Fleet sales hike puts automakers at risk

DETROIT — U.S. automakers are increasing sales to rental car companies and other fleet customers — a strategy that can prop up overall sales, but erode a company’s bottom line and brand image.

Detroit automakers often tout the importance of selling more new cars and trucks at retail and minimizing less profitable fleet sales.

But at General Motors Corp., fleet and rental agency customers represent more than one-quarter — 26.1 percent — of all car and truck sales this year. That’s up from 21.3 percent of all sales a year ago. And 37.7 percent of GM’s passenger cars are sold to fleet customers — a 10-year high.

At Ford Motor Co., fleet sales account for 28 percent of all Ford, Lincoln and Mercury sales this year, up slightly from a year ago. Chrysler fleet sales are flat at 23 percent of all sales, according to J.D. Power and Associates.

By contrast, Honda sells less than 1 percent of its U.S. vehicles to fleet customers, and Toyota’s fleet sales are less than 10 percent of overall sales.

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