GM reportedly to pull e-business unit in-house

After much fanfare surrounding its initial launch, General Motors will merge the e-business unit it created in 1999 back into the corporate organization, according to a report in The Wall Street Journal.

The e-GM unit, which has about 100 employees, will be folded back into GM during the next year as several e-business initiatives are scaled back at the automaker, according to the report.

Mark Hogan, head of the unit, said in the report that e-business remains a key corporate priority for CEO Rick Wagoner, but with the end of the dot-com frenzy, "people are doing a lot less arm waving about it." Hogan said that when e-GM was created it was meant to last only a few years, until e-business became ingrained in GM.

The current staff of the e-business unit will be shifted back into GM, Hogan said.

Hogan told the Journal that e-GM has had some successes, including expanding and improving GM's Web sites for customers around the world.

But he said in the report that GM is scrapping plans for a major joint venture with its U.S. dealers that would woo customers who now go to third-party Web sites for information, instead of GM's own. In addition, GM no longer is considering buying a stake in a third-party provider, but will likely continue working with partner Autobytel to test systems to link customers to dealers, Hogan said.

Another big initiative under e-GM, GM's OnStar in-car communications unit, operates largely independently, Hogan said. GM expects OnStar to begin generating profit sometime in 2003.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

More about AutobytelHolden- General MotorsOnStarWall Street

Show Comments