So GM goes bankrupt...

[autoguy]

What do you guys thing will come from all of this. It just makes me mad to know that at one point between Pollozzi , Obama, and others...bankruptcy for GM was not an option. So, they gave them billions. In then..bankruptcy seemed to be the only option. Waste of money, we're turning more socialist every day!!!

[xrac]

What do you guys thing will come from all of this. It just makes me mad to know that at one point between Pollozzi , Obama, and others...bankruptcy for GM was not an option. So, they gave them billions. In then..bankruptcy seemed to be the only option. Waste of money, we're turning more socialist every day!!!

 

I agree but we are sliding down the socialist path at the hands of our elected officials. What do you think about this.

 

FOCUS THIS WEEK: GM On eBay, A Glimpse Into A Changing Dealer Future

 

"Last week, over 225 California GM Dealers began selling new vehicles on eBay. While many Dealers have been offering used cars and light trucks on eBay, this is the first mass effort to sell new vehicles through the world's largest electronic marketplace."

 

"If this four-week trial succeeds (GM sales are very weak in California) and the eBay new vehicle program spreads nationwide, it could lead to a dramatic restructuring of Dealer networks. The aftermarket implications of such a development would be enormous. Following are Lang Marketing's speculations on what the future could hold."

 

 

Jim Lang

[xrac]

Car Dealers As Pitchmen

 

Billy Mays had nothing on the antics and sales gimmicks long used by Car Dealers in radio and television commercials blaring the urgency of buying a vehicle now, with special deals galore.

 

However, all that could be changing, as GM experiments with selling new cars and light trucks through its California Dealers on eBay.

 

Haggle Online

 

About 90% of GM Dealers in California (a market in which GM has only about two-thirds the share it enjoys nationwide) will offer new cars and light trucks (Chevrolet, Buick, GMC and Pontiac) through the eBay on-line auction site.

 

Vehicles will be priced below sticker (at GM's supplier price), and consumers can "haggle" on-line with Dealers for better pricing and terms. For added excitement (and confusion), the "Cash-For-Clunkers" rebate is also in play. Cars will be picked up at the selling Dealerships.

 

Showroom Experience

 

All this seems fine. GM will be using a direct-selling approach to computer-savvy consumers who, in turn, can electronically communicate with GM Dealers in "sealing the deal."

 

However, this begs the question: "What about the showroom experience?" How does the consumer decide which vehicle he wants, based on sitting in the vehicle, savoring that new car smell, and test-driving the vehicle?

 

While eBay can serve as a connection between consumers and Dealers, it cannot replace the "showroom experience" which helps consumers decide to buy a vehicle and select a specific model.

 

Bigger eBay Sales Tent

 

A major result of GM Dealers selling on eBay will be an expansion in the number of Dealers with which a buyer can negotiate in order to get the "best deal."

 

Dealer Disconnect

 

One strength of the existing Dealer network is that it creates relationships between consumers and local Dealers. Many times, vehicles are purchased from a nearby Dealer because of the convenience of servicing the vehicle and handling any after-sale issues which might arise.

 

With GM Dealers in California placing new cars and light trucks on eBay, the distribution of Dealer sales could significantly shift, concentrating sales among fewer GM Dealers.

 

Consequences For Dealers

 

While the showroom experience has been an essential part of how U.S. consumers purchase vehicles (it is unlikely this will soon change even among computer-savvy consumers), it seems inevitable that placing vehicles on eBay will work to the advantage of some GM Dealers and to the disadvantage of other GM Dealers.

 

Several results (or a combination of both) are possible: fewer Dealers, or a division between Dealers who sell vehicles and those who service them.

 

In either case, the Independent (non-Dealer) aftermarket is likely to gain business among consumers seeking convenient vehicle service, especially for newer cars and light trucks (five years and younger) which traditionally are taken to Dealers for service.

 

Possible Changes For Dealers

 

It all depends on how the new GM views Dealers, who in the past were seen as valuable sales partners. However, if the eBay trial proves successful, Dealers could become less necessary in the overall sales and service strategies of GM (and other car makers).

[charles1]

Thank you for sharing the information.

 

Have a great day