General Motors, eBay partnership kicks off on Tuesday

General Motors and eBay (NASDAQ: EBAY) will kick off their car-selling partnership on Tuesday, according to gm.ebay.com, the website that will serve as the storefront for the program.

Consumers will be able to browse cars offered by GM and either buy them at a fixed price or make an offer and haggle. They will also be able to research financing options and find out whether they qualify for the Cash For Clunkers program. The actual sales and servicing will be handled by individual GM dealerships.

The cars will not sold through auctions, which seems puzzling. Wouldn't that generate a lot more buzz and excitement? Without auctions, it's no different from going to the dealership.

For now, the eBay-GM deal will only be available in California. If that trial run is successful, it will go nationwide quickly.

The GM storefront on eBay pitches the new project as "Our Best Cars. Your Best Offer."

GM has been milking this for all the PR it's worth, but, believe it or not, there's actually nothing that innovative about selling stuff on eBay in the year 2009. Still, it could be a good way for GM dealers to clear out old inventory and the deal poses little to no risk to eBay or GM. It also poses minimal upside though. How many people will buy brand new cars from GM because of this eBay partnership? More likely, it just offers another venue for people who were already going to buy them to do so.

In other GM news, marketing experts told The Associated Press that in order to engineer a successful turnaround, the company will have to give people a reason to buy its cars. Doesn't that get you excited for the 2010 IPO?
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Last updated: February 13, 2012: 09:11 AM

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