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Auto Sales Dismal: GM and Chrysler Oddly Optimistic

I love how all the wall street articles over look a major component that is missing from the big 3 sales numbers this year, sales to rental car companies. The big 3 has dramatically cut these zero profit sales to Avis, Budget, Dollar, Hertz, Thrifty, etc. since 2007. The big 3 used to sell their over capacity cars to the rental companies at cost or less and then would guarantee buyback prices. The big 3 stopped a large portion of these sales in 2006 and have reduced every year since. That is why you see the rental car stocks like CAR, DTG and HTZ tank since the end of their fiscal year 2007. So for companies like Chrysler, Ford and GM to sell as many trucks and SUV's as they did in June is actually amazing considering the state of the economy and fuel prices.