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> The issue with your suggestion BTW is that manufacturers probably couldn't sell to them because doing so would violate their contracts with existing dealers.
by amyjess 10y ago
> The issue with your suggestion BTW is that manufacturers probably couldn't sell to them because doing so would violate their contracts with existing dealers.
What I want is a Chinese manufacturer, who has no previous presence in North America, entering the US market and signing a nationwide exclusive contract with a single retailer.
Picking a name from Wikipedia's list of Chinese automakers, let's take Great Wall Motors. They have no presence in the North American market (the closest they come is Costa Rica, which is in CALA). Let's say that one day, they decide they want to sell in the US. So they sign a contract with Walmart where Walmart will be the sole retailer in the entire country who would be allowed to sell Great Wall cars, and Walmart will sell them the same exact way they sell any other appliance (though perhaps Best Buy would be a better choice of retailer than Walmart, since a much larger chunk of their business revolves around selling appliances).
- ghaff 10y agoSo now you have a cheap Chinese-made car with no service network. I suppose Walmart could effectively become a dealer/service network for this manufacturer as people will also want to test drive, get financing, and trade-in vehicles. Hard to imagine Walmart wanting to get into that business assuming any Chinese manufacturer even has a viable product for the US market.