Walmart Discusses Selling Hybrid Automobiles With "Major Companies"

[Perian]

Link: http://www.bloomberg.com/apps/news?p...W5UrU&refer=us

Jan. 24 (Bloomberg) -- Wal-Mart Stores Inc. Chief Executive Officer H. Lee Scott discussed with automakers the possibility of selling gasoline-electric hybrid cars and plug-in automobiles at the retailer's stores.

``Maybe there isn't room for Wal-Mart in this right now,'' Scott said in a speech to store managers and suppliers in Kansas City yesterday. ``But something tells me that there may be some role for us in the future.'' Scott didn't identify the carmakers, other than to say they were "major'' companies.

Scott laid out ideas for ways to supply energy to consumers, proposing wind turbines and solar panels to generate power so customers can charge electric cars in parking lots at the world's biggest retailer.

[Perian]

One word hit me as I read the first paragraph this morning: CHINA.

We know the Detroit 3 and current foreign importers (Toyota etc) could not possibly sell vehicles to Walmart due to their dealer franchise agreements - so really - who does that leave?

Who would like to break into this country in a big way?

Who would love to have an 'instant' dealer network?

Who would have a sales edge with low cost hybrid vehicles?

What large American company could benefit from selling 'green' and inexpensive vehicles to their built-in customer base?

What large American company would most Americans trust when buying a new and unproven new item?

What large American company already has auto service centers at many of its superstores?

What large American company already has extensive ties to a large foreign based manufacturing source?

How was it that the display of Chinese made hybrid vehicles at the Detroit Auto Show got so much media attention?

This little blurb could turn into the story of the year.

Imagine for a moment if Walmart became a dealer for a Chinese automobile manufacturer.

[drew630]

Ugh, I hate Wal-Mart more and more everyday.

[montrealvue]

One more reason why to hate Walmart...... It has everything to do with PR and nothing to do with the environment. If they really cared for the enviromnent they would have their goods produced in North America!

[ericmvest]

Originally Posted by Perian

One word hit me as I read the first paragraph this morning: CHINA.

We know the Detroit 3 and current foreign importers (Toyota etc) could not possibly sell vehicles to Walmart due to their dealer franchise agreements - so really - who does that leave?

Who would like to break into this country in a big way?

Who would love to have an 'instant' dealer network?

Who would have a sales edge with low cost hybrid vehicles?

What large American company could benefit from selling 'green' and inexpensive vehicles to their built-in customer base?

What large American company would most Americans trust when buying a new and unproven new item?

What large American company already has auto service centers at many of its superstores?

What large American company already has extensive ties to a large foreign based manufacturing source?

How was it that the display of Chinese made hybrid vehicles at the Detroit Auto Show got so much media attention?

This little blurb could turn into the story of the year.

Imagine for a moment if Walmart became a dealer for a Chinese automobile manufacturer.

Dealers have considerable clout with the Federal and State Governments. I feel they can amend state laws to neutralize the Wal-Mart threat.

[69Firebird400]

I can't really boycott Wal-Mart much more than I already do - I walk into one about once a year to get a cell phone charger, since AT&T sells even more generic ones for 3x the price, but if they become the source for Chinese cars (which I agree, Perian - would not be a huge surprise), I'd have to actively encourage friends and neighbors to avoid them as well.

This isn't the first time I've heard whispers about Wal-Mart being the entry point for Chinese cars. Hmmm... $24,888 Rolls Royce lookalikes, anyone??

[b4z]

Is this the same company that stores fertilizer behind it's stores and allows it to run off into our lakes and streams?

[Perian]

Originally Posted by ericmvest

Dealers have considerable clout with the Federal and State Governments. I feel they can amend state laws to neutralize the Wal-Mart threat.

Unfortunatley Walmart probably has more clout with the various government entities than any dealer organization.

This could be a huge win if Walmart proceeds, or a public relations nightmare.

The key word is "IF".

[ponchoman49]

Three words hit me while reading this dreary topic- China, Toyota and ruination.
If Walmart cared about the environment and America they would quit offering so much throwaway rubbish that is using up our resources year by year and filling up our landfills with disposable made in China garbage.

[tripowergto]

Why couldn't they sell a GM badged Volt in a far corner of a parking lot "dealership" requipped with charging stations while shopping?

[Perian]

Originally Posted by tripowergto

Why couldn't they sell a GM badged Volt in a far corner of a parking lot "dealership" requipped with charging stations while shopping?

Repeat your statement. But this time, imagine you own a Chevrolet dealership and you thus will not be selling the most talked about vehicle in years.

Are you going to call General Motors and complain, or will you be calling your lawyer first?

My bet is your lawyer would be on speed dial.

[drew630]

Originally Posted by Perian

Unfortunatley Walmart probably has more clout with the various government entities than any dealer organization.

This could be a huge win if Walmart proceeds, or a public relations nightmare.

The key word is "IF".

I think they will. Wal-Mart wants to be "the be all to end all" so to speak and the automotive industry is the most logical next step IMO. Everyone has a car, everyone needs a car. Hell, they already have a basic service department at each one.

I know it will be the Chinese simply because none of the current auto makers (Toyohonda, GM, Ford, etc.) will be willing to negotiate with Wal-Mart every month or so on its prices. Noway Wal-Mart could work with that. Plus, who can offer a lower price than the Chinese (the very existence of Wal-Mart)?

Current manufactures are going to have to either get-out or sell-out because the Chinese wh*** is moving in down the street.

[yamahr1]

Funny, every time I go in to Wal*Mart, which isn't that often, maybe 4-6 times a year, I see mainly the exact same items for sale in other stores, only usually it's a little bit cheaper. Food, toiletries, electronics, household goods, automotive supplies, you-name-it, they have the same brands everyone else sells. Maybe the clothing department is full of Chinese-made goods? (Like other stores aren't selling clothing manufactured in China?) I don't check their clothing department so I don't know. But this idea that Wal*Mart is mainly an outlet for inferior Chinese goods is not one I'm swallowing based on my experience.

Selling and servicing cars is a complicated business. This is not just adding an aisle of space and beefing up their service bays. I would be very surprised to see them selling real, 50-states-legal automobiles at the local Wal*Mart. I also haven't heard any news that a Chinese auto maker has anything resembling a hybrid for sale; maybe it's a very long range plan.

[Koasterking]

Highly doubt it'll happen.

[tripowergto]

Originally Posted by Perian

Repeat your statement. But this time, imagine you own a Chevrolet dealership and you thus will not be selling the most talked about vehicle in years.

Are you going to call General Motors and complain, or will you be calling your lawyer first?

My bet is your lawyer would be on speed dial.

Notice I said "GM badged" Chevy still gets the Volt first until initial demand is satisfied. A similiar GM blue square logo badged version(sans all Chevy emblems) named ReVolt is sold at a cheaper fixed price at Wal-Mart.