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

Auto Manufacturers: Mobility Disruptors or Fleet Providers?

Maven’s Alex Keros shares insights into evolving smart mobility business models and new opportunities with fleet management.

What is Your Time Worth?

Personal observations of retail and travel transactions reveal just how much a consumer’s time is worth today, and how increasingly intolerant we are of inefficient transactions.

Safeguarding Your Business with Brokers

While the high-profile bankruptcy of Atlas Choice has left many car rental companies wary of working with brokers, rental companies can take steps to protect themselves and ensure a productive relationship.

Job Finder: Access Top Talent. Fill Key Positions.

>