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Position: Auto Articles - [Auto News] - Chrysler will cut its fleet sales in 2008
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Chrysler will cut its fleet sales in 2008
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Chrysler will cut its fleet sales to only 20% in 2008 — down from last year, when it was 30%. Chrysler – alongside with General Motors and Ford — has announced already that it will slash car production this year. The cut down could mean 200,000 less fleet sales at Chrysler.
"We're looking for a very small increase in retail but we're going to be reducing our dependency on fleet substantially" Jim Press - Chrysler President told the Detroit Free Press. "That's part of a plan that we have to become a more of a retail-oriented company, improve our residual values and improve our focus in terms of production, to meet retail demand versus fleet demands".
The fleet sales at Chrysler were around 7% above this industry average last year.
"Fleet sales are notoriously either unprofitable or low profitable" said Rebecca Lindland, some analyst with Global Insight. "Typically it's just to keep factories running".
"It's going to take them a few years to get there" the executive director of industry analysis at Edmunds, Jesse Toprak told Automotive News. "Reduction of fleet sales, I don't think is going to be extremely dramatic in '08 unless they decide to cut production more than we already know".
"Fleet doesn't do anybody any good except dump a lot of used cars into the market to compete with new cars," said Press. "Companies that are running their production levels to support fleet-only do not have a long-term good strategy".
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