Lithia Motors CEO Explains Hesitation to Sell Chinese Cars in U.S.

Largest U.S. auto dealer cites franchise laws, infrastructure costs as barriers to Chinese brand expansion.

Published on Feb. 11, 2026

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Lithia Motors CEO Bryan DeBoer said the largest U.S. auto dealer is not interested in selling vehicles from China-based brands domestically right now, citing the potential cost, return-on-investment and needed infrastructure, largely due to franchise rules in the U.S. DeBoer noted that Lithia already has at least 10 stores selling vehicles from three Chinese companies in the United Kingdom, where the dealer can be allowed to put vehicles from a company such as China's Chery Automobile into an existing showroom for less than $100,000. However, in the U.S., Lithia would need to establish new retail locations and service operations to support sales of Chinese brands, which would mean having to make completely new investments.

Why it matters

This highlights the challenges Chinese automotive brands face in expanding into the lucrative U.S. market, where franchise laws and dealer infrastructure requirements present significant barriers. As Chinese brands continue to grow globally, their ability to enter the world's second-largest auto market remains uncertain.

The details

Lithia Motors, the largest U.S. auto dealer, currently sells vehicles from three Chinese companies in the United Kingdom, where franchise laws allow the dealer to add new brands to existing showrooms for a relatively low cost. However, in the U.S., Lithia would need to establish completely new retail locations and service operations to support Chinese brands, which the company's CEO says would require significant new investments that may not be worthwhile given the potential returns.

  • Lithia Motors CEO Bryan DeBoer made these comments on the company's Q4 and year-end 2025 earnings call on February 11, 2026.

The players

Lithia Motors

The largest automotive retailer in the United States, operating more than 200 dealerships across the country.

Bryan DeBoer

The CEO of Lithia Motors, who has led the company's rapid expansion in recent years.

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What they’re saying

“We're quite excited that we've got that opportunity in the United Kingdom, but there's a big fundamental difference”

— Bryan DeBoer, CEO, Lithia Motors (CNBC)

“I think we would probably not be early adopters when it comes to the United States or possibly even Canada, primarily because we're usually not in a dual franchise situation”

— Bryan DeBoer, CEO, Lithia Motors (CNBC)

What’s next

Lithia Motors will continue to monitor the expansion of Chinese automotive brands globally and evaluate potential opportunities to sell those vehicles in the U.S. market, though the company's CEO indicated significant infrastructure investments would likely be required.

The takeaway

The challenges Lithia Motors faces in adding Chinese car brands to its U.S. dealerships highlight the barriers Chinese automakers must overcome to successfully enter the lucrative American market, where franchise laws and dealer network requirements present significant hurdles.