GM Cuts Fleet Sales by 100K to Boost Resale Values

General Motors will reduce its sales to rental companies by 100,000 units in 2007 in an effort to boost the resale value of its vehicles, GM product chief Bob Lutz said today.

The automaker, which cut low-margin rental fleet sales by about 75,000 units in 2006, has been reducing rental fleet sales as part of its strategy to improve profitability. "We are going to reduce daily rentals by an additional 100,000 in 2007," Lutz said, speaking to reporters on the sidelines of the North American International Auto Show.

"We need to get residual value up to Japanese levels," Lutz said, referring to the higher resale value of vehicles at competitors such as Toyota Motor Corp.



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