Automotive

Published on September 8th, 2019 | by Daniel Sherman Fernandez

0

WM Motor being sued by Geely for company espionage

Trade and engineering secrets are big business in todays car industry

Zhejiang Geely Holding Group Co., China’s largest carmaker, is suing electric vehicle startup WM Motor for violating business secrets and is requesting 2.1 billion yuan (USD294 million) in compensation.

Shanghai High People’s Court is scheduledto start hearing the case on September 17 this year. WM Motor, responding tomedia reports on the lawsuit, denied Geely’s charges in a statement last weekand said it has strong confidence in winning the case in court.

The lawsuit was filed in 2018 by Geely Group, along with its research institute, against WM Motor and three of WM Motor’s subsidiaries: an assembly plant in the east China city of Wenzhou, its Shanghai-based mobility provider and an EV sales company.

WM Motor was incorporated in Shanghai in2016. Its founder, Freeman Shen, and two other senior executives previouslyworked for Geely Group. Lu Bin, WM Motor’s co-founder and senior vicepresident, became vice president of Geely Automobile Holdings, Geely Group’sHong Kong-listed subsidiary, in 2013.

Shen joined Geely Group in 2009 and became vice president in charge of overseas acquisitions. He was appointed China president of Volvo Car Corp. after Geely Group acquired the Swedish carmaker from Ford Motor Co. in 2020.

This is China’s first IP legal battle.  WM Motor, which has Baidu among its investors, has not responded to any media‘s request for a comment on the lawsuit.

WM is one of the few emerging EV makers in China that has started to mass produce its vehicles.

The EV maker delivered more than 9,000 vehicles to buyers in the first seven months of this year, reported last month, citing Wang Jing, who leads the company’s secondhand vehicle department. It surpassed another EV maker Nio in shipment between January and July, which delivered 8,379 vehicles.


About the Author

www.dsf.my is a service to the public and other website owners. www.dsf.my is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within the site www.dsf.my. While the information contained within the site is periodically updated, no guarantee is given that the information provided in this website is correct, complete, and up-to-date. www.dsf.my is not responsible for the accuracy or content of information contained inside.



Leave a Reply

Your email address will not be published. Required fields are marked *

Back to Top ↑