Volvo likely to sue Foton Lovol for similar naming

Shanghai, May 26 (Gasgoo.com) Volvo Trademark Holding AB, a subsidiary of Swedish truck-maker Volvo Cars, recently said that its lawyers are collecting evidence worldwide of the name similarity of Foton Lovol Heavy Industries Co., LTD., while Foton Lovol is also preparing for the lawsuit. The key focus of the case is currently on the trademark issue.

Foton Lovol Heavy Industry Co., Ltd is a Chinese manufacturer of construction machinery, agricultural equipment and vehicles with 4 billion yuan ($574 million) total assets. In 2007, Foton Lovol sales revenue reached 9.5 billion yuan. Its agricultural harvesters now have 70% domestic market share. Meanwhile, 13,000 units of Lovol products have been exported to more than 90 countries across the world, generating total revenue of $100 million. As part of its global expansion strategy, Foton Lovol aims to boost its exports to 40% of its output by 2010.

It is this global growth ambition of Foton Lovol that has sounded a wake-up call to Volvo Cars. Sweden-headquartered Volvo Trademark Holding AB, in charge of the trademark dispute between Volvo Cars and Foton Lovol, is collecting evidence of the similar name used by the Chinese truck-maker but has not revealed when the Swedish company will go to court for this case. Foton Lovol said that its name has nothing to do with Volvo and that it is ready to face the possible lawsuit. Volvo has also noticed the similar naming in two or three other Chinese truck-makers such as Vowa Machinery Company.

With worldwide sales totaling 458,323 cars in 2007, Volvo Cars increased its total global sales by 7.4% over the previous year. Sales in China increased by 73.2% during 2007, and with 12,460 Volvo cars sold, China is becoming one of the top-ten markets for Volvo Cars. The locally produced Volvo S40 is the bestselling Volvo in China with a total of 6,560 sold cars last year.