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Chrysler Plans Further Cuts in Fleet Sales

From the auto rental news: "Chrysler LLC expects its domestic market share to fall in 2008 as it pares sales to rental-car companies to focus on selling vehicles to consumers Bloomberg News reports. Chrysler had 12.9 percent of U.S. auto sales in 2007, according to Autodata Corp. That ranked it No. 4 in the United States, trailing General Motors Corp., Toyota Motor Corp. and Ford Motor Co. Cutting discounted sales to business customers such as rental car companies would help Chrysler boost profit margins and raise the resale value of vehicles bought by consumers. Chrysler plans to trim so-called fleet purchases to about 20 percent of total sales, from about 30 percent in 2007. While Chrysler trimmed some fleet sales in 2007, this year's decline will be larger, Chief Executive Officer Robert Nardelli has said. That strategy echoes the steps taken by Ford and GM to reduce their dependence on corporate buyers last year, when the automakers blamed most of their U.S. market-share declines to Japanese rivals on fewer fleet sales. Toyota and Honda Motor Co. typically don't rely as heavily on fleet sales." Finally there will be a mix of make, model, and type of cars in the auto rental industry. The main questions; will daily rental rates increase; is this the objective of the OEM's. My comment is yes in the short run, but when we begin to see higher miles cars in the rental fleet, what will the rental customer say? Will this open the space to foreign cars, Chineese, Indian, etc.? What 2008 will look like? Will the domestic OEM's see strong sales outside of the US? weak US $.... maybe. Maybe, we should ask MR TATA. India's car company selling there new $3000 to the rental car industry................ Welcome to a global economy,

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Comment by moti kahana on January 24, 2008 at 4:52pm
done
Comment by moti kahana on January 24, 2008 at 4:51pm
sorry will do it in a few, thx
Comment by Ralph Paglia on January 24, 2008 at 4:48pm
Moti,

Please reduce the font size on this post... Thank you for your help!

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