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Ebay and General Motors might seem unlikely bedfellows, but America’s largest carmaker and the world’s largest online auction site looked poised for an unusual partnership on Friday.
As General Motors emerged from bankruptcy protection and unveiled its new corporate identity, chief executive Fritz Henderson announced an unusual piece of news. He said that GM and Ebay would be working together to sell new cars through Ebay Motors.
“Customers will be able to bid on actual vehicles just like they do in an Ebay auction, including the option of choosing a predetermined ‘buy it now’ price,” he said.
The previously unheard of deal seemed intriguing, but raised a host of questions. What role would GM’s dealers play? Was GM going to sell direct? Would buyers be able to get cars for below the suggested retail price, or be lured into paying too much?
But before those questions could begin to be answered, Ebay squashed the news. Representatives from Ebay’s public relations firm, Edelman, called reporters and stressed that there was no set deal between Ebay and GM.
In a statement provided by Edelman, Rob Chesney, vice president of Ebay Motors, acknowledged that the two companies had been in talks, but said “at this time, no plans have been finalized with General Motors.”
Maybe Ebay was just trying to play it safe, being extra sure it did not mislead analysts and investors. But the urgency with which they sought to quiet news of any potential deal suggested there were other motives at work.
Ebay, the onetime leader in e-commerce, is grappling with a steep decline in unique visitors and page views. For the first time, in November, Amazon attracted more visitors. It is losing market share to a better-designed competitor in Amazon, and suffering as customers put purchases on hold.
It’s a full line of problems, and ones that are not dissimilar to those facing the American auto industry. General Motors, once the world’s largest carmaker, has ceded that title to the sleeker Toyota, and is struggling to sell vehicles during the recession.
With all this in mind, perhaps it is understandable that Ebay didn’t want to be mentioned in the same breath with General Motors.
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