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Originally Posted by 90503
"Rental, Fleet, Commercial"...etc....Still pretty confusing on how they portray it....Good now, bad earlier???....Seems like a new theme making an increase sound like a positive, whereas before, the less the better....just wondering...
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Rental fleet: Hertz, Avis, etc. These are considered bad fleet sales.
Commercial fleet: work trucks, vans, company cars. These are considered good fleet sales.
Government fleet: police cars, military trucks, dreaded black suburbans. These are good ... I think. Not 100% positive on that though.
An increase in fleet sales can be good or bad, depending on where the increase is coming from. If fleet sales go up because you dumped 50,000 excess sedans onto rental lots, its bad. On the other hand, if it suddenly became the in thing to issue a Cadillac to everyone at the officer level of a big company ... thats a very good increase to have.
So, to read the tea leaves of the press release ...
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- GM’s fleet deliveries, up 5 percent year over year, were about 21 percent of total sales during the quarter. More than half of sales were to Commercial and government customers.
- Rental deliveries are on track to be about 10 percent of total sales for the calendar year, equal to 2017 among the industry leaders.
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I'd say that there was a moderate to large increase in rental fleet sales. But since rental fleet sales are bad, they couldn't outright say that (the bots that buy & sell stock would react negatively). The stuff about commercial & government being over 50%, and rentals being about average is there to temper the bad news. They aren't 'bragging' or claiming that what happened is good; just reminding everyone how things aren't quite that bad. And whenever a company feels compelled to say that, they're usually pretty bad.