Tag: fleet

By on February 5, 2014

enterprisecarshare

According to a report from consulting firm AlixPartners, each and every car in the Zipcar or car2go car-sharing fleets means 32 lost vehicle sales. Based on a survey of 2,000 adults in 10 major cities who use car-sharing services, the report says that Americans would have bought an additional half million new or used cars and light trucks since 2006 if they did not have access to those services. That figure is expected to grow to 1.2 million by the end of the decade.

(Read More…)

By on August 26, 2013
2014 Chevrolet Impala Exterior-001
I have this feeling that our most impressionable automotive years are our high school years. Maybe it’s because I was so eager to drive that I noticed anything with wheels. Maybe it’s that auto shop class where I got to wrench on a Wankel (that sounds wrong doesn’t it?). Whatever the reason, it seems many of my brand and model name identities were formed in the mid 1990s. For me, “Impala” doesn’t conjure up the W-Body abomination GM has been selling for the past 13 years. Instead “my” Impala has always been the 1994-1996 Caprice Impala SS with the 5.7L Corvette LT1 engine. This is my benchmark on which every Impala must be judged.
By on March 19, 2013

One of the most interesting things to come out of the recent Chevy Impala launch – aside from the fact that GM thinks it can sell the thing for $40,000 – is that the current, unloved Impala will live on as a fleet-only special called the “Chevrolet Impala Limited.” To that, I say: great idea.

I’ve been a proponent of fleet-only cars ever since the 1997-2003 Chevrolet Malibu was rebranded the Chevrolet Classic, a name which would’ve been appropriate when it debuted. In fact, I think there should be even more fleet-only cars – an idea that’s unpopular in the automotive industry, but highly praised between my ears. Allow me to explain.

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By on December 20, 2012

Christmas has come early for our beloved commenters Zackman and Mikey – GM has confirmed that the current generation Chevrolet Impala will be produced until June, 2014, ostensibly for fleet duty and used car market fodder.

(Read More…)

By on February 2, 2012

One month is far too premature to make any predictions about 2012′s sales race, but we still got our hands on the data, thanks to independent analyst Timothy Cain. As usual, the Ford F-Series and Toyota Camry were the top dogs.

(Read More…)

By on June 11, 2011

An Ohio judged has ruled [full ruling in PDF here] against Ford in a 2002 case alleging the automaker overcharged dealers by selling commercial trucks at unpublished prices between 1987 and 1998. According to the summary judgement, Ford’s “CPA” program violated its contract with dealers by publishing “unrealistically high” wholesale prices and using “secretive, unpublished discounts” on an uneven basis, thereby overcharging some 3,000 dealers by an average of $1,650 for each of the 474,289 medium- and heavy-duty trucks sold in the applicable time period (about $1.2b of the ruling is for unpaid interest). The story is intriguing in its illustration of the differences between consumer and dealer incentives: while consumer-end incentives can be applied on a market-by-market basis, dealer invoice prices must be evenly applied across all markets according to Ford’s contract with its dealers. The story is also of major significance considering Ford’s still-shaky financial position, with automotive gross cash exceeding total debt by a mere $1.4b. Ford will appeal the ruling, but because the damages awarded are material rather than punitive, an expert tells the Cleveland Plain Dealer, Ford’s appeal could be “interesting.” Which doesn’t sound like great news to us…

By on April 15, 2011

Ask an industry-watcher to name an automaker that seems to be doing things right, and chances are one of the top choices would be Ford Motor Company. And though Ford is enjoying favorable perceptions in the media, according to the company’s own internal goals, it’s actually underperforming. And in a key metric, no less: retail market share. Bloomerg reports: (Read More…)

By on March 11, 2011

Remember the Saturn Vue? The Theta-based crossover is known around the world as the Chevrolet Captiva (or Daewoo WinStorm… yes, really), and soon it will be known in the US as GM’s latest fleet queen. With some 86% of GM’s fleet sales last year coming from Chevy (about a 35% mix for the brand), GM is apparently trying to insulate its newer products from the fleet queen image, and as a result it’s decided to import the Captiva Sport from Mexico in order

to help satisfy growing demand for compact crossovers by fleet customers.

