[Asia Economy Reporter Kwon Jae-hee] The largest automaker in the U.S., General Motors (GM), is entering the used car market.
According to the Wall Street Journal (WSJ) on the 11th (local time), GM has launched a site called 'CarBravo' to support GM dealers in the U.S. to sell used cars online. GM dealers can sell not only GM vehicles but also used cars from other brands through this site.
On this site, vehicles owned by GM's Chevrolet, Buick, and GMC dealers, as well as cars recovered by GM Financial, GM's automotive finance subsidiary, from rental companies or vehicle leases, will be traded.
GM stated that the inventory of used cars held by its dealers will reach approximately 400,000 units.
GM is currently accepting applications from dealers who wish to participate in the used car site starting this week and announced that the service will officially launch around this summer.
However, GM added that its luxury brand Cadillac will establish a separate used car sales system.
The U.S. used car market had been growing even before the COVID-19 pandemic, but it has become more active due to significant disruptions in new car production caused by parts shortages related to COVID-19.
The annual used car sales volume in the U.S. is about 40 million units, more than twice the sales volume of new cars, including trucks.
Steve Carlisle, GM North America President, said, "CarBravo will have more dealerships and used car inventory than existing used car dealers such as CarMax and Carvana," adding, "It will also surpass these companies in service department capabilities."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
