GM Daewoo seeks injunction against Russian carmaker

By Kim Deok-hyun
INCHEON, Sept. 22 (Yonhap) -- GM Daewoo Auto & Technology Co. has filed for a
court injunction to ban a Russian carmaker from selling a compact sedan, which
the South Korean unit of General Motors Co. claims used its leaked technology, a
company executive said Tuesday.
The legal action came nearly two weeks after South Korean prosecutors arrested
two former employees of GM Daewoo on charges of leaking key information for the
manufacturing of a compact sedan "Lacetti" to TagAZ Korea, which forwarded the
knowhow to a Russian carmaker.
Another executive of TagAZ Korea committed suicide after being quizzed by
prosecutors over the alleged industrial espionage case.
GM Daewoo took the legal action with the Seoul Central District Court against the
Russian automaker on Thursday, said Jay Cooney, vice president of communications
and public policy for GM Daewoo.
"TagAZ clearly violated GM Daewoo's property rights in terms of developing,
selling and manufacturing," Cooney said in an interview at the company's
Cheong-Na proving ground in Incheon, west of Seoul.
According to prosecutors and media reports, the two former employees of GM Daewoo
were suspected of stealing a total of 6,000 computer files that contained engine,
design and other information about the Lacetti compact sedan before they quit the
company last year.
They then joined TagAZ Korea and were accused of allegedly sharing the
proprietary information with their new company.
If found guilty, the two former employees of GM Daewoo could face up to 10 years
in prison.
Local media reports said the leaked technology helped TagAZ develop and sell its
"C100" sedan in Russia.
Officials at TagAZ's Korean unit weren't immediately available for comments.
Since early this year, cash-strapped GM Daewoo has been in negotiations with
South Korea's state-run Korea Development Bank to seek new loans after exhausting
US$2 billion in credit lines.
The talks have reportedly faltered on GM's refusal to offer part of its GM Daewoo
stake as collateral, as requested by the South Korean bank.
Asked about the prospects of the negotiations, Cooney said, "Negotiations are
slower than we expected."
But he hinted talks may be wrapped up in October, when GM CEO Fritz Henderson
visits South Korea in the wake of the seventh anniversary of GM Daewoo's
foundation.
GM Daewoo was created in 2002 after GM acquired Daewoo Motor Co., the automobile
manufacturing unit of the collapsed Daewoo Group.
(END)