GM Sends Cease and Desist Message to Bricklins Chinese Upstart Chery

Photos

Chinas Chery Automobile Co. has come under legal pressure from the worlds largest automaker, GM, because its name is too close to Chevy. (Photo: Chery Automobile Co.)

Intrepid entrepreneur Malcolm Bricklin believes that GM is just trying to prevent the Chery brand from being sold in the US. (Photo: Chery Automobile Co.)

South Korean GM Daewoo Auto & Technology Co Ltd (GMDAT) is suing Chery over its new QQ subcompact, which the Detroit-based automaker says is too similar to its Chinese-made Chevrolet Spark. (Photo: GMDAT)

Chery is Too Close to Chevy Says GM Lawyers

Intrepid entrepreneur Malcolm Bricklins new joint venture with Chinas Chery Automobile Co. has come under legal pressure from the worlds largest automaker, according to a report in Automotive News.

General Motors lawyers forwarded Bricklins North American retail division, Visionary Vehicles LLC, which is slated to begin selling Chery products in 2007, a letter advising that the company not attempt to secure a U.S. trademark for the Chery brand name.

Bricklin doesnt think that the issue is as much about the name similarities, as it is about the industry competition the addition of Chery will cause.

GM “said Chery sounds too much like Chevy,” Bricklin told Automotive News. “I dont think so… They dont want Chinese cars coming into the U.S.”

While Bricklins assertion that GM fears Chinese competition may indeed be true, if the Chinese companys name didnt resemble Chevrolets shortened designation at all, GM would have no argument.

But theres another underlying issue that is causing a rift between GM and Chery, aside from the premise that the Chinese automaker has attempted to gain an advantage in world markets by aping the bowtie brands iconic nameplate.

Still, Bricklins announcement that his company is targeting 250,000 Chery unit sales within the brands first year in North America alone has raised some concern among domestic automakers. Already losing market share to Japanese and South Korean rivals, GM, as well as Ford, especially dont need an even lower priced competitor vying for its customers.

Yesterday, Bricklin told Automotive News that he hasnt decided if he will use the Chery name in the U.S. as of yet. Opposition from GM may cause Visionary Vehicles to choose another name, or a modified version of Chery, possibly using two Rs, as in Cherry.

Bricklin is most likely quite aware, however, that names that do well in Asia arent always best suited to the North American market. Nissan purposely chose to rename its Fairlady the Z, a model that started out here in the early 70s as the 240Z and is now sold as the 350Z. Subaru, for instance, uses the name Charade for one of its cars, a word described by the Merriam-Webster Online Dictionary as “an empty or deceptive act or pretense…” not exactly the type of image a carmaker wants to portray. And does the Isuzu Gemini have a split personality? Its obvious why Mazda doesnt offer a Bongo Brawny or Bongo Friendee in North America, or a car simply named Carol. The Mazda Scrum might be fitting, considering the melee that occurs during rush hours across the country every weekday morning and evening.

There are more, equally odd names offered in Asia that wont necessarily work in North America, and Chery may be one of them, unless of course Bricklin is able to bring the cars to market at a price 30 percent lower than its competition, which would be a real cherry of a deal.