Looking For A Chinese Car? Check Wal-Mart Or Costco…

The Chinese have made no secret of the fact that they intend to crack the North American car market in the next few years. Some officials have openly commented on the possibility of buying Chrysler or GM in order to gain immediate access to a dealer network.

The issue of the dealer network is key, as Tesla and Fisker are finding out. Both of these companies are attempting to build their dealer network right now. Tesla has a few California sales spots, but consumers want to see the cars before they plunk down $100,000 (give or take ten grand) to get them into their driveways.

It takes someone very special to sell a car to a car dealer, especially in today's economy. Right now, dealers are up to their eyeballs in cars that consumers are afraid to buy. So the answer for the Fiskers and the Teslas and the BYDs of the world is critical. No dealers means no sales.

Or does it?

GS Motors CEO Kathleen Ligocki says that she expects her company to be at the forefront of the Chinese invasion. GS Motors will begin producing Chinese vehicles from the First Auto Works at GS Motors' factory in Michoacan, Mexico in 2010. According to Ligocki, the factory has an annual production capacity of 100,000 units.

But what about the dealers? To borrow a phrase from Tony Soprano: fuggetaboudit. In an interview with Automotive News, Ligocki says that she expects the Chinese to transplant their Mexican sales model to the US.

And exactly what is that?

The company uses both independent agencies like traditional car dealerships, and "mini-agencies" located inside Elektra stores, a Mexican retail chain. Big-box retailers, you know…like Wal-Mart or Costco. Right inside the store…

To date, the FAW has sold about 4,000 imported vehicles in Mexico using this distribution model and Ligocki is confident the model will transfer to the US market. So what secret weapon will the Chinese be using in their bid for automotive domination?

Women.

Men like going to the independent agencies to buy their vehicles. Women, on the other hand, like purchasing cars in the retail environment they're familiar with. Women directly purchase nearly half of all vehicles sold in the US and influence the purchase of a whopping 80 percent of every vehicle that leaves the factory.

Ligocki also says that the first GS Motors vehicles will retail for between USD $5,500 and USD $9,000, and will travel north of the border in five years or less.

Source: Automotive News
Photo Credit: Ryan Jesena