GM To Offer Cars Online at Discount

German automaker Adam Opel, a subsidiary of General Motors (NYSE: GM), announced Wednesday that it is launching a pilot program to sell cars over the Internet at a discount.

The pilot project is slated to run from March 10th through July 31th and will offer six models at discounts of up to 11 percent off listed prices. The selected cars will range in price from US$8,100 to $22,000.

According to Adam Opel board member Andrey Barcak, the company is one of the first automakers in Germany to offer its customers "the possibility to choose and order different models with a click of the mouse."

Barcak said in published reports that the company expects to sell 250 to 300 cars during the pilot program.

Real Deal

The online ordering purchase will allow consumers to choose the car, value their trade-in, arrange for financing and insurance, and schedule a test drive.

Consumers who want to purchase cars online will be required to pay a $48 fee to reserve a car. After the purchase is completed, the reservation fee is reimbursed.

Once online car shoppers have reserved their car online, they will be contacted by an Adam Opel salesperson to arrange a test drive and a dealer visit.

Expanding Program

GM said that the launch of online ordering in Germany brings its brick-and-click strategy to Europe's two largest markets. Online ordering was originally introduced to the company's English subsidiary Vauxhall in 1999.

Since the original launch of Vauxhall's online purchasing program, the company has expanded it to include all of models.

GM's Online Push

GM has been aggressively expanding its presence in the online automotive market. Last month it inked a deal with Autobytel.com to test an online shopping system that will show consumers which cars are available for purchase in their area.

GM said the trial run, which is slated to begin May 1st and run for 90 days, will provide the company and its dealers with a blueprint for creating an online locate-to-order system. The cars shown to consumers will bear dealer-set Web prices.

Also in February, the giant automaker said it would form a partnership with its network of dealers to build a Web shopping site called AutoCentric that will offer GM cars as well as other brands.

The company has also announced a marketing alliance with eBay Motors and a sweeping deal with America Online that included discount Web access for GM workers.

Start Your Engines

According to a study from Jupiter Research, direct and Web-influenced new vehicle sales will grow to $128 billion annually by 2004.

In addition, Forrester Research recently said that within three years, the percentage of new car buys made online will climb to 6 percent, up from the current market share of less than 1 percent.