GM turns to eBay to sell cars

General Motors Co and eBay Inc said Monday that they launched a test program in California that will allow consumers to negotiate with dealers and buy vehicles online.

The car shopping website — gm.ebay.com — marks a departure from the way new vehicles have been traditionally sold in the United States and is aimed at helping GM gain ground with consumers a month after it emerged from bankruptcy.

More than 225 GM dealers in California are participating in the program, which runs from August 11 through September 8.

The site allows consumers to compare pricing across models and participating dealerships, negotiate prices, and arrange financing and payment. Consumers can agree to pay the advertised price or indicate the price they are willing to pay and can negotiate online with the dealer for the vehicle.

California, which has been dominated by import brands over the past several years, is the most populous U.S. state and the single largest market for new vehicles. Car sales have been hit harder in California than in other states over the past quarter because of the severity of the housing market slump there.

Source: Reuters