GM and eBay? US carmaker looks to auction site to revive sales
Washington - US carmaker General Motors, fresh out of bankruptcy, has turned to auction website eBay to help reverse its sagging fortunes, offering to sell cars to the highest bidder.
A test-run will kick off on Tuesday. General Motors Company will offer up to 20,000 cars in the US state of California via a joint website with eBay, the world's largest online market place.
The trial includes about 225 dealers from four GM brands - Chevrolet, Buick, GMC and Pontiac - and will run until at least September 8. Consumers can negotiate online with the dealer or accept an immediate fixed price to buy a car.
Car sales in the United States remain in the doldrums as a deep recession has kept consumers away from dealer showrooms. The Detroit- based manufacturer emerged from bankruptcy last month.
GM, the largest US carmaker, reported a 38-per-cent drop in sales over the first seven months of the year, though it picked up slightly in July. A government "cash-for-clunkers" programme, which encourages consumers to trade in older vehicles, has also helped sales.
Internet pioneers eBay already run a separate automotive website for car buyers and sellers - eBay Motors. About 12 million people visit the site every month, according to the company.(dpa)