Car manufacturers having major interests in the rental companies just seems too much like the way God intended it, right up there with the horn being in the middle of the steering wheel. Some things you don't want to tamper with.

Indeed, one reason some Japanese models hold their value better in the aftermarket is lack of fleet sales to flood the market with "program cars" with 20-25K miles on them. But suppose you're a buyer and you WANT to get a program car for half the price of a brand-new Japanese one?

It seems to me it makes perfect sense for a manufacturer to send cars to the rental division if sales have hit a soft spot. I remember a lot of this in the early 90s (Chevy Corsicas at $40 all-in for 3 weekend days). It'll work for keeping plants going or preserving some economy of scale if the problem is a soft economy, but it WON'T work if the manufacturer keeps making cars people don't want. I think GM may be in a situation like that with SUVs, and they certainly don't seem to be in short supply at National. Seems these days you can reserve a compact and find that everything through midsize is rented out, but they'd be happy to "upgrade" you to an SUV!