Heads roll at Renault after “espionage” farce

Patrick Pelata chief operating officer of Renault has resigned, but will remain within the group, following an industrial espionage scandal.

Three executives from the group’s security service will leave the French car-maker, which is 15% state-owned, while compensation will be paid to another three executives who were wrongly fired over the affair. Another trio of top executives will be relieved of their duties while their fate is decided, Renault added.

It comes after investigations into the theft of electric car technology, which was first detected last August.

Renault accepted Mr Pelata’s resignation at an extraordinary board meeting on Monday to discuss the findings of an audit into the matter.

“The audits thus evidenced the chain of failings and dysfunctions within the company, particularly as regards the supervision and control of the group security department,” a Renault statement said.

Mr Pelata joined Renault in 1984 and joined the management committee in 1998.

“Pelata as chief operating officer did a solid job of guiding Renault through the last few years,” said Morgan Stanley analyst Stuart Pearson. “It’s not immediately obvious who could replace him.”

Source: BBC News