Fleet sales all around for September

[griswold44]

DETROIT -(Dow Jones)- Detroit's Big Three auto makers increased sales to fleet customers in September, a move that could reflect even weaker demand for domestic cars and trucks last month than initially thought and could lead to a tighter profit pinch if the trend continues.
General Motors Corp. (GM), Ford Motor Co. (F) and Chrysler Group, the U.S. division of DaimlerChrysler AG (DCX), each increased fleet sales to commercial customers and rental car companies last month compared to the like period in 2004. Ford's fleet sales jumped 26% while retail demand slid 28%, and GM fleet sales spiked 24%, with retail falling 35%.
Chrysler declined to report specific numbers, but spokesman Kevin McCormick said fleet sales "had gone up a little bit in September." Each of the automakers delivered at least a quarter of total vehicles sold to fleet customers.
National Automobile Dealers Association chief economist Paul Taylor said some of the fleet demand was inspired by a need for replacement rental cars in regions devastated by Hurricanes Katrina and Rita. Nevertheless, September' significant drop in retail demand reflects souring enthusiasm for Detroit' products as Japanese auto makers grab market share.
Sales declines at GM and Ford contributed to a 7% decline in the U.S. car market in September. The decline led to a 16.4 million seasonally adjusted annual rate of vehicle sales in September, down from about 16.8 in August and 20.6 million in July. While September numbers outperformed analyst expectations by as much as 3%, the month was far below the historically strong average for the month.
But the declining numbers may not give an adequate reading of demand for U.S. products given the increase in fleet sales, said George Pipas, U.S. sales analysis manager at Ford. "Underlying retail demand was weaker than the headline number," he said.
The SAAR was inflated by at least 181,000 domestic fleet sales and approximately 20,000 sold to fleets by the top three Japanese automakers, according the most-recent registration data published by R. L. Polk & Co.
High fleet sales are especially troubling for GM and Ford, both of which have expressed a need to drastically reduce sales to rental car firms in order to boost the value of products and, in theory, cut incentive spending. Taylor said sales to rental fleets aren't necessarily a negative as buyers are given chance to experience a brand through rental cars, but Detroit auto makers have hurt themselves by pouring outdated, under-equipped models into rental fleets that " diminish the value of the brand, he said."
Not everyone is backing away from the fleet market. Toyota Motor Corp. ( 7203.TO), the top-selling Japanese automaker, boosted fleet sales 16% in the first seven months of 2005 compared to the like period in 2004, according to R.L. Polk, while Nissan Motor Co. (7201.TO) and Honda Motor Co. (7267.TO) have upped fleet business 25% and 30% respectively. Even though each of Japan's Big Three have boosted sales in 2005, fleet increases far outpace the rate of growth for each company.

More here: http://www.nyse.com/interface/jsp/NH...sdowjones=true

[LI CADILLAC]

I think they need these sales right now

[SweetHemi1]

Originally Posted by LI CADILLAC

I think they need these sales right now

The market is so competitive now probably every automaker is looking for sales.

[01cavalier]

Yes, everyone is looking for better sales, it seems that some think the market is in a period of adjustment, and if this is the case, it will just get more competetive as everyone tries to grab the biggest piece of the pie.

[Tiger]

Originally Posted by griswold44

DETROIT -(Dow Jones)- Detroit's Big Three auto makers increased sales to fleet customers in September, a move that could reflect even weaker demand for domestic cars and trucks last month than initially thought and could lead to a tighter profit pinch if the trend continues.
General Motors Corp. (GM), Ford Motor Co. (F) and Chrysler Group, the U.S. division of DaimlerChrysler AG (DCX), each increased fleet sales to commercial customers and rental car companies last month compared to the like period in 2004. Ford's fleet sales jumped 26% while retail demand slid 28%, and GM fleet sales spiked 24%, with retail falling 35%.
Chrysler declined to report specific numbers, but spokesman Kevin McCormick said fleet sales "had gone up a little bit in September." Each of the automakers delivered at least a quarter of total vehicles sold to fleet customers.
National Automobile Dealers Association chief economist Paul Taylor said some of the fleet demand was inspired by a need for replacement rental cars in regions devastated by Hurricanes Katrina and Rita. Nevertheless, September' significant drop in retail demand reflects souring enthusiasm for Detroit' products as Japanese auto makers grab market share.
Sales declines at GM and Ford contributed to a 7% decline in the U.S. car market in September. The decline led to a 16.4 million seasonally adjusted annual rate of vehicle sales in September, down from about 16.8 in August and 20.6 million in July. While September numbers outperformed analyst expectations by as much as 3%, the month was far below the historically strong average for the month.
But the declining numbers may not give an adequate reading of demand for U.S. products given the increase in fleet sales, said George Pipas, U.S. sales analysis manager at Ford. "Underlying retail demand was weaker than the headline number," he said.
The SAAR was inflated by at least 181,000 domestic fleet sales and approximately 20,000 sold to fleets by the top three Japanese automakers, according the most-recent registration data published by R. L. Polk & Co.
High fleet sales are especially troubling for GM and Ford, both of which have expressed a need to drastically reduce sales to rental car firms in order to boost the value of products and, in theory, cut incentive spending. Taylor said sales to rental fleets aren't necessarily a negative as buyers are given chance to experience a brand through rental cars, but Detroit auto makers have hurt themselves by pouring outdated, under-equipped models into rental fleets that " diminish the value of the brand, he said."
Not everyone is backing away from the fleet market. Toyota Motor Corp. ( 7203.TO), the top-selling Japanese automaker, boosted fleet sales 16% in the first seven months of 2005 compared to the like period in 2004, according to R.L. Polk, while Nissan Motor Co. (7201.TO) and Honda Motor Co. (7267.TO) have upped fleet business 25% and 30% respectively. Even though each of Japan's Big Three have boosted sales in 2005, fleet increases far outpace the rate of growth for each company.

