GM intends to cut its fleet sales in an attempt to improve profitability. This sheds a bit of light on some of the recently announced plant closures, such as the cutting of a shift at GM's Oshawa, Ontario, plant (a huge facility that builds GM's midsize sedans). Whether the net outcome of this will be increased per-vehicle profitability, I don't know - GM has traditionally relied on big volumes to keep down per-vehicle overhead costs, and even the recently-announced closures will not result in immediate overhead cost cuts. As they say, however, a journey of a thousand miles begins with a single step, and this is a significant step forward for the General.

Some numbers were presented in the article linked below that are interesting outside of the context of fleet sales. GM's average wholesale transaction is over $18,800. GM's average fleet transaction is around $15,000, and those sales make up about 25% of GM's output. Toyota's average transaction? $23,750. I don't know that these are meaningful when talking about fleet sales (the fact that fleet sales prices are significantly lower than GM's average transaction may just reflect that fact that not many rental agencies buy $35,000 pickups and SUVs), but by backing out fleet sales, we can see that GM's average non-fleet wholesale transaction is right around $20K - over 15% lower than Toyota's average wholesale price. Wow.

Share This Photo X