GM on EBay? Yes and No
Saturday, July 11th, 2009Late again this week because I wanted to sort out this GM / EBay business for our readers and it’s so bloody hot in Texas, analytical thought is second to flopping in front of the nearest fan. I will say I was surprised and pleased at the speed with which GM pulled itself out of bankruptcy proceedings — of course not without blood on the floor — but it’s still a signifant step toward the stabilization of the industry that automakers, consumers, and the economy as a whole sorely needs.
Basically, as it emerged from Chapter 11, GM via CEO Fritz Henderson, made all the requisite statements using words like “lean” (and of course “mean”) accompanying promises to build the cars people want and to build them quickly. There was also a hinted partnership with EBay for online vehicle sales that would be more convenient and potentially more affordable. In an auction environment? What the heck?
Funny, but that was EBay’s reaction too. EBay Motors and Marketplaces vice president Rob Chesney issued a statement by day’s end saying, “At this time, no plans have been finalized with General Motors. We are excited about a potential new adventure that supports G.M.’s dealers by expanding on how they already reach consumers through new approaches.”
This led to some back-pedaling by Tom Pyden, GM’s vice president for communications, who said the companies were in “long-term” discussions with a “partnership” evolving. “We will not be selling directly to customers,” he said. “We are looking for ways to make it easier for customers to shop and buy our products on their time, on their terms.”
Apparently, there’s a test project afoot to let consumers buy cars with EBay’s “Buy It Now” option, but it’s still not clear whether the price will be fixed or if, indeed, an auction environment will prevail. Obviously GM jumped the gun in a big way and I’m still not sure we even know what we’re thinking about. Does this signal that at the new GM car sales won’t be business as usual? Maybe. Or maybe it just says they still need to work on their communication skills.