Tuesday, June 3, 2008

Another strong month for auto sales in Canada

Canadian vehicle sales in May were the second best in the history of the industry, an auto industry analyst said Tuesday.

Consumers bought 184,467 cars and light trucks last month, according to figures from DesRosiers Automotive Consultants. That's down by about a thousand from the monthly record set in May 2007.

GM Canada sales fell 19.8 per cent year-over-year, as truck sales plunged by almost a third. "May sales results continue to reflect a rapid accelerated shift in consumer demand for smaller, more fuel efficient small cars and crossovers as a result of rising fuel prices," said Marc Comeau, GM Canada's vice-president of sales, service and marketing.

Ford of Canada saw its sales drop 6.4 per cent. Chrysler Canada sales rose by 6.2 per cent.

"Chrysler is stronger with entry level products than both Ford and GM and this helps keep their heads above water," said Dennis DesRosiers in e-mailed comments.

DesRosiers noted that the Big Three now have just 47 per cent of the Canadian market, while the import nameplates' market share rose to 53 per cent.

Record sales for Toyota, Honda

Toyota/Lexus, Honda, Subaru, Nissan, Hyundai and Mercedes Benz all reported record Canadian sales in May.

Toyota/Lexus sales in Canada — which were up 15 per cent from a year ago — topped both Ford and Chrysler's Canadian sales last month. Toyota said its sales of hybrid vehicles more than doubled from last year.

So far this year, Canadian vehicle sales are running 4.3 per cent ahead of last year's record sales pace. That's in stark contrast to the situation south of the border, where U.S. car and light truck sales are down dramatically. GM said its U.S. vehicle sales were down 28 per cent in May.

"The wows in the U.S. auto market don't seem to be taking hold in Canada, which is truly amazing," said DesRosiers. "Rarely does Canada go counter cyclical to the U.S. market for any length of time and it has now been a couple [of] years."

A forecast last week by Scotiabank auto analyst Carlos Gomes said 2008 would likely be the second best year in history for vehicle sales in Canada — beaten only by last year.

GM on Tuesday announced the closure of four more North American plants that make trucks and SUVs — including one in Oshawa, Ont. — as huge numbers of U.S. buyers opted for more fuel-efficient vehicles rather than gas-guzzlers.

GM, Ford and Chrysler have announced the shutdown of a total of 35 North American plants since 2005, according to Sean McAlinden, chief economist with the Center for Automotive Research in Ann Arbor, Mich. The closures have eliminated 149,000 hourly and salaried jobs, he said.

(With files from the Associated Press)

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