General Motors has announced its new online marketplace, where customers can purchase any of the company’s 45,000 repair and maintenance parts through Chevrolet, GMC, Buick, and Cadillac’s websites. Further down the road, the auto giant plans to also offer customers the option of dropping over-the-air upgrades and subscription services into their digital shopping baskets — along with electric vehicles, with shopping, purchase, and finance options on the drop-down menu.
“OEMs are eager to find ways to sell branded parts to vehicle owners and installed service providers beyond their franchised dealers’ service departments and parts counters,” says George Morvey, Industry Manager in our Energy practice. “This is a good example of how they can extend their reach and generate additional sources of revenue.”
The new digital storefront is stocked with ACDelco parts such as oil filters, batteries, brake pads, and cooling hoses, in addition to thousands (and thousands) of other parts. Customers can choose between delivery or pickup at any of GM’s more than 800 participating dealers. Further, any part that customers purchase through GM’s e-store is eligible for Chevrolet, GMC, Buick, and Cadillac’s rewards programs; the points that customers earn can be used to buy parts, accessories, or certified services at participating dealers. Purchasing directly from GM via its online store offers an additional benefit — customers can be confident that the parts they buy are original, unlike purchasing from an online third-party vendor, where counterfeit products are not uncommon.
Due to the global semiconductor chip shortage that has wreaked havoc in the industry and suppressed vehicle production in an environment of high consumer demand, the used-vehicle market has never been hotter. “The owners of these second-hand cars are much more likely to have their vehicles serviced at an installed service provider like Jiffy Lube, rather than in the service department of the local dealership,” says Morvey. “The GM Online Marketplace will enable these providers to source certified replacement parts, satisfying customers’ needs and providing GM with a revenue stream.” In addition to hard parts, such as batteries and brakes, the marketplace will provide GM with a distribution channel for its branded ACDelco dexos genuine engine oil, which, until now, has largely been limited to the dealers’ service departments.
Adds Morvey: “Clearly, OEMs see the writing on the wall with EVs and the absence of parts that need repair/replacement, and this approach will prolong the inevitable.”
About this blog:
GM Online Marketplace — 45,000 Parts Are Just a Few Keystrokes Away contains insights from George Morvey, Industry Manager in Kline’s Energy practice. Morvey, who has more than 20 years of experience in management consulting and syndicated market research, is focused on the global supply and demand of finished lubricants and related petroleum specialties. His client base includes the world’s leading petroleum and energy companies. Prior to joining Kline, Morvey held numerous sales positions with Quaker State Corporation in the New York, New Jersey, and Pennsylvania markets. He holds a B.S. degree in Business Management from St. John’s University.
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