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Nissan and Toyota increase fleet sales


fordtech1

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Where's rperez to harp on the fleet sales?

 

Or is it ok for them?

 

I'm here sir. :)

No, excessive fleet sales (more than 10%) are never OK for any carmaker that cares about optimizing profitability and brand image. Including Toyota and Nissan. Nissan is clearly fleet dumping, with their January fleet sales exceeding one third of all sales. That's a higher proportion than even Ford! Toyota's fleet sales in January came to about 14.5%. That's much higher than Toyota's normal fleet percentage of 8 to 10%. If Toyota fails to reduce fleet sales later this year and bring the proportion down to about 10% as mentioned in the Bloomberg article, there's potential trouble ahead for them too.

 

Moderators will probably delete this post. That's their right. If you see this post content before the moderators delete it, the truth is that excessive fleet sales hurt carmakers' image and profitability. ANY and ALL carmakers. Nissan's fleet dumping caused operating profit to go down over 13% in the first half of 2017 compared to the same period 2016 even though revenue went up by 8%. https://newsroom.nissan-global.com/releases/171108-01-e?lang=en-US

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I'm here sir. :)

No, excessive fleet sales (more than 10%) are never OK for any carmaker that cares about optimizing profitability and brand image. Including Toyota and Nissan. Nissan is clearly fleet dumping, with their January fleet sales exceeding one third of all sales. That's a higher proportion than even Ford! Toyota's fleet sales in January came to about 14.5%. That's much higher than Toyota's normal fleet percentage of 8 to 10%. If Toyota fails to reduce fleet sales later this year and bring the proportion down to about 10% as mentioned in the Bloomberg article, there's potential trouble ahead for them too.

 

Moderators will probably delete this post. That's their right. If you see this post content before the moderators delete it, the truth is that excessive fleet sales hurt carmakers' image and profitability. ANY and ALL carmakers. Nissan's fleet dumping caused operating profit to go down over 13% in the first half of 2017 compared to the same period 2016 even though revenue went up by 8%. https://newsroom.nissan-global.com/releases/171108-01-e?lang=en-US

 

 

Congratulations for properly identifying fleet dumping for a change.

 

However, your statement that all fleet sales are bad is still 100% wrong. Fleet dumping to rental car fleets drives down used car values, drives up lease costs and typically results in little if any additional profit.

 

Some rental fleet sales can be profitable. E.g. Ford at one point was only selling well equipped vehicles to rental fleets, not stripped down models and they were not giving them away in the process.

 

Additionally - and this is the point you don't seem to grasp - commercial fleet sales are very profitable and don't have any of the negative stigma that comes with fleet dumping. Commercial fleets keep their cars a long time and don't dump them with high mileage onto the used vehicle marketplace. That includes trucks and vans. Without Ford's commercial and government fleet business they would be much worse off financially.

 

You need to learn to separate bad fleet sales from good fleet sales. They are not all bad nor does every mfr need to reduce their fleet percentages. It depends on the types of sales and relative profit.

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I'm here sir. :)

No, excessive fleet sales (more than 10%) are never OK for any carmaker that cares about optimizing profitability and brand image. Including Toyota and Nissan. Nissan is clearly fleet dumping, with their January fleet sales exceeding one third of all sales. That's a higher proportion than even Ford! Toyota's fleet sales in January came to about 14.5%. That's much higher than Toyota's normal fleet percentage of 8 to 10%. If Toyota fails to reduce fleet sales later this year and bring the proportion down to about 10% as mentioned in the Bloomberg article, there's potential trouble ahead for them too.

 

Moderators will probably delete this post. That's their right. If you see this post content before the moderators delete it, the truth is that excessive fleet sales hurt carmakers' image and profitability. ANY and ALL carmakers. Nissan's fleet dumping caused operating profit to go down over 13% in the first half of 2017 compared to the same period 2016 even though revenue went up by 8%. https://newsroom.nissan-global.com/releases/171108-01-e?lang=en-US

 

Ford's rental sale was 9% this month and 11% for all of 2017. It was basically the same as Toyota in 2017 - they both sold about 10% of total volume to rental companies. You don't understand why Ford has 30% fleet sale (roughly 20% to commercial and govt and 10% rental) and you refuse to learn why it is a good thing when people have repeatedly told you. You are like a broken robot just repeating the same uninformed opinion every month.

 

The 20% or so of Ford's sales are vehicles like E-series, PIS and PIU, Transit, Transit Connect, F-series, stripped chassis etc. Those vehicles have very high fleet % as you'd expect but they are high profit margin sales. Toyota doesn't have those kind of products so they don't have commercial or govt fleet sale. Your point of reference is backwards... the commercial and govt fleet business is a core strength and competitive advantage that Ford has over its competitors, not some sort of liability to be rid of. Exiting vans (which is 90+% fleet sale) and cutting back F-series (which is probably close to 40% fleet sales) will not improve Ford's brand image one bit but it will have real negative effects on profit.

Edited by bzcat
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rperez817, Posted 05 February 2018 - 02:33 PM

No, excessive fleet sales (more than 10%) are never OK for any carmaker that cares about optimizing profitability and brand image. Including Toyota and Nissan. Nissan is clearly fleet dumping, with their January fleet sales exceeding one third of all sales. That's a higher proportion than even Ford! Toyota's fleet sales in January came to about 14.5%. That's much higher than Toyota's normal fleet percentage of 8 to 10%. If Toyota fails to reduce fleet sales later this year and bring the proportion down to about 10% as mentioned in the Bloomberg article, there's potential trouble ahead for them too.

Moderators will probably delete this post. That's their right. If you see this post content before the moderators delete it, the truth is that excessive fleet sales hurt carmakers' image and profitability. ANY and ALL carmakers. Nissan's fleet dumping caused operating profit to go down over 13% in the first half of 2017 compared to the same period 2016 even though revenue went up by 8%.

https://newsroom.nissan-global.com/releases/171108-01-e?lang=en-US

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