Audi has just won a lawsuit against Nio, preventing it from promoting models named ES6, ES7 and ES8 in Germany. This case is reminiscent of the methods used by Citroën to block Polestar in France.
A vaguely resembling logo or a name that is a little too similar are all pretexts used by European brands to protect their market from competition, particularly in Asia. As reported by automobilwoche on January 19, 2023, we learn that a judge from the Munich court has just ruled in favor of Audi, after a 15-month procedure, against the Chinese manufacturer Nio on the naming of some of its models.
The Nio models named ES6, ES7 and ES8 are the subject of the dispute between the two brands. Following the judgment, the Chinese brand will no longer be able to promote it in Germany. Nio, however, retains the possibility of appealing the decision. But, why can’t Nio use these model names?
A name deemed too close to Audi’s “S” sports models
Even if the Audi brand uses the term “e-tron” to distinguish its electric range from the rest of its thermal range, Audi is concerned that customers will confuse certain names of Nio with its own. The names ES6, ES7 and ES8 from the Chinese manufacturer Nio could lead to confusion with an electric version of the S6, S7 and S8 models from the German manufacturer.
In rendering his judgment, the judge stated: There is a risk that consumers assume that the ‘ES 6’ corresponds to the ‘S6’ in an electric version, that the two vehicles are from the same manufacturer. There is therefore a danger of transference of confusion by association which goes beyond pure association. »
In this dispute, the judge therefore ruled in favor of Audi. The German manufacturer is satisfied to have been able to protect its brand on its local market: ” Many of our designs are iconic — for us and for our customers. This also and above all applies to our sporty S models. »
Nio had already made a move to please Audi with the EL7
The dispute with Audi did not prevent the Nio brand from launching in Germany. In October 2022, Nio formalized its presence in the country with an offer of several premium models. However, instead of launching the model named ES7 there, it was renamed EL7 at the last minute, to avoid aggravating the conflict with Audi.
The ES6 and ES8 have not yet arrived on the German market. If Nio doesn’t appeal the judgment, one can imagine that they could also be renamed to EL6 and EL8.
It must be said that, following the judgment rendered, the promotion of these two model names could cost Nio a fine of €250,000 or 6 months in prison for its German manager. Changing the name of the model for the European market is still much less expensive and risky, for a brand that is launching in 5 countries in Europe.
A case reminiscent of that between Polestar and Citroën / DS in France
Historical brands seem to have found in the courts a good ally to protect them from the new Chinese competition. For several years, Polestar was blocked by Citroën in France because of a logo that looked a little too similar. The dispute eventually found a favorable outcome between the two groups. However, Polestar is still absent on the French market, while the brand now has the possibility of marketing its models there.
The confusion between the logos and the Citroën models was not necessarily so obvious, especially once the logo is associated with the electric car models. Since it doesn’t seem so obvious that consumers would have been fooled by the Nio ES7 SUV, which frankly has nothing to do with an Audi S7 sports sedan. At best, the confusion could be placed on another SUV from the German brand, which is called SQ7.
Let’s not be fooled, behind these procedures is essentially a way of slowing down the expansion of Chinese brands in Europe. If we really had to judge the models that have names that are a little too similar when spoken, and therefore could create confusion, we would not get away with the names of the electric models. Between the “e”, the “ev”, the “id”, the “eq” and the “i”, or even the numbers alone associated with the brand, it is not always clear which is which.
Besides, we would not be against car brands returning to real model names for their future electric cars.
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