Motor Authority - blog Tag: lawsuit

Last week we reported on a pair of new Saleen Mustangs due by 2010, and the chain of transfers that has seen the Saleen, Inc. brand end up in the hands of Micheal Shields and MJ Acquisitions. Now Steve Saleen and his new company, SMS Supercars, have announced a lawsuit launched to defend use of the Saleen name.

The point of the suit is to prohibit MJ Acquisitions from using the Saleen name - not to stop it from turning out custom Mustangs or aftermarket parts. But Steve Saleen and SMS Supercars don't want to see the Saleen image tainted by MJ Acquisition's use.

He has fair reason for concern. Back in February, the 'old' Saleen - the one... Last week we reported on a pair of new Saleen Mustangs due by 2010, and the chain of transfers that has seen the Saleen, Inc. brand end up in the hands of Micheal Shields and MJ Acquisitions. Now Steve Saleen and his new company, SMS Supercars, have announced a lawsuit launched to defend use of the Saleen name. The point of the suit is to prohibit MJ Acquisitions from using the Saleen name - not to stop it from turning out custom Mustangs or aftermarket parts. But Steve Saleen and SMS Supercars don't want to see the Saleen image tainted by MJ Acquisition's use. He has fair reason for concern. Back in February, the 'old' Saleen - the one without Steve Saleen on board - announced it would no longer honor warranties on any cars sold. Even then SMS was looking out for the Saleen brand name, and stepped up to honor those warranties - even though they were effectively the obligations of a completely unrelated company. If SMS wins its bid to secure a court order prohibiting use of the Saleen name by its new owners, it will draw a bright line on what is and isn't a genuine Saleen, but it won't necessarily spell the end of the upcoming modded Mustangs from MJ Acquisitions, so enthusiasts on both sides of the dispute can take some measure of comfort.SMS 460 based on the 2010 Ford Mustang Read More

China's car industry is infamous for its tendency to 'borrow' details from European carmakers, often to the point where the word 'clone' is used with some accuracy. The latest car to catch legal heat for the practice: Geely's GE, a remarkably obvious take on the Rolls Royce Phantom.

But Geely doesn't see the similarity that's got Rolls Royce considering legal action. Geely spokeswoman Zhang Xiaoshu told the AFP, "they are actually different.... people may feel they are the same at the first glance, but the details are certainly different."

Playing fast and loose with concepts like 'different' and 'copying' is a luxury of doing business in... China's car industry is infamous for its tendency to 'borrow' details from European carmakers, often to the point where the word 'clone' is used with some accuracy. The latest car to catch legal heat for the practice: Geely's GE, a remarkably obvious take on the Rolls Royce Phantom. But Geely doesn't see the similarity that's got Rolls Royce considering legal action. Geely spokeswoman Zhang Xiaoshu told the AFP, "they are actually different.... people may feel they are the same at the first glance, but the details are certainly different." Playing fast and loose with concepts like 'different' and 'copying' is a luxury of doing business in China, where the government is notoriously permissive of such infringements. Unfortunately for Geely and other China-based carmakers, however, their progress into other markets will be heavily impeded by legal action in the trademark and copyright-protective jurisdictions of Europe and the U.S. if they continue these antics. Rolls Royce understands that due to the huge price and quality disparity between the Phantom ($365,000) and the GE ($44,000), there is likely to be very little in the way of confusion or competition between the two, but it is nonetheless keeping its options open. "Our colleagues in Shanghai are taking a serious look at it," a Rolls Royce spokesman told the UK's Daily Mail. "Rolls-Royce Motor Cars is very protective of its brand image and takes seriously any attempt to imitate its products." To get more familiar with the infringing limo, check out our story on the car here. Come to think of it, with that oddball throne arrangement in the back seat, maybe Geely really does have something behind that 'different' argument.Geely GE Limousine Read More

Volkswagen has filed a lawsuit against Lamborghini Orange County for what it terms 'outright theft' of $12 million worth of Lamborghini vehicles. The dealership, owned by Vik Keuylian and his sisters Asdghig, Nora and Sossi, hasn't yet responded publicly to the accusations.

The suit stems from the Keuylian family's alleged sale of 54 cars at prices well below market value in a period of eight days, reports The Orange County Register. VW further alleges that the money obtained from the sales was then taken without using any of the proceeds to pay Volkswagen Credit for the financing they owed on the inventory vehicles.

The Keuylians',... Volkswagen has filed a lawsuit against Lamborghini Orange County for what it terms 'outright theft' of $12 million worth of Lamborghini vehicles. The dealership, owned by Vik Keuylian and his sisters Asdghig, Nora and Sossi, hasn't yet responded publicly to the accusations. The suit stems from the Keuylian family's alleged sale of 54 cars at prices well below market value in a period of eight days, reports The Orange County Register. VW further alleges that the money obtained from the sales was then taken without using any of the proceeds to pay Volkswagen Credit for the financing they owed on the inventory vehicles. The Keuylians', though refusing to comment on the matter as it undergoes litigation, have filed a motion to dismiss VW Credit's punitive damages claim. Their lawyer has not yet filed a response to the complaint itself, however. Other lawsuits have recently been filed against the Keuylians stating similar claims. If the suits prove true, the facts serve to explain the sudden and mysterious closure of the Lamborghini dealership last year, while the litigious nature of the dealership's demise explains the secrecy that has followed.Lamborghini Gallardo LP560-4 Read More

For more than a year now, Mercedes' parent company Daimler has pursued a copyright infringement case against Chinese carmaker Shuanghuan for its Bubble, a blatant knock-off of the Smart ForTwo minicar. A recent holding in a Milanese court has put the German company on the back foot, however, and reports now indicate it is considering settlement to avoid paying huge sums in damages.

