Economic Considerations Car Rental Agencies and the US Automakers

How much does the car rental industry sector affect the US Automakers sales volumes? Well you might be surprised how much really, especially in the pre-2000 years. Now many car rental corporations buy many foreign models as well. You see the Rent-A-Car Industry has been changing rapidly lately. I have been studying the industry for a while and have spent time and committed resources to understanding this sector of our economy carefully. Now with the fuel prices higher, travel and tourism at risk and the US Automakers in a world of hurt you can understand why this sector is important to our economy.We have watched over the past few decades as Enterprise Rent-A-Car, Avis and others made major moves in the market.

Remember the old slogan "We are number two so we try harder." That slogan was used at the time was when Avis was really number five. But that perception by the customer through advertising made them not only number two, but soon after number one.

Of course that growth was compounded by the fact that Avis had lower prices.Many car rental agencies have been partly owned by manufacturers in order to sell more cars. All three of the big three markets have had rent-a-car agencies in their portfolio. They use these to sell cars.

Ford, GM and Chrysler in the early 80s all owned significant shares in car rental companies. Since this is no longer the case there is less of a chance that these car rental companies will be buying US Cars. Consider all this in 2006.

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By: Lance Winslow