Ford Sales Down As Car Rental Sales Plummet

I know that Ford thinks they’re going to increase profits by slashing sales to car rental agencies, but really, is it a smart move in the long run?

By focusing on sales to regular Joes, Ford is reducing their lower-margin work with car rental agencies. See, car rental agencies know what cars are worth, so they get better prices than when a regular person walks in a dealership. Regular people always pay way too much, so Ford and Ford dealers make much more money off of our ignorance.

But is it smart to get rid of that business?

In a way, automobile manufacturers have been using car rental agencies as a channel for experiential marketing. When I rent a Ford car on vacation, I get the chance to experience the product. The next time I look to buy a car I may consider a Ford vehicle based upon my positive experience with the car rental. This whole effort of mine to get Bill Ford to hire me on started with an article talking about this very concept.

But now Ford is actively reducing their participation in similar efforts! Here I am telling them to bring me on, and recommending they increase their experiential efforts, and they’re not talking to me, and slashing their experiential work!

For example: you still cannot take the Ford Challenge at any Ford dealership, even though they’re advertising that you should. Now you won’t be able to rent Fords when on vacation? What next? No test drives because the gas is too expensive?

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