NEWS > BUSINESS > GM LOOKS TO EBAY, FLEA MARKETS IN TO SELL NEW CARS

GM LOOKS TO EBAY, FLEA MARKETS IN TO SELL NEW CARS

August 11 2009

Detroit, MI – Little has been easy for American car manufacturers recently. The once dominant engine of the U.S. has no doubt fallen into a low hum that is still trying to restore itself to its former glory. Though the Big Three have firm plans in place to try
and bring back fluidity the future still remains largely hazy as the global economy undergoes its biggest change since the 1930’s. While car companies aren’t alone in that trouble they have become the lynchpin for discussion and the model for resurrection.

With $50 billion in government loans and the highest profile of the three, General Motors has been the case study for the decay of the automobile industry and the greatest hope for its resurrection. Now a new move by the company may set the stage for a new way of thinking about automobile sales, or may put them permanently on the sidelines. The
announcement that the company will now be putting their cars up for sale on eBay
has taken many by surprise and contemplating the possibilities and pitfalls of selling on the global flea market.

“GM and our dealers are reinventing the car buying experience. When the site goes live customers will have the option of beginning a negotiation or using the ‘Buy it Now’ price just like they are used to doing when using the site. We believed this addition to our sales force will be exciting and exhilarating for everyone,” said Mark LaNeve, Vice-President of U.S. sales. “If consumers embrace this as we think they will it will be just the first salvo in our efforts to revitalize the industry and bring General Motors back to the status that all of our employees and all Americans expect that we should possess. We are very excited for the future.”

Other options being floated by the company include Flea Markets, Buy and Sell newspapers, and literal garage sales. LaNeve did admit that part of the motivation behind the new tactic was to engage buyers on a more personal and familiar level.

“There are very few people who aren’t intimidated by a dealership. Faced with salesmen looking to extract every dollar they can many people blanch at the very idea. It’s almost like going to the dentist for a lot of people and can
actually dissuade them from going in the first place, which of course inhibits sales. By engaging them in their own home they will make people a lot more comfortable with the whole process,” said Scrape TV Business analyst Ken Green. “Of course eBay has other advantages, not the least of which is the tendency for people to buy without really thinking about it. A lot of people will end up making a purchase or two that they regret but that will work out great for GM and could revitalize the entire industry in the long term.”

GM has made little effort of to sell any cars of late and many critics are taking issue with the new plan, claiming that the company is simply putting on a show for investors and not taking the realignment seriously.

“The criticism may have merit but we will have to wait a little longer to see the results. Obviously no one wants to see the company selling their vehicles at massive discounts but moving cars is really the priority at the moment. Cars take up space on lots and they only lose value with age so pushing them out is becomes an issue financially,” continued Green. “The real issue for GM on eBay is going to be feedback. I’m sure they won’t have a lot of trouble delivering the cars in a timely manner but they are American-made cars which in recent years have had a spotty reputation for reliability. If they send out a handful of lemons they may very well see their reputation go into the toilet and then they will be in the same spot they are now.”

There is apparently no truth to the rumour that the company has plans to begin selling vehicles at dollar stores, yet.   

William Ashford, Business Correspondent

NEWS > BUSINESS > GM LOOKS TO EBAY, FLEA MARKETS IN TO SELL NEW CARS