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.

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