Feb 10, 2009, 12:44pm ET

Chinese automaker to sell cars at Wal-Mart, Costco?

A number of major Chinese automakers have plans to sell low-cost cars in America, but so far none of those ambitions have materialized. Most of the companies have struggled to meet U.S. crash regulations, not to mention build vehicles with the 'fit and finish' to which Americans are accustomed. Another hurdle is setting up a dealership network to sell the cars -- not an easy task. But according to one manufacturer, Chinese automakers could have that problem solved: Within the next few years, you might be able to buy a Chinese car at a big-box retailer like Wal-Mart or Costco.







The news comes from Kathleen Ligocki, CEO of GS Motors. A subsidiary of Grupo Salinas, GS Motors is not a Chinese automaker. Rather, it is a Mexican manufacturing company that intends to build Chinese automobiles for the North American and South American markets. Yes, that includes the United States.



Currently, GS imports cars from Chin's First Auto Works (FAW) to Mexico. The companies are currently working together on an assembly plant in the country. The compact 'F1 Hatchback' model, on sale this year, will retail for less than $5,500.



GS expects to begin production in Mexico some time in 2010, Ligocki told China's Gasgoo news service. The company will begin with sales in Mexico and Latin America, but plans to make inroads to the United States in the next few years. GS is already using big-box stores in Mexico -- like Wal-Mart and Costco -- to sell FAW vehicles. The company would likely use a similar strategy in America, forgoing setting up an expensive dealership network.