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.

http://www.detnews.com/2004/autosins...a01-223843.htm

 

Say one thing, do another. Good trick eh.

 

Well somebody has fill the fleets of Avis, Hertz, and Budget right? It just so happens, and rightfully so, that the domestic automakers are doing that.

 

As well as Mitsubishi, Nissan, and even Toyota. Oh and Isuzu before they stop selling SUVs.

 

i guess you could include honda.. even with only 1%.

I think toyota's fleet #'s are increasing because of toyota's own rental company. They rent their vehicles through dealers.

 

Honda's fleet sales are small compared to Nissan's, I believe... and Toyota outdoes Honda in fleet sales as well. I've seen more rental Isuzus than Hondas.

If you have numbers or stories, please share!

 

nevermind

 

Right. Toyota allows you to take an extended test drive (masquerades as a rental car business). Honda has nothing like that or large-scale fleet sales.

 

i think its a great idea. how is it not? I see it 100% better than selling those cars to outside rental fleets. the money stays in the company.

 

'Oh, dear, let's rent a Camry for a weekend to go to [some romantic place]'