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April 14, 2010

SOUTH KOREA: GM-Daewoo sues TagAZ Korea over Lacetti blueprints

GM Daewoo Auto and Technology has filed a lawsuit against Russian carmaker TagAZ's Korean operation which allegedly stole its technology, Seoul Central District Court said.

GM Daewoo Auto and Technology has filed a lawsuit against Russian carmaker TagAZ’s Korean operation which allegedly stole its technology, Seoul Central District Court said.

GM Daewoo petitioned the court to order TagAZ Korea to destroy the C-100 and components, which it claims was developed using the blueprints for GM Daewoo’s Lacetti [the current model, on sale since late 2008, is exported as the Chevrolet/Holden Cruze -ed], according to a Korea Herald report. The company also called for a halt to the sale of any of those components, and any use of the technology.

TagAZ Korea and GM Daewoo have been entangled in the litigation since September.

At the time, former GM Daewoo researcher, identified only by his surname Hwang, and six others were indicted for leaking crucial information related to development of a car when they left GM Daewoo and joined TagAZ Korea.

Hwang and others allegedly stole from GM Daewoo about 10,000 pieces of information including those concerning the compact Lacetti.

According to GM Daewoo, the stolen information was then used to develop the C-100 for TagAZ. The C-100 is produced in Russia, but some of the components are produced by TagAZ Korea.

In October, the local courts partially accepted GM Daewoo’s petitions, and TagAZ Korea has since been stopped from exporting components to Russia.

GM Daewoo officials were unable to confirm whether any C-100 vehicles were sold in Russia before the measure took effect. The carmaker did not clarify which parts are produced in Korea but said that they were “core components” and that the C-100 cannot be manufactured without the parts produced by TagAZ Korea, the newspaper added.

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