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According to Carscoops, the Italian Competition Authority (AGCM) has fined DR Automobiles 6 million EUR (approximately 6.43 million USD) for “unfair commercial practices.” Specifically, the authority found that the carmaker misleadingly implied that its DR and EVO-branded vehicles were manufactured in Italy, when in fact, they were produced in China.
AGCM stated that DR’s misleading messages and advertisements began around December 2021, suggesting that Italy was the “place of origin and actual production” of DR and EVO vehicles. However, these cars are actually manufactured in China, except for some insignificant finishing touches performed in the boot-shaped country.
The Italian government argued that this deception misled consumers and likely boosted the company’s sales. AGCM noted that DR’s actions coincided with a period of growth in DR and EVO car sales in the Italian market.
A 71-page document produced by AGCM delved into the details and provided numerous examples of how DR Automobiles attempted to portray its products as “Made in Italy.” For instance, the carmaker used a tricolor pattern similar to the Italian flag in the DR and EVO logos and stated on its website that DR Automobiles is an “Italian automotive group founded in 2006.”
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The DR 3.0 and DR 5.0 are accused of being rebranded Chery vehicles with DR badges. Image: Carscoops. |
AGCM also pointed out that in some promotional videos, famous Italian landmarks were shown before cutting to a scene of a car being assembled on a production line. The document also included comparative images suggesting that the DR 3.0 and DR 5.0 are likely rebranded Chery Tiggo 2 and Chery Tiggo 4, respectively.
Furthermore, Reuters reported on an investigation that uncovered DR’s importation of fully built vehicles from China. Images showed that even before being unloaded from containers, the cars appeared to be almost completely finished. Another photo revealed that the car, while still in the customs area, was essentially complete except for the missing DR logo.
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Images from the port show that the DR cars in the containers were nearly finished products. Image: Carscoops. |
DR Automobiles also faced criticism regarding the operations of its subsidiary, DR Service & Parts. This unit was accused of failing to ensure the adequate supply of spare parts and accurate after-sales service through its network of authorized dealers and/or workshops.
Previously, in May, Reuters reported that Italian police had seized over 130 Fiat-branded cars imported from Morocco due to the presence of Italian flag-colored stickers on their doors, which could potentially mislead consumers about their origin.
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