by Gareth Robertson July 22nd, 2009
For the first time in the history of America’s rental car industry, they are carrying more foreign built cars than domestic. This marks a significant change in a country that has tended to support its own industries.
Only three years ago eight out of ten cars rented from such fleets as Hertz and Avis were from America’s big three, but now, lots are filling with Nissan, Honda, Hyundai, Kias and more Asian and European imports.
While national pride may have once played a role in decision making on the issue of what cars to stock, in the current economic climate the bottom line seems to be pushing Rental companies towards primarily Asian options.
Industry consultant Neil Abrams was quoted as saying “It’s amazing how things turn around, It used to be you’d never see foreign cars in fleets, but the companies reexamined their businesses and decided to embrace non-U.S. brands.”
While Hertz is now carrying as many Toyotas as Fords, the Nissan Altima is selling more than the popular Chevy Impala in the rental market. Automakers Kia and Hyundai now have a 9.5% share of the rental market in the US. They’re on pace to greatly approve on that share this year.
With the current trend continuing to move further towards foreign cars automakers like GM and Chevrolet may be all but cut out of the loop in coming years.