Mike Yu: Chinese Engineer Charged WIth Stealing Car Secrets From Ford

Poor Ford: The automaker just can't seem to get a break.

The company is being plagued by yet one more problem: a Chinese employee who may have stolen 4,000 critical documents containing company trade secrets.

The FBI reports that Xiang Dong (Mike) Yu had been a product engineer with Ford Motor Co. for ten years, from 1997 to 2007.

The indictment alleges that in December 2006, Yu accepted a job with the China branch of another US company (electronics manufacturer Foxconn PCE Industry Inc.), and copied sensitive Ford documents prior to his departure from Ford, with the purposes of leveraging the trade secrets to gain employment.

The FBI wrote in a Department of Justice press release:

The indictment alleges that on the eve of his departure from Ford and before he told Ford of his new job, Yu copied some 4,000 Ford documents onto an external hard drive, including sensitive Ford design documents. Included in those documents were system design specifications for the Engine/Transmission Mounting Subsystem, Electrical Distribution system, Electric Power Supply, Electrical Subsystem and Generic Body Module, among others. [...]

The indictment also alleges that Yu took Ford design documents to China in July 2005 in conjunction with his efforts to obtain employment with a Chinese automotive company.

Lastly, the indictment alleges that Yu used stolen Ford documents in an effort to secure employment with a Chinese automotive company in 2008.

Yu was arrested at the O'Hare airport in Chicago after exiting a flight from China, the Detroit Free Press reports.

Each count of theft and attempted theft of trade secrets can be punished with up to 10 years in prison and a $250,000 fine.

Comments

[ETSpoon]

Oh, noooooo!!! Now the Chinese will leap frog the American car manufacturer's edge in cup-holder technology!

[Nobrun]

Lol

[sposton]

Chinese are involved in industrial espionage but I think they got more from the transfer of technology from American companies in exchange for cheap labor and outright buying technology from us, Israel and the West in general. Where does all that money come from? From us, of course, each time we go to Walmart or buying anything else made in the America, full of Chinese made components. We bought poisoned toys, poisoned pet food, poisoned toothpaste, poisoned drywall, poisoned..., all because we were "saving" money.

[brady61995]

we drive the chinese imports and we can drive them down if we choose. we must stop demanding cheap chinese products and then complain when there are no jobs. We the american consumer are the cause of the trade deficit and the fact that we have not protected american jobs so they are gone and will not return.

[JeffreyGold]

That, among other reasons, and Bretton-Woods.

[AudiGuy]

I visited a shopping mall outside of Shanghai that only sold fake products. This is not new, Our only chance to continue to be relevant in the world economy will be through innovation. Lazy USA companies lets try to following the IT and termination policies you have already written.

[michmudder]

As I read this, there is no reason to believe the Chinese government or firms were involved. Yu was acting on his own behalf, unsuccessfully.

[HowietheScreamer]

Not very familiar with how China operates, are you?

Sadly, this isn't at all unusual. Chinese companies are extensions of the government, they are either directly owned by the government, or exist only because of government favor. Any Western company who has set up shop in China knows their employees not only work for them, but also the Chinese government.

[mamacat]

Before we get all high and mighty about this, let's remember a few examples of Western manipulation of the markets.
In the early 19th century, there were the opium wars that Britain fought with China, over Britain's insistence that they should have the right and the monopoly on the opium trade into China.
In the early 20th century, United Fruit used the U.S. military to install friendly governments in Central America.
In the mid-20th century, U.S. corporations bought up and dismantled light-rail transportation systems all across America, in order to further the sale of petroleum and other products used by motorised transport.
Today, health care and carbon-heavy industries are spending a fortune trying to derail efforts on behalf of the American people to improve our lot in life.
Compared to their Western competitors, the Chinese are lightweights in the business of illegally and immorally influencing public and private policies.

[lemealone]

yea, and they aren't involved in piracy and counterfeiting and generally stealing technology either.

[Dynamohum]

YOU ARE NAIVE. The Chinese LIE, CHEAT and STEAL all the time.

[HowietheScreamer]

So, you think all that makes what China does OK?

[blueskybigstar]

Every technology China has is stolen. Blame Bill Clinton.

