General Motors Corp. has taken further steps to increase profits by reducing its lower-profit fleet sales to rental companies and other businesses, Bloomberg reported. This comes after 12 facility closures and a cut of 30,000 jobs were announced Nov. 21.
Through October, about 25 percent of the world’s largest automaker’s vehicles were appropriated for company, government and rental fleets.
GM wants to bring that number down to about 20 percent of its total by 2007, as fleet sales are less profitable, bringing in about $15,000 per transaction, the report said. That number is down from an average of $18,861 the first nine months of the year.
After $4.8 billion in losses this year, GM has been taking steps to curtail its loss of market share while some of the company’s competitors have seen gains.