Keep in mind, this is not the latest Captiva to come out of GM-DAT, but rather the outgoing model that has been in production since 2006. But, according to GM’s release, this isn’t a weakness. Alan Batey, U.S. vice president, Chevrolet Sales and Service explains

It says a lot about our ability to draw on international programs and proven, quality crossovers that we were able to identify and federalize a strong new entrant such as Captiva Sport for the U.S. market. We turned to our global network for a solution to quickly meet the rising demand from local fleet customers and continue to meet strong retail demand for the Equinox.

And if this attitude seems shocking, it’s time to start getting used to it: GM is rumored to be planning this same strategy when it releases its updated Chevy Malibu next year. According to long-standing whispers, the outgoing model will continue to be produced as a fleet-oriented “Classic” model. Perhaps it’s time for GM to roll out a fleet-only brand?

By on February 19, 2011

In his write-up on the new Town Car-replacing livery version of the Lincoln MKT, Jack Baruth takes on the practical issues at stake, writing

I’ve put plenty of miles on both the MKT and the outgoing Town Car. Make no mistake, the MKT is quieter, faster, more spacious, and possessed of a vastly superior level of interior technology. If you told me that I would need to run one up a curb at sixty miles per hour for the purpose of avoiding a wandering falafel vendor across 110th Street, however, I wouldn’t think twice before reaching for the old-style keys. Ford has their work cut out for them.

Well, livery fleet owners think Ford’s got its work cut out for it too… but not for the practical wear-and-tear reasons that Jack points out. No, the problem, according to the owner of one Chicago-area limo company [via AN [sub]] is that

What I heard from most people is that they’re dissatisfied. It’s mainly the appearance, which is a crossover vehicle. People are used to what they consider a luxury vehicle for their clients and this has got a bit of a van styling to it.

Yes, as is so often the case in the great automotive discussions of our day, aesthetics trump all. And in this case, the shallow critique might actually be fairly valid. Not only is the MKT seen by some as being “unrelentingly grotesque” (to borrow a phrase), but limos are typically the most traditional, conservative vehicles on the road. Though clearly the better vehicle, would a baleeen-grilled crossover impart the same sense of timeless gravitas as a black Town Car? Another limo fleet owner encapsulates the issue with a rhetorical question:

When you say limo, I know what that means now, but will it mean the same thing a year from now? Will I be thinking about the Lincoln or will I be thinking about all kinds of vehicles?

Well, is the MKT up to filling the Town Car’s shoes? Or will limo and livery buyers look to a more traditional replacement (hello, Chrysler 300)? Is the livery car’s conservative image about to be blown wide open, or is it more resilient than that?

By on February 15, 2011

Bloomberg [via AN [sub]] reports that Chrysler’s fleet sales mix was at 25% in the month of January (according to Edmunds anyway, as Chrysler doesn’t release fleet numbers), the lowest level since a Cash For Clunkers-fueled August 2009. According to the same Edmunds data, however, the industry average fleet mix is just under 20%… and Chrysler’s 2010 average was 38%. But now that Chrysler’s been under 30% fleet for three months, sales boss Fred Diaz figures meeting the industry average is just a matter of time. Specifically:

By the end of the year, we will definitely be at industry average. That’s the goal; that’s our plan.

