China Car plagiarisms in for a hard time...soon

Automotive News Europe’s sister publication Automobilwoche broke the news last week that BMW and DaimlerChrysler were considering legal action against Chinese carmaker Shuanghuan and China Automobile Deutschland, a Munich-based importer.

Schlössl, who has leased 500 square meters of display space at the IAA, plans to present "five or six models" from Chinese automakers, including the contentious Noble, CEO and UFO models.

The German carmakers claim these cars infringe on their intellectual property rights because they resemble the Smart ForTwo and the last-generation BMW X5 and Toyota RAV4.

Unfortunately, the IAA's organizers, German automobile association VDA cannot intervene yet. According to a spokesperson, VDA "has not yet decided what action they will take". "We at the VDA cannot intervene until the owners of the intellectual-property rights take action."

Schlössl claims he has so far received only written notification from BMW and DaimlerChrysler of the risk of overlap between the models.

A spokesperson from BMW said the company was currently considering legal action. DaimlerChrysler is also taking a tough stance. Protection of intellectual property includes not just technology such as engines but also car design in particular, says the Stuttgart-based company.

Design plays a major role for the Smart due to its unique shape. "We take these matters very seriously and will take firm action against unauthorized copies, whatever their origin," says a senior manager.

[B]180 applications from dealerships[/B]

Schlössl denies that the cars resemble the BMW, DaimlerChrysler or Toyota models. He said that the Noble, for example, is a four-seater with front-wheel-drive – and is also 40cm longer than the two-seater rear-wheel-drive Smart ForTwo. Schlössl, who currently trades in models from Chinese automakers Shuanghuan, Zhejiang Jonway, and Gonow, hopes to sell vehicles from two other Chinese manufacturers in the near future.

"Negotiations are almost complete," he said.

China Automobile currently supplies more than 15 dealerships, says Schlössl.

"We have received applications from 180 dealers across Germany who want to sell Chinese cars through us," he adds.

Shuanghuan’s European distributor Martin Motors of Italy sells the CEO in Italy. Schlössl said Martin Motors has already sold 600 CEOs and has orders for another 500.

A BMW spokesman confirmed that the CEO is already on sale in the Italy but declined to comment further because BMW has launched legal action.

A Shuanghuan spokesman told Automotive News Europe last week that it does not want China Automobile to exhibit its cars at the IAA.

"The importer has no right to show the models without the automaker's approval,” the spokesman said. “Shuanghuan didn't approve that and has no plan to attend the exhibition."

A Shuanghuan spokesman said, “The Noble was just launched in China and is mainly meant to meet domestic needs. We haven't exported Noble to Europe and have no plans."

The spokesman added: "Whether or not the models infringe on intellectual property rights is decided by the law."

Credits: nikolaiski