NADA: Could Chinese Carmakers Bypass U.S. Dealer System?

Car dealers don't oppose the idea of Chinese-made vehicles eventually being sold in the U.S.

But they do fret that Chinese producers may try to sidestep America's dealership franchise system and sell directly to consumers, says this year's chairman of the National Automobile Dealers Assn.

David Westcott, a Buick-GMC dealer in North Carolina, tells the Automotive Press Assn. in Detroit that NADA is concerned that future Chinese marketers will adopt the direct-to-consumer approach currently used by electric car maker Tesla Motors Inc.

In prepared remarks, Westcott said competitive nature of the current franchise system keeps dealers focused on customers. If manufacturers take over retail sales, he warned, vehicle pricing would become fixed.