Renault number two stands down after spy scandal: source

11th April 2011, Comments 0 comments

Patrick Pelata quit as Renault's operations chief after the wrongful sacking of managers for alleged industrial espionage but will remain with the company, a source close to the case said Monday.

The resignation came after an extraordinary board meeting at Renault to study an audit committee's report on the scandal that saw three top executives wrongfully accused of selling industrial secrets.

The company was due to make an official statement on the report later in the day, the source added.

The French government, which owns 15 percent of Renault, had said earlier Monday that those executives responsible for the embarrassing debacle at the "dysfunctional" car-maker should be sacked.

Finance Minister Christine Lagarde said the audit report showed that the company's management style was "dysfunctional" and revealed the need for both a "revision of the governance rules and for sanctions."

© 2011 AFP

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