Malcom Bricklin Wins Two Million USD Settlement Over Chery

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Remember Malcolm Bricklin? He is an American entrepreneur that tried to bring Chery to the USA in 2008 but the deal fell through and Chery went on to work with Israeli Corp to develop the Qoros brand. Bricklin has a strong history in the auto industry, he took Yugo to the States and failed but he came back with Subaru and the rest is history. He also tried to develop his own sports car, but that also did not see any major successes.

From Reuters:

A federal jury awarded $2 million in damages to automotive entrepreneur Malcolm Bricklin’s firm V Cars LLC after a former employee of undercut a deal with China’s Chery Automobile Co Ltd to bring luxury vehicles to the United States.

The jury, in Detroit, said last week that KCA Engineering LLC, which was founded by former V Cars executive Dennis Gore while he was still employed by V Cars, committed fraud and other offenses.

Gore’s attorney couldn’t be reached for comment.

Bricklin, who is best known for importing the low-cost Yugo vehicle to the United States in the 1980s, said Gore used proprietary information to help Chery launch a joint venture, Qoros Automobile Co, with investment firm Israel Corp.

Chery and V Cars, then known as Visionary Vehicles, entered into a joint venture in December 2004. The companies hoped to sell 150,000 Chinese-made vehicles in the United States by 2007, but the relationship soured, and Israel Corp and Chery founded Qoros that year.

“This has been a long time coming,” Bricklin said in an interview. “We found out what was really going on behind our back at the end of ’06 and we have been trying to get justice ever since.”

Bricklin has filed a number of suits around the globe to recoup losses and collect damages from the failed deal. The largest lawsuit, filed in federal court in Detroit in 2008 against Chery and other defendants, charges racketeering and seeks $26 million in initial investment by Visionary and at least $1.1 billion to account for the loss of projected earnings.

Litigation is ongoing in the racketeering case, V Cars LLC v. Chery Automobile Co et al., U.S. District Court, Eastern District of Michigan, Southern Division, No. 08-cv-13113

About the author  ⁄ Ash

China Car Times is the number one portal for the latest information, statistics, and industry information on the Chinese automotive industry. Over the past six years of operation we have seen the Chinese auto market grow from a backwater of old European models to the world's largest auto market with the world's leading technology being delivered here first. You can connect with China Car Times founder and Editor Ash Sutcliffe by clicking on the Linkedin logo, you can also follow us on Twitter, Facebook and Google Plus via the relevant icons

5 Comments

  • I _ H a t e _ C h i n a
    July 18, 2013

    This verdict and the pending damages lawsuit ensures that Chery would never be able to come to the US.

  • psu
    July 19, 2013

    I’m happy for Malcolm. The last time that I worked with him was at Yugo, but you have to give the guy credit for being an irresistible force of nature. Other than liking ketchup on his eggs, he’s an OK guy 1 on 1.

  • Dmoore
    July 24, 2013

    Actually, Bricklin brought Subaru to the US around 1968-69. Yugo didn’t arrive until 1985. He also imported the X-1/9 (Bertone) and 124 Spider (Pininfarina) from 1980 to 1982 when Fiat pulled out of the States. He tried to bring Proton over in 1988, but something happened that caused the negotiations to fail.

  • psu
    July 24, 2013

    The Proton deal died when Mitsubishi exercised its rights under its manufacturing license to not allow Proton to export the Saga (a Mitsubishi Gallant) to the United States. When the Gallant cost $16,000 in the USA, Brinklin was going to sell the Saga for $8,995!

  • Martin
    July 25, 2013

    Say what you want about Bricklin, he is able to see a long term opportunity.

    I wonder if this judgement will affect the launch of Qoros in the USA at all?

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