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

Another Ridiculous “Used Fleet Vehicle” Scandal

While media reports concentrate on the sting and the “outrage,” where’s the empirical evidence that fleet vehicles are less mechanically sound than vehicles sold from private owners?

Will IoT Herald a New Era in Fleet Efficiency?

With the ELD rule finally in effect, small fleet operators need to hunt for new efficiencies. In transportation logistics, Internet of Things (IoT) systems could have similar lasting impacts as telematics.

Will Cars Become Transportation Appliances?

The cars are still the stars, but this year’s L.A. Auto Show revealed an auto industry at a crossroads.

Job Finder: Access Top Talent. Fill Key Positions.

>