French auto manufacturing giant Renault SA is facing fresh challenges, after it was revealed that the company might have made an error in sacking three top executives over espionage claims in January.
In a rather embarrassing development, in an interview published by the French newspaper Le Figaro, Renault’s chief operating officer Patrick Pélata suggested that “a certain number of elements lead us to doubt” the case.
The scandal erupted in January when accusations surfaced of a possible industrial espionage leak to China by company executives. The technology in question was at Renault’s electric car unit.
What followed was a diplomatic spat between Paris and Beijing, as well as a series of internal inquiries by Renault.
In January, Renault lodged a criminal complaint of “organized industrial espionage, corruption, breach of trust, theft, and concealment.”
Three executives were terminated on allegations of spying for China, but have since lodged legal action against Renault to protest their dismissal.
Now with doubts arising over the validity of the initial claims, the affair is expected to turn sour. Pélata said he would “accept the consequences” of the debacle, however it may end, once the inquiry was complete.
What that means remains uncertain, but some have speculated that he will have to step down in order to shield Chief Executive Carlos Ghosn, who is also the head of Renault’s Japanese partner, Nissan.
“It’s likely to be Patrick Pélata who forms the shield to protect the CEO,” one inside source close to Renault told Reuters. “In this story, somebody has to throw themselves on the grenade.”
With 15 percent of the company being state-owned, the spy fiasco has also irked the French government.
Industry Minister Eric Besson issued a statement last week distancing himself from any blame in the affair, according to a Reuters report. Meanwhile, the French Finance Minister Christine Lagarde urged for a fast resolution to the case.
In 2010, the Renault Nissan Group was the third largest auto manufacturer in the world, supplanting the Volkswagen Group and placing behind Toyota Motor Co. and General Motors Co. Renault produces over 7.2 million cars annually.
In a rather embarrassing development, in an interview published by the French newspaper Le Figaro, Renault’s chief operating officer Patrick Pélata suggested that “a certain number of elements lead us to doubt” the case.
The scandal erupted in January when accusations surfaced of a possible industrial espionage leak to China by company executives. The technology in question was at Renault’s electric car unit.
What followed was a diplomatic spat between Paris and Beijing, as well as a series of internal inquiries by Renault.
In January, Renault lodged a criminal complaint of “organized industrial espionage, corruption, breach of trust, theft, and concealment.”
Three executives were terminated on allegations of spying for China, but have since lodged legal action against Renault to protest their dismissal.
Now with doubts arising over the validity of the initial claims, the affair is expected to turn sour. Pélata said he would “accept the consequences” of the debacle, however it may end, once the inquiry was complete.
What that means remains uncertain, but some have speculated that he will have to step down in order to shield Chief Executive Carlos Ghosn, who is also the head of Renault’s Japanese partner, Nissan.
“It’s likely to be Patrick Pélata who forms the shield to protect the CEO,” one inside source close to Renault told Reuters. “In this story, somebody has to throw themselves on the grenade.”
With 15 percent of the company being state-owned, the spy fiasco has also irked the French government.
Industry Minister Eric Besson issued a statement last week distancing himself from any blame in the affair, according to a Reuters report. Meanwhile, the French Finance Minister Christine Lagarde urged for a fast resolution to the case.
In 2010, the Renault Nissan Group was the third largest auto manufacturer in the world, supplanting the Volkswagen Group and placing behind Toyota Motor Co. and General Motors Co. Renault produces over 7.2 million cars annually.
