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Chinese automaker to sell cars at Wal-Mart, Costco?

02/10/2009, 12:44 PM

By Nick Aziz

A number of major Chinese automakers have plans to sell low-cost cars in America, but so far none of those ambitions have materialized. Most of the companies have struggled to meet U.S. crash regulations, not to mention build vehicles with the ‘fit and finish’ to which Americans are accustomed. Another hurdle is setting up a dealership network to sell the cars — not an easy task. But according to one manufacturer, Chinese automakers could have that problem solved: Within the next few years, you might be able to buy a Chinese car at a big-box retailer like Wal-Mart or Costco.

The news comes from Kathleen Ligocki, CEO of GS Motors. A subsidiary of Grupo Salinas, GS Motors is not a Chinese automaker. Rather, it is a Mexican manufacturing company that intends to build Chinese automobiles for the North American and South American markets. Yes, that includes the United States.

Currently, GS imports cars from China’s First Auto Works (FAW) to Mexico. The companies are currently working together on an assembly plant in the country. The compact ‘F1 Hatchback’ model, on sale this year, will retail for less than $5,500.

GS expects to begin production in Mexico some time in 2010, Ligocki told China’s Gasgoo news service. The company will begin with sales in Mexico and Latin America, but plans to make inroads to the United States in the next few years. GS is already using big-box stores in Mexico — like Wal-Mart and Costco — to sell FAW vehicles. The company would likely use a similar strategy in America, forgoing setting up an expensive dealership network.

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02/10, 12:51 PM

posted by:

beatusmongous

No. Just no!

02/10, 12:56 PM

posted by:

Borat

Illegal in 49 States of US. Only in Alaska you don’t need a new car dealer to sell you new car. Non-issue.

02/10, 1:03 PM

posted by:

CADDY-V

” The company would likely use a similar strategy in America”
I think the key word here is LIKELY.
Doesn’t mean it’s going to happen. I atleast hope not.

02/10, 1:12 PM

posted by:

El Flaco

We all go to Walmart and buy a whole lot of things there knowing that they are Chinese. However if they would ever start to sell the cars people would look at Walmart as an extension of China. It would cause a large blow back against them.

02/10, 1:14 PM

posted by:

mayer_ray_nagin

I wonder if they badge-engineer the same model for the great Kirkland Signature and George brands.

02/10, 1:15 PM

posted by:

idrinorbarsaku

i say go for it! maybe this is what we need to screw walmart up! I HATE WALMART by the way!

02/10, 1:25 PM

posted by:

ckron247

Ok, thats just slightly retarded. I can see it now. “Honey, when your at wal-mart can you pick up milk, and eggs, oh yeah we need a need car too, see if they have it green”. Unbelievable.

02/10, 1:26 PM

posted by:

bigs4610

this is has got to be a freakin joke.

02/10, 1:34 PM

posted by:

johnnycanuck

Interesting. A Rollback could take on a whole new meaning when your brakes fail.

02/10, 1:36 PM

posted by:

mayer_ray_nagin

“Excuse me, can you tell me where the car aisle is”
…. “Uhh, yeah. Go down here past the Cheez-It endcap, left at women’s panties, and keep going
…. straight till ya get to the tampon section. Ya can’t miss it.”

02/10, 2:03 PM

posted by:

MercMark

BOYCOTT CHINA*MART!!!!!

02/10, 2:07 PM

posted by:

MercMark

or Great Wall*Mart!

02/10, 2:16 PM

posted by:

bolex

Walmart and Chinese QUALITY, a perfect way to introduce Chinese car!

02/10, 2:27 PM

posted by:

F3INT))AP3X

This is seriously bad though, unless we keep it out of the US. I mean It is a Chinese company who imports Chinese cars and assembles them in Mexico. So to put this clearer a normal import automaker like Honda/Toyota would setup factories inside the US to create jobs and to be fair about where some of the profit money goes (the US gov). Now from what I can see this company wants to produce and assemble their cars completely outside of the US and then come into the US and sell under a completely established dealer network for which they will have to pay very little I’m sure when compared to the cost of setting up their own. This is bad in every way as it keeps almost every red cent made from these cars for the Chinese and the Mexicans leaving only the tax and small chump change like that for the US Govt.

02/10, 2:27 PM

posted by:

Zcarsales

Guys, this is the beginning of the end for the dealership as we know it. Think about it. The last sentence of the article really struck a chord with me.

02/10, 2:27 PM

posted by:

NismoSentraKen

===>>johnnycanuck, that was the most hillarious i heard yet! LOL im ROLLIN’ over here!!

02/10, 2:43 PM

posted by:

mayer_ray_nagin

So we’ll have
…. Sears Craftman Work Trucks
…. Walmart GEORGE Cars for the little (but overweight) guy
…. Costco Kirkland Signature family cars
…. Sams Club Sam’s Choice M3 – a sportscar
…. Target Archer Farms CUVs
…. Trader Joe’s Jalopies, and
…. Whole Foods Organic Fruit & Nut Mobiles

Seems I’ll be keeping the present car a couple decades longer than I thought.

