General Motors will begin selling cars and trucks on the auction Web site eBay today as it seeks to reach new customers and regain lost market share. The venture will involve about 225 dealerships in California at first, but G.M. hopes to expand it nationally as soon as September. As it came out of bankruptcy protection last month, the company said it wanted to sell vehicles on eBay, prompting the Web site to quickly deny having a partnership with G.M. although it said the two companies were in talks. The companies have since set up a G.M. portal on eBay — gm.ebay.com — with the slogan “Our best cars. Your best offer.” G.M. said shoppers can use it to browse dealers’ inventories, ask questions, negotiate prices and arrange financing, reported the New York Times. Vehicles will not be auctioned to the highest bidder but rather listed at a “buy it now” price equal to G.M.’s supplier price. Shoppers also can submit a lower offer that the dealer can choose to accept or reject. Up to 20,000 vehicles will be listed on the site at first. More than three quarters of new-vehicle buyers in 2008 researched their purchase online, according to a study by J. D. Power and Associates, but actually completing a sale through the Internet remains uncommon.
GM Tries eBay as Route to New Buyers
General Motors and eBay have set up a portal on ebay to offer GM shoppers the ability to browse dealers’ inventories, ask questions, negotiate prices, and arrange financing.