GM to Sell Cars on Ebay

[SHACOS]

http://www.bloomberg.com/apps/news?p...d=age16lCMtI_o

Anyone else think this is an attempt to take the dealership sales role in house? I think it may be step one in an attempt to eliminate more dealers.

Thoughts?

[Txflyer]

I agree. Glad we will not be a GM dealer in 30 more days.

[possum]

I'm scared for the car business, and the Dealers, especially the smaller ones. The Factory has always wanted rid of them. Floorplans are becoming impossible to establish, and maintain. Internet selling. The list just goes on, and on. I've done this a long time, and never have I seen so many changes in such a short time.

In my opinion, Dealers should build up reserves, stay as liquid as possible, and don't get caught over-extended again. Get the Parts Dept cleaned up. Keep the Factory on a shorter leash.

[XDCX]

Originally Posted by possum

I'm scared for the car business, and the Dealers, especially the smaller ones. The Factory has always wanted rid of them. Floorplans are becoming impossible to establish, and maintain. Internet selling. The list just goes on, and on. I've done this a long time, and never have I seen so many changes in such a short time.

In my opinion, Dealers should build up reserves, stay as liquid as possible, and don't get caught over-extended again. Get the Parts Dept cleaned up. Keep the Factory on a shorter leash.

Great post.

I have the same fears. While I'm convinced that there will always be a retail car business and there will always be a way to make money, my bet is it's going to continue to get harder and there will fewer players.

Additionally, I'm not convinced that customers are willing to pay more for a nice facility. I think customers expect a Nordstrom facility but want to pay WalMart prices.

Finally, the speed at which the business is changing is sobering. Penske's deal with Saturn has the potential to forever change the manufacturing side of the car business. It's naive to think there are not similar changes that will impact the retail side.

[XDCX]

SHACOS - Thanks for starting this thread.

I'll send a FAX to the GM Dealers in California and ask for their input.

To the extent that they have seen this program first hand it will be interesting to hear if they feel it's a long-term threat to the franchise system or just a better way of doing business?

Note to the visiting GM Dealers - there are some sections of DealershipForum.com that are hidden from non-members. If you want to view the "Bankruptcy" section of the forum you'll need to be logged on as a member.

[CL Pgh]

GM has stopped the eBay experiment.

http://www.freep.com/article/2009092...DHGdSvDEHP8%3D

Article mentions GM considers it a success but isn't sure how many units were actually sold. :shades:

[Txflyer]

Originally Posted by CL Pgh

GM has stopped the eBay experiment.

Article mentions GM considers it a success but isn't sure how many units were actually sold. :shades:

Sounds like something GM would say.

[lsx only]

hhahah i knew that gimmick wouldnt work way to go gm

[XDCX]

Originally Posted by Txflyer

Sounds like something GM would say.

That's what I thought, too.

[SHACOS]

How can they not know how many vehicles were sold? Sounds like someone fell asleep at the wheel.

[XDCX]

Originally Posted by SHACOS

How can they not know how many vehicles were sold? Sounds like someone fell asleep at the wheel.

My bet is GM knows the program was a total disaster but doesn't want to make a public statement that could harm/embarrass Ebay.

My second bet is this is not the last time an OEM will try to use the Internet to challenge the traditional dealer network. The only question is which OEM is next, and what method will they try?