Automaker executives foresee Chinese carmakers entering U.S. market, raising concerns

From Yahoo Finance: 2025-05-11 06:00:00

Automakers anticipate fewer, larger dealerships in the future, according to Erin Kerrigan of Kerrigan Advisors. The 2025 OEM Survey revealed concerns about Chinese carmakers entering the U.S. market and their global market share impact. Respondents also discussed dealer profitability, EV sales, and franchise systems.

Kerrigan Advisors’ survey found that automakers see Chinese carmakers as a real threat. Questions about financial implications and market entry were raised. The shift towards fewer dealers and the potential use of the right of first refusal in buy-sell deals were also highlighted in the survey results.

Auto executives believe that the primary customer relationship and customer data will be jointly owned by dealers and automakers in the future. The possibility of implementing an agency model in the U.S. has decreased. Respondents also expect blue sky values to remain steady or increase this year.

Sixty-six percent of auto executives predict dealership profits will rise this year. Most automakers plan to maintain or increase their facility requirements. The survey also revealed that significant capital investments for facility upgrades pose a financial risk for some dealers, prompting sales or retirements.

Read more: Automaker executives expect Chinese carmakers to enter U.S. market, Kerrigan Advisors survey finds