Tier 2 Brands Gain on Big Six in Fleet Sales

The small, Tier 2 automakers, such as Mazda and Hyundai, are slowly gaining fleet and commercial market share from the top Detroit and Asian brands, according to data from CNW Research.

In January, the Big Six - General Motors, Ford, Chrysler, Toyota, Honda and Nissan - held 73.2 percent of all fleet and commercial sales. By July, their collective market share shrank to 64.7 percent and is expected to decline this month.

Nearly all automakers are approaching small and large companies, which now have tighter budgets and resources, to purchase once unthought-of brands for business use because the profit margins are better compared to retail sales, according to CNW's Art Spinella.

"The industry has slashed production and other costs dramatically, and commercial/fleet sales have become incrementally profitable," Spinella wrote.

In addition to better profit, automaker have less to lose with fleet vehicles as current at-risk programs have shifted responsibility of end-of-term value on fleets instead of manufacturers.

 

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

The Customer Isn’t Always Right

Not caving to a customer with a blatant agenda may have consequences, especially for a small rental company that relies on stellar Yelp ratings to advertise. But business integrity must prevail.

The Truth Behind Compact Van Depreciation

Why are large van values holding up better than their compact counterparts, and will it last?

Car Rental’s Call to Action on Autonomous Vehicles

The car rental industry has built-in advantages to support a world with driverless cars, but it needs to take the next step in partnering with autonomous vehicle stakeholders.

Job Finder: Access Top Talent. Fill Key Positions.