GM has partnered with eBay to sell new vehicles online where customers can negotiate prices with dealers.

CORP TALK: General Motors (GM) is in talks with eBay to start a test program in California to sell cars on eBay.com. This, according to a report from Reuters, will allow consumers to negotiate with dealers and buy cars online.

Reuters reports that the car shopping website, while seen as a departure from the traditional ways cars are sold in the United States, is aimed to help GM regain lost market share one month after it emerged from bankruptcy.

The upside is that the online venue will give the No. 1 US carmaker a new channel to sell new vehicles as it also trims its total US dealerships by more than 40% by end 2010 in order to reach profitability.

The program has so far seen participation from more than 225 GM dealers in California as it runs from August 11 to September 8. GM plans to expand the program nationwide if this test pilot helps it reach out to more customers and expand market share.