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Automotive News recently reviewed a fair amount of data to answer a question; which automakers are selling more vehicles to rental car companies? Previously, the big three would do "fleet dumping" as a way to prop up sales for the month. But now, Ford and General Motors have actually cut back on selling to rental fleets and number of Asian automakers are picking up the slack. Automotive News compared sales to rental fleets in 2012 to this year's numbers, and GM has reduced its sales to fleets from 18.6 percent (nearly one-fifth of their total sales) to 13.6 percent. It should be noted that GM is still the top rental car provider with 378,219 vehicles through November. But GM is the only automaker to reduce its rentals this year (down 11 percent through November). Ford has also seen its share of fleet sales drop from 15.4 in 2012 to 11 percent this year. Automotive News does note that Ford's fleet volume has increased 23 percent through November of this year. Meanwhile, Asian automakers are increasing their sales with Hyundai and Kia leading the charge. Through November, 22.4 percent of Hyundai's total sales were for rental fleets. Contrast this to just 9.9 percent in 2012. Jessica Caldwell, an analyst for Edmunds.com says a possible reason for this is people are buying up crossovers and trucks, and Hyundai and Kia don't make that many. "Anytime an automaker is under pressure to protect market share, it's tempting to count on the daily rental business to dial up more volume," said Caldwell. Source: Automotive News (Subscription Required)
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Automotive News recently reviewed a fair amount of data to answer a question; which automakers are selling more vehicles to rental car companies? Previously, the big three would do "fleet dumping" as a way to prop up sales for the month. But now, Ford and General Motors have actually cut back on selling to rental fleets and number of Asian automakers are picking up the slack. Automotive News compared sales to rental fleets in 2012 to this year's numbers, and GM has reduced its sales to fleets from 18.6 percent (nearly one-fifth of their total sales) to 13.6 percent. It should be noted that GM is still the top rental car provider with 378,219 vehicles through November. But GM is the only automaker to reduce its rentals this year (down 11 percent through November). Ford has also seen its share of fleet sales drop from 15.4 in 2012 to 11 percent this year. Automotive News does note that Ford's fleet volume has increased 23 percent through November of this year. Meanwhile, Asian automakers are increasing their sales with Hyundai and Kia leading the charge. Through November, 22.4 percent of Hyundai's total sales were for rental fleets. Contrast this to just 9.9 percent in 2012. Jessica Caldwell, an analyst for Edmunds.com says a possible reason for this is people are buying up crossovers and trucks, and Hyundai and Kia don't make that many. "Anytime an automaker is under pressure to protect market share, it's tempting to count on the daily rental business to dial up more volume," said Caldwell. Source: Automotive News (Subscription Required) View full article
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Detroit Three's Car Production Will Move to Mexico
William Maley posted an article in Automotive Industry
If there is one thing that we can pull from this latest round of contract negotiations between the Detroit three and the UAW is that amount of car production that will be heading to Mexico. According to a report from Automotive News, Ford and Fiat Chrysler Automobile will have moved production of most of their mass-market vehicles from the U.S. to Mexico. General Motors will be the only Detroit automaker who is keeping some sort of production of their compact and midsize cars. Why the shift to Mexico? It comes down to what vehicles make money for the three automakers. Currently, pickups and SUVs carry a much higher profit margin than cars. "You can afford to pay a little more when you're making trucks, but the structural change in the industry has been so huge that I was kind of surprised by that -- trucks here and cars in Mexico," said Dave Cole, chairman emeritus of the Center for Automotive Research. But some point out this change in production could put the Detroit three in a situation they found themselves back in the early 2000's with sales of SUVs dropping due to the increase in gas prices. Models that will be moving to Mexico include the Chrysler 200, Dodge Dart, and Ford Fusion. Source: Automotive News (Subscription Required)- 4 comments
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If there is one thing that we can pull from this latest round of contract negotiations between the Detroit three and the UAW is that amount of car production that will be heading to Mexico. According to a report from Automotive News, Ford and Fiat Chrysler Automobile will have moved production of most of their mass-market vehicles from the U.S. to Mexico. General Motors will be the only Detroit automaker who is keeping some sort of production of their compact and midsize cars. Why the shift to Mexico? It comes down to what vehicles make money for the three automakers. Currently, pickups and SUVs carry a much higher profit margin than cars. "You can afford to pay a little more when you're making trucks, but the structural change in the industry has been so huge that I was kind of surprised by that -- trucks here and cars in Mexico," said Dave Cole, chairman emeritus of the Center for Automotive Research. But some point out this change in production could put the Detroit three in a situation they found themselves back in the early 2000's with sales of SUVs dropping due to the increase in gas prices. Models that will be moving to Mexico include the Chrysler 200, Dodge Dart, and Ford Fusion. Source: Automotive News (Subscription Required) View full article
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