Car rental operators and industry stakeholders react to market forces and assimilate change into their business plans.
A rental car shortage could cost the Irish tourism industry more than a quarter billion euro this year.
Automotive industry analyst John McElroy is “bullish” about the future of the Detroit 3, forecasting a profit break-even point at 10-million SAAR (seasonally adjusted annual rate) and for the domestic OEMs to be “extremely profitable” at 14 million units yearly in sales.
AutoPacific forecasts industry volume of 11.4 million units in 2010, and 15.4 million in 2015, a far cry from the near-17 million unit years achieved in the past decade.
Revenue for the U.S. car rental industry in 2009 dropped for the first time since 2002, though cost-cutting is keeping car rental companies profitable, reports Auto Rental News.
Despite the overall decline in vehicle values, auction activity picks up in final two weeks.
Low dealer consignment levels and a 30 percent drop in off-rental volumes have kept used vehicle prices afloat.
ARN archives show that the car rental industry, like the economy, runs in cycles. So plan for them.
More than 400 auto rental professionals gathered in Las Vegas at the 2009 Car Rental Show to address the challenges facing the industry. This year, the funding crisis and credit crunch were prevailing themes in the seminars, panels and roundtable discussions.
While rentals are down 10-15 percent, operators are aggressively adapting to new market conditions and reaping the rewards.