GM Extends eBay Experiment Through September

DETROIT/SAN JOSE, California — Saying it is "pleased with the progress of the initial promotion," General Motors on Tuesday said it will extend its experiment of selling new vehicles to consumers in California on eBay until the end of September. The program had been slated to end September 8.


But it is not clear whether GM intends to do a nationwide rollout of the program, as it discussed earlier. In a statement, the automaker said it would decide about a national rollout at the end of the California promotion.


GM also quantified the effectiveness of the eBay promotion. It said nearly 4,000 new-car buyers entered into negotiations online, over the phone and in person as a result of the promotion through August 30. It did not spell out how many of those negotiations ended in actual sales. Automotive News said it looked at the results of 3,000 GM vehicles with seven-day eBay auctions that ended September 1 and "none was listed as sold."


But GM and its dealers apparently think the promotion is worthwhile.


"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," said Mark LaNeve, GM vice president of U.S. sales.


Inside Line says: No decision yet on whether the eBay initiative will become a mainstay of GM's sales program. — Anita Lienert, Correspondent