GM Daewoo Sues China's Chery Alleging It Illegally Copied One of Its Car Models

SEOUL December 16, 2004; The AP reported that South Korea's GM Daewoo Auto & Technology Company sued China's Chery Automobile Co. Ltd. on Thursday, accusing it of illegally copying one of its car models.

GM Daewoo alleged "extreme similarities" between the Chevrolet Spark, which is based on its Daewoo Matiz mini-car, and Chery's QQ car. Both models are currently sold in China.

In the lawsuit filed in the Shanghai No. 2 Intermediate Court, GM Daewoo accused Chery of violating its intellectual property rights.

"GM Daewoo alleges that Chery produced the QQ through copying and unauthorized use of GM Daewoo's trade secrets, while claiming that it had developed the vehicle on its own," the South Korean company said in a news release.

The two vehicles shared remarkably identical body structures and exterior and interior designs, and a majority of parts in the Matiz and QQ were also interchangeable, it said.

The Chinese government advised GM to resolve the issue through mediation, said Ken Wong, general counsel of GM Daewoo.

"Despite our good faith efforts and the assistance of the Chinese government in the past year or so, Chery has been non-responsive to the mediation efforts, and has even stepped up efforts to export this vehicle to other markets."

No comment was immediately available from Chery.

The Matiz mini-car was designed and engineered by the former Daewoo Motor Corp. More than 1.3 million units have been sold worldwide since 1998.

Detroit-based General Motors Corp. created GM Daewoo in 2002 after acquiring a majority stake in the now-defunct Daewoo Motor.

Chery is based in Wuhu of China's Anhui province.