Henderson: GM to experiment selling cars through eBay Motors
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From: Charleston, WV
Henderson: GM to experiment selling cars through eBay Motors
http://www.autoblog.com/2009/07/10/g...h-ebay-motors/
As part of its post-bankruptcy rebirth, General Motors plans to "experiment" selling its cars on eBay. At its press conference this morning, CEO Fritz Henderson let slip to members of the media that the automaker is engaged in talks with online auction site eBay "to revolutionize how people buy cars online." According to Henderson, GM has plans to try selling its vehicles online:
"Customers will be able to bid on actual vehicles just like they do in an eBay auction, including the option of choosing a predetermined 'Buy It Now' price... we'll be testing this and other ideas with our dealers over the next few weeks, and hope to expand and build upon them in the coming months... in all cases, our goal is to make the shopping and buying process as easy as possible for GM customers - on their time and their terms. Stay tuned."
Many individual GM dealers already use the auction powerhouse to sell vehicles, so the move isn't completely uncharted territory, but it isn't immediately clear how (or if) the automaker plans to integrate its dealer body within this process. Henderson was quick to reinforce that the company's plans with eBay are just an experiment, so as the CEO says... stay tuned.
"Customers will be able to bid on actual vehicles just like they do in an eBay auction, including the option of choosing a predetermined 'Buy It Now' price... we'll be testing this and other ideas with our dealers over the next few weeks, and hope to expand and build upon them in the coming months... in all cases, our goal is to make the shopping and buying process as easy as possible for GM customers - on their time and their terms. Stay tuned."
Many individual GM dealers already use the auction powerhouse to sell vehicles, so the move isn't completely uncharted territory, but it isn't immediately clear how (or if) the automaker plans to integrate its dealer body within this process. Henderson was quick to reinforce that the company's plans with eBay are just an experiment, so as the CEO says... stay tuned.
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Joined: Oct 2003
Posts: 1,647
From: Jupiter, FL
Ebay says no deal has been made.
http://jalopnik.com/5312155/ebay-say...al-yet-with-gm
http://jalopnik.com/5312155/ebay-say...al-yet-with-gm
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Joined: Aug 2003
Posts: 54
From: Westen North Carolina
I agree with post # 3. Dealers can really give GM a bad name. To bad GM can’t find different model where people could look, research and buy online. Dealerships and to some extent the salesman are the first impression a buyer has of GM's products. If it is good impression a transaction might take place: if it is a bad experience it becomes GM's fault in the customers’ minds and they go and look elsewhere.
Secondly how many possible sales are lost each day because of poor salesman and or dealerships and the games they play?
Secondly how many possible sales are lost each day because of poor salesman and or dealerships and the games they play?
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Joined: Apr 2001
Posts: 3,698
From: USA
Ebay is the internet's flea market. You will be able to buy a brand new Impala while surfing for old Lava lamps. Not sure how this helps GM. I would honestly like to see them sold through something like Amazon more.
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Joined: Aug 2007
Posts: 83
I like it, personally i hate most dealerships. That is the reason i drove three hours back to my home town to buy my truck. i come from a small town and they have treated my whole family well over the year. All the dealers in the cincinnati area suck and are a bunch of retards.
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From: Middle of Kansas
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From: Ohio
Here's an experiemetnal thought:
Have GM set the price for a car, and make it mandatory that that is the price paid by every customer at every dealership.
Of course, off the top of my head, holes in this theory include:
1) Cost-of-living differences between markets.
2) Deal can still vary by dealership based on any trade-in that might be involved.
Anyway, it can't hurt that they look into the eBay direct sale thing, though, I don't see how this is any different than GM opening company owned dealerships from a franchise toe-stepping standpoint.
Have GM set the price for a car, and make it mandatory that that is the price paid by every customer at every dealership.
Of course, off the top of my head, holes in this theory include:
1) Cost-of-living differences between markets.
2) Deal can still vary by dealership based on any trade-in that might be involved.
Anyway, it can't hurt that they look into the eBay direct sale thing, though, I don't see how this is any different than GM opening company owned dealerships from a franchise toe-stepping standpoint.
