Despite low take-rate, GM reportedly extending eBay experiment
General Motors' experiment in selling new cars and trucks on eBay hasn't exactly been a raging success story. Despite this, America's largest automaker has extended the program, which will now run through the end of the month instead of halting on its originally scheduled ending date of September 8th.
According to estimates from Automotive News, GM has listed some 16,000 new vehicles on the auction site but has sold only 50 of those machines. That's not the entire story, though, says Mark LaNeve, GM vice president of U.S. sales:
We are very pleased with the progress of the initial promotion and its ability to raise awareness and consideration for our outstanding new-vehicle inventory... The numbers on eBay itself aren't significant, but we didn't think it would be. The dealers want to continue it, and so we are working on making some tweaks to it and continue.The General says that 4,000 or so eBay shoppers have negotiated with the automaker to purchase a vehicle, but the vast majority of those transactions have not taken place online. Instead, a large portion of those buyers contacted the dealership directly to finalize a sale or haggle on a price after viewing the auction. And so the experiment continues...
[Source: Automotive News - sub. req'd]
Reader Comments (Page 1 of 2)
Jake 6:33PM (9/02/2009)
At least GM is learning from the govt. overlords.
Find stuff that doesn't work and stick with it.
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Tony 6:39PM (9/02/2009)
Ouch!
nrb 7:03PM (9/02/2009)
Just because something isn't an instant success, doesn't mean it's a bad idea. GM needs to look at the reasons it hasn't done well so far, adjust for them, and reevaluate.
Venom 7:50PM (9/02/2009)
If you know so much and are so great, why don't you run for office?
It is easy to criticize on a blog, not so easy to actually get out and do something.
That is the beauty of a democracy, anyone can run for office in this country.
So get out there and run and let us know how you are doing.
Derek Washington 8:00PM (9/02/2009)
Must be hella hard to walk with your Knee jerking like that. Aren't you supposed to be off looking for Obama's birth certificate or something productive?
Redline 9:09PM (9/02/2009)
LOL @ Venom, that was hilarious thank you!
Jake 9:13AM (9/03/2009)
Sooooooooooooooooo, I am not allowed to criticize unless I run for office?
And if I do criticize I am a knee-jerk birth certificate hunter?
Thanks, can I hear some more flowery talk about the beauty of democracy, please?
Doug 6:41PM (9/02/2009)
The site doesn't have any of the newer models (2010 Equinox, Camero, etc). It's not clear that this is the appropriate site to get slight discounts on old merchandise - going into the dealer might get you a better deal.
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Pete 6:48PM (9/02/2009)
So, here in California, the GM/EBay commercials advertise, "Feedback, 100% positive." I'm not sure what they're referring to, as "yourgmdealer" has a 62.5% positive feedback as of 9/2/09:
http://myworld.ebay.com/ebaymotors/yourgmdealer/
This is the EBay user associated with all of the Northern California dealers I could find from Sacramento all the way up to Lake Elsinore.
Blatant false advertising, or just an idiot in the marketing department?
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the4thheat 12:47AM (9/03/2009)
Even sadder is the fact that half their "positive" feedback appears to be from the same guy with 0 feedback...who apparently "bought" a heck of a lot of Chevys over and over from them.
Really makes you wonder whether GM really even sold those 50 cars on ebay.
Gardiner Westbound 6:54PM (9/02/2009)
General Motors is hoping to double their eBay sales next month, to 12-cars!
It's going to be a very long time before taxpayers get back the money President Owe loaned GM.
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laser 7:20PM (9/02/2009)
You have to give credit to Government Motors - when their employees could be designing automobiles that would sell at or above sticker price on the normal market, they instead spend resources to give the impression that potential consumers would get a deal from them. You have to admire such ingenuity. And since this is such a wonderful boost to the overall bottom line of Government Motors, they are going to extend the trial offering products that no one wants and then coming back and telling us they had another 4,000 hits!
Government Motors - no longer the mark of excellence. We just leave skidmarks.
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Epsilon-Not 7:44PM (9/02/2009)
Because clearly this eBay offer was done by people who would otherwise be designing cars?
BigWill 7:25PM (9/02/2009)
The definition of stupidity = repeating a failed experiment and expecting a different outcome.
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Rich 7:32PM (9/02/2009)
Gee, I wonder why they're not selling. Perhaps because people who buy from Internet stores expect some degree of customization, if not outright personalization?
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jeepster4 9:08PM (9/02/2009)
E-bay has been selling cars for years. This program for new cars just proved that the American customer thinks he can get a better deal in a face to face negotiation and you know what, the customer is right.
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mr.ed 11:10PM (9/02/2009)
The dealers have been online for years. This just shows how out of it GM has been. Hot and cold running water, anyone?
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Julius 11:13PM (9/02/2009)
Umm... hello?
The fact that it's the DEALERS asking for this to be renewed should be a hint.
For them, eBay != sales channel
eBay = cheap advertising.
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elprogramer 2:33AM (9/03/2009)
Ssh, you'll anger the critics with your logic and reason!
RobM1981 9:20AM (9/03/2009)
It is painful to watch GM implode in slow motion. Regardless of how much the press spreads their Pro-bama spin, this is a train wreck.
Cash for clunkers was worse than a complete bust - it actually exacerbated GM's problems by putting MORE people into Ford's, Toyota's, and Honda's. Anyone want to guess how many of THOSE buyers will ever buy a GM again? (presuming the company is still alive in 3-5 years)
Now this. Nice. I don't care about the sales channel, or not the sales channel. The issue is that virtually nobody wants to by Chevy's. It doesn't matter how they're sold. THAT'S the news here.
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