited words from Ssangyong spokesman Lee Kyo-Hyun as retorting that Ssangyong has never leaked any hybrid technologies to SAIC, adding that SAIC is even considering transferring the technologies to Ssangyong as it is already quite capable of them.

Lee acknowledged some prosecutors had raided the head office of its Pyeongtaek plant and taken some documents to have a further check.

SsangYong and SAIC currently are only waiting for the Chinese government's approval to start production at the former SAIC plant at Yizeng, Jiangsu province of China. The plant is expected to be operated as a 50-50 partnership and will most possiblly produce Ssangyong's Kyron cars.

Ssangyong has exported its four car models, namely Rexton, Actyon, Rodius and Kyron, to China, with Kyron being the best seller of the four.

The South Korean automaker met with similar accusations in earlier 2006, which was settled after months of investigations. Industry analysts said the case will inevitably interrupt Ssangyong's plan to build vehicles in China.