National Car Rental
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After serving four months or less, National Car Rental’s fleet cars were routinely returned to their manufacturer for disposition on behalf of National. The manufacturers, GM and Chrysler, would auction off the fleet cars to auto dealers as used cars. National, recognizing this was not the most profitable utilization of its major asset—its fleet— decided to explore the feasibility of developing an enhanced asset management strategy. MG Taylor facilitated a DesignShop® event in which National designed a new asset management system dealing with the entire life cycle of its rental car fleet— from purchase through final disposal.

Results: a $25 million increase in incentives from car manufacturers and a $20 million decline in vehicle acquisition cost — in little more than a year, National created a 100 location retail car sales operation which sold 25,000 cars and generated in excess of $250 million in annual revenues.

“The result was a truly innovative and unique system which has still not been duplicated by anyone in the country. The most astonishing thing about it was that it was conceived and designed within a three day period and resulted from the dynamic interaction of thirty-three diverse participants. It is my belief that this could not have happened in any other way than . . . within the DesignShop process.” — J. L. Yurish, Jack Yurish & Associates, former executive with National Car Rental

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