GM drives up sales via eBay
RESCUED carmaker General Motors (GM) and online auction site eBay yesterday launched a test programme in California which will let consumers negotiate directly with dealers and buy vehicles online.
The car shopping website – gm.ebay.com – marks a departure from the way new vehicles have been traditionally sold in the US and comes a month after the company emerged from bankruptcy.
It is intended to help GM win more customers after a dramatic slide in car demand worldwide.
Over 225 GM dealers in California are participating in the programme, which runs from today until 8 September.
The site allows consumers to compare pricing across models and participating dealerships, negotiate prices, and arrange financing and payment.
Consumers can agree to pay the advertised “buy it now” price or indicate the amount they are willing to pay and can haggle with the dealer online.
California, which has been dominated by import brands over the past several years, is the most heavily populated US state and the single largest market for new vehicles.
Car sales have been hit harder in California than in other states over the past quarter because of the severity of the housing market slump there.
FAST FACTS GENERAL MOTORS
• GM emerged from bankruptcy protection in early July.
• All four of GM’s brands – Buick, Chevrolet, GMC and Pontiac – will be available through the eBay scheme.