Detroit – As the nation’s Big Three automakers remake themselves into smaller, leaner companies, the rental-car business is suffering collateral damage.
All three have cut production this year to bring supply in line with lower demand for their products, and further cuts are inevitable next year. They’re also trying to wean themselves off rebates and other incentives to bring sales prices closer to the sticker.
That means fewer cars are available for low- profit bulk sales to rental companies, and some industry analysts and rental-company officials say that already has led to price increases at the airport service counter.
“I think they’re going to have increased costs, which they will have to try to pass on,” said Michael Millman, an analyst who follows the car-rental business for Soleil Securities in suburban New York City.
