GM Filing Investigation Against SAIC Chery Automobile

September 22, 2003

GM Filing Investigation Against SAIC Chery AutomobileAt the end of May the Cherry QQ, SAIC Chery Automobile Company’s newest car model, entered the market and with it brought immediate controversy. GM claims that SAIC is guilty of duplicating one of their models for mini type vehicles, named Matize. It’s reported that GM is in the process of launching an investigation against SAIC Automobile Co., Ltd. If the claim is valid, 30 million marks could be compensated to GM.

The first group of 1.1 liter Cherry vehicles that were just put in the market are selling for 49,800 RMB (equivalent to 6,000 USD). A resource revealed that the reason why GM is starting an investigation on SAIC is because its new model, the Chevrolet Spark, is also about to enter the market. It is produced by GM’s WuLing plant, renowned as the finest mini vehicle producer in the world. GM’s Wuling plant was unprepared for the Chery QQ to enter the market at such a low price. Thus, it has instantly created enormous unforeseen hurdles for the Chevrolet Spark to overcome in efforts to be price competitive in the Chinese market. In order to defend its own interest, GM is attempting to eliminate its competitor by pursuing legal action.
The Chery QQ resembles the Chevrolet Spark very much in terms of its industrial design. However, the Chery Automobile Co., Ltd.’s management team is adamantly opposed to any accusations that they plagiarized GM’s industrial design during the process of developing the Chery QQ model. They also claim that they have already submitted 20 patent applications for this model.