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GM Faces Risks Selling Cars Online

Detroit automaker General Motors (NYSE: GM  ) is planning to expand its "Shop-Click-Drive" online-shopping tool that gives customers the option of avoiding the showroom when purchasing a new vehicle.

Motley Fool analyst Jason Moser likes this move by GM. E-commerce sales are still a very small sliver of the retail economy, meaning there is plenty of room for continued growth. It's not typical for buyers to purchase higher-cost items like automobiles online, but the shift to e-commerce is very real.

Still, Jason sees a few significant hurdles for General Motors. It may be difficult to convince consumers that a purchase as large as a new car should be done online. Additionally, General Motors' dealers may buck the trend. Dealers aren't required to take part in this rollout, and GM has admitted some have rejected the offer. And dealers who have invested lots of capital in renovating showrooms may balk at GM's new program. General Motors' stock may be up 22% year to date, but Jason still has reservations about the company.

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  • Report this Comment On October 07, 2013, at 7:10 PM, RobDFoolish wrote:

    Aren't these clowns the same ones trying to beat Tesla down for a similar technique? "How can you bypass the dealers? Think of the children!" I remain unimpressed with the "Big" 3 and their lackeys.

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