GM plans deeper cuts in fleet sales in 2008
GM plans deeper cuts in fleet sales in 2008
Fri Feb 2, 2007 10:18am ET
LAS VEGAS, Feb 2 (Reuters) - General Motors Corpis in the middle of a three-year effort to reduce its low-margin sales to car rental agencies and plans to cut sales by an additional 100,000 units in 2008, the automaker's North American chief said on Friday.
"Our used cars coming back from rental fleets were competing with our new cars," Troy Clarke said.
Clarke, speaking to reporters on the sidelines of an automotive conference sponsored by J.D. Power and Associates, said GM would cut sales to car rental agencies by a total of about 270,000 units between 2006 and 2008.
GM cut back sharply on its sales to fleet buyers in January, driving a 20 percent drop in its overall sales for the month, according to sales data released this week.
"We led a very creative incentive based way of retailing products for a number of years, but we paid a price for that as our residual values continued to drop," Clarke said.
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Fri Feb 2, 2007 10:18am ET
LAS VEGAS, Feb 2 (Reuters) - General Motors Corp
"Our used cars coming back from rental fleets were competing with our new cars," Troy Clarke said.
Clarke, speaking to reporters on the sidelines of an automotive conference sponsored by J.D. Power and Associates, said GM would cut sales to car rental agencies by a total of about 270,000 units between 2006 and 2008.
GM cut back sharply on its sales to fleet buyers in January, driving a 20 percent drop in its overall sales for the month, according to sales data released this week.
"We led a very creative incentive based way of retailing products for a number of years, but we paid a price for that as our residual values continued to drop," Clarke said.
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© Reuters 2007. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
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