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Joined: Jul 2002
Posts: 470
From: Wichita, KS
Here's an experiemetnal thought:
Have GM set the price for a car, and make it mandatory that that is the price paid by every customer at every dealership.
Of course, off the top of my head, holes in this theory include:
1) Cost-of-living differences between markets.
2) Deal can still vary by dealership based on any trade-in that might be involved.
Have GM set the price for a car, and make it mandatory that that is the price paid by every customer at every dealership.
Of course, off the top of my head, holes in this theory include:
1) Cost-of-living differences between markets.
2) Deal can still vary by dealership based on any trade-in that might be involved.
West South Central Moderator
Joined: Oct 2000
Posts: 3,371
From: Kilgore TX 75662
why not?
I know this has been asked before.
I mean, you can go to dell.com and buy a Dell computer, or you can go to Wal-Mart/Best Buy/etc. and buy one. It comes with a basic warranty and places offer extended warranties. How is a car really that different than a computer?
I know this has been asked before.
I mean, you can go to dell.com and buy a Dell computer, or you can go to Wal-Mart/Best Buy/etc. and buy one. It comes with a basic warranty and places offer extended warranties. How is a car really that different than a computer?
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Joined: Sep 1999
Posts: 1,873
From: South Jersey
why not?
I know this has been asked before.
I mean, you can go to dell.com and buy a Dell computer, or you can go to Wal-Mart/Best Buy/etc. and buy one. It comes with a basic warranty and places offer extended warranties. How is a car really that different than a computer?
I know this has been asked before.
I mean, you can go to dell.com and buy a Dell computer, or you can go to Wal-Mart/Best Buy/etc. and buy one. It comes with a basic warranty and places offer extended warranties. How is a car really that different than a computer?
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Joined: Jun 2005
Posts: 626
From: MN
may be in order as well.
As far as selling vehicles on Ebay... that would not be a bad deal except for the large fees that would come with such sales. How much money does ebay get per sale now anyhow? 3% or so... The fees are going to be transferred to the buyer, so in the end the cars could end up being just that much more expensive.
Granted, I am not sure how the laws will work with it, since technically you ARE ordering the car right from GM and taking delivery... Since GM is in talks with Ebay, not GM dealers. I seriously doubt Ebay will take delivery of a few thousand cars to sell.
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From: Charleston, WV
California GM Dealers List Cars on Ebay
Looks like this is going live tomorrow....I like how you can make an offer
http://www.autoobserver.com/2009/08/...s-on-ebay.html
http://www.autoobserver.com/2009/08/...s-on-ebay.html
California GM Dealers List Cars on Ebay
Beginning Tuesday, General Motors dealers in California can begin listing their inventories of some Buick, Chevrolet, GMC or Pontiac vehicles on online shopping site, Ebay.com, in an effort to draw more consumer eyeballs to the automaker's cars and generate sales leads for dealers.
GM and Ebay executives detailed their partnership Monday morning, after GM Ceo Fritz Henderson hinted about it a month ago when the automaker emerged from Chapter 11 bankruptcy. Henderson used it as an example of new ways the New GM would go to market.
The Ebay venture is hardly groundbreaking. Already, about 30,000 dealers nationwide list their vehicles -- mostly used but some new -- on the site. In fact, GM was the first to coordinate with Ebay to list dealer inventories of Certified Pre-owned Vehicles on Ebay.
The newest GM-Ebay venture is the first "virtual showroom online" by Ebay with an auto manufacturer, said Ebay Motors Vice President Rob Chesney in a conference call with media Monday.
How It Works
GM has structured its new-car foray with Ebay in a way allows consumers to comfortably shop online and even initiate the purchase process but it doesn't raise the ire of dealers because it fully involves them on a voluntary basis.
California dealers can list vehicles in their inventories with prices on Ebay. The inventories will consist of select new 2008, 2009 and 2010 Chevrolet, Buick, Pontiac and GMC models; Cadillac as well as Hummer and Saturn, which are both being sold, are excluded. Cadillac opted out of the Ebay program for the launch but may join after it sees early results for the other divisions, said Mark LaNeve, GM's U.S. sales chief.
