Chrysler wants to reduce its sales of vehicles to government and commercial buyers--such as rental-car companies--by as many as 200,000 autos this year. The change in its sales strategy is part
of Chrysler's efforts to make it a retail-based company that relies on what Chrysler President Jim Press calls a "pull-driven system."
J.D. Power and Associates estimates that
Chrysler's fleet sales last year were about 30%. The market-research company estimates the industry fleet average is about 21%. Recently Press and CEO Bob Nardelli indicated the company wants to cut
its fleet sales toward 20% of its total sales.
Press is talking about using fleet sales to fill in "tactically" around production for retail customers. "Fleet doesn't do anybody any
good except dump a lot of used cars into the market to compete with new cars," he says. Jesse Toprak, executive director of industry analysis for Edmunds.com, says it will be hard for Chrysler to get
to 20% in a year; it's more likely to end up at 25% to 30%, he believes.
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