Chinese automaker Chery Automobile said it has nothing to fear after its former U.S. export partner, Visionary Vehicles, filed a lawsuit in Detroit.
In 2005, Visionary's CEO Malcolm Bricklin agreed to import Chery cars
into the United States, but is now seeking compensation of USD1.1 bn
after court claims that Chery did not meet its side of the deal. "We
brought them people and we brought them money and ideas," Bricklin
said. "They gave us nothing." Instead of teaming up with Visionary
Vehicles, Chery opted to work instead with Chrysler and Quantum, a U.S. finance subsidiary of Israel Corp, to make and sell cars in the United States.
According to the lawsuit, Visionary Vehicles is claiming it invested
USD26m in the joint venture to promote Chery in the United States. The
company also says it stood to earn around USD14 bn under the 30-year
JV agreement for it to be Chery's exclusive importer and distributor.
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