Post date: Jan 06, 2011 7:14:31 PM
France's industry minister says a spy scandal involving the French carmaker Renault was a serious matter and damaged France's image.
RENAULT HANDOUT - A scandal over suspected industrial espionage at Renault deepened on Thursday (January 6) as the French carmaker warned company assets were at risk and France's industry minister called the matter serious.
Renault suspended three executives on Monday, including a member of its management committee, after an "ethical alert" was sent to the group's compliance committee in August.French industry minister Eric Besson said on Thursday that he believed the matter was related to electric vehicles, adding that he had taken early steps to step up protection.
"It illustrates once again the risks our companies face in terms of industrial espionage and economic intelligence, as we call it today," he told RTL radio.
"I have asked the administration at Bercy (the Finance and Industry Ministry) that the state reinforce the obligations for those companies who ask money from the state, and you know that we invest a lot in terms of innovation, so that the security of industrial secrets is reinforced with the conventions of aid which we provide. So at the moment the only think I can tell you is that yes, unfortunately, the affair seems serious."
Renault's general counsel and compliance officer said on Thursday the matter concerned people in "extremely strategic" positions.
A source told Reuters on Wednesday the company is worried its flagship electric vehicle programme, in which Renault with its partner Nissan <7201.T> is investing 4 billion euros ($5.3 billion), might be threatened.
"It is an overall risk for French industry. The expression 'economic warfare', sometimes extreme, is appropriate here and this is something we should monitor in future," industry minister Besson said.
Renault's new strategic plan, due to be unveiled in February, is expected to focus strongly on electric vehicles, as well as synergies with Nissan and emerging market growth.
Renault said it would protect the identities of the three executives suspended to comply with labour laws.
French media reports named three individuals, none of whom has a high profile among investors or in the media. They could not be contacted by Reuters.
They could be dismissed soon if they are found to have leaked information, two sources told Reuters.
France has for some years been worried about potential attacks on its industrial secrets and even has a "school of economic warfare" aimed at rooting out economic subversion.
Since the 1990s, governments have also promoted the art of "economic intelligence" as a legal means of anticipating threats or stealing a march on trade rivals.