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Ford Transforms a Once Unfavorable Business into a Profit Engine, Catching the Attention of GM and Stellantis

Fleet sales, once considered a less desirable aspect of the automotive industry, have now become a lucrative battleground for U.S. automakers, with Ford Motor Company leading the charge. The Dearborn, Michigan-based automaker has transformed its fleet business—comprising sales to commercial, government, and rental customers—into a significant source of earnings. This success has prompted competitors like General Motors (GM) and Stellantis, the parent company of Chrysler, to restructure their operations in pursuit of similar profitability. 

“There is now a greater emphasis on profitability and how fleet operations can contribute to that,” said Mark Hazel, Associate Director of Commercial Vehicle Reporting at S&P Global Mobility. Automakers are strategically refining their approach to fleet sales, moving beyond the traditional view that such sales, particularly daily rentals, are less profitable and merely a means to offload excess inventory. 

Ford has effectively debunked this perception by publicly detailing the financial performance of its “Ford Pro” fleet business, which has generated approximately $18.7 billion in adjusted earnings and $184.5 billion in revenue since 2021. These impressive results have garnered praise from Wall Street, with analysts labeling Ford Pro as a “hidden gem” and even likening it to Ferrari, the high-margin Italian sports car manufacturer. 

During the company’s second-quarter earnings call on July 24, Ford CEO Jim Farley emphasized the competitive advantage of Ford Pro, which has become the company’s standout performer. According to industry estimates, fleet sales typically account for 18% to 20% of annual U.S. light-duty vehicle sales, presenting a significant market opportunity. 

Ford’s dominance in fleet sales is reflected in its market share, which has consistently remained around 30% since 2021. In comparison, GM and Stellantis have held market shares of approximately 21%-22% and 9%, respectively. Despite efforts by its competitors, Ford continues to outpace them, particularly in the commercial vehicle segment, where it claims a leading 43% share of U.S. registrations as of May this year.