Under The Hood: GM Continues To Cut Car Rental Fleet Sales

Under The Hood: GM Continues To Cut Car Rental Fleet Sales

JULY 23, 2007 -- Auto manufacturer General Motors this month reported that it has taken more than 92,000 daily rental vehicles out of its 2007 sales totals in the first half of the year. This included a reduction of 13,487 daily rental sale vehicles in June alone, a decrease of 22 percent from June 2006. Even though GM blamed the cutbacks for an overall 24 percent drop in sales in June, the company asserted that reducing car rental fleet sales remained its strategy. "We continue to believe that maintaining a disciplined approach to both incentives and daily rental car sales is key to making our marketing strategy work in the long run," Mark LaNeve, GM vice president of North American sales, service and marketing, said in a prepared statement. This strategy is common among auto manufacturers, and car rental companies have pushed for steeper rate increases amid the increased costs of maintaining their fleets (BTN, Sept. 11, 2006).

Rental Cos. Enhance Navigation Tools
Two car rental suppliers have added global positioning system devices to their fleet, and a third has expanded its current GPS offering overseas. Tulsa, Okla.-based Dollar Thrifty Automotive Group announced this month that it is offering the Garmin Nuvi 660 tool at about 90 locations throughout the United States. The tool, available for $11.99 per day, features a touchscreen interface, voice-prompted driving directions, Bluetooth capability and an FM transmitter, and gives customers access to such traffic information as accident and construction delays. Similarly, Advantage Rent a Car announced in June that it was adding the portable Magellan vehicle navigation system to its fleet. The Magellan tool will be at all Advantage U.S. airport markets this summer. Hertz Corp., meanwhile, already is using its NeverLost units, which also are based on Magellan technology. The car rental supplier announced this month that is making those tools available at more cities and airports across Europe. Hertz initially launched the NeverLost tool in Europe in November 2005, and the additional 1,500 units now bring the total number of tools available to 4,000, available at more than 240 Hertz locations in 16 European countries.

Carey Houston Branch Adds Internet
The Houston branch of chauffeured transportation supplier Carey International in June announced that it is installing technology in its vehicles to allow passengers to access the Internet through wireless or Ethernet connections. The service is provided through mobile cellular routers designed by Cambridge, Mass.-based WAAV Inc., allowing users to create their own mobile Wi-Fi hotspots at broadband speeds. Carey added the service to complement its other mobile office offerings, which include a writing desk, a cellular phone, a 110-volt outlet, satellite radio and extra power points. "The response from the business executives and VIPs that make up the majority of our customers has been extremely positive," Carey Houston general manager Thomas Nielsen said in a prepared statement. "More than almost any other tool available to business travelers, this service makes their time in the vehicle more productive." The service carries no additional charge to customers, according to Carey.

Advantage Details Growth Plans
San Antonio, Texas-based Advantage Rent A Car is embarking on what it calls an "aggressive growth trend," increasing its footprint through new locations domestically and alliances abroad. Most recently, the car rental supplier in May opened a location at Kahului Airport on the island of Maui in Hawaii. This follows expansion into other top markets in Florida, Nevada, California, Colorado and Utah, according to the company. In addition, the company has been adding to its international network over the last year, extending its brand into 36 countries in North and South America, Australia, Europe and the Middle East.

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