Tuesday, February 10, 2009

Right next to the giant jar of mayonnaise: a Chinese car?

There was an episode of the Simpsons a while back that involved a giant food big-lots store called CostMo, where Marge buys a 12-pound container of nutmeg. The motto was “Where Shopping Is A Baffling Ordeal.” Our reality has possibly moved closer to merging with the Simpsons universe.

Several blogs are reporting that Chinese automakers, particularly FAW, are looking at how to establish networks to sell their vehicles in North America. The companies interested in importing the cars have hit upon an idea to sell them at big-box stores like Costco and Wal-Mart. One importer, GS Cars, is already doing that in Mexico and apparently moved 4,000 units last year.

My take? Not as crazy as it sounds, but I don’t think the venture has a ton of hope. Brand-quality associations are pretty strong, and selling a car at Wal-Mart might taint the company.

Finally, consider the historical perspective. In the ‘50s Sears-Roebuck sold all sorts of motor vehicles, mostly Vespa and Cushman scooters, under the Allstate brand. They also sold a car in 1951, simply called the “Allstate.” It was in reality a small and cheap economy car made by the Kaiser-Frazier Corporation called the “Henry J” after the chairman of the company. It was cheap, poorly built, and didn’t appeal at all to American sensibilities of the 1950s. Basically, it had a weak marketing message and they didn’t sell, whether badged as Kaisers or as Allstates.

Will the Chinese cars suffer the same fate? I think if the economy recovers, everyone will spend a few dollars more and get a Chevy Aveo or something. I predict that until the Chinese can solidly establish a traditional dealer network, crazy stunts like this won’t move enough cars to make a real difference.

[source: hybridcars.com, wikipedia]

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