US auto fleet sales on the rise as businesses, government recover
By APThursday, April 22, 2010
US auto fleet sales on the rise
DEARBORN, Mich. — There’s a new sign of economic recovery in the U.S. auto industry: Sales to fleets surged 47 percent in the first quarter.
Analysts say it’s a sign of economic improvement as governments, construction businesses and rental-car companies begin buying again.
Automakers are expecting sales to continue to climb.
On Thursday, Ford Motor Co.’s Americas President Mark Fields said the company expects further increases for some fleets, although it expects government sales will level off.
Automakers usually try to limit fleet sales, which are less profitable and can hurt brand image and residual values.
But J.D. Power analyst Jeff Schuster says the current boost in fleet sales is healthy because sales were so low last year.
