ROUND ONE---GM Sells Direct in UK
25 October 1999
In a copywritten article by Mary Hillebrand appearing in the E-Commerce Times,
it was reported that "UK car manufacturer and General Motors unit Vauxhall Motors
will add an online buying service to its Web site November 1st and
become the first automaker to sell new vehicles directly on the Internet."
Ms.Hillebrand reported that according to GM, Vauxhall will employ its network
of dealers throughout England to deliver the new cars, but the dealers will not
have to do any selling. Buyers who purchase online will have the cars delivered
to their doorsteps within about a week of placing the order.
Vauxhall said that buyers can arrange financing for the purchase online and set up
a test drive at their home. Auto owners will also be able to go online to sell
their used Vauxhall cars back to the company.
"We believe we are the first manufacturer in the world, working with our
retailers, to offer this service across a range of our products," Vauxhall
Chairman Nick Reilly said.
According to Vauxhall, they will initially put two of its Corsa, Astra and Vectra cars on sale,
with plans to add other models later. Those three models are among 13 car
and van models already featured on Vauxhall's Web site, which until now has
been designated primarily for disseminating information.
Prices for the cars will likely be lower than the prices buyers see in
dealer's showrooms, Vauxhall said, as the company will pass savings from the
Internet's lower marketing and distribution costs on to buyers of those
cars. Exact prices and specifications for the line, which Vauxhall is
calling its "dot-com cars," will be announced next Tuesday at the London
Motor Show.
Buyers will also be able to redeem points accrued through the GM credit card
for up to £2,500 (about $4,100 US$) off the price of the new car.
The "dot-com line" will only be available on the Internet, but prospective
buyers can get additional guidance from one of more than 500 Vauxhall
dealers at any point, the company said.
By allowing customers to bring dealers into the mix, Vauxhall hopes to ease
worries about buying high-ticket items like cars on the Internet. "Working
with our dealers will ensure we can support a unique service to our
customers who are attracted by the prospect of buying one of the dot-com
models. They will also have the comfort of knowing that their vehicle will
receive the same lifetime support as one bought in the traditional way,"
Reilly said.
Overall GM Effort
Vauxhall's new online sales push is part of General Motors' overall effort
to get more involved in electronic commerce. GM unveiled a new e-GM business
unit in August to develop a site to host electronic shopping malls with
real-time sales and car-buying information.
The article reported that DaimlerChrysler also began working on an online auto sales program in
August.
