1st Wal-Mart Chevrolet to Open

BENTONVILLE, AR - Wal-Mart Stores will begin selling new cars for the first time next month. The announcement came after Wal-Mart finalized the purchase of Gabe Johnson Chevrolet, a Pittsburgh area dealer. Wal-Mart will integrate Gabe Johnson's 4 locations into 4 nearby Wal-Mart stores, said H. Lee Scott, Wal-Mart CEO, in a press conference this morning.

The stores will have additions built on to handle the new business. Unlike traditional dealerships which negotiate prices with customers, the new Wal-Mart Chevrolet will set a low, fixed prices on all cars. Wal-Mart Chevrolet will not sell used cars or accept trade-ins.

Wal-Mart hopes to achieve lower retail prices than other dealers by using its size and purchasing power to get lower wholesale prices from GM. Pat Yurick, an analyst from Goldman Sachs, believes Wal-Mart can be expected to treat General Motors, the maker of Chevrolet, just as it treats all its suppliers. "In maybe a year, two at most, expect Wal-Mart to start dictating to GM exterior and interior colors, styling, even engine size."

"We are very excited to enter the automotive retail market and guarantee to bring our everyday low prices to Chevrolet cars and trucks," Lee said.

GM has yet to comment.