GM's announcement late last week of partnering with eBay in California is the latest in signals the automotive giant still does not get it.
Throughout much of 2008, GM continued to advertise their hybrid Tahoes, Yukons and Escalades. The question I asked our rep was "Who cares?" Working for a small GM dealership outside a metropolitan area meant the hybrid package was much ado about nothing. Even in the cities where there is a bit of demand for a $50000 Tahoe, there was not THAT much demand. The advertised these large trucks and ignored the core of their fuel economy- more vehicles that got 30+ m.p.g. than any other manufacturer. Even the hybrid Malibu was ignored due to low production.
Now, with just one more illustration of the lack of coherence, GM is, albeit, stopping short of hanging everything on the eBay program, but by announcing this strategy in a limited roll-out in California sniffs like even the management team moving this forward don't think it will work.
I don't have a lot of eBay experience, but what I have found is there are typically 2 buyers:
1. Bargain hunter- I am looking for the lowest priced vehicle no matter what.
2. Specialty hunter- I am looking for that lime green Gremlin I saw on the Cars.com commercial
Perhaps the Z06 buyer might fall in the latter category, but clearly, the run of the mill truck or sedan buyer doesn't fit into either category. Furthermore, if customers REALLY wanted fixed pricing, would people, especially the G.M. customers, would have flocked to the Saturn stores in droves. Why didn't they?
The art of the deal. Everyone wants to feel like they "won" when they walk out of a dealership. They chiselled more off than their neighbor and got near retail for their trade. We all know the stories.
The difference here is retail customers will be treated like fleet customers, placing their order online, and then getting a call from a dealership. What to do with the trade? What about my rates? What about the options? Of all companies to try this, GM with their myriad of equipment options, especially on trucks, is laughable.
There may well be some successes with the experiment, but I think it will fail in a very short period and soon be forgotten.
Take some advice G.M. take off the blindfold and take a swing at the pinata with all your might. You have the product offering. Make no appologies or concessions for your product. Offering an upfront discount tells all you don't believe the vehicle is worth its price, and you are completely out of touch with the competition. That is why your market share has dwindled over the years.
