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GM is selling cars on eBay. It sounds like one of those ideas that people from the old-school business of thinking would simply scoff at, but with the ever changing marketplace it might just work. General Motors will be selling cars on eBay through a pilot program intended to boost sales. Some may wonder if GM on eBay is the right way to go after the company comes out of bankruptcy, but it may be an idea that has long been needed in an industry such as this. GM and eBay working together could come up with a brilliant game plan if they do this just right, and it may be groundbreaking enough that other car makers follow in their footsteps.

The announcement came from General Motors Chief Executive Frtiz Henderson, who spoke at a news conference on Friday. In the pilot program that GM and eBay are discussing, all California dealerships would be able to place their inventory online in a way that has never been done before. The premise isn't new, as General Motors and several other companies have used eBay to sell used (and certified) cars in the past, but this is an entirely new endeavor with new cars on the market. It will be interesting to see just how well the pilot program does for GM and eBay.

There appears to be a number of details that the new GM management and eBay need to work out before the full program can go forward, and that could involve a lot of in-depth contract talks. From the sounds of things though, it sounds like it could be a promising way to sell cars if consumers can come on board. Numbers released by a spokesperson for GM said that about 80% to 90% of GM customers already spend time researching their cars on the internet, so this could be the logical step in the progression of the idea. It also could save a lot on the middle-men while selling cars at prices that consumers are more comfortable with.

The market place keeps changing, and a partnership between GM and eBay could be something that other businesses envy if it works right. The biggest hurdle in something like this, will be the fact that people won't be able to test drive the vehicles as easily. Going online and not really experiencing how the vehicle handles or feels on the road has long been a big thing for car buying consumers, and not being able to do that as easily with an online auction could cause some cold feet for some internet users. If GM can find a way to work that into their upcoming agreements with eBay, they may stand a better chance at furthering this idea. For now though, the level of interest for the results on this program is remaining quite high.

Source: GM Announcement