Look for the Bargains to Maximize Your Budget
Interesting numbers for the month of February from the former Big Three.
General Motors' (GM: 32.80, -0.75, -2.24%) retail sales soared over 70% on a year-over-year basis in February -- the highest jump on record.
Ford Motor Company (F: 14.64, -0.43, -2.85%) said its retail sales climbed 23% on year-over-year basis, driven higher by strong sales of its Fiesta, Focus and Explorer models.
Chrysler Group reported its retail sales were up 36% from last year. The company's SUV lineup, including the Jeep and Dodge Durango, helped boost sales.
All three stated they had large gains and strong profits based largely on truck and SUV sales. Retail customers still love to drive big American vehicles. The question is, will that last in light of the spike in oil and gas prices? We'll have to wait and see.
What I see as a fleet manager is a great opportunity on the horizon for smaller vehicles for my fleet purchases. If retail customers are buying trucks and sport-ute's then the manufacturers will need to balance that with some smaller inventory to meet their CAFE standards for the year. This will provide fleet managers the opportunity to take advantage of incentives and maximize the dollars they have available to spend.
If the consumer market responds fairly quickly to the hike in oil prices and the resulting increase at the pump, then the fleet managers will need to look at the larger vehicles for the bargains. If you hav a mixed fleet, this is a year that you should really review what you have and what you need, and buy based on the deals and incentives offered by the manufacturers.
I predict that depending on oil and gas prices, we will see substantial savings available in at least one segment, if not both, by the end of the summer. Watch closely, and use your budget dollars wisely to maximize the return on your investment this year. You might be able to look like a genius at the next budget meeting.
General Motors' (GM: 32.80, -0.75, -2.24%) retail sales soared over 70% on a year-over-year basis in February -- the highest jump on record.
Ford Motor Company (F: 14.64, -0.43, -2.85%) said its retail sales climbed 23% on year-over-year basis, driven higher by strong sales of its Fiesta, Focus and Explorer models.
Chrysler Group reported its retail sales were up 36% from last year. The company's SUV lineup, including the Jeep and Dodge Durango, helped boost sales.
All three stated they had large gains and strong profits based largely on truck and SUV sales. Retail customers still love to drive big American vehicles. The question is, will that last in light of the spike in oil and gas prices? We'll have to wait and see.
What I see as a fleet manager is a great opportunity on the horizon for smaller vehicles for my fleet purchases. If retail customers are buying trucks and sport-ute's then the manufacturers will need to balance that with some smaller inventory to meet their CAFE standards for the year. This will provide fleet managers the opportunity to take advantage of incentives and maximize the dollars they have available to spend.
If the consumer market responds fairly quickly to the hike in oil prices and the resulting increase at the pump, then the fleet managers will need to look at the larger vehicles for the bargains. If you hav a mixed fleet, this is a year that you should really review what you have and what you need, and buy based on the deals and incentives offered by the manufacturers.
I predict that depending on oil and gas prices, we will see substantial savings available in at least one segment, if not both, by the end of the summer. Watch closely, and use your budget dollars wisely to maximize the return on your investment this year. You might be able to look like a genius at the next budget meeting.
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