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Hey everyone,
Just had David Wyler, CEO of Jeff Wyler Automotive Family, on for the latest episode of the CDG Podcast!
Together, we dig into why Wyler abandoned traditional corporate management in favor of a “coach” model, how a strict 100-mile acquisition rule protects execution, and why culture (not capital) is the only defensible edge left in consolidation.
— CDG
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Consumer openness to Chinese brands is outpacing dealer support: 40% of consumers are open to Chinese brands entering the U.S., compared to just 15% of dealers.
Global resale trends are signaling early volatility: In export markets like Australia and the UK, several Chinese EV models have depreciated by 25–40% within the first one to two years.
Still, affordability is holding as the real driver behind consumer interest: Nearly half of consumers rate Chinese brands highly for value-for-money, making this more about price and value than origin.
(Source: Cox Automotive / Savvy.com.au / Drive.com.au / Custom CDG analysis)
Dealer and consumer sentiment on Chinese brands is splitting.
Cox Automotive’s latest research shows 40% of consumers are open to Chinese auto brands entering the U.S.
But only 15% of dealers say they support it.
That gap makes more sense when you hear how dealers are thinking about it.
In a conversation I had with Michael Speigl, Dealer Principal at WE Auto, he said if a Chinese brand came in through a trusted U.S. OEM partnership, “then I think 100% of customers would want, you know, Chinese cars, because they represent affordability, or perceived affordability at least.”
And that’s the consumer side in a nutshell. Price. Features. Value.
Analysis via CDG’s Joe Cecala
However, he was quick to add: “Buying a Chinese product and, historically, doing business with Chinese companies and manufacturers are two different things.”
What he means: Dealers would likely love to offer a more affordable, tech-driven model that a pool of customers clearly wants. But with long-term contracts, shifting distribution models, and resale uncertainty, most see it as a move that could strain retail and planning stability for retailers and OEMs.
NOTE TO DEALERS:
There’s going to be a lot of noise around Chinese brands entering the U.S. Some of it will take years to play out. Some of it won’t happen at all.
But the one thing that matters today:
Is whether your senators and representatives are educated about how you and your team feel on these topics.
Because, as Speigl highlighted, silence is a position, and once trade rules, JV structures, manufacturing incentives, or tech restrictions are set, there’s not much left to do but react to policies made without your input.
Global resale trends are worth watching if entry moves forward.
The timeline for Chinese brands entering the U.S. is unclear. The structure is unclear. And potential partnerships are unclear.
However, one thing we can look at today is resale performance in markets where these vehicles are already established.
Our findings: In export markets such as Australia and the UK, several Chinese EV models have depreciated more quickly than established benchmarks.
Data from Savvy.au and Drive even show some models losing 25–40% within the first one to two years, with five-year retention often below that of brands like Toyota.
That’s largely been tied to aggressive pricing, frequent new-model updates, and heavy discounting to build share.
Still, it’s worth noting that that doesn’t automatically translate to the U.S.
WHY IT MATTERS:
If Chinese brands entered through existing OEM partnerships, there would likely be stronger distribution guardrails, tighter pricing discipline, and more established service infrastructure, all factors that can support more stable residuals over time.
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In summarizing Speigl’s perspective on the topic, he offered some Dos and Don’ts for dealers and OEMs.
Here’s what he shared:
Do: Expect structured entry by Chinese brands through existing OEM partnerships.
Speigl made it clear that if Chinese brands enter, structure matters more than anything.
“If a Chinese vehicle came in a Ford partnership, a Toyota partnership, then I think 100% of the customers would want Chinese cars because they represent affordability, or perceived affordability at least.”
Michael Speigl
His reasoning: Entry through established OEMs brings distribution, compliance, and operational familiarity, and reduces chaos at the retail level.
Do: Get involved before policy decisions are finalized.
“We need to start having some of those conversations before decisions get made without us having a seat at the table,” he told me.
As he sees it: These decisions don’t happen in a vacuum. And senators and representatives hear from every industry—lumber, sugar, tech, energy. But automotive needs to be in that room earlier.
Don’t: Forget the nuance of each brand’s buyer profile.
“I imagine there’s going to be a clash of cultures if you try to bring a BYD in with, you know, Stellantis or somebody like that, [and] you're gonna have to work through those sort of hurdles.”
In short: Even if OEMs explore partnerships, those decisions won’t move quickly. Aligning cultures, product strategy, and long-term business models takes time, and that alone suggests any real shift is likely further out than headlines suggest.
Note: Speigl will be joined by Michael Dunne (CEO at Dunne Insights) on Daily Dealer Live next week to dig even deeper into this topic.
As I see it, consumers drive this market. Always have.
And right now, almost half say they’re open to Chinese brands entering the U.S.
But whether you’re for or against Chinese entry isn’t really the point. If a meaningful share of customers is willing to consider something new because of affordability and tech, that’s telling you something about the gaps they’re feeling today.
So if I’m a dealer or an OEM, I’m asking:
Where are we overpricing the experience?
Where are we under-delivering on features?
And where are we making affordability harder than it needs to be?
Missed yesterday’s episode of Daily Dealer Live?
Presented by:
Dell on Inventory Turn, Zombo on Vehicle Shipping, Murphy on Recon Upgrade
Featured guests:
Rob Dell, Vice President of Bob Ruth Ford
Frank Zombo, Vice President of Sales at Auto Hauler Exchange
John Murphy, Used Vehicle Director at Holler-Classic Automotive Group
The latest updates to the CDG Buy/Sell Tracker.
