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.
Kerrigan Advisors is the leading sell-side advisor and thought partner to auto dealers nationwide. Since its founding in 2014, the firm has led the industry with the sale of more than 290 dealerships generating more than $9 billion in client proceeds, including two of the largest transactions in auto retail history – the sale of Jim Koons Automotive Companies to Asbury Automotive Group and Leith Automotive to Holman. The firm advises the industry’s leading dealership groups, enhancing value through the lifecycle of growing, operating and, when the time is right, selling their businesses. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, Kerrigan Advisors is the only firm in auto retail exclusively dedicated to sell-side advisory, providing its clients the assurance of a conflict-free approach.
Kerrigan Advisors monitors conditions in the buy/sell market and publishes an in-depth analysis each quarter in The Blue Sky Report®, the industry authority on dealership buy/sell market trends and valuations and includes Kerrigan Advisors’ signature blue sky charts, multiples and analysis for each franchise in the luxury and non-luxury segments. To download a preview of the report, click here. The firm also releases The Kerrigan Index™ comprised of the seven publicly traded auto retail companies with operations focused on the US market. The Kerrigan Auto Retail Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here. To read the 2024 Kerrigan Dealer Survey, click here. To read the 2024 Kerrigan OEM Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.
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