July transactions up 5% over last year while struggling U.S. deals with double-digit declines
Tony Van Alphen
Business Reporter
Auto sales roared back in Canada last month but remained in reverse in the U.S.
In what one analyst described as "gravity defying," Canadian sales and leases climbed 5 per cent, or more than 7,000 vehicles, to 149,515 cars and trucks during July from the same month last year.
That's in sharp contrast to the U.S., where several major players including General Motors, Toyota and Ford, posted double-digit declines for the month. The sales decline there hurts Canada because it exports most of the country's auto production south of the border.
Industry watchers said the contrasting numbers reflect a continuing tough economic climate in the U.S. and less turmoil in Canada.
"Weak U.S. sales reflect the impact of slumping house prices, the ongoing credit crunch, deteriorating job prospects and record gasoline prices," said Carlos Gomes, an economist who specializes in the auto industry at Scotia Capital. "In Canada, we are only experiencing high gasoline prices."
Analyst Dennis DesRosiers added the economy is showing signs of weakness here, too, but sales are increasing in a "gravity defying way."
Tony Van Alphen
Business Reporter
Auto sales roared back in Canada last month but remained in reverse in the U.S.
In what one analyst described as "gravity defying," Canadian sales and leases climbed 5 per cent, or more than 7,000 vehicles, to 149,515 cars and trucks during July from the same month last year.
That's in sharp contrast to the U.S., where several major players including General Motors, Toyota and Ford, posted double-digit declines for the month. The sales decline there hurts Canada because it exports most of the country's auto production south of the border.
Industry watchers said the contrasting numbers reflect a continuing tough economic climate in the U.S. and less turmoil in Canada.
"Weak U.S. sales reflect the impact of slumping house prices, the ongoing credit crunch, deteriorating job prospects and record gasoline prices," said Carlos Gomes, an economist who specializes in the auto industry at Scotia Capital. "In Canada, we are only experiencing high gasoline prices."
Analyst Dennis DesRosiers added the economy is showing signs of weakness here, too, but sales are increasing in a "gravity defying way."