[tmo7734]

Think so? All these guys -- companies and countries -- are in bed with each other. Everybody steals from everybody.

[blueskybigstar]

There are some people whom I trust in government. They just are not given any air time.

[blueskybigstar]

Look up Chinagate.

[munki]

This is too bad for Asian Americans...

Please DO NOT STEREOTYPE...

[ancientmarinader]

Lot's of chinese industrial espionage going on. I don't think that's a secret. They are playing catch-up and don't mind using these methods.

[munki]

It happens in every industry...

It is just that I like to see all men are created equal and do not stereotype...

oh well... the world is getting so complicated...

[michmudder]

The Chinese-Americans I know in the auto industry are as appalled about Yu's alleged actions as everyone else.

[HowietheScreamer]

The difference is Chinese Americans vs. Chinese Chinese. This case is NOT a reflection on Asian Americans in any way.

[mlaiuppa]

So what? It's not like Ford makes nuclear missle guidance systems.

China bought Hummer. And then they steal from Ford?

If they were smart they would have bought Saturn and then stolen from Toyota.

[munki]

Hummer is yet need to be approved...

Industry spy need not to be a specific ethnic or race...

Is there any way to STOP it?

That is more important...

[mick7191]

Dosen't anyone have a problem with the Chinese making our main battlefield transportation?

[hypnotoad72]

Ask the US military...

[michmudder]

The Humvee will continued to be produced by AM General in Indiana for the U.S. military. It is not the same vehicle as the Hummer civilian SUV built by GM

[HowietheScreamer]

LOL, Hummer is not a supplier to the US military. Never has been.

[javajava]

Geez,...from ford. Found On the Road Dead. Good luck with that.

[HowietheScreamer]

Better than Government Motors. Or Fiat... I mean Daimler... er Chrysler. Ford hasn't taken government bail outs. Ford started doing the stuff they needed to do to fix their business model long before the government had to force GM and Chrysler to do it.

In the case of Chrysler, this is the second time for them. At least the first time they found an American to do the job, this time they had to go to Italy. Of course, Chrysler wouldn't be in this shape if they hadn't let themselves be date raped by Daimler.

[HowietheScreamer]

You don't think they do? I can tell you have never been to China. Go google their "domestic" car manufacturers and then compare their designs to Toyota, BMW, Audi, GM, and Ford.

[ancientmarinader]

Yeah, they have a very lax attiude toward intellectual property of all kinds. Of course, the PC crowd insists that all governments and cultures are identical but of course that's just silly talk.

[hypnotoad72]

Wow. There's a quadruple-irony in all this somewhere...

[MrVee]

Big deal. Cry me a river Ford. Ford just announced they were about to spend almost 700 billion in China to build a car plant. Meanwhile the people here can just kick rocks. I don't really give a care what happens to Ford and I'll never own one.

[mick7191]

They will probably end up importing Focuses into the US.

[JScott]

And interestingly during this person's employ Ford was not really noted for any great cars, most of them were quite bland, so what will this do, enable China to produce some bland automobiles.
Oh big woo.

[michmudder]

The Focuses built in the China plant are for the Chinese market--they will not be imported into the U.S. The only Focuses sold in North America (U.S., Canada, Mexico) will continue to be produced in Wayne, Michigan. Ford has a more than a half-dozen assembly plants worldwide making Focuses for the their local markets.

[MrVee]

That's true until the new plant opens in China. Those will import into the US. Ford has no incentive or loyalty to the United States to do ANYTHING. Laws put in place since Reagan made certain they can go and keep everything to themselves. That you can take to the bank. Just watch Ford in a few years. It will happen.

[JeffreyGold]

I laughed so hard at "cry me a river." Thank you for that.

[JeffreyGold]

Trade secrets? You mean to tell me he stole their fiscal plan 2008-2009? There's a reason they kept it secret. Good riddance. I hope they're not pursuing him. Stealing from Ford? Why not Mercedes?

[HowietheScreamer]

because some other Chinese guy already stole from Mercedes. Go google BYD F8 and compare it to the Mercedes X5.

[HowietheScreamer]

I mean the Mercedes CLK... geeze it's late. The X5 has been copied by the Shaunghuan CEO.

[beckpod1]

What...how not to make a car?