GM's Venture With EBay To End This Week - Source
September 29 2009 - 11:18AM
Dow Jones News
General Motors Co.'s short-lived effort to sell cars online
through eBay Inc. (EBAY) will end this week, a person familiar with
the situation said Tuesday.
The program, launched Aug. 11 as a pilot program in California,
had not driven major sales for the auto maker, according to dealers
and early sales figures.
The eBay venture was one of GM's first moves after emerging from
bankruptcy protection in July. At the time, GM CEO Fritz Henderson
said the project was part of an effort to make car shopping more
convenient.
GM, now controlled by the U.S. government, is under intense
pressure to stem a decades' long slide in U.S. market share.
The auto maker, struggling to get new consumers to even consider
buying a new GM vehicles, has gone to great lengths to woo buyers.
The latest effort is a 60-day, money-back guarantee launched
earlier this month.
The eBay deal was initially set to end on Sept. 8 but was
extended through the end of the month.
Under the program, shoppers using special eBay sites can
purchase GM cars and trucks at a "buy it now" price, or bargain
online with a dealer.
Separately, GM on Thursday will announce that it has completed a
deal to sell its Saturn division to Penske Automotive Group Inc.
(PAG). GM has been working since June to finalize a sale of the
brand to auto magnate Roger Penske. Under the deal, Penske, the
second largest U.S. auto retailer by revenue after AutoNation Inc.
(AN), will buy Saturn's brands, service and parts and distribution
operations, but not its manufacturing operations.
The Penske deal was first reported by the Detroit Free
Press.
-By Sharon Terlep; 248-204-5532; sharon.terlep@dowjones.com