Why would the manufactures not just directly send those cars over to China and sell them? Presumably because they make about the same amount of money either wa

Why would the manufactures not just directly send those cars over to China and sell them? Presumably because they make about the same amount of money either way: If they distributed more cars into the Chinese market, prices would drop in China as supply caught up with demand. Obviously that leaves room for a competitor to undercut you, but these luxury brands can, for now, demand premiums for their cachet. In the meantime, selling cars with competitive supply (and competitive price) in America plays some part in keeping that cachet alive. You want movie stars and pro athletes driving Mercedes. Not to mention it would be a huge mistake to abandon competition in the U.S. market just because China is huge right now. If China tails off, it's expensive to rebuild your brand image, dealer network, ...