GM Calls VW Apology Insufficient, VW Speculates about Buying Parts from GM

12/11/96

Reuters reports that a top GM official called the apology issued by VW CEO in regard to the GM-VW industrial espionage debacle insufficient to warrant new talks concerning an out-of-court settlement of GM's civil lawsuit against VW. VW CEO Ferdinand Piech said he regretted the trouble, cost, and turmoil that GM experienced due the transfer of Jose Ignacio Lopez and other former GM executives to VW in March 1993. GM alleges that Lopez masterminded an industrial spy ring and took stolen trade secrets and documents with him when he left GM for VW. The GM exec said, "Piech's statements are insufficent and cannot be taken seriously," and then asked not to be named.

Meanwhile, Reuters is also reporting that VW says it may resume buying parts from GM. On Monday Piech said VW could resume buying car components like wiring and batteries from GM.

Piech said that business relations between VW and GM had been "dormant" since 1993 when the legal battle over the alleged industrial espionage incident broke out. Prior to 1993, however, VW purchased up to 100 million marks worth of parts from GM annually. Piech said that future purchases could be higher, but added that the deals would not reach the billions.

Paul Dever -- The Auto Channel