More here: http://www.nyse.com/interface/jsp/NH...sdowjones=true

I've noticed an AMAZING amount of Toyota (especially the new Tacoma) work-truck fleet sales in my area lately. It is just funny to hear people say they don't do fleet sales. I was wondering how much of this was occurring around North America. Thanks for posting an article providing some insight.

[ChevroletRevived]

Yes, and I notice alot of Toyota Camry's at the Enterprise and Budget lots. I guess that's good for us... But not for Toyota...

[ChevroletRevived]

Originally Posted by 01cavalier

Yes, everyone is looking for better sales, it seems that some think the market is in a period of adjustment, and if this is the case, it will just get more competetive as everyone tries to grab the biggest piece of the pie.

You definitley have a point, 01cavalier. I think we'll see even more heated competition and fleet sales...from everyone.

[regfootball]

"Toyota Motor Corp. ( 7203.TO), the top-selling Japanese automaker, boosted fleet sales 16% in the first seven months of 2005 compared to the like period in 2004, according to R.L. Polk, while Nissan Motor Co. (7201.TO) and Honda Motor Co. (7267.TO) have upped fleet business 25% and 30% respectively. Even though each of Japan's Big Three have boosted sales in 2005, fleet increases far outpace the rate of growth for each company."

WHY DO WE NEVER HEAR ABOUT THIS?

There were some nice Infiniti G35's in the hertz lot i drove by today......i.e. more than ONE.

[TransAmTrance]

Originally Posted by regfootball

"Toyota Motor Corp. ( 7203.TO), the top-selling Japanese automaker, boosted fleet sales 16% in the first seven months of 2005 compared to the like period in 2004, according to R.L. Polk, while Nissan Motor Co. (7201.TO) and Honda Motor Co. (7267.TO) have upped fleet business 25% and 30% respectively. Even though each of Japan's Big Three have boosted sales in 2005, fleet increases far outpace the rate of growth for each company."

WHY DO WE NEVER HEAR ABOUT THIS?

There were some nice Infiniti G35's in the hertz lot i drove by today......i.e. more than ONE.

yea! why does the media never report anything on toyohondissan and their fleet sales??? i'd like to see reports on actual retail sales. cause i see PLENTY of camrys and civics at rental lots

[griswold44]

Originally Posted by ChevroletRevived

Yes, and I notice alot of Toyota Camry's at the Enterprise and Budget lots. I guess that's good for us... But not for Toyota...

Did you bother to read the whole article? Or did you just look for the Toyota/Honda/Nissan stuff?

[paul3230]

Originally Posted by griswold44

Did you bother to read the whole article? Or did you just look for the Toyota/Honda/Nissan stuff?

Just the Toyota/Honda/Nissan stuff

[armycam68]

Great for GM, but as the rental cars hit the GM auction in my area, my 2004, $28,750 IMPALA will be worth "ZIP"! I think GM should sell at Hertz prices to keep the playing field level.
My dealer tells me........why should I give you $15K on a trade for your 0-4 when I can buy one at the auction for $13K??????????

[tripowergto]

Originally Posted by regfootball

"Toyota Motor Corp. ( 7203.TO), the top-selling Japanese automaker, boosted fleet sales 16% in the first seven months of 2005 compared to the like period in 2004, according to R.L. Polk, while Nissan Motor Co. (7201.TO) and Honda Motor Co. (7267.TO) have upped fleet business 25% and 30% respectively. Even though each of Japan's Big Three have boosted sales in 2005, fleet increases far outpace the rate of growth for each company."

WHY DO WE NEVER HEAR ABOUT THIS?

There were some nice Infiniti G35's in the hertz lot i drove by today......i.e. more than ONE.

Those #'s are VERY interesting. I can't help but wonder what the import retail sales increases actually are without the newly added fleet sales.

[griswold44]

The point of this article was to show that the media isn't "biased"(I was sick and tired of hearing it), and that there are Toyota/Honda etc fleet sales, but I think some of us are getting out of reality here. Sure they may have fleet sales (who doesn't?), but they still have PLENTY of retail sales.

[AdmiralViscen]

Posting one article from the NYSE website isn't the same as the media not being biased.

Why is it that when the media mentions the top 10 selling Impala they say that it's there with the assistance of fleet sales, but when they report 10% gains at Japan, Inc. they don't report 30% increases in fleet sales as an internal counterpoint?