German automakers BMW and DaimlerChrysler are threatening legal action against Chinese carmaker Shuanghuan Automobile for producing copycat versions of some of their models.

According to a report in the Financial Times, BMW is reported to believe that Shuanghuan''s CEO model is too similar to its own X5, Daimler says Shuanghuan''s Noble is identical to its Smart Fortwo.

This is not the first time the luxury brands have faced problems of Chinese copies of their products; last year Daimler stopped another Chinese carmaker from producing a model that was similar to its Smart.

Daimler has warned Shuanghuan not to display its Noble at next month''s Frankfurt motor show. a Daimler spokesman said that the company took intellectual property protection very seriously and has decided to reserve the right to pursue legal action.

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