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REPORT: PILFERED TECHNOLOGY * China
* ... A troubling report about
Detroit,MICH,USA -The Detroit News, by Christine Tierney -July 31, 2012: -- The latest automaker to report that its technology has been pilfered by its Chinese partner is none other than Volkswagen AG, one of the first global car companies to set up joint production ventures in China in the 1980s... Those were China’s terms: foreign automakers could have a crack at its big — now huge — market, but in turn, they’d have to produce cars in China with local partners who would see and learn how it’s done. These partnerships were inherently awkward because while everyone benefits in the short- and medium-term, what happens in the long-term isn’t clear... VW’s first partner, Shanghai Automotive Industry Corp. formed another partnership years later with General Motors, a rival of VW. Even more worrisome, reports of intellectual property theft from Japanese, U.S. and European manufacturers were common, and carmakers found little relief from Chinese courts. Lately, though, some auto executives have been saying that, as China’s industry matures and its carmakers develop their own technology, they’re starting to view patent and trademark protection and other intellectual property rights in a different light... So the report in the German newspaper Handelsblatt that VW’s Northern Chinese partner, FAW, allegedly copied an engine design was very disturbing. FAW isn’t some fly-by-night provincial upstart. It’s an old, established, state-owned carmaker; FAW stands for First Automotive Works... Handelsblatt’s unidentified sources described “systematic and planned” industrial espionage since 2010 by FAW, which plans to sell a model equipped with the engines in Russia, in direct competition with VW and Skoda models...
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