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GM Plans to Continue Decrease of Fleet Sales
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Short-term pain for long-term gain. I like when GM sets its sights farther down the road than the tips of its own two feet.
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This may be a natural progression of things anyway. Fleets don't just mean "rental car lots", they also mean corporate and government fleets. Because cars last much longer than they did, I'm sure that many government agencies are making do with their older cars much longer. Being somewhat active in my local government, I know that the cities around where I live can't afford to do planned fleet replacements because they're spending that budget on fuel now.
Oh yeah - when they do a replacement, a lot of cities are buying hybrid Priuses, Civics, and Escapes (although they pretty much buy from whatever dealerships happen to be located within city bounds). These vehicles make a lot of sense for a lot of tasks that involve a lot of short trips around town (building inspectors, health and safety inspectors, city engineers, etc).
Oh yeah - when they do a replacement, a lot of cities are buying hybrid Priuses, Civics, and Escapes (although they pretty much buy from whatever dealerships happen to be located within city bounds). These vehicles make a lot of sense for a lot of tasks that involve a lot of short trips around town (building inspectors, health and safety inspectors, city engineers, etc).
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Hmm, I guess you could re-word the title to "GM Increases the Rate of Decrease of Fleet Sales".
Increasing value and perception is what this is all about.
Decreasing fleet sales raises the value of your product in the retail market, and raises perception.
Increasing value and perception is what this is all about.
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and then they will be able say they are the worlds largest every year
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People decry fleets, but in an industry where one car takes four years to develop, you can't just hope people show up to buy it.
It's nice to know you can count on say 50,000 sales a year just to keep the factory humming (remember, an shuttered factory represents lots of costs - even a narrow profit margin is better than nothing).
It's nice to know you can count on say 50,000 sales a year just to keep the factory humming (remember, an shuttered factory represents lots of costs - even a narrow profit margin is better than nothing).
500K is still a lot of units. What you don't see now is only GM cars/vans/SUV's in the rental lines.
That said, one of my favorite rentals this year is the 2008 Malibu Classic. It has the 221 hp 3.5L VVT V-6 engine and get's great mileage and is cheap to run. If Alamo/National has one I take it every time.
Compared to the Camry with 2.4L I-4's they often have it's a much better car. The Camry seats have no height adjustment and feel like two sacks of potatoes bound together. No long drive comfort at all. Despite the I-4, the Camry mileage is not too great if you put the AC on (needed in central Florida). It's not just cheap Camry's going into fleets from Toyota. The V-6 RAV4 and Sienna 8 seat minivan are 95% of the offerings in the mid-size SUV and minivan lanes. The RAV4 is this year's Jeep Liberty in the rental car fleet.
Interesting aside for 2009 - GM drops the Malibu Classic model for fleets and adds a LS trim FL1 fleet trim that features the 3.5L V-6 (now 219 hp) with 4 speed auto. I think that is a smart move for them - too bad they don't offer the 3.5L to consumers in a 1LT or 2LT trim with the newer 6 speed auto transmission. That combo would equal or better the 4 cylinder Malibu with 6 speed auto's mileage with extra power. My 2005 Maxx gets 24 around town and 34 on the highway regularly with a 4 speed auto - the 6 speed would only improve things.
That said, one of my favorite rentals this year is the 2008 Malibu Classic. It has the 221 hp 3.5L VVT V-6 engine and get's great mileage and is cheap to run. If Alamo/National has one I take it every time.
Compared to the Camry with 2.4L I-4's they often have it's a much better car. The Camry seats have no height adjustment and feel like two sacks of potatoes bound together. No long drive comfort at all. Despite the I-4, the Camry mileage is not too great if you put the AC on (needed in central Florida). It's not just cheap Camry's going into fleets from Toyota. The V-6 RAV4 and Sienna 8 seat minivan are 95% of the offerings in the mid-size SUV and minivan lanes. The RAV4 is this year's Jeep Liberty in the rental car fleet.
Interesting aside for 2009 - GM drops the Malibu Classic model for fleets and adds a LS trim FL1 fleet trim that features the 3.5L V-6 (now 219 hp) with 4 speed auto. I think that is a smart move for them - too bad they don't offer the 3.5L to consumers in a 1LT or 2LT trim with the newer 6 speed auto transmission. That combo would equal or better the 4 cylinder Malibu with 6 speed auto's mileage with extra power. My 2005 Maxx gets 24 around town and 34 on the highway regularly with a 4 speed auto - the 6 speed would only improve things.
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The cobalt and aveo are not matches for the civic and fit even with reduced sales to rental fleets. However, they were great moves in the right direction. In both cases fit/finish, driving dynamics, and design is not in GM's favor.
However, I have my hopes on the delta 2 cobalt and global gamma aveo which will be a better match for the fit/civic. IMO, these cars will be true benefactors of reduced rental fleets on debut. Because they will bring the goods as well and thats the only thing that counts.
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