EBay sees more ties with automakers for listings

By Soyoung Kim

DETROIT (Reuters) - Internet auctioneer eBay Inc (EBAY.O: Quote, Profile, Research, Stock Buzz) expects to clinch further deals with major automakers that would clear the way for their affiliated dealers to market used cars following a pioneering tie-up with GM, an executive said on Tuesday.

General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz) is taking steps to list all of the inventory of certified pre-owned cars at some 3,900 GM- affiliated U.S. dealers on eBay under a program announced in February and rolling out in the current quarter.

That tie-up is meant to broaden the market for the used car inventories of GM dealers, while drawing more sales volume to eBay Motors, which generated $18 billion in annualized transactions in the past quarter.

Rob Chesney, vice president for eBay Motors, said other automakers had expressed an interest in similar, nationwide tie-ups to market used vehicles at a time when that market is increasingly important for auto retailers.

The deeper-than-expected slump in new car sales this year, when industry volumes are expected to drop below 15.5 million units, has increased pressure on car dealers to make up for lost revenue through an increased focus on used car sales, industry executives and analysts have said.

"We've been approached ... and will be announcing other (automaker) relationships as the year progresses," Chesney said in an interview with Reuters.

About 43 million used vehicles were sold in the United States last year, well over double the 16.2 million new vehicles sold. Used car profit margins are also generally better than they are for new vehicles.

"Franchise dealers are getting really serious about used cars," Chesney said.