In more bad news for U.S. car makers, rental car companies in the United States have begun to purchase more foreign than domestic vehicles for their fleets.  In the first six months of this year, rental companies only purchased 48.8 percent of vehicles from American suppliers.

The news was announced by the trade publication Automotive Fleet, and it shows that market share is down from a two-thirds market position only a year ago.  The news is even worse if compared with statistics from three years ago, when up to 8 out of 10 vehicles bought were domestic.

Domestic automakers have traditionally used the rental market as a way to rid itself of vehicle overstock, by providing deep discounts to rental agencies.  In fact, until recently, rental companies such as Avis, Hertz, and Dollar Thrifty were owned by U.S. car manufacturers.  In recent years domestic manufactures have spun off the rental car business to independent agents, slashing the hefty discounts once provided.    Auto Rental News editor Chris Brown states, “Automakers are now trying to sell to rental fleets like they do to the overall market,” but this tactic has lead to higher prices for domestic cars. But as the landscape of the U.S. car market changes rental agencies are following the trend.