Enterprise keeps rental cars longer

The largest of the rental car operators in the U.S., Enterprise Rent-A-Car, is keeping the vehicles in its fleet longer in order to cut costs in the current economic downturn, a company executive stated.

“We have no intention of being prisoners of hope,” said Enterprise vice-president, Patrick Farrell.

The company operates the world’s largest rental fleet, comprising approximately 1.1 million vehicles. The 900,000 cars and light trucks in the fleet make it a major customer for U.S. automakers such as Chrysler, Ford and General Motors.

Detroit automakers have scaled back sales to rental operators recently, responding to criticism that the discounted sales clear inventory but drive down resale values of other vehicles and damage brand perception by the public.

The company executive made his comments while attending a conference sponsored by Ernst and Young. He added that Enterprise, which typically turned over its fleet every year, was now extending the cycle to every 13 months.

“We’ve stretched to the long end of the range,” commented Farrell, who added that the options of replacing vehicles even more slowly and shrinking its fleet size were possible actions that could be taken if conditions demand.

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