Detroit 3 Slash Sales to Fleets
Chrysler's 17% cut sets pace; automakers shift strategy to protect residual values.
Despite a brutal retail sales slump, the Detroit Three continue to cut the number of light vehicles they sell to daily rental companies, Automotive News reports.
Through the first four months of 2008, General Motors, Ford Motor Co. and Chrysler LLC have reduced U.S. sales to fleet buyers, according to an analysis of data supplied by R.L. Polk & Co., an automotive data research firm in suburban Detroit.
Through April, Chrysler reduced fleet sales by about 45,000 units, or 17 percent, from a year earlier. GM cut fleet sales by nearly 40,000 units, or 14 percent. And Ford Motor's fleet sales fell 25,000 units, or 9 percent. Automakers consider it important to limit such sales because heavy fleet sales can damage a brand's residual values. Fleet sales to corporate customers can be profitable, but sales to daily rental fleets typically are not.
In previous downturns, the Detroit Three sometimes dumped unwanted vehicles into daily rental fleets, ruining resale values when Hertz, Avis and others sent their cars and trucks to auctions.
According to Automotive News, as the Detroit Three reduce fleet sales, other automakers are stepping into the gap. For example, Toyota's estimated fleet sales rose about 10,000 units to 85,000 in the first four months. That's 11 percent of Toyota's total sales, up from 9 percent a year earlier.
More Rental Operations

Brazilian Executive MBA Targets Growing Domestic Rental Car Industry
Rental car companies face a unique combination of challenges that are rarely addressed in traditional programs.
Read More →
Green Motion Expands Into Japan With Master Franchise Agreement
Japan's tourism industry, business travel market, and demand for vehicle rental services are reasons the country represents an important market for the company.
Read More →
ACRA Carrying Fuller Industry Load As AI and EVs Lurk In Future
The leading car rental professional business group details an active legislative, regulatory, and macro-trends agenda affecting car rental operators.
Read More →
World Cup Travel Data Shows Longer Car Rentals and More One-Ways
A recent analysis of FIFA bookings found varied demand patterns that influenced rental car pricing.
Read More →
A Leveling Force: AI Morphs Into A Rental Car Profit-Seeker
Revenue managers can’t match the emerging AI tools gobbling lots of data that could counter the competitive race to the rate bottom.
Read More →Stop Losing Money On Rental Tolls
Regardless of your rental fleet size and structure, fleet managers, executives, and owners can gain valuable insights into an often-overlooked area of fleet operations.
Read More →
Rethink The Future To Avert A Race To The Bottom
Rental car operators heard a sobering industry message and a stern challenge at the close of the International Car Rental Show.
Read More →
DriveItAway, Free2move Plan Shared Fleet Program for Independent Rental Fleet Operators
Vehicles would be placed with participating rental operations to support car renter demand and provide additional fleet capacity.
Read More →
Stellantis Recalls 1.3 Million Jeep Vehicles Worldwide Over Fire Risk
Stellantis is recalling more than 1.3 million Jeep Wrangler and Gladiator models worldwide over a fire risk linked to power steering pump wiring.
Read More →
Green Motion And U-Save Open Rental Operations In Guatemala
The brands will open their first rental car outlets in the country at La Aurora International Airport in Guatemala City.
Read More →
