GM, Ford to Announce Online Ventures

The world’s two largest car companies will announce major marketing agreements with two Internet giants, most likely next week at the North American International Auto Show in Detroit, auto industry sources said. No. 1 General Motors Corp. plans to unveil a deal with America Online Inc. to help consumers buy GM vehicles via the Internet. Ford Motor Co. signed a similar agreement with Yahoo Inc., according to corporate sources at the No. 2 auto maker. Neither company would provide details on pricing on the Web sites, however. Visitors to the Ford-Yahoo and GM-AOL sites will have to use the information they get from those sources to shop at sites, such as GM’s Buy Power or Autobytel.com, where they can choose a dealer and discuss pricing. The nation’s 22,400 franchised new-car dealers, represented by the National Automobile Dealers Assn., say that manufacturer pricing information undermines their business. Even without pricing details, the auto makers believe the deals will yield a major advertising opportunity, electronically expanding their reach beyond traditional newspaper, TV and radio outlets to reach younger, more affluent consumers.