GM is launching a new website called CarBravo to help U.S.-based GM dealers market and sell used cars online.
The new venture competes directly with Carvana Co., Vroom Inc. and other online auto retailers.
The Detroit automaker reports dealers will sell both GM and non-GM vehicles through the site.
The move represents a strategy shift for GM. Traditionally, the automaker owned and sold vehicles from its leasing operations but did not market them directly to consumers.
GM leadership reported the new business will have more dealerships and used-car inventory than the competition. The company also expects CarBravo to exceed the service capacities of used-car retailers CarMax and Carvana.
CarMax marketing Chief Jim Lyski said in a statement that the company is reviewing GM’s announcement. “What they have set out to do is difficult,” he said, citing integration of online functions with dealerships. He also promised that even if GM succeeds, CarMax will continue to lead the industry.
GM has started signing up dealers for CarBravo, which should go live in the summer. The automaker predicts most of its 3,800 Chevrolet, Buick and GMC dealers will sign on. Its Cadillac brand, however, plans to develop its own used-vehicle-sales tool, the company said.
GM reports its U.S. dealer network has around 400,000 used vehicles in inventory. Carvana, meanwhile, reported it had around 55,000 vehicles in inventory in December. Channeling lease returns through CarBravo will give dealers more used cars to sell and help them broaden their customer base, GM said.