The doubt that has crept into Daimler's outlook on the matter comes courtesy of an Italian court's holding on a similar case between BMW and Shuanghuan on the distribution of the CEO, an SUV that bears a striking resemblance to the first-gen BMW X5, essentially... For more than a year now, Mercedes' parent company Daimler has pursued a copyright infringement case against Chinese carmaker Shuanghuan for its Bubble, a blatant knock-off of the Smart ForTwo minicar. A recent holding in a Milanese court has put the German company on the back foot, however, and reports now indicate it is considering settlement to avoid paying huge sums in damages. The doubt that has crept into Daimler's outlook on the matter comes courtesy of an Italian court's holding on a similar case between BMW and Shuanghuan on the distribution of the CEO, an SUV that bears a striking resemblance to the first-gen BMW X5, essentially allowing Shuanghuan to sell the cars with impunity, and potentially opening BMW to liability for lost sales due to the lawsuit. The CEO/X5 lawsuit garnered global attention when it broke in 2007, in part because of Shuanghuan's open stance on the matter, essentially saying that copy cars are legal. "Noble and CEO cars, approved by the Chinese government, are legal products," said a company spokesperson. A Munich court even banned the CEO entirely. In December, 2007, Shuanghuan flouted the ongoing injunction against the Bubble in Italy by displaying the car at the Bologna Motor Show. At the time, things looked bleak for Shuanghuan and the move was viewed as a stunt. In retrospect, it may have been a shrewd business move. Daimler's ForTwo/Bubble suit is before a court in Milan, the same city where the CEO/X5 lawsuit was decided, and so it has been forced to reconsider the strength of its position. What had initially appeared to be a clear-cut case of copyright infringement has now turned about and become a clear loser. The Milan court's ruling in the case of the Shuanghuan CEO held that it would be impossible for consumers to mistake the Chinese clones for BMW products, reports Automotive News Europe, and that the significant price difference prohibited any real damage to BMW's copyright or trademark, despite the obvious similarity in design. Read More

The Fisker plug-in hybrid saloon has officially been revealed at the 2009 Detroit Auto Show. Click here for all the details and images.


While the rest of the automotive industry retracts, 'right-sizes' and closes facilities, Fisker Automotive is in the process of expanding. Today the company announced the opening of its new 34,000 square foot engineering and development center in Pontiac, Michigan.

The facility will be used to help bring the company's high-performance hybrid sedan to market. In order to make the car a production reality, Fisker felt it was necessary to get a foothold in the Michigan automotive industry.

"The available... The Fisker plug-in hybrid saloon has officially been revealed at the 2009 Detroit Auto Show. Click here for all the details and images. While the rest of the automotive industry retracts, 'right-sizes' and closes facilities, Fisker Automotive is in the process of expanding. Today the company announced the opening of its new 34,000 square foot engineering and development center in Pontiac, Michigan. The facility will be used to help bring the company's high-performance hybrid sedan to market. In order to make the car a production reality, Fisker felt it was necessary to get a foothold in the Michigan automotive industry. "The available talent, supplier base and infrastructure in Michigan will help us reach our production goal," said Fisker Automotive COO Bernhard Koehler. "While Fisker Automotive will continue to be headquartered in Irvine, California, the new facility will allow us the opportunity to collaborate with our Michigan supplier base and have everyone under one roof." The facility follows Tesla Motors' announcement of a 30-person layoff and closure of its Michigan design studio. In another victory for Fisker over Tesla, the maker of the Karma, recently won a suit in arbitration that had been brought by Tesla, alleging design theft among other things.Photo Gallery no. 1 Read More

Tesla's lawsuit, filed against rival hybrid-electric carmaker Fisker in April for design theft and 'poor work', has come to an end in arbitration. Unfortunately for Tesla, which sought to stop Fisker from proceeding with its Karma luxury plug-in hybrid sedan, Fisker has come out on top, with the arbitrator calling the evidence "overwhelming."

Tesla is unhappy with the result, but continues to focus on building its cars and meeting production goals, says vice president of marketing Darryl Siry. The tussle over design rights hasn't impaired either company's ability to keep forging ahead with production, as AutoWeek reports Henrik Fisker as... Tesla's lawsuit, filed against rival hybrid-electric carmaker Fisker in April for design theft and 'poor work', has come to an end in arbitration. Unfortunately for Tesla, which sought to stop Fisker from proceeding with its Karma luxury plug-in hybrid sedan, Fisker has come out on top, with the arbitrator calling the evidence "overwhelming." Tesla is unhappy with the result, but continues to focus on building its cars and meeting production goals, says vice president of marketing Darryl Siry. The tussle over design rights hasn't impaired either company's ability to keep forging ahead with production, as AutoWeek reports Henrik Fisker as saying, "Despite the burden and expense of Tesla's lawsuit, Fisker Automotive, Inc. has been able to continue with its business plan and production schedule." As we reported earlier, Fisker asked for the arbitration, and under the terms of its contract with Tesla, the court agreed. Submitting the dispute to arbitration likely resulted in a more timely resolution than a protracted legal battle would have. The original lawsuit contended that Fisker founder Henrik Fisker and its chief operating officer Bernhard Koehler fraudulently agreed to take on a $875,000 design contract from Tesla to gain access to confidential design information and trade secrets, only to release a competing vehicle – the upcoming Karma sedan (pictured). Fisker has always maintained that the allegations against him and the company were false. "For us, it's simply a ridiculous suit," he said previously.Fisker Karma Read More