General Motors has reached a settlement resolving all legal disputes with Chinese car maker Chery Automobile.
The Associated Press said GM had accused Chery of pirating the design of its Spark minicar, which looks similar to the Chery QQ, and had filed lawsuits trying to prevent Chery from selling the car in various markets, including Asia and Eastern Europe.
GM also had threatened legal action against Chery because of its name, AP added – GM says “Chery” sounds too much like “Chevy,” the nickname of its Chevrolet brand. Chery agreed in September that it won’t market its vehicles under the Chery name in the United States.
Under the settlement, GM and Chery won’t take further legal action against each other, The Associated Press said, noting that further details of the settlement weren’t released. GM reportedly said the two automakers would concentrate on developing their separate businesses.
AP noted that GM obtained the Spark design in 2002 when it acquired South Korea’s Daewoo Motor Sales. In September, China’s State Intellectual Property Office determined the Spark design was never patented in China and wasn’t protected by China’s intellectual property laws.