DTAG Provides Update on Fleet Diversification & Cost
Dollar Thrifty cuts its Chrysler fleet from 85 percent to 30 percent, while increasing Ford to 34 percent for 2010.
Dollar Thrifty Automotive Group Inc. (DTAG) announced that it has substantially completed its inventory ordering cycle for 2010 model year vehicles, and in conjunction with those orders will meet its previously announced strategic objective of fleet diversification during 2010 when those vehicle orders are delivered. The company noted that its 2010 vehicle orders will provide its customers with a wider range of vehicles, while at the same time allowing the company to diversify the residual value and production risk across a broader range of suppliers. The company's 2010 fleet purchases are broken down by manufacturer as follows:
Ford: 34%
Chrysler: 30
General Motors: 20
Nissan: 6
Hyundai / Kia / Other: 10
Total: 100%
"One of our primary goals for 2009 was to diversify our fleet in order to mitigate the various risks associated with concentration of inventory from any individual suppliers, while at the same time providing our customers with a broader array of options to meet their individual rental needs. We are pleased to have achieved this objective in a relatively short time frame," said Scott L. Thompson, CEO and president. "We truly appreciate the ongoing support of our manufacturer partners, and look forward to continuing to forge long-term, mutually beneficial relationships with each of them."
The company also noted that during the third quarter it continued to experience sequential improvement in fleet depreciation costs per vehicle due to improving residual values resulting from conditions in the used vehicle market as well as improved purchase economics on model year 2010 inventory purchases.
The company had previously stated an objective of achieving an average fleet cost of $350 per unit per month some time during calendar 2010. The company noted, however, that it now expects fleet costs to be below the $350 level for the third and fourth quarters of 2009, and, based on current facts and circumstances, now expects its 2010 fleet cost to stabilize below $350 per unit per month.
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