Product details

This is the second of a two-case series (206-017-1 and 206-018-1). Chery, a Chinese domestic carmaker launched a new mini car model, the QQ, in July 2003. This was several months earlier than the planned launch date for General Motors'' (GM''s) new mini car, the Chevrolet Spark. The QQ looked very similar to the Chevrolet Spark but was priced much cheaper. GM claimed that the Chery QQ was a knockoff of the Matiz, a model owned by GM Daewoo. The QQ turned out to be a real hit with consumers while Chevrolet Spark sales were much lower than expected. To make matters worse for GM, Chery was aggressively expanding into other countries where GM had a presence. Intellectual property rights (IPR) disputes were common in China''s automotive industry; several multinational carmakers had also brought infringement cases forward. GM had its hands full: it had to compete with Chery head to head in the market while deciding what actions to take in regards to their IPR infringement claim. They considered: (1) asking for the mediation of the Chinese government; (2) private negotiations; (3) suing Chery in China; and (4) going to trial in other countries.