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The Shanghai Automotive Industry Corp. (SAIC) Thursday dismissed allegations that it had stolen technology from its Republic of Korea (ROK) auto-making affiliate as "totally baseless", claiming the "technology exchange" was a normal commercial activity.
"The accusation is totally baseless," said Zhu Xiangjun, SAIC spokesman. "The technology exchange between SAIC and the ROK's Ssangyong Motor Company after the merger is normal."
SAIC, China's biggest automaker, holds 51 percent of Ssangyong.
Zhu said all the technology transfers between the two companies were based on contracts, which accorded with international practice.
Ssangyong labor union leaders held a rally in front of the Chinese Embassy in Seoul Tuesday. The protestors, chanting slogans and waving placards, accused SAIC of stealing technology from the company and violating cooperation promises.
"SAIC and Ssangyong focus on different technologies," said Zhu. "The Ssangyong labor union accused us of stealing their technology on the hybrid diesel engine, but SAIC's research field is a hybrid gasoline engine.
"Meanwhile, Ssangyong's technology is at the concept phase while the hybrid power sedan developed by SAIC will be mass produced in one year," he added.
Ssangyong labor union leaders also said SAIC had failed to cash its promise to invest 1 billion U.S. dollars in Ssangyong .
"We have never made such a promise," Zhu said. "What we said is we will raise the capital by different means in accordance with international practice."
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