GM to Decrease Rental Sales

General Motors Corp., said it will sell 20,000 fewer vehicles to rental car companies this month, driving down its total sales, Bloomberg reports.

The company's planned decline in low-profit rental sales will reduce its first-half total by 100,000 vehicles, GM sales analyst Paul Ballew recently said. Rental companies get discounts for buying in bulk.

The reduced business with so-called fleet customers such as rental companies makes it harder for Detroit-based GM to halt a seven-year U.S. sales slide and end market-share losses to Asian rivals led by Toyota Motor Corp.

The drop in rental-car business will be ``more moderate' in this year's second half, LaNeve said. Those sales have become increasingly profitable, he said, without elaborating. GM has said it may cut full-year rental sales by as many as 120,000.

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 Problem with Valuing Safety Technology

As advanced safety technologies have migrated to mainstream vehicles, retaining value for these options at resale remains an issue.

ELD Mandate: Is Your Head Still in the Sand?

If you think you have 11 weeks to implement an Electronic Logging Device system to meet the Dec. 18 compliance deadline, you really don’t — for a few reasons.

Who Controls Your Vehicles’ Data?

In the name of security, an automaker’s alliance is advocating denial of third-party access to the OBD-II port. Is this going too far?

Job Finder: Access Top Talent. Fill Key Positions.

>