Sell Your Product, Don’t Lease Them

Rental car agreements = exposure to Chrysler products but there was a problem! Chrysler was not selling cars to Hertz and Avis (car rental companies in the US) but leasing them and then subsequently buying those vehicles and selling them as used. The used-car losses at Chrysler were $88 million in the first year Iacocca took over (1979/1980). The change Lee Iacocca implemented was to sell models to Hertz and Avis at a lower margin so that Hertz and Avis had to deal with selling the used cars. In the process, Hertz customers get to try out the Chrysler vehicles.

This is a synopsis & analysis based on Iacocca: An Autobiography and other miscellaneous research sources. Enjoy.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.