Chinese copycat SUV banned from sale in Germany | Industry

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Chinese copycat SUV banned from sale in Germany

Written by Nelson Ireson

Saturday, 28 June 2008

BMW's fight to protect its X5 SUV from being cloned and sold at retail by Chinese manufacturer Shuanghuan has taken a strong step forward. A decision in Munich regional court today banned the sale of the copycat car, vindicating BMW’s long-standing belief that it has a legal right to protect the design of its vehicles from such imitation.

The model in question, which Shuanghuan calls the CEO, is clearly modelled after the BMW X5, though there are some styling differences. Despite the legal battle, however, Shuanghuan had been selling the CEO throughout Europe, including Germany. That is now done with, though an appeal of the decision is likely.

Copying others all in a day’s work in China
While the adage may hold that imitation is the sincerest form of flattery, copying the iconic design of a vehicle that has required investment of several billion dollars in research and development will only end in heartache and legal troubles. Nevertheless, many of China’s automakers engage in the practice on a daily basis. BYD, Shuanghuan and Lifan are just three of the more notorious imitators, copying the Mercedes CLK, Toyota Rav-4 (in addition to the X5) and Mini Cooper respectively.

Shuanghuan also sells the Toyota Rav-4 copy throughout Europe, but unlike BMW, Toyota has decided to let the market sort the matter out. The Japanese car giant thinks its product is so much better that despite the similar appearance, no consumers will mistake one for the other nor purchase the Chinese clone as an alternative.

Cloning not always so straightforward
Stealing the design of some of the world’s most successful cars does ensure the basic appearance of the many clones will be generally acceptable, though the Chinese often attempt to combine different cars, resulting in a blend of looks that is often jarring when taken from different angles.

Take, for example, the BYD F8. At the front, the car is almost pure Mercedes CLK. From the rear, however, the car strongly resembles the Renault Megane. While each car is quite attractive in its own right, the elements of their styling are designed as part of a whole package. BYD’s Frankenstein creation lacks both the fluidity and consistency of design of either of the originals, finding a way to become less than the sum of its parts.

Low prices, legal repercussions drive the fear of substitution
With the low quality, blatant copying and often counterproductive attempts at minor adjustments to the cars’ styling, pricing well below their originals is often the only way the clones can hope to sell. The Shuanghuan CEO, for instance, sells at roughly half the price of the BMW X5 in Germany, starting at €25,900 ($41,900) compared to the BMW’s entry level X5, which starts at €52,500 ($86,100). Such a substantial savings for a similar-appearing product could conceivable persuade some consumers to purchase the CEO.

This severe undercutting on price may not be the only thing worrying carmakers like BMW about the cloning practice. Because the companies are global, and their actions in one car market can affect their legal rights in another, the actions against the copying carmakers could merely be a prophylactic measure to preserve their rights to the design in the event of a more complete and accurate copy.

Failure to prosecute a known infringement, such as the CEO, could amount to a waiver of rights to protest other infringements of the design or its elements in some countries. That could lead to a nightmare scenario of third-party companies creating unlicensed conversions, body kits and other products that could seriously impact BMWs image. Preventing that from happening - as far-fetched as it may seem - is likely at the root of the German carmaker’s vigorous pursuit of the poorly-made clones.

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