GM Trims Rental Fleet Sales to Boost Margins

General Motors Co. says it has been slowly reducing sales to rental fleets to help bolster margins.

Fleet sales increase a carmaker’s volume and improve market share figures. But they generate smaller profits, hurt brand image and lower trade-in values for retail owners as rental companies dump their old cars into the used-car market.

GM, like its domestic rivals, periodically trims fleet sales to improve margins. This year, Automotive News reports, the company aims to reduce its business with rental, corporate and government fleets to about 20% of total sales from 24% a few years ago. Within the segment, the company also is shifting sales from rental to more profitable corporate fleet customers.

Chief Financial Officer Chuck Stevens notes the move, intended to increase profits, will lower GM’s market share data over the next several months.