Ford Uses Rental Market to Spark Interest in Taurus

Ford Motor Company recently announced that 15 to 20 percent of the total sales of the 2008 Taurus, a replacement for the Five Hundred sedan, will be distributed to daily rental companies, Ward’s reports.

John Blair, CEO of Automotive Lease Guide, agrees with the basic premise of placing newly launched vehicles in rental fleets to create awareness. However, he says 15 to 20 percent of initial volume is too high.

“Fifteen percent is a pretty large number to sell to fleets for exposure purposes. Typically, it’s a smaller (percentage),” says Blair, noting such a large influx reduces residual values, the very thing Ford has been trying to avoid.

To date, Ford has reduced its daily rental fleet sales 32 percent, noting such sales now account for only 14.5 percent of total volume.

If Ford were to abandon the practice of placing new models early in the production run into rental fleets, it would be left solely to its dealer body to familiarize potential customers with the vehicle, which is not always possible, the company says.

According to Ward’s, with the previous-generation Taurus, over-selling to rental fleets not only degraded residual values but also tarnished the car’s image.

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

Trump and Regulations: An Alt-Fuel View

With 2025 emissions targets back in review, manufacturers, alt-fuel, and alt-power suppliers weigh in on the potential impacts of Trump’s initiatives.

Why GM’s Telematics Announcement is a Really Big Deal

Enabling a telematics connection at the factory — and not through an aftermarket hardware installation — is a game changer for fleets.

Four Thoughts From the 2016 Conference Calls

Sifting through the notes of Avis Budget Group’s and Hertz Global Holdings’ recent fourth quarter conference calls give us some trend lines to watch out for in 2017. (Of course, this gives us an incomplete snapshot, as Enterprise Holdings is privately held.)

Job Finder: Access Top Talent. Fill Key Positions.

>