GM plans to auction new cars on eBay

BEIJING, July 13 (Xinhuanet) -- General Motors Corp.(GM) plans to experiment with auctioning new cars on eBay, according to media reports Sunday.

GM is working on an "innovative new partnership" with eBay Inc. to let consumers in California bid on vehicles as they would in a normal eBay auction, or choose a "Buy it Now" option to purchase the car at a set price, said GM CEO Fritz Henderson.

A deal between eBay and GM hasn't been completed yet, and both sides say they have been in discussions. In a statement, eBay Motors vice president Rob Chesney said "at this time, no plans have been finalized with General Motors."

GM spokesman John McDonald said the company sees the sales of new cars on eBay as an experiment that builds upon the existing partnership in used vehicles. Certified used vehicles from GM, along with other carmakers, are currently offered for sale on eBay Motors, eBay's online auto marketplace.

EBay Motors allows users to buy and sell new and used cars either locally or nationally. The site also offers motorcycles, boats and auto parts and accessories.

McDonald also said that some GM dealers already independently list vehicles on eBay, and said this experiment could be a way to bring other GM dealers on board.

The announcement comes as GM completed an unusually quick exit from bankruptcy protection on Friday with ambitions of making money and building cars people are eager to buy. Once the world's largest and most powerful automaker, new GM is now leaner, cleansed of massive debt and burdensome contracts that would have sunk it without federal loans.

It remains to be seen how any such deal will ultimately play out for the ailing automaker and the online marketplace operator.

(Agencies)