Already 90 percent of GM's 250 California dealers have signed on and are listing about 20,000 vehicles, he added.
That vehicle inventory will be listed in three places on Ebay's site: on a special co-branded GM and Ebay Motors micro site (www.gm.ebay.com); on EbayMotors.com, where many dealers already list their new-car inventories; and on Ebay.com, which lists all kinds of items well beyond cars.
The vehicles will have prices and will not be auctioned as are many Ebay-posted items.
Instead, consumers can opt to hit the button accepting the "buy it now price" and actually start the buying process online. That buy now price is GM's Friends and Family/Supplier price, which can be even lower if the dealer chooses, said LaNeve.
Or, consumers can hit the "make an offer" button that sends a message to the dealer with the amount they are willing to pay. Consumers can then negotiate online, by phone or in person.
Consumers also can hit a button to ask a question about the vehicle or dealerships.
While all transactions will be completed by the dealership, LaNeve predicts many consumers will never set foot in the dealership with even the exchange of funds able to occur via the Internet.
Officially, GM's California Ebay venture runs from Aug. 11 to Sept. 8. However, the automaker is optimistic it will be successful and expects it will be rolled out nationwide quickly.
California was selected because the state is quick to adopt new technology, a GM spokesman said. Plus GM sales have been weak in California, a state vital to the turnaround for the automaker.
Beginning Tuesday, General Motors dealers in California can begin listing their inventories of some Buick, Chevrolet, GMC or Pontiac vehicles on online shopping site, Ebay.com, in an effort to draw more consumer eyeballs to the automaker's cars and generate sales leads for dealers.
GM and Ebay executives detailed their partnership Monday morning, after GM Ceo Fritz Henderson hinted about it a month ago when the automaker emerged from Chapter 11 bankruptcy. Henderson used it as an example of new ways the New GM would go to market.
The Ebay venture is hardly groundbreaking. Already, about 30,000 dealers nationwide list their vehicles -- mostly used but some new -- on the site. In fact, GM was the first to coordinate with Ebay to list dealer inventories of Certified Pre-owned Vehicles on Ebay.
The newest GM-Ebay venture is the first "virtual showroom online" by Ebay with an auto manufacturer, said Ebay Motors Vice President Rob Chesney in a conference call with media Monday.
How It Works
GM has structured its new-car foray with Ebay in a way allows consumers to comfortably shop online and even initiate the purchase process but it doesn't raise the ire of dealers because it fully involves them on a voluntary basis.
California dealers can list vehicles in their inventories with prices on Ebay. The inventories will consist of select new 2008, 2009 and 2010 Chevrolet, Buick, Pontiac and GMC models; Cadillac as well as Hummer and Saturn, which are both being sold, are excluded. Cadillac opted out of the Ebay program for the launch but may join after it sees early results for the other divisions, said Mark LaNeve, GM's U.S. sales chief.
Already 90 percent of GM's 250 California dealers have signed on and are listing about 20,000 vehicles, he added.
That vehicle inventory will be listed in three places on Ebay's site: on a special co-branded GM and Ebay Motors micro site (www.gm.ebay.com); on EbayMotors.com, where many dealers already list their new-car inventories; and on Ebay.com, which lists all kinds of items well beyond cars.
The vehicles will have prices and will not be auctioned as are many Ebay-posted items.
Instead, consumers can opt to hit the button accepting the "buy it now price" and actually start the buying process online. That buy now price is GM's Friends and Family/Supplier price, which can be even lower if the dealer chooses, said LaNeve.
Or, consumers can hit the "make an offer" button that sends a message to the dealer with the amount they are willing to pay. Consumers can then negotiate online, by phone or in person.
Consumers also can hit a button to ask a question about the vehicle or dealerships.
While all transactions will be completed by the dealership, LaNeve predicts many consumers will never set foot in the dealership with even the exchange of funds able to occur via the Internet.
Officially, GM's California Ebay venture runs from Aug. 11 to Sept. 8. However, the automaker is optimistic it will be successful and expects it will be rolled out nationwide quickly.
California was selected because the state is quick to adopt new technology, a GM spokesman said. Plus GM sales have been weak in California, a state vital to the turnaround for the automaker.
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