Quote:
Originally Posted by KMPrenger
Naa. I can't get on board with that.
Are sales (any sale?) good? Well yes...at least as long as there is some sort of profit involved under normal circumstance.
But again, profit is king.
Why GM would want to keep fleet sales to a low number....I don't know. That should be just extra profit on top of their more profitable retail sales. Maybe its simply b/c it lowers the over % of profit they can claim they make on their vehicles. I don't know the reason. But 2,500 fleet sales does not equal 2,500 retail sales in my book. In no way do I think fleet sales are evil. I just consider retail sales as the better sale.
In terms of exposure....well then yes, the more sales the better no matter how you can get them.
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GM limits fleet sales because they reduce overall profit margin. If a retail vehicle has a $1,000 profit & a fleet vehicle has a $500 profit, then the profit margin is $750. This in turn affects earnings reports, which in turn affects share prices. It's all about keeping the shareholders happy, because ultimately they're the ones to whom they answer.