Automakers Enhance Online Presence to Meet Growing E-Sales Demand

Strategic Insights -

As car-buyers increasingly turn to the internet to find deals, America's big-name automakers have been expanding their online presence and building e-sales to stay competitive. General Motors Corp. is launching a pilot program that enables consumers to check vehicle inventories, get a guaranteed "e-price," and select a dealer for purchase. Ford Motor Co. has also announced a similar program, set to launch in California, where buyers can get a price quote and negotiate with local dealers. DaimlerChrysler AG's American unit has expanded its relationship with Ask Jeeves Inc. to build Chrysler's Internet participation, including its Dodge, Jeep, and Plymouth brands. The automakers' enhanced Web sales systems aim to respond to the growing popularity of online vehicle sales programs.

Key Takeaways:

  • General Motors Corp. is launching a pilot program in Minneapolis, Minn., allowing consumers to check vehicle inventories, get a guaranteed "e-price," and select a dealer for purchase. The program will start in the first week of October.
  • Ford Motor Co. has announced a similar program, set to launch in California, where buyers can get a price quote and negotiate with local dealers.
  • DaimlerChrysler AG's American unit has expanded its relationship with Ask Jeeves Inc. to build Chrysler's Internet participation, including its Dodge, Jeep, and Plymouth brands.
  • The Chrysler/Ask Jeeves relationship aims to raise traffic on Chrysler's corporate and US brand Web sites by creating an "ask Chrysler" area on the company Web sites.
  • Chrysler's dealers generated sales of 30,000 vehicles through leads from the automaker's Internet sites last year, despite no marketing to promote online sales.
  • Ford had signed a similar deal with Ask Jeeves last July.
  • General Motors Corp.'s site, GMBuyPower.com, allows customers to get online vehicle information, including sticker price, while Ford's online sales program will be launched as FordDirect.com.

Statistics:

  • The Chrysler/Ask Jeeves relationship has answers to more than 450,000 auto-related questions stored in its database.
  • Chrysler's dealers generated sales of 30,000 vehicles through leads from the automaker's Internet sites last year.
  • General Motors Corp.'s pilot program will cover seven Oldsmobile dealers in the Minneapolis, Minn. area.
  • The GM pilot program will run for 90 days before being expanded to other nameplates and areas.
  • Ford's online sales program is set to launch in late September or early October in a yet-to-be-named California city.
  • DaimlerChrysler dealers generated 30,000 vehicle sales through leads from the automaker's Internet sites last year.

Sources:

  • Associated Press
  • Reuters
  • Newsbytes.com
  • http://www.GMBuyPower.com
  • http://www.FordDirect.com
  • http://www.ask.com (Ask Jeeves Inc.)