Japan's Big Threes Little Secret

[13092]

http://www.nyse.com/interface/jsp/NHDetail...isdowjones=true


"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."

[VenSeattle]

Doesn't surprise me... what did everyone expect when the domestics stepped away from the fleet market? The Fleets have to buy their cars from some where. It's not as if "fleet sales" is just a magical dumping ground in fairy land that Ford & GM can just choose a number of vehicles and then "poof" they magically have a "fleet buyer" for that certain amount of vehicles. It's a real and legitimate market. Less profitable and image degrading (until the imports make it respectable), but still a legitimate market.

[mustang84]

I saw a fleet Toyota Camry yesterday morning...it said "Commercial" on the license plate. Detroit is kinda in a tough situation...they give up fleet sales in order to increase resale value, in turn hurting market share. However, Japan increases fleet sales, giving them month-after-month market share increases, and their resale value remains steady. I wonder how many fleet sales it will take before Camry resale begins to drop, if ever?

[VenSeattle]

When I went to Dallas last time, Hertz had nothing but Camrys, Avalons, & Kia Amantis available. All I could do was roll my eyes. I still go with Avis. Amazingly, they didn't have a LaCrosse available. I ended up with a LeSabre. It'll take some time for rental fleets to impact resale value... the abused rental cars have to trickle down to "used car market" before they start showing quality/reliability symptoms. I give it 3 years if they continue to up their Fleet sales at this rate.

[SingleStylish]

Might it be more prudent to compare overall fleet sale volume and not % inc.? After all Toyota could have been selling 10 Camry's to fleets and in one month sell 2,000 which equates to 19900% increase. So that means that GM could still be selling by volume thousands more vehicles a month which in the end really affects resale more than percentage increases.

[FUTURE_OF_GM]

Well, well What a way to inflate the numbers!

[CaddyXLR-V]

Might it be more prudent to compare overall fleet sale volume and not % inc.?  After all Toyota could have been selling 10 Camry's to fleets and in one month sell 2,000 which equates to 19900% increase.  So that means that GM could still be selling by volume thousands more vehicles a month which in the end really affects resale more than percentage increases.

[post="27744"]<{POST_SNAPBACK}>[/post]

But that is true for the opposite as well. GM dropping 10% from fleet sales could be alot lower sales. So either way we are not seeing retail numbers to compare each company.

[Variance]

Why make a big fuss about fleet sales anyway? A sale is a sale. Edited October 12, 2005 by VarianceJ30

[Cory Wolfe]

Why make a big fuss about fleet sales anyway?

A sale is a sale.

[post="27779"]<{POST_SNAPBACK}>[/post]

:withstupid:

[13092]

:withstupid:

[post="27782"]<{POST_SNAPBACK}>[/post]

Very Funny, that just made my day! :lol: :lol: :lol:

[Flybrian]

Why make a big fuss about fleet sales anyway?

A sale is a sale.

[post="27779"]<{POST_SNAPBACK}>[/post]

Say that to all the articles deriding GM sales as coming from sales to rental agencies and all the cracks made by rag editorials about domestic rentals.

[CaddyXLR-V]

Say that to all the articles deriding GM sales as coming from sales to rental agencies and all the cracks made by rag editorials about domestic rentals.

[post="27857"]<{POST_SNAPBACK}>[/post]

Until GM reduces their fleet sales, and Toyota and Honda increase them, then the articles are nowhere to be found.

[Flybrian]

Until GM reduces their fleet sales, and Toyota and Honda increase them, then the articles are nowhere to be found.

[post="27879"]<{POST_SNAPBACK}>[/post]

I have to search harder than I should to find news articles about the time Mitsubishi was dumping 30% to 40% of its total production into fleets.

[Snate]

The last 2 rentals I've had have been Altimas....yea...they are definite POS's

[sciguy_0504]

I have no problem with my dad's 2005 Altima. The acceleration is pretty good for a 4 banger.

[Snate]

Not the two that I had...jeez...the engine sounded and felt like a lawnmower, the interior was falling apart, the transmission was jerky...and at only 4K miles. I understand the rental thing and all but alot of these had nothing to do with wear and tear.

[Flybrian]

I had an Altima for a day. Its was an okay car. I had a Sentra once, too, now THAT was trash...

[regfootball]

I have to search harder than I should to find news articles about the time Mitsubishi was dumping 30% to 40% of its total production into fleets.

[post="27891"]<{POST_SNAPBACK}>[/post]

they used to. I think now their policy is very few fleet sales. as in close to zero, read that like 2 weeks ago or something.

BTW, my Diamante rental on a trip back in 98 is why I have purchsed 2 Diamante rental return cars since then. in lieu of say, a new Saturn L series at the time. I've had Endeavor and new Galant loaners recently that made a great impression on me also. That's partly why I think the Galant would be a sedan I could enjoy driving a lot in spite of its cheap interior. I was able to decide first hand if I liked it.

Point being, i do think in some cases, getting good product out in the rental fleets is like good advertising, and getting someone to actually TRY your product instead of just reading a magazine or internet journalist hack article...well, I think that's a good thing.

It all boils down to if the car is good. No one is going to like a Taurus from renting it, to buy it.

What grates me though, Chrylser, Toyota, etc are now dumping into fleets but NOOOO we hear nothing about it from the press. Edited October 13, 2005 by regfootball

[FUTURE_OF_GM]

Still no exposure on this.... I'm sure they'll find a way to "Make it work," "Smooth it over" and screw Detroit some more... It always happens that way. Hell, even the headline of this story is a jab at Detroit. Like in any situation they're damned if they do and damned if they don't--the media makes sure of that.