GERMAN car-makers DaimlerChrysler and BMW have threatened legal action against a Chinese rival, which they accuse of making copies of their own models, the Financial Times reported yesterday.

DaimlerChrysler said it would consider legal action if Shuanghuan Automobile showed its Noble, which the German group says resembles its Smart Fortwo, at next month's Frankfurt motor show. BMW also alleges that another Shuanghuan car - the CEO - resembles a previous version of its X5 SUV.

Shuanghuan has rejected the accusations, insisting that authorities in China had approved its vehicles.