GM tests eBay sales
Posted
Aug 11 2009, 12:15 PM
by
Kim Peterson
Rating:
Things are so bad for General Motors that the automaker is now selling cars on eBay (EBAY).
Actually, it's not the worst idea. People can buy GM cars and trucks from some 225 California dealers at this eBay site starting Tuesday, according to Bloomberg.
It's a desperate attempt by GM to find more sales channels as it cuts the number of its dealerships by 42%. GM is selling new Chevrolet, Pontiac, Buick and GMC cars, and buyers can accept the "buy it now" price or make a lower offer, which starts an online negotiation. After a car is sold, a California dealer will contact the buyer to arrange financing and delivery.
The move could be aimed at bolstering GM sales in California, where its market share is only about 13.5% (the national average is 19%). GM says it chose California because the state has been so damaged by the recession, Bloomberg reports.
EBay will get a fee from each sale, though the company wouldn't say how much. The auction site generally gets $125 for used-car transactions.
So what are cars going for on the site? I did a quick search Tuesday and found these offers:
- A 2009 GMC Yukon hybrid SUV: Buy-it-now price of $52,108
- A 2009 Buick Lucerne CXL (pictured): Buy-it-now price of $33,297
- A 2009 Chevrolet Corvette: Buy-it-now price of $49,514
- A 2009 Pontiac G5: Buy-it-now price of $14,915
At the time of this writing, Kim Peterson owned shares of eBay in personal or client portfolios.
Related reading:
GM's expensive mess
General Motors selling golf course, parking lots, factories
GM tries to pitch Camaro to gay men
Ex-GM chief takes cuts
Can GM stay No. 1?
