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Looks like GM maybe testing the waters of Direct Sales (Slowy Though)

Discussion in 'Tesla Motors' started by Fraza44, Oct 6, 2013.

  1. Fraza44

    Fraza44 Member

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    All,

    Came across this article on the "Wall Street Journal" this morning and was wondering if this would eventually help Telsa's position against the dealer association if GM decide to go all out direct sales in the future. The article sound like they are thinking in that direction. I wonder why :biggrin:.

    "By CHRISTINA ROGERS

    General Motors Co. GM +1.16% plans to expand a new online shopping tool that allows customers to bypass showrooms when buying new cars."

    Full article here: http://online.wsj.com/article/SB10001424052702303492504579111752452221502.html?mod=googlenews_wsj

    Andre
     
  2. MarkR

    MarkR Member

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    Perhaps the dealers won't mind so much given that most of their income comes from service.
     
  3. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Active Member

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    More accurately, the majority of their profits come from service.
     
  4. bareyb

    bareyb Active Member

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    If they discount them too heavily online, it would undercut their Dealership network. The problem with their system will be that people will be able to get a better price by going to the Dealership, so only people who want to pay more to avoid that will use it.
     
  5. Fraza44

    Fraza44 Member

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    I for one will be curious to see if the dealer association jumps all over GM about the obvious direction they are trying to go. If they get positive feedback from the online service, we all know they will capitalize on that and Tesla will be responsible for starting a new buyers experience. The other manufactures will follow with their own online sites, car sales men will loose jobs other than providing people with test drives of the car they are planning to purchase online.

    Don't be surprised if either dealers or manufactures start going for store fronts in the malls. Evan at my age it always surprises me how stagnant big companies become toward innovation and truly new ideas. They always seem to have to play catchup to the new kids on the block with a fresh approach to a business model and then at first they try to discount the new innovation's success before timidly getting on board.

    Just my .02

    Andre
     
  6. PhilBa

    PhilBa Active Member

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    I have maintained for a while now that the direct sales model that Tesla uses is as disruptive as a no compromises EV. That is what the dealers fear the most, being "disintermediated".

    One of the great things about the Tesla model is you can get exactly what you want whereas the current dealer approach pushes what ever is in inventory. Often times you wind up paying a lot more because of that. For example, on my last car I wanted leather seats but had to take a couple of other options because that's all they had on the lot. The dealer did call around to other dealers in their "network" but no car with exactly what I wanted (and nothing more) didn't exist.
     
  7. yobigd20

    yobigd20 Well-Known Member

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    how do you negotiate below invoice price with a computer?
     
  8. evme

    evme Member

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    I was using Google and noticed now GM is bidding in adwords on Tesla keywords to promote their ELR.
     

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