Nio cars are displayed at Nio House, the Chinese electric vehicle (EV) maker’s manufacturing center in Hefei, Anhui province, China, 2 April 2025.
Florence Lo | Reuters
DETROIT — America’s largest auto dealership is not interested in selling vehicles from China-based brands domestically at this time, its CEO said Wednesday.
But it’s not necessarily because of politics, logistics or possible consumer backlash, according to Lithia engines CEO Bryan DeBoer. His company already has at least 10 stores selling vehicles from three Chinese companies in the UK.
DeBoer, who has seen Lithia grow exponentially in recent years, said the potential cost, return on investment and necessary infrastructure, largely due to franchise rules in the United States, are the biggest hurdles right now.
“We’re very excited to have this opportunity in the U.K., but there’s a big fundamental difference,” DeBoer told investors Wednesday, citing “dueling franchises” practices in the U.K. that allow Lithia to offer brands from different companies in the same showroom if they are considered competitors.
DeBoer said the dealership could be allowed to install vehicles from a company such as China’s Chery Automobile, which is expanding in Europe, into an existing showroom in the United Kingdom, and it would cost less than $100,000.
This is not the case in the United States, where franchise dealer laws are strict, vary by state, and companies may have more influence or even oppose such decisions.
His comments come as Chinese auto brands increasingly export and expand outside their domestic market.
The global market share of Chinese brands has jumped nearly 70% in five years, and many experts see a threat to U.S. automakers, including the early entry of Chinese brands into America. There have been Chinese-produced vehicles for sale in the United States, from brands such as Buick and Volvo, but none from Chinese brands such as BYD, Nio or others.
In the United States, Lithia is expected to establish new retail outlets and service operations to support sales of Chinese brands, which would involve making entirely new investments. He pointed out that about 50-60% of the company’s profits come from service and spare parts.
“I think we probably wouldn’t be among the first to adopt this system in the United States or maybe even Canada, mainly because we’re not generally in a double-franchise situation,” he said.
China’s most recent announced expansion is into Canada, a relatively small auto market that removed 100% tariffs on vehicles imported from China as part of a trade dispute with the Trump administration.
But DeBoer said the Oregon-based company isn’t closing the door completely as Chinese brands continue to grow globally.
“We have established relationships with a number of Chinese brands,” he said. “We will keep an open mind and look at opportunities that come our way in the future.”
DeBoer’s comments came during the company’s call to discuss its fourth-quarter and year-end results, which included year-over-year increases of 4% in revenue and 3.1% in gross profit.