Dearborn: What was once considered a "dirty" word in the automotive industry has now become a lucrative battleground for U.S. automakers, with Ford Motor leading the charge.
The Dearborn, Michigan-based company has transformed its fleet business—comprising sales to commercial, government, and rental customers—into a significant earnings driver. This shift has caught the attention of Ford’s competitors, General Motors and Stellantis, who are now restructuring their own fleet operations.
Mark Hazel, associate director of commercial vehicle reporting at S&P Global Mobility, noted the growing emphasis on profitability within the fleet sector. "Automakers are now strategically focusing on fleet sales to enhance profitability," he said. "It's a very targeted approach."
Historically, fleet sales, especially to daily rental companies, were seen as less desirable. They were less profitable than retail sales and often used to offload excess inventory. However, Ford has demonstrated that fleet sales can be highly profitable. By reporting financial results for its "Ford Pro" fleet business, Ford has shown impressive figures: approximately 18.7 billion dollars in adjusted earnings and 184.5 billion dollars in revenue since 2021.
These results have earned Ford significant praise from Wall Street, with analysts dubbing the fleet business a "hidden gem" and even comparing it to Ferrari, the famously profitable Italian sports car manufacturer.
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