GM Faces Risks Selling Cars Online
Detroit automaker General Motors 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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The article GM Faces Risks Selling Cars Online originally appeared on Fool.com.Erin Kennedy has no position in any stocks mentioned. Jason Moser has no position in any stocks mentioned. The Motley Fool recommends Ford, General Motors, and Tesla Motors. The Motley Fool owns shares of Ford and Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.