Critical Shifts:
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AIADA’s Firm Position: The AIADA strongly opposes Chinese automakers entering the U.S., contrasting them with traditional global brands (like Toyota and Honda) that invested long-term in U.S. manufacturing and local communities.
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Predatory Market Tactics: AIADA warns that state-subsidized Chinese brands flood markets with artificially low prices to achieve total market dominance rather than fair competition, pointing to rapid market share spikes in Europe and Mexico.
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Threat to Dealership Viability: Unfair pricing pressures pose severe risks to independent and franchised dealers by causing margin squeezes, declining used vehicle equity, and plummeting dealership valuations.
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National Security Concerns: Beyond financial impact, connected Chinese vehicle software and hardware pose surveillance and data privacy threats to American consumers.
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Legislative Push: AIADA is actively lobbying for federal legislation to permanently ban Chinese autos and auto manufacturers from entering the U.S. market.
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In an open letter, Mike Darrow, chairman of the American International Automobile Dealers Association (AIADA), expressed opposition of Chinese vehicles in the American market.
“For more than 50 years, AIADA has worked in Washington, D.C. to protect the interests of international nameplate auto dealers. Over the years our mission hasn’t changed much. An open market means more and better choices for the American consumer. As our international brands have grown in the United States, they’ve invested heavily in manufacturing, R&D, and American jobs. Since they first hit our roads, foreign brands have driven innovation, kept pricing competitive, and boosted the American economy by every available metric.
“On a personal level, international nameplate manufacturers like Toyota, Honda, Mazda and Kia have played a critical role in successfully growing our family business for a majority of our sixty plus years, going on three generations. These brands have been very good to our employees, our customers, and the communities we serve and support in Wisconsin.”
The letter went on to state its position in stark terms.
“Our association is strongly opposed to Chinese auto brands entering the U.S. market for the purpose of manufacturing or selling their vehicles to American consumers,” Darrow wrote.
“Chinese brands are not following the lead of other global manufacturers from Asia and Europe or American manufacturers selling globally. They aren’t interested in becoming part of an existing, thriving auto market. They want to become THE American auto market, full stop. Their goal is total industry domination, using the same playbook we’ve already seen in other industries, such as consumer electronics, home appliances, solar panels and toys.
“Their methodology is predictable and proven effective. They have the excess manufacturing capacity to flood the market with competitive products at artificially low prices, subsidized by a communist government whose spending has no limits. They will quickly gain market share through their predatory export practices. The result of this unfair competition will be a market share decline of our existing brands, a margin squeeze to an extent dealers cannot withstand, lower dealership valuations, a used vehicle equity decline causing financial stress on consumers, and a hollowing out of US auto manufacturing and supply chain, resulting in the loss of American jobs.
“If you think it can’t happen here, think again. It’s already happening in the UK, all of Europe, Mexico, Brazil, and other markets. In June, Chinese brands grew 118% in Europe, while the total European market grew only 13 percent. They captured a record 10.9% of the total market, almost doubling their share from a year earlier. In Mexico, 1 in every 5 new vehicles sold last year was manufactured in China, with Chinese brands specifically representing a nearly 12% market share in the first quarter of 2026.
“In America, where lawmakers have already placed some restrictions on Chinese-linked vehicle software starting in model year 2027, the stakes are getting higher. Beyond industry domination, the Chinese interest in American consumers is a national security threat. Chinese-linked vehicles and vehicle software can be used as surveillance devices. Collection of location, behavioral, voice, sensor, photographic, and video data would compromise our national security.
“The time to act is now to protect our industry that provides so much to so many. That is why AIADA is speaking up and engaging in the effort to pass legislation to permanently ban Chinese autos and automakers from our US market. To learn more about our position and our efforts, please visit NoChinaAutos.com.”
