Man, does Chrysler have a long row to hoe or what? Reuters news article dated today talks about Thrifty/Dollar cutting back from purchasing 76% of their fleet from Chrysler in 2008, down to 30% in 2010. Ford, evidently, is getting those contracts.
Does anyone see a recurring theme here, that Ford really seems to be “cleaning up” in the last year?
Here’s the article:
Thu Oct 15, 2009 7:39am EDT
Oct 15 (Reuters) – Car-rental company Dollar Thrifty Automotive Group Inc (DTG.N) said it expects third-quarter vehicle rental revenue to decline about 12 percent due to fall in transaction days.
The company, which rents cars under the Dollar Rent A Car and Thrifty Car Rental brands, said location closures accounted for about 4 percent of the decline in transaction days.
“The remaining decline resulted from lower demand for our services at our current price point and a planned reduction in our fleet capacity,” the company said in a statement.
A 12 percent improvement in pricing on a year-over-year basis did not fully mitigate the fall in transaction days, the company said.
The company, which buys its fleet from Ford Motor Co (F.N) and General Motors Co [GM.UL], however, said it achieved its revenue targets for the third quarter.
“Rental revenues were down only 3 percent compared to September 2008, indicating we may have seen the worst of the rental revenue declines for this business cycle,” Chief Executive Scott Thompson said.
The company recently said it would slash its 2010 car rental purchases from Chrysler, which made up about 76 percent of its total U.S. fleet purchases in 2008.
Shares of the Tulsa, Oklahoma-based company closed at $27.23 Wednesday on the New York Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Ratul Ray Chaudhuri)
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