GM Korea Starts Online-Only Sales

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August 19, 2021 10:39

GM Korea will put its new electric SUV, the Bolt EUV, on sale online, the first time that a Korean automaker has embraced the direct sales channel successfully pioneered by Tesla.

Customers can get their estimate and sign the contract on GM Korea’s website.

Opposition from car dealers had made that impossible so far, but the automaker reached a compromise with them. For the Bolt EUV, GM Korea will take care of contracts with customers, while dealerships handle rollout and delivery.

That reduces dealers’ commission from the sale but increases business because they handle more cars.

GM is also reducing cutthroat competition between dealers by selling the cars at fixed prices so dealers will no longer have to undercut each other to tout for business and shoulder the losses.

GM Korea told dealers it has no other choice since its market share has dwindled to less than five percent. The number of its dealerships has already shrunk from 300 years ago to fewer than 200.

Online car sales are becoming a global trend, and Hyundai has already said it will put a subcompact SUV it is producing on consignment for sale online.

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