The U.S. government’s trade and tariff policies make it seem like we’ll never see Chinese vehicles for sale in our country, but automotive industry executives don’t see it that way. A recent survey from Kerrigan Advisors found that 76 percent of automotive leaders believe Chinese automakers will eventually find their way to the States.
Beyond the 76 percent who believe Chinese vehicles are coming, 70 percent said they had concerns about the financial impact such a move could have on the U.S. auto industry. Erin Kerrigan, Kerrigan Advisors’ managing director, said, “These are considered real threats by the OEMS.” She also noted that executives expect a smaller dealer network in the next five years, with fewer, larger dealerships. Some automakers have also backed away from their aspirations to sell directly to consumers via online platforms.
Kerrigan didn’t define what it views as an executive, and the organization’s survey took place before the latest round of tariff actions by the Trump administration. While the government has announced progress in its negotiations with China, significant hurdles remain, and the agreements reached are only temporary for now.
The Chinese government’s dedication to becoming the world’s EV supplier has driven its automakers to offer vehicles at prices far below those of other countries’ OEMs. That has made them an appealing option in Europe and other markets, and it could be the “big thing” that brings them to the U.S. market as buyers shun higher-priced models from legacy automakers. That said, it’s anyone’s guess how the tariff situation will unfold, which could have a significant impact on the pricing of imported vehicles.
[Images: BYD]
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