11 Sep 2007

A Chinese car model that many had expected to see at the Frankfurt motor show is conspicuous by its absence, following legal threats from DaimlerChrysler.

But another model by the same Chinese firm, which is said to be similar to a BMW X5, is on show.

Chinese carmaker Shuanghuan Automobile had been accused of producing cars that are too similar to BMW's X5 sports utility vehicle and Daimler's Smart Fortwo.

And both of the German car makers had threatened legal action if the models went on display.

Poor fit

It is not clear whether the legal threat from Daimler influenced Shuanghuan's decision not to show the Noble.

"Ahead of the show, we asked the courts to clarify whether it would be legal to display the models here," Daimler chief Dieter Zetsche said.

"They said it would not, and perhaps that's got something to do with it?"

On the contrary, insisted China Automobile's managing director Karl Schloessl in an interview with industry trade magazine Automotive News Europe.

"We considered selling the Noble but decided it does not fit in with our line-up of Sports Utility Vehicles."

Mr Schloessl has decided to go ahead and show its other car, the CEO, even though BMW is taking legal action to stop sales of the model in Europe.

The car, which is imported by Martin Motors in Italy, is currently being distributed across Europe and is available to buy for about 26,000 euros ($36,000; £18,000).

Serious threat

At the time of the initial legal threats late last month, Shuanghuan insisted its CEO and Noble models were not similar to the German models.

But in a briefing to a group of international business journalists in Frankfurt, Mr Zetsche said he thought allowing them to be displayed would be "confusing to our customers".

"If you see another person who looks like another person, you think it is that person and you'll be surprised when you find out it's a twin," he said.

"We would have taken the necessary action," said Mr Zetsche.

Chinese action

Mr Zetsche believes the issue of creative property rights will be gradually solved over time as attitudes change.

"In Asia in general, the culture does not define copying as something unethical," he said.

"We have a different understanding of that."

And as China's own innovativeness makes the emerging economy more reliant on international legislation that can protect its own commercial interests, it too will change its attitudes, Mr Zetsche predicts.

"In the medium- to long-term, I am convinced creative property rights will be fought for more fiercely by the Chinese government than by other governments," he said.

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