General Motors’ January 2007 U.S. sales will be lower than in 2006 largely because of the automaker’s planned cut in sales to daily rental fleet companies. GM is planning to cut 120,000 units in sales to daily rental fleets in the first half of the year — 25 percent of those cuts will take place in January.

“We’re going to have significant month-in and month-out declines in daily rent,” said Mark LaNeve, GM’s vice president of vehicle sales, service and marketing. “The most significant decline is in January.”

LaNeve would not say if GM’s retail sales will improve in January.

General Motors plans to sell 596,000 daily rental units in 2007, compared to 700,327 units to daily rental fleets in 2006. GM is aiming to reduce sales to daily rental fleets to improve residual values on its vehicles.

## Source: Automotive News ##

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