Mercedes-Benz could take legal action to stop European sales of a microcar similar to the Smart ForTwo.
China Automobile Deutschland plans to launch sales of the Shuanghuan Noble microcar soon after it shows the car at next month's IAA in Frankfurt.
The Noble has a design very similar to the ForTwo, except that it has four seats.
China Automobile Deutschland says it will sell the car in Germany priced about 7,000 euros, making it the cheapest car on sale in Europe's biggest market.
A spokesman for the Mercedes Car division told Automotive News Europe: “We take intellectual property very seriously and we reserve the right to pursue legal action. (The Noble) is a blatant attempt to copy a product of ours that has achieved cult status worldwide.”
Mercedes has already made contact with Shuanghuan in China, the Mercedes spokesman said, but declined to comment further on what future steps would be.
China Automobile Deutschland Managing Director Klaus Schlössl said the car only bears a resemblance to the Smart ForTwo from certain angles.
“If I were the auto manufacturer I would not make such a big deal out of it,” Schlössl told Automotive News Europe.
“The cars are priced differently and are in a different class in terms of quality. There are many cars on the road today that look similar to each other,” he said.
