GM Selling Cars on eBay, Promises 230 MPG Volt

Having just emerged from bankruptcy, General Motors appears to have become a bit more innovative. Of the 250 GM dealerships in California, 225 are now selling their cars on eBay. If the experiment succeeds, the program will go nationwide. At the same time, GM has announced that its new Volt will get 230 miles per gallon in the city. If only the company had tried such things 10 years ago.

People have been able to buy used cars on eBay since the beginning. What is different about this new program is that the cars for sale are still on the dealers' lots. As per usual, would-be buyers can ask the dealer questions about the car, and either make an offer, or opt for the buy it now approach. GM offers 2008 and 2009 model years as well as 2010, and many believe the main purpose of the program is to get the earlier year models sold.

This appears to be a pretty good use of eBay's capabilities, but there is one serious flaw in the entire system. There appears to be no way for the buyer to take the car out for a test drive built into the arrangement. The high pressure haggling that typifies most new car sales won't go away if the buyer still has to come to the dealer to try out the vehicle. And any buyer who doesn't test drive the car or truck deserves whatever happens.

As for the Volt, it will go into production next year as part of GM's 2011 model-year line-up and sell for around $40,000. It will go 40 miles on its electrical system before the gas part of it kicks in. The trick is to get the driver to plug into the electrical grid on a daily basis. However as most Americans commute less than 40 miles, it's clear that this technology offers a viable way to get rid of oil imports. By the same token, most US electricity is generated by burning coal, so it isn't all that green.

One must also remember that GM already had an electric car back in the 1990s, the EV-1. With a range of 60-70 miles on a charge for the first and 110-160 miles on the later version, GM had a chance to alter America's driving habits. Instead, it built SUVs that guzzled cheap gas, brought in huge profit margins, and set the stage for GM's bankruptcy when oil prices soared.

And one can buy a Toyota Prius today for $22,000 and get around 50 miles per gallon. GM will have a huge chore in taking market share from Toyota. Still, better late than never.

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