Captive import

Captive import is a marketing term and a strategy for an automobile that is foreign-built and sold under the name of an importer or by a domestic automaker through its own dealer distribution system.

The foreign car may be produced by a subsidiary of the same company, be a joint venture with another firm, or acquired under license from a completely separate entity. The brand name used may be that of the domestic company, the foreign builder, or an unrelated marque entirely (this is one type of badge engineering).

Background

Captive import arrangements are usually made to increase the competitiveness of the domestic brand by filling a perceived target market not currently served by its model lineup, that is either not practical or not economically feasible to fill from domestic production or a mutually beneficial agreement that helps automakers without a strong distribution network or a presence in a certain country to benefit from the distribution network and stronger brand image of an established automobile manufacturer in that location. One example is the agreement between Chrysler and Mitsubishi Motors that started in 1971, where Chrysler imported Mitsubishi-manufactured vehicles into the United States to fill a void in their compact lineup with vehicles such as the Dodge Colt. Mitsubishi would only start selling vehicles under their own name in the United States in 1982.