Gm Bulks Up For Growing Commercial Fleet Battle

By Author: Katie Miller
Total Articles: 5

A sharp decline in revenue was seen in most of the automotive industry in 2009. While this was a tough period for those in the automotive industry, it was turned around in 2010, when companies such as General Motors boasted a large increase in sales revenue. After reviewing financial statement information, it was determined that this increase was not due to showroom sales, but rather, a large increase in fleet sales.

What are Fleet Vehicles?
Fleet vehicles are cars that are sold in bulk to places that rent vehicles. This is not limited to just rental car companies, but also includes government entities. The purchasers of fleet vehicles use these cars for anywhere from six months to a year. After this short period, bulk buyers make their money back on these cars by selling the fleet vehicles, like new, at auction or to dealerships. Since 2010, the automotive industry has experienced an increase in both the initial purchase of fleet vehicles, and the prices at which they can be sold at auction.

GM Fleet Vehicles-Bulking up the Line
Following the trend in revenue, to better keep up with customer demand, General Motors has made the decision to bulk up the GM fleet vehicle line. It is common practice to sell fleet vehicles by the trainload to bulk buyers. However, these vehicles are often similar, as they are the cars left over from production. GM has decided to bulk up its line by offering more variety of new vehicles to their fleet customers, to help continue the increase in profit and better meet customer demand.

New Strategy
To keep customers returning, and attract new bulk buyers, GM is offering more variety with their fleet line. This variety of vehicles in the fleet line will particularly interest bulk buyers purchasing rental vehicles. Renters use rental cars for a variety of purposes, and they may require small cars, SUVs, or trucks. Rental companies need to be sure the cars they are offering to renters are top-of-the-line and varied, so they can best meet their customer’s needs. By varying the bulk cars being sold to rental companies, a variation of the GM line will better meet customer demand.

Better Sales
Keeping up with this trend will help the General Motors Company stay on top of its game, and re-establish the company as a top automaker. If the company is able to continue the increase in sales, it could mean its ability to pay back the government and distribute higher dividends to shareholders. By increasing the variety of vehicles offered in the bulk line, particularly GM’s top four models, the company will hopefully ensure its increased profitability on the road to success.

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