Avanti XUV to be produced, despite GM suit.

February 17, 2003.  Avanti Motor Corp. says it will produce the Studebaker XUV even though General Motors Copr. has sued claiming that the design of the XUV constitutes trademark infringement because it is is too close to GM's Hummer H2.

Avanti it isputes GM's claim that there is a likelihood of consumer confusion because of the similarities and that it did not considered using GM, Hummer or H2 designs for its Studebaker XUV.

"Put both vehicles side by side, and there's no question that the Studebaker XUV is distinctly different," said Avanti chief Michael E. Kelly.

GM is seeking a preliminary injunction enjoining Avanti Motors from manufacturing, advertising, and selling the Studebaker XUV.