Economics

Ford and Nissan Feed Rental-Car Fleets as Consumer Demand Sags

Fleet sales rose to two-year high in March and first quarter
Surge in lower-margin business is propping up U.S. auto sales

Vehicles sit parked at a Hertz Global Holdings Inc. rental location at Los Angeles International Airport (LAX) in Los Angeles, California, U.S.Photographer: Patrick T. Fallon/Bloomberg

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By David Welch and Gabrielle Coppola

April 4, 2019 at 12:15 PM UTC

Updated on

April 4, 2019 at 4:07 PM UTC

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Stronger-than-expected new-car sales last month belied a dirty little secret: Automakers have been selling more vehicles to rental fleets in recent months to prop up volume.

Deliveries to rental-car companies and other non-retail buyers accounted for more than a third of total sales last month for Ford Motor Co. and Nissan Motor Co., according to data from researcher Cox Automotive. Deliveries to rental companies alone in March and in the first quarter were the highest in two years.