REPORT: Chinese automaker SAIC accused of hybrid tech theft by SsangYong
In the beginning of the decade, before SsangYong got into really deep doo-doo, the Korean automaker began work on a hybrid control unit (HCU) with German engineering firm FEV. From 2004 to 2008, as the research continued, the South Korean government provided nearly half of the financial resources for the development of the technology. In 2005, as Ssangyong's stumbles began, Chinese automaker SAIC took a majority stake in the Korean company.
A year later, in 2006, SAIC saw the success SsangYong was having with the HCU and allegedly pressured SsangYong engineers to hand over the technology. And that, according to Korean state prosecutors, violated laws regarding the transfer of "homegrown technologies... without state permission." Since the Korean government paid for almost half of the tech, SAIC's rights to the HCU needed to be approved by the Korean government.
Seven indictments have been brought against SsangYong engineers, none of whom were financially compensated for revealing the HCU plans to SAIC. It appears to be a simple case of bullying. No action is planned against SAIC. Hat tip to Regular Man!
[Source: Korea Times | Image: Jung Yeon-Je/AFP/Getty]
Reader Comments (Page 1 of 4)
Jrejre 6:58PM (11/12/2009)
Heil Ssangyong!
Nope, doesn't have the same ring to it.
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gerrrg 7:01PM (11/12/2009)
What, Chinese firm steals ideas? Who ever heard of such a thing?!!?! ;)
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hypermiler 11:05PM (11/12/2009)
@ gerrrg
They didn't still ideas; they stole HSU source code and electric drive system plans.
SAIC didn't gain access to battery tech(Chevrolet Volt also uses this battery system) that is required to build the complete Electric Hybrid system(Also used in Chevrolet Volt Hyundai Elantra Hybrid, Kia Forte Hybrid, and Sonata Hybrid), so SAIC is currently asking LG to sell them the batteries so that they could have Hybrid Roewes in China.
anonymous j 11:12PM (11/12/2009)
"Since the Korean government paid for almost half of the tech"
Hmmm... I wonder who paid for the other half.....?
hypermiler 11:38PM (11/12/2009)
@ anonymous j
> Hmmm... I wonder who paid for the other half.....?
Ssangyong did out of its own working capital.
anonymous j 12:24AM (11/13/2009)
capital = money from investors
investor = SAIC
hypermiler 10:47AM (11/13/2009)
@ anonymous j
> capital = money from investors investor = SAIC
Ssangyong operated on $500 million cash reserve it had at the time of sales to SAIC. SAIC did not inject a dime into Ssangyong's cash reserve afterward.
unknown_92111 7:04PM (11/12/2009)
I thik we the US should have a same law as Italian, when found any copy cars or parts from CHINA we just crush them
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airchompers 7:07PM (11/12/2009)
So all hummers should be crushed?
Yes, I concur.
While were at it, let's make sure our troops don't have humvees. Guilt by association, you know.
TheCrim 7:05PM (11/12/2009)
That guy on the left looks like he's into it.
As for the story, there really isn't much besides the allegation itself, so I can't make any judgments.
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Matt 9:15PM (11/12/2009)
And the one on the right is just making up the numbers
anonymous j 10:28PM (11/12/2009)
not to mention that SAIC did purchase a MAJORITY stake, which in all likelihood would entitle them to the technology just as when Ford originally purchased Volvo and its other brands.
Only in South qorea will you get accused of theft even after purchasing, truly ridiculous.
hypermiler 11:09PM (11/12/2009)
@ anonymous j
> SAIC did purchase a MAJORITY stake, which in all likelihood would entitle them to the technology
It doesn't, since the remaining 49% or so are not owned by SAIC and any tech transfer requires a board approval. And SAIC was able to gain those approvals so they were able to gain license for the entire Ssangyong line-up for $100 million, which is legal and fine.
But this Hybrid tech requires Korean government approval since it was 50% paid for by the government, and SAIC didn't bother to ask since they knew they would get it.
paul34 7:13PM (11/12/2009)
Intellectual property, patents, copyrights, and trademarks are concepts which are still foreign in much of China.
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anonymous j 10:16PM (11/12/2009)
go buy a bunch of various goods from your local Korean apparel retailer, and send them into the corresponding company to check for authenticity. I bet at least one of the comes back as a fake. Korean people are much more devious, they mix in fakes with authentic, but charge you full price for all.
Most non Korean people don't know this, but I'm sick of these fools and their nonsense so I'm putting them all on blast.
2001 altima aka Jessica 11:17PM (11/12/2009)
@anonymous j
ur stupid fault for buying it.. everyone knows not to buy from an Asian store. lol only you would buy something from an Asian store and send it back for authenticity. I bet rollex laughed at ur a$$ when they heard where u got it from..
anonymous j 11:29PM (11/12/2009)
no, how stupid of me or anyone to purchase from a Korean, who intentionally sold me faux product at close to full retail, so let that be a lesson to me and everyone, never purchase from a Korean. At least the Chinese don't try to push fake goods off as authentic, which is what I've been saying this whole time.
Farmboy 7:23PM (11/12/2009)
Umm....any new news? haha
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dieselpj 7:41PM (11/12/2009)
y am i not surprised?
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daleam 7:57PM (11/12/2009)
What the hell is "qinese"? I think your comment is racist.
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