02/10, 3:04 PM

posted by:

yarddog82abn

LOL………….LOL…………..LOL…………LOL………….LOL………….LOL…………..LOL…………LOL………….LOL………….LOL…………..LOL…………LOL………….LOL………….LOL…………..LOL…………LOL………….LOL………….LOL…………..LOL…………LOL………….LOL………….LOL…………..LOL…………LOL………….

02/10, 3:15 PM

posted by:

bigjimid

This is some funny sh!t! I can’t believe it!

Nismo – Me too bro. Funny sh!t johnny, the next round’s on me.

Seriously though. The company itself is so sure that no one will buy their cars if they sell them at dealerships, so the only way to sell them is through a retail store? So how much will the warranty protection plan cost? I can hear it now…. “$74.99 for 5 years of full protection. All you pay is the shipping.” Lol.

02/10, 3:30 PM

posted by:

The Stig

Why not sell them at 7-11?

02/10, 3:40 PM

posted by:

PassingGear

Tata is working on the 7-11 angle… LOL

Another reason to hate WalMart…

02/10, 3:46 PM

posted by:

RB300

LMAO on “The Stig” comment.

02/10, 4:24 PM

posted by:

A4

if youre dumb enough to buy a car from wal-mart, just like the people that buy go-karts from BJ’s and dirt bikes from pep boys, you deserve the rickety piece of sh!t that it will positively be.

02/10, 4:54 PM

posted by:

Get Real

If they can do the “fit and finish” of a Cadillac or Tahoe they will pass. Americans are blind.

02/10, 4:59 PM

posted by:

Mutant@DCX

Kmart… definitely Kaaaamart. Judge Wapner 7, Jeopardy 7:30, Yeah, definitely Kmart

02/10, 5:58 PM

posted by:

tyler_is_aero_tt

Will they even pass safety regulations??

02/10, 6:00 PM

posted by:

fuzz40

Costco has already sold coffins before so this really isn’t new news.

02/10, 6:13 PM

posted by:

miket

Sam’s already has a “car buyer program” where they connect you with a local dealer to get the Sams club price. If they wanted to side step the law mentioned above, they would just get their cars from a couple centralized dealers and deliver.

02/10, 7:05 PM

posted by:

gogogodzilla

You can already buy cars through Costco here in Maryland…

02/10, 7:11 PM

posted by:

jrusoff

What I want to know is, will Costco keep their current return policy on these cars? If you don’t like it or it breaks, just bring it back and they’ll return it, no questions asked. Try that at your Chevy dealer. I’d be much more likely to buy a car if I had an easy way to return it if I don’t really like it. And face it, you don’t know what a cars like till you’ve lived with it for awhile.
So how are they going to handle factory warranty repairs? Other than that there just isn’t any strong reason to go to any existing dealership. They just don’t add anything to the equation.
JR

02/10, 7:44 PM

posted by:

wideopenthrottle

They’ll be for sale in the same aisle as the replica cars…..my bad, they are replica cars.

02/10, 7:49 PM

posted by:

wideopenthrottle

“you might be able to buy a Chinese car at a big-box retailer like Wal-Mart or Costco”
Well since everything else there is made in China, this makes sense.

02/10, 9:38 PM

posted by:

wreckchaser

The sales model may be different than expected. What if it is like the free cell phone with signed contract? Pay a monthly fee which includes the use of the car and a certain amount of free gas each month at their gas stations. Qualify for a new car every couple of years when you sign a new contract. Maintenance beyond the basic would be a non-issue as most would get a new car every 30k miles based on 15k per year. Just a thought.

02/10, 9:40 PM

posted by:

CottonPanties

Further increasing the amount of white-trash residence to these already over populated crap factories.

02/10, 10:26 PM

posted by:

elviososa

“fit and finish†I don’t see much of “fit and finish†in American car either. In some way, Buick in China has much higher built quality than the U.S.

02/11, 9:36 AM

posted by:

Pauly

Good. This just gives me another reason not to shop at Mall-Wart

02/11, 11:44 AM

posted by:

DCG3

Cars sold there will have “Some Assembly Required” like the rubbish patio sets they sell you know the ones that come with the plastic tools and are always wobbely and you have to put about 6 drywall screws in after you build it the way the directions say with the crap hardware… just to hold it up………

02/11, 12:19 PM

posted by:

RaineMan

Relax folks… they have to meet US crash standards before they can even be imported. They haven’t even done that yet.

02/11, 12:57 PM

posted by:

ricky_b

Major draw back – Walmart customers are used to buying cheap crap that can be thrown away when it breaks. I seriously doubt they’re going to be set up well enough to handle the warranty repairs. The main Chinese auto companies today don’t even reach the quality that the Koreans had when they came to the US in the 80’s and they were the bottom of the list for quality. (Don’t count the foreign companies that have plants in China, such as GM. They far exceed the quality that the local Chinese companies build to.)

The same kind of thing was said when the Indian Tata Nano was announced. What’s preventing these companies from coming to US is 1) Crash & Safety Regulations, 2) Quality, 3) Dealer network and 4) the shrunken economy. Ain’t going to happen any time soon.

02/26, 12:25 PM

posted by:

jackjimturkey

You can buy a car at a store in Europe … usually as part of a discount package

 
 
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