From CNBC: 2024-08-05 06:30:01

Automakers like Ford, Stellantis, and GM are doubling down on the fleet business, looking to capitalize on its profitability. Ford has made fleet sales a strong point in the automotive industry, leading the pack with its “Ford Pro” fleet business, which has raked in billions in revenue and earnings since 2021, drawing praise from Wall Street.

Ford’s commercial volumes have been on the rise, outpacing rivals like GM and Stellantis, based on estimates from Wolfe Research. Ford Pro covers sales of Super Duty trucks, Transit vans, and other commercial vehicles, as well as services and software. The company is aiming for $1 billion in software and service sales in 2025.

Stellantis is revamping its Ram brand’s fleet and commercial business, aiming to become the top seller of light-duty commercial vehicles. GM has also rebranded its fleet and commercial business as GM Envolve, focusing on fleet sales, digital tech, and logistics for commercial customers. Both companies see fleet operations as essential for driving profitability and creating recurring revenue streams.

There’s fierce competition in the automotive industry to capture the fleet and commercial market, seen through the actions of Ford, Stellantis, and GM. Each company is strategically positioning themselves to capitalize on the potential of fleet sales, with a focus on profitability, software, and services to enhance their offerings and drive growth in an ever-evolving market.



Read more at CNBC: Ford turns fleet business into profit driver. GM, Stellantis want in