Car-rental groups hit by Detroit's difficulties

[1931Chevy]

http://www.msnbc.msn.com/id/17457257/
A drive by the three Detroit-based carmakers to wean themselves from low-margin sales to car-hire fleets is complicating life for several other key operators in the North American motor industry.

The message from General Motors, Ford Motor and Chrysler, says Neil Abrams, a car-rental consultant, is that "while we loved you guys in the past, that love is now gone and we're going over to more lucrative segments".

GM disclosed last week that its sales to daily-rental fleets were a quarter lower in February than a year earlier. Ford's sales were down almost a third.

The shift is forcing car-rental companies to find new ways of buying and selling vehicles.

Their rates have already risen sharply and they are increasingly challenged to find the right balance in their charges between volume and profit.

[paul8488]

Now Toyota or Hyundai will swoop in and fill their orders and be considered saviours! GM should have a rental-car division using end-of-run vehicles (like the current Malibu and Ion and Lacrosse) with a different badge. They could really downplay the 'GM connection' so as not to tarnish regular GM brands.

[iamwin]

Oldsmobile?

[asim]

Originally Posted by paul8488

Now Toyota or Hyundai will swoop in and fill their orders and be considered saviours! GM should have a rental-car division using end-of-run vehicles (like the current Malibu and Ion and Lacrosse) with a different badge. They could really downplay the 'GM connection' so as not to tarnish regular GM brands.

Thats a good idea, but I don't know if everyone (or a lot of people for that matter) will fall for a move like that. I think people might still recognize that it is a cheap GM car when they see one. Well maybe Toyota can rent more to the companies and tarnish their reputation too.

[Stéphane Dumas]

Originally Posted by paul8488

Now Toyota or Hyundai will swoop in and fill their orders and be considered saviours! GM should have a rental-car division using end-of-run vehicles (like the current Malibu and Ion and Lacrosse) with a different badge. They could really downplay the 'GM connection' so as not to tarnish regular GM brands.

Let's lobby Honda to flood the fleet rental-car market. Just imagine what the results will give once Hertz, Avis, National sell their 1-year old civics to at a lower price then the Honda dealer....

[New_Mexico_Sunset_on_Rt66]

Actually, I was thinking of this when I was lying in bed this morning before getting up. I think the HHR is one product that is gonna do well in the used car market. I think consumers of used cars will see the HHR in lots, and compared with the competition around it, will seem much more desireable. As it has unique style.

One result of GM cutting back on fleet sales will be higher prices, and more residual for it's used, sorry, pre-owned cars.

[roteague]

Originally Posted by Stéphane Dumas

Let's lobby Honda to flood the fleet rental-car market. Just imagine what the results will give once Hertz, Avis, National sell their 1-year old civics to at a lower price then the Honda dealer....

Uhh ... no. I'm off to Maui next week, where I have a Chrysler 300 reserved. I no interest in getting a Honda Accord (which I have rented in the past) in its place. When I travel, I want a nice car to drive, not a low-ball junk rental. If GM wants to make changes to its sales to Hertz, etc, they should do it by building nicer cars for the rental fleets, not giving them junk - in other words, give the customer more than it expects.

[CRBoyd91]

Originally Posted by paul8488

Now Toyota or Hyundai will swoop in and fill their orders and be considered saviours! GM should have a rental-car division using end-of-run vehicles (like the current Malibu and Ion and Lacrosse) with a different badge. They could really downplay the 'GM connection' so as not to tarnish regular GM brands.

If the did that they should fid end of run cars that aren't so ****************ty.

[GM lover]

I hope GM sticks to their guns and not provide cars to rental fleets. Using end of run cars would be a good idea but they would have to have a different name.

[rsbaker]

Originally Posted by iamwin

Oldsmobile?

Now there's and Idea!

[ponchoman49]

It already seems to be working. I can't touch a 2005 Buick LaCrosse CX for less than $15995 with 20K miles or less. Meanwhile 2005 Centurys are being sold all day long for $10995-11995. The Impalas are pretty much the same. 2005 models sell for $10995-12995 whereas 2006 base stripper LS models are going for as much as $16995 and LTZ's are fetching $18995. Lucernes are even more expensive. The cheapest one I could find was a 2006 CX with 31K for $16995. A 2005 base LeSabre sitting right next to it sells for $12995 with the exact same miles. Hopefully GM doesn't totally abandon the rental companies and give it over to Toyota. The current Malibu sold as a Classic for 2008 with either the 2.2 Ecotec or 3500 should be available and maybe Pontiac should consider continuing production of the Grand Prix for 2008 as those seem to be a popular rental choice.

[JonathanRohr]

I had always thought that GMC should be GM's fleet brand. Big trucks and vans for hauling/work companies, and cars for the rental companies.

[unkillsam]

Boo-hoo hoo. Everyone needs to feel sorry for the rental car companies now, their profit margins will shrink to the benifit of Detriot.

[Ghrankenstein]

Originally Posted by GM lover

I hope GM sticks to their guns and not provide cars to rental fleets. Using end of run cars would be a good idea but they would have to have a different name.

Here's another concept I've been working on: Sell the cars to the rental companies at the same price everyone else pays.

[hunchman]

Originally Posted by Ghrankenstein

Here's another concept I've been working on: Sell the cars to the rental companies at the same price everyone else pays.

what about the coupons they have?.......would this void them?