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The Italian Competition Authority (AGCM) has fined DR Automobiles €6 ($6.4 / £5.1) million for “unfair commercial practices.” The government agency contends the company “misleadingly” implied their DR and EVO vehicles were built in Italy, when in fact they’re made in China.
The AGCM said misleading messages and commercials started around December of 2021 and “indicated Italy as the origin and place of actual production” of their vehicles. However, that’s not the case as they’re actually made in China “except for [some] marginal finishing and completion.”
The government contends the “deceptive practice” mislead consumers and may have helped the company’s sales. In particular, the AGCM noted the “practice coincided with a period of strong … sales of DR and EVO branded cars on the Italian market.”
A 71 page government document goes into extensive detail and lists numerous examples of the company trying to portray itself as Italian. Examples include the use of the tricolor motif as well as an apparent webpage that called DR an “Italian automotive group that in 2006 … made his debut among car manufacturers.”
The government also took issue with a number of videos, which implied their vehicles were made entirely in Italy. In one such clip, famous Italian landmarks were apparently shown before footage of a vehicle being built on an assembly line. The document also included screenshots showing the DR 3.0 and DR 5.0 are little more than rebadged versions of the Chery Tiggo 2 and Chery Tiggo 4.
More damning, an investigation allegedly found the company “importing ‘finished’ cars” from China, Reuters reports. As it noted, “The photographic documentation clearly shows that the car, still before being unloaded from the container, … appears finished and complete in every way.” In another photo, a vehicle in a customs area was complete other than the grille, which was just missing a DR logo.
DR Automobiles wasn’t just slammed for their production claims as a subsidiary, known as DR Service & Parts, “did not guarantee an adequate supply of spare parts nor correct after-sales assistance, through the dealer network and /or authorized workshops.”