When Bankruptcy Gets Tough, The Tough Turn To eBay

Hundreds of GM's California dealers are getting set to offer Buick, Pontiac, GMC and Chevy vehicles...on eBay.

In a trial move, over 200 of GM’s California vehicle dealerships are preparing to test-launch branded eBay marketplaces aimed at selling Buick, Pontiac, Chevy, and GMC vehicles via the Web via auction site eBay. The offers will be available through special branded domains—like gm.ebay.com, chevy.ebay.com, gmc.ebay.com, pontaic.ebay.com, buick.ebay.com, etc.—as well as through eBay’s existing eBay Motors site and general search listings. The idea—described as a "first-of-its-kind promotion" enables users to purchase new vehicles through participating California GM dealers; the trial will run from August 11 through September 8, 2009.

"Together with eBay Motors, GM and our dealers are reinventing the car-buying experience for our California customers," said GM’s VP of U.S. sales Mark LaNeve, in a statement (PDF). "As the dealer showroom expands from the parking lot to the laptop, this makes it easier for a customer to browse available new-car inventory, make an offer, buy it now, or send a message asking for more information from a dealer—all at the customer’s convenience."

The sites will include tools to help users compare pricing, as well as determine whether they’re eligible for a trade-in under the U.S. government’s current "cash for clunkers" stimulus program. Customers will be able to purchase cars at fixed prices, or enter into price negotiations with a dealer through the site.

GM has just emerged from a rapidly-processed bankruptcy proceeding that cleansed the world’s largest automaker of massive amounts of debts and financially burdensome contracts that threatened the company. Of course, it remains to be seen whether—even without those burdens—GM can reform its processes and culture and become a profitable, sustainable vehicle manufacturing business.