eBay generates clicks but few sales for GM

DETROIT -- General Motors Co.'s effort to sell new cars on eBay in California is generating interest but recording few sales on the Internet auction site.

In the first nine days of the program, GM dealers listed 16,228 vehicles on eBay and completed 45 sales, according to data on the Web site.

But GM said the eBay exposure is prompting customers to visit dealerships to complete sales that aren't recorded on eBay. "It's way too early in the program to have any concrete understanding of what's going on," said GM spokesman John McDonald.

Mark Borjan, a Buick-Pontiac-GMC dealer, said he listed 70 vehicles on eBay and sold seven, but only one is recorded with eBay.

"I've sold some vehicles to people that saw the vehicles on eBay, but they didn't buy them on eBay. They called, came in, and bought them," said Borjan, owner of Golden Hills Auto Center in Paso Robles, Calif. He sells about 300 new vehicles annually. Said McDonald: "eBay is generating leads. A big part of this is about generating awareness of GM products in the California market."

eBay said the GM eBay Web site had 630,000 visits in the first week and logged more than 960,000 searches of listed vehicles.

California is a tough market for GM. The carmaker's market share is about 13 percent, according to McDonald. GM's national share through seven months this year was 19.6 percent.

Also, California's economy has been hit hard by the recession. According to R.L. Polk, new-vehicle sales in the state were down 41.0 percent through June.

The Chevrolet, Pontiac, Buick and GMC vehicles are not being offered in eBay's traditional auction format. Instead, vehicles are listed at the manufacturer's suggested retail price, along with any incentives offered. A consumer can either buy the vehicle immediately at that price--which no one did--or submit an offer below the listed price. It's up to the dealer to accept or reject the offer.

GM said 225 dealerships are participating in the eBay pilot program, which started Aug. 11 and runs through Sept. 8.

Both GM and eBay are pushing the program with ads all over the state.

Leanne Furman, eBay's North American communications manager, would not say how much GM and eBay are spending to promote the program, but she did say the campaign is a big one and includes spots on TV, radio and in print.

(Source: Automotive News)