Slumping fleet sales weigh on U.S. auto market

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Collapsing demand from rental car companies, corporations and government agencies has sapped U.S. auto sales during the coronavirus pandemic and a recovery will likely be slow, threatening auto workers whose jobs depend on fleet sales.

In 2019, fleet sales accounted for nearly 22% of GM’s sales, with about half going to rental fleets and the other half to corporations and government agencies. Fleet sales accounted for nearly 28% of Nissan’s 2019 sales, with almost 93% of those sales going to rental car companies.

However, after a historic decline in oil prices, Ruppert said it “could be some time in 2021” before industry-wide vehicle orders from oil and gas producers recover. Ruppert said government orders are based on the previous year’s tax base, so 2021 orders will reflect this year’s pandemic.

 

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