Lawsuit not an option for BMW

BEIJING, Sept. 8 -- BMW China said it had no plans to block the sales of an allegedly lookalike model made by China's Shuanghuan Auto in the domestic market despite lawsuit threats from Europe over a possible launch of the car in markets there.

"Chinese customers are more sensitive about the brand and handling experience between the two models," said Ma Qingsheng, an official at BMW China's communications department yesterday.

Ma said the two firms targeted different markets of customers and "our sales are not affected."

Shijiazhuang, Hebei Province-based Shuanghuan has sold its CEO sport utility vehicle since 2005, which costs up to 140,000 yuan (US$18,666), nearly one-sixth of the previous generation of BMW X5 in the domestic market.

BMW launched a probe soon after the model hit the Chinese market because of a design resemblance.

However, no measures were taken against Shuanghuan partly because the government had approved production and also there were differences in size, quality and equipment.

It's not the first time Shuanghuan is involved in a copyright row with overseas rivals. DaimlerChrysler also accused Shuanghuan of copying the design of its small-sized Smart Fortwo for the Chinese firm's Noble subcompact car. The Smart Fortwo hasn't been introduced to China yet.

Shuanghuan has hit the headlines several times when a European dealer earlier planned to exhibit the two controversial models at the upcoming Frankfurt Motor Show, due to start on September 30, before launching aggressive sales which drew strong opposition from German rivals.

"Offering a vehicle so obviously similar to the Smart Fortwo would be a violation of intellectual property. We reserve the right to pursue legal action, also with regard to a possible exhibition of the car," said DaimlerChrysler in an e-mailed statement.

BMW also said it would take legal action against the importer of the CEO in Europe.

"Different markets have different legal environment. In Germany, it would be a serious IPR violation," Ma told Shanghai Daily yesterday.

The Chinese auto industry has been long criticized for lacking IPR protection during its rapid development.

Chery Automobile Co Ltd was accused by General Motors of copying the design of its Chevrolet Spark for the QQ, the nation's best-selling subcompact.

The IPR dispute also emerged as one of the main hurdles for domestic car makers to tap overseas markets.