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Chinese Automaker Chery to Sell under New Brand Name in North America

GMs Army of Lawyers Too Much for Visionary Vehicles Upstart Operation

Chery Automobile Co. is not the largest Chinese automaker, but due to some crafty press events, a few extremely bold claims, and the U.S. leadership of one of the auto industrys most colorful figures (or most notorious if you happen to be from New Brunswick and personally paid for his failed sports car venture), Malcolm Bricklin, is backing down from its plan to introduce Chery to the North American market.

But that doesnt mean that the automakers ultra-value cars with Lexus-like quality (according to Bricklin),

Malcolm Bricklins Visionary Vehicles is backing down from its plan to introduce Chery to the North American market, at least in name. A new less controvesial name will be chosen. (Photo: Visionary Vehicles)

wont be shipped across the Pacific. Visionary Vehicles LLC, the Bricklin-owned company responsible for importing and selling Chery cars in North America, has decided to rename the brand in this market when its cars become available in 2007, due to legal action taken by General Motors (see automotive

GM has threatened legal action against Visionary Vehicles because the Chery brand name is too close to Chevy. (Photo: Visionary Vehicles)

news section for May 7, 2005: GM Sends Cease and Desist Message to Bricklins Chinese Upstart Chery).

Last May, General Motors lawyers forwarded Visionary Vehicles a letter advising it to not attempt to secure a U.S. trademark for the Chery brand name. GM believes that Chery is too close to Chevy, the shortened nickname for Chevrolet and the actual brand name GM uses for Chevy Trucks, and that consumers could become confused if the two brands went head to head.

GM has a point, and

"Theyre [GM] bigger than we are and they have more lawyers than we do," Visionary Vehicles spokeswoman Wendi Tush commented. "Its all about keeping value to the consumer."

would likely win its case if not drain Visionary of its start-up funds in legal costs alone.
"Theyre bigger than we are and they have more lawyers than we do," Visionary Vehicles spokeswoman Wendi Tush commented. "Its all about keeping value to the consumer."

Therefore, Visionary will not pursue securing the Chery name in the U.S. Of course, this may be a blessing in disguise. Is Chery really a name that would win respect in North American circles? Not likely.

Visionary is now working towards a replacement name, mulling over five to six alternatives, and plans to announce a new brand name soon. Hmmm...

Bricklins announcement that his company is targeting 250,000 Chery unit sales within the brands first year in North America alone, through 250 dealerships across the nation, has raised some concern among domestic automakers. (Photo: Visionary Vehicles)

maybe Eagle is available? Or American Motors Corporation (AMC)? Studebaker seems to have given up on its Hummer look-alike, another GM cease and desist order (see automotive news section for February 18, 2003: GM to Sue Avanti over Studebaker XUV). Desoto? No, most likely Visionary will come up with its own original brand name rather than adopt a nameplate from Americas past.

Bricklins announcement that his company is targeting 250,000 Chery unit sales within the brands first year in North America alone, through 250 dealerships across the nation, has raised some concern among domestic automakers, so its understandable that GM would be uncomfortable with the Chinese companys current name. Detroit automakers are already losing market share to Japanese and South Korean rivals, so

Visionary Vehicles Malcolm Bricklin promises ultra-value cars with Lexus-like quality , with prices starting at around $7.000. (Photo: Visionary Vehilces)

GM, as well as Ford, hardly need an even lower priced competitor vying for its customers.

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