GM To Take New, Innovative Approaches

12motors01-190“G.M.’s sales in the United States have plunged 37 percent this year, and its market share has fallen just below 20 percent, a far cry from the company’s glory days in the 1960s, when it held a 50 percent share of the American market and dominated competitors. As part of its effort to reverse that trend and return to profitability, G.M. also began selling new cars and trucks on the auction Web site eBay on Tuesday.” (http://www.nytimes.com/2009/08/12/business/12motors.html)

Not only is the company emerging as a new innovator in online frontier building, but is redesigning its entire line of vehicles to better meet the needs of the public, who holds 60% of GM’s shares. The goal is to reach a younger public, cutting out it’s most fuel-burning oversized vehicles, and turning to smaller models with greener technology built in top to bottom.

There are now three main questions at hand: Will GM’s revampment pull them out of there economic, almost demising, slump? Will Ebay be the answer to their prayers as far as sales are concerned? And has GM stumbled upon a new breakthru in vehicle sales maneuvers, possibly changing the entire way cars are bought and sold, and even reducing the costs of the middle-man factored into car sales totals?

I’m interest to see where this goes. From my personal marketing standpoint, I think that Ebay is an genius, as long as they don’t cause themselves to undersell their products. I believe that eliminating reasons to tack on extra costs are great, and just what we need. However, this might reduce the need for dealerships over time, cutting many jobs, which would cause big problems for the company and tarnish their reputation in the minds of consumers. If they can balance this issue, though, maybe turn those same people into different occupations within the company, they will become extremely efficient and costs will be drastically reduced.

As far as changing the appearance and becoming more youth/eco-friendly, I think that that is exactly where this company needs to head, as many of their competitors, especially Chevy, has already headed years back. I did a campaign through Winthrop for Chevy promoting their greener and more efficient vehicles, and frankly, if GM is just now starting on that path, they have a long way to go to match them, but if they can become more appealing for another reason in the meantime while they beef up their technology, they can definitely, I think, take a big share of the American car buying majority.

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