There is nothing permanent except change. - Heraclitus (540-475? B.C.): Fragment

Change is inevitable in a progressive country. Change is constant. - Benjamin Disraeli: Commons, October 20, 1867

Just because everything is different doesn't mean anything has changed. - Irene Peter

The foolish and the dead alone never change their opinions. - James Russell Lowell: My Study Windows


Each year that we produce another data-filled Fact Book, I try to do some extra analysis in this column which might be helpful to you. There were some dramatic changes during the period from the 1979 to 1980, both in retail and fleet marketing.

While fleet registration were down anywhere from 8.3% statistics provided to the industry by R.L Polk) to 20% (figures provided to us by the factories), fleet registration were slightly up in total market share vs. retail.

From the base "Fleet Registration By Make" report, we find that American Motors. Buick and Oldsmobile all showed record fleet years in what has been regarded as a "lousy" fleet period. The popularity and pricing position of the Cutlass, Regal and Concord raised havoc for others and it has led to speculation that there just might be some serious consideration given to price re-positioning on some models for 1982.

There were dramatic differences in fleet purchases vs. retail purchases in certain model groups as shown by the following special chart.

 

   1979 VS. 1980 FLEET VS RETAIL

     
  +/- retail +/- fleet
MODEL GROUP 1979 1980 1979 1980
luxury   -27.0%   -38.0%
standard   -35.5%   -47.5%
intermediate   -28.0%   -20.0%
compact   -3.0%   +22.0%
subcompact   -8.0%   +39.0%
sports   -20.0%   -31.5%
total domestic   -23.0%   -29.0%
% total market 81.7% 81.0% 18.3% 19.0%

 

Note that fleet choices, more than retail, veered strongly away from the purchase of luxury, standard and sports models and showed less emphasis on the intermediates (fleets had moved into that direction earlier). Fleet buying was very heavy in the compact and subcompact area.

Along these lines, our report on "Size and Model Cars Purchased by Major Leasing Companies" shows dramatic shifts by most of the leaders. Incredibly, a year earlier PHH had led its accounts into today's pattern and thus remains right on the button.

GM retains dominance in fleet as a corporation increasing its total market share to 56% although it sold fewer fleet cars in '80 over '79.

Should you wonder why the factories center so much of their attention on lessons and their accounts, Leasing/Rental bought 841,000 vehicles in 1980 compared to purchases of 253,000 by the non-leased commercial fleets. To assist analysis in this general area, AF developed the first in-depth chart on the daily rental market.

Our editorial staff, constantly rechecking for accuracy, has worked for months assembling the Fact Book data with fine cooperation from the industry (for which we are grateful). It is designated to be a valuable tool for you with our compliments.

 

 

About the author
Ed Bobit

Ed Bobit

Former Editor & Publisher

With more than 50 years in the fleet industry, Ed Bobit, former Automotive Fleet editor and publisher, reflected on issues affecting today’s fleets in his blog. He drew insight from his own experiences in the field and offered a perspective similar to that of a sports coach guiding his players.

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