While dealing with these pressures, online auto sites must now cast a wary eye toward Detroit. The site would allow consumers to buy GM cars online or direct them to links if they want to buy other manufacturers' cars. Just a week later Ford announced that it would soon set up a site that will let customers configure, price, finance and purchase a new Ford car or truck. Responding to challenges from many sides, online auto sites are retooling their business models in search of broader appeal among consumers and dealers. Some, like Autobytel, no longer require dealers to sign exclusive agreements.
Some sites work to establish even deeper relationships with dealers.
Over the last six months, Carsdirect, for example, has allowed dealer groups to buy equity stakes. Autoweb, meanwhile, has been looking for new ways to make money. The company used to get the bulk of its revenue from charging dealers for customer referrals. Autoweb and Autobytel hope their moves appeal to Wall Street. The sector has already begun a shakeout.