Decision To Sell Fewer Rental Cars Ripples through Entire Industry

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In an effort to return to prof­itabil­i­ty, Detroit automak­ers are sell­ing sig­nif­i­cant­ly few­er vehi­cles to dai­ly rental com­pa­nies. In the past these sales were used to bol­ster mar­ket share and keep the fac­to­ries open. With reduced pro­duc­tion capac­i­ty, sell­ing cars at a loss to rental com­pa­nies is no longer nec­es­sary. As a result, rental rates have increased, and few­er cars are going to auc­tion and turn­ing up on used car lots. For­eign automak­ers are pick­ing up some of the slack.