Detroit Jury Awards Millions In Malcolm Bricklin Fraud Suit Regarding Chery/Qoros JV

TTAC Staff
by TTAC Staff

Visionary Vehicles’ envisioned dealership

Malcolm Bricklin’s company, V Cars (formerly Visionary Vehicles), was awarded $2 million by a Detroit jury in U.S. District court. The lawsuit was filed after Bricklin’s failed effort to set up a joint venture with Chery to produce Chinese made cars for the North American market. The jury ruled that KCA Engineering, a company founded by former Visionary executive Dennis Gore while he was still an employee of Bricklin’s startup, had committed fraud as well as a number of other misdeeds. When Gore was first hired by Visionary, Bricklin said it was because of his expertise with Asian car manufacturers.

In the suit, V Cars LLC v. KCA Engineering LLC, U.S. District Court, Eastern District of Michigan, Southern Division, No. 2:11-cv-12805, Bricklin accused Gore of using V Car’s proprietary information to assist Chery in launching the Qoros Automobile Co, in a joint venture with the Israel Corp holding company, controlled by the Ofer family.

Malcolm Bricklin and Chery CEO Yin Tongyao in cheerier days

Chery and Visionary Vehicles entered into a joint venture in December 2004. Weeks later Bricklin staged a guerrilla press conference in the lobby of Cobo Hall during the 2005 NAIAS media preview to hype the project, predicting that they’d be selling 150,000 Chinese cars in the United States by 2007. The JV was cancelled in 2006.

The suit against KCA is just one of a number of lawsuits filed by Bricklin in an assortment of countries to try collect damages over his soured deal with Chery. Litigation is continuing in V Cars LLC v. Chery Automobile Co et al., which seeks over a billion dollars in damages and lost projected earnings for what Bricklin claims was racketeering on the part of Chery.

In a 2009 interview with Car & Drive r, Bricklin didn’t hold back on what he thought of Chery:

When Chery went from the bastard child of China to its favored son—because of what we were doing—and companies like Chrysler began to court them, they decided to see if they could screw me. Thought they would see if they could take it all back, and they did, and we’re suing them for $14 billion. China has the ability, they have the talent, they had the opportunity, but they don’t yet understand you can’t do business in the rest of the world the way they do business in China. Knowing what I know now, I wouldn’t have gone anywhere near them.

TTAC Staff
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  • Rod Panhard Rod Panhard on Jul 30, 2013

    1. "Detroit Jury Awards Millions..." Technically, it's correct, but "millions" implies way more than "two million." Points against TTAC for that. 2. If Pricklin sought $14 billion and was awarded $2 million, it sounds like a pyrrhic victory, at best. His attorneys fees will be at least 1/3 of the sum, so that's about $1.2 million, over six years, or maybe about $200,000 per year. Assuming the Chinese pay up, that's one difficult way to make that kind of money.

  • Geekcarlover Geekcarlover on Jul 30, 2013

    I know I'm not the only one who saw the words "Bricklin" and "fraud", and assumed he was the defendant.

  • The Oracle This thing got porky quick.
  • Kwi65728132 I'll grant that it's nicely kept but I'm not a fan of the bangle butt designs, and I know better than to buy a used BMW while living anywhere in the world other than in the fatherland where these are as common as any Honda or Toyota is anywhere else.
  • ChristianWimmer When these came out I thought they were hideous: now they’ve grown on me. This one looks pretty nice. Well-maintained, low mileage and some good-looking wheels that aren’t super fancy but not cheap-looking or boring either, they are just right.
  • Aja8888 Someday in the far away future, all cars will look the same, people will be the same color, dogs will be all mixed beyond recognition, and governments will own everything. That car looks like my son's Hyundai Tucson without badges.
  • Tassos Of course, what the hell did you expect? A SERIOUS, BEAUTIFUL car you can ACTUALLY USE AS YOUR DAILY DRIVER???............. NOOOOO, THIS IS TIM WE ARE TALKING ABOUT. SO HE FINDS SOME OBSOLETE POS WHICH IS 22 years old, .............AND HE PURPOSELY MISSES THE BEAUTIFUL MODEL, THE Classical Beauty E39 that ended in 2003. ...........So he uses his column as a WASTEBASKET once again, to throw the first year of BMWs BANGLED 5 series (as in the INFAMOUS CHRIS BANGLE WHO SCREWED UP THE DESIGN ROYALLY). ................................................ As Dr. Evil, Fake Doctor Jill Biden would scream at the top of her voice, so her senile idiot husband could hear her, "Good Job, (Tim)! You answered all the questions and ticked all the boxes!" ..... KEEP UP THE S---Y work, Tim!
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