The car manufacturers are making fleet news differently for this time of year. Normally we have been greeted with an onslaught of mid-year models to take into consideration. With a minimum of midyear models (Pontiac's Firebird and a few others) we suddenly find it a task to keep up with the new policy decisions that are being made that directly affect fleet men everywhere.
American Motors announced the sizeable reduction in the cost of the American to once again offer the economy that a number of fleets desire in an American made car of dependability and contemporary design. Tom Coupe of AM told me that pricing to fleets has already been attractive on the American and that final pricing will be announced shortly so each fleet man can evaluate the total net savings. Obviously the total public reduction cannot be passed on in addition to the current fleet purchase price. AM has already been scoring heavily in the fleet market during model '67 and their buy-back plan has helped. Their used car merchandising has been exceptionally effective in disposing of the cars so they could well continue to be strong in this area.
Ford officials stress that they have made their decision to eliminate dealer subsidies on city, county and state governmental bids entirely on the merits of their own marketing economics. However, if CM and Chrysler do not join in a similar move (both have indicated they would like to if they could be sure the other would) it could be less costly from a profit standpoint: but they are certain to lose in total sales and penetration. Ford reportedly sold about 30,000 cars in this market last year. When GM entered into competitive subsidy governmental bidding through their dealers some six months ago some change was predictable. The parts and service business connected with these sales can be a valuable part of the package but bidding has become so competitive that (lie number of registrations ceases to remain so attractive.
Now GM has a "summer rental" program that makes them competitive on every fleet sales front. They were in the fortunate position of having a strong used car edge on most competitors and until this edge narrowed they were able to maintain a successful sales penetration. The results of their new sales and advertising support programs should be in evidence in the coming months.
Chrysler's ambitious programs conducted over the past few years have been fruitful in bringing up their fleet market penetration to the best point in many years. Now, with volume of ears on lease and with an active buy-back program they have sensed that a. level has been reached where they must carefully evaluate the influence on used car values that this volume eventually brings back to them.
Considering these news items that have developed in the recent weeks I feel certain that today's fleet purchaser must necessarily accord top professional attention to his ear control programs as well as purchasing and. disposal. The effect of these individual programs and policy moves may not evolve until this fall with the ordering of '68 models. Depending on how the companies themselves react to these new influences, it could well create a more than slightly different new order atmosphere in the fleet market.
