Why the largest U.S. auto dealer isn't interested in Chinese cars — for now

DETROIT — The largest U.S. auto dealer isn’t interested in selling vehicles from China-based brands domestically right now, its CEO said Wednesday.

But it’s not necessarily because of politics, logistics or potential consumer backlash, according to Lithia Motors

CEO Bryan DeBoer. His company already has at least 10 stores selling vehicles from three Chinese companies in the United Kingdom.

DeBoer, who has grown Lithia exponentially in recent years, said the potential cost, return-on-investment and needed infrastructure, largely due to franchise rules in the U.S., are the biggest hindrances right now.

“We’re quite excited that we’ve got that opportunity in the United Kingdom, but there’s a big fundamental difference,” DeBoer told investors Wednesday, citing “dueling of franchises” practices in the U.K. that allow Lithia to offer brands from different companies in the same showroom if they’re deemed competitors.