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 ($294 million) in compensation.
Shanghai High People’s Court is scheduled to start hearing the case on September 17, the court said on its website.
WM, responding to media reports on the lawsuit, denied Geely’s charges in a statement last week and 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 and three of WM’s subsidiaries: an assembly plant in the east China city of Wenzhou, its Shanghai-based mobility provider and an EV sales company.
The Shanghai court didn’t reveal additional details on the case.
WM was incorporated in Shanghai in 2016. Its founder, Freeman Shen, and two other senior executives previously worked for Geely Group.
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.
Lu Bin, WM’s co-founder and senior vice president, became vice president of Geely Automobile Holdings, Geely Group’s Hong Kong-listed subsidiary, in 2013.
VW’s CFO Zhang Ran was previously CFO of Geely Automobile Holdings.
