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Chery Sued by Bricklin's V Cars for Contract Breach

July 21 (Bloomberg) -- Chery Automobile Co., China's largest independent automaker, was sued by former distribution partner V Cars LLC for violating terms of a joint-venture agreement to bring cars to the U.S.

V Cars, which is run by investor Malcolm Bricklin and once was known as Visionary Vehicles LLC, spent $26 million in development costs and missed out on billions of dollars in potential profits, according to a complaint filed yesterday in U.S. District Court in Detroit.

The lawsuit means Chery probably still will be defending its first planned U.S. venture as it begins producing cars late this year for Chrysler LLC for sale in Latin America. Chrysler announced the alliance in December 2006, a month after Bricklin ended his agreement with Wuhu, China-based Chery.

``We brought them people, we brought them money, we brought them ideas and they brought us nothing,'' Bricklin said today in an interview. ``Hopefully this will teach them a lesson.''

Bricklin, 69, said he terminated the deal in part because Chery kept talking to other companies about U.S. partnerships. The complaint accuses Chery and a Chery partner, Israel Corp., of violating federal racketeering laws, breach of contract and fraud.

Calls for comment to Chery's offices in Wuhu went unanswered after regular business hours. Zhang Lin, general manager of Chery's international operations, didn't immediately respond to an e-mailed request for comment.

Damages Sought

V Cars is seeking damages that may total as much as $1.1 billion to make up for lost profits, which could be tripled under federal racketeering laws, said Andrew Kochanowski, a Southfield, Michigan-based attorney representing the firm.

Kochanowski said in an interview that New York-based V Cars will seek all profits generated by Chery's Chrysler partnership for sales in the U.S. up to $1.1 billion. Auburn Hills, Michigan-based Chrysler isn't named as a defendant in the lawsuit.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=awZSg2i5FOEg
 

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I am astounded that a nice Red Chinese company would violate some agreements! :spit:

Tell me it ain't so!! :whoa:
 

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Just as I'm surprised that Bricklin would try to get money out of his failed business...again.
Perhaps he's been inspired by Calvin Coolidge:

“Nothing in this world can take the place of persistence. Talent will not; nothing is more common than unsuccessful people with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan 'press on' has solved and always will solve the problems of the human race”
--Calvin Coolidge
 
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