Considering Chrysler’s fleet sales fell from 56% to the 25%-range over the course of the last year, it sounds like the last few steps of this journey will be the most difficult. Especially when you remember that Chrysler’s also trying to increase volume some 45% this year. That means some 300,000-450,000 more Americans will have to decide to buy Chrysler Group products this year than did last year if the Pentastar wants to achieve both its volume and fleet goals. That’s going to take some serious selling…

By on December 7, 2010

In the wild, panthers are endangered. In the automotive world, Panthers will go extinct sometime in the third quarter of 2011, when the last Lincoln Town Car Executive L rolls off the line. If you think Panthers get a lot of lovin’ around these here parts, you should attend a convention of folks for whom those LTCELs are tools of the trade. Chances are that if you’ve used a limousine or livery service in the past 20 years, you’ve sat in the back seat of a Lincoln Town Car Executive L. That’s why it was big news at Limousine Charter & Tour magazine’s LCT Leadership Summit a couple of months ago when Ford’s fleet marketing manager, Gerry Koss, announced that replacing the soon to be dearly departed Town Car in Ford’s livery fleet fleet will be livery and stretched limo versions of the Lincoln MKT.

(Read More…)

By on November 11, 2010

The Auto Prophet brings up a point that completely escaped our discussion of General Electric’s EV mega-buy:

By gobbling up EVs, GE certainly helps to jump-start the industry, but they also gobble up future tax credits that consumers would have gotten, unless GE opts to forego the EV tax credit. Which would be bad business.

Yup, GE’s huge EV buy will be good for GE… but it won’t be so great for the 25,000 Americans whose tax credit will slurped up in the process. After all, the credit expires after a manufacturer sells 200k qualifying vehicles, so every credit GE uses brings GM and Nissan that much closer to the day they have to ask consumers to pay full price for their pricey EVs. No wonder GM is already pushing for an extension of the credit past 200k units.

By on November 8, 2010

Fleet sales data can be some of the toughest numbers to find, but thanks to a post from commenter GarbageMotorsCo, we’ve got some pretty comprehensive numbers for last year’s fleet performance [courtesy: automotive-fleet.com, PDF list here]. Overall fleet levels have been higher this year, but by identifying the most popular vehicles with fleet buyers (in terms of fleet sales as a percentage of overall sales), we’ll at least have some hints about this year’s performance. To help give a more accurate picture, we’ve left out obvious commercial vehicles (mainly large vans, and the queen of all fleet queens, the Ford Crown Vic (95% fleet)), as well as discontinued models like Chevy Uplander (57%) and Pontiac G6 (44.7%). We also left out hybrid or CNG versions of nameplates. Two vehicles with limited sales last year (GMC Terrain and Kia Forte) are on the list, even though they may not be on a similar list for 2010 (the Honda Insight is not on the list, despite selling all 193 of its 2009 sales to fleets). Hit the jump for our full list.

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By on October 11, 2010

According to Automotive News [sub], both General Motors and Hyundai-Kia have reduced their fleet sales percentages in the last year, as the two firms seek retail-level pricing for their recently-improved products. Ford and Chrysler? Not so much. As the top-selling brand in the US, Ford is simply using fleet sales to boost itself to the top of the pile. Winning the annual sales volume race is good for morale, but The Blue Oval should be careful not to delude itself into unrealistic expectations. For Chrysler, on the other hand, the continued practice of sending 40 percent of sales to fleets is big, big trouble.

Not only has Chrysler been barely making its minimum “survival volume” numbers (and some months, not), it also had a “come to Jesus” moment on the fleet issue back in April. At the time, Chrysler swore it would limit fleet sales to 25 percent of overall volume, but since that announcement, its fleet percentage has held steady at around 40 percent. For a company on the brink, the lost profits are just as important as the lost credibility. Meanwhile, each new Chrysler that ends up in a fleet cements the perception that Chryslers are the automotive purchase of last resort. And at this point, the perception probably isn’t too far from the truth.

By on August 9, 2010

Automotive News [sub] takes a stab at calculating the numbers that Detroit doesn’t want you to see. Best of all, AN says the numbers are based on “internal documents.” During this morning’s financial results conference call, Chrysler CEO Sergio Marchionne railed against AN’s “crusade,” implying that the industry paper of record is nursing a vendetta against Chrysler… which is usually a good sign that a media outlet is doing its job well. It’s also a sign that Marchionne knows his firm’s fleet dependence is a problem.

(Read More…)

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