Sales and leases of cars, light trucks jumped 12.8% as buyer incentives delayed an expected slowdown
Feb 02, 2008 04:30 AM
Tony Van Alphen
Business Reporter
Auto shoppers bucked recession talk in Canada last month with a flurry that almost set a record for vehicle sales.
Sales and leases of new cars and light trucks jumped 12.8 per cent or more than 11,600 vehicles to 102,831 during January in comparison to the same 2007 period, manufacturers reported yesterday.
It marked the second highest January on record for auto sales. The industry set the record for the month in 2002 when sales shot up to more than 110,000.
"January was a spectacular month and kick-starts the year in a very positive way," said industry watcher Dennis DesRosiers.
Most analysts have forecast a downturn in auto sales this year because of a slowing Canadian economy and they still are holding to those predictions despite the strong month.
DesRosiers attributed the surprising numbers to continuing high incentives, the number of new models in showrooms and federal government moves to stimulate the economy including a cut in taxes.
He added some consumers may have also thought that incentives worth thousands of dollars on models since last fall will end soon.
"There has been quite a bit of talk in the media that some of this spectacular pricing was soon to disappear so maybe consumers, fearing `losing the deal,' jumped into the market before it was too late," he said.
General Motors of Canada Ltd. and Honda Canada Ltd. led the winners last month with huge gains.
Sales at Honda, including Acura, rose a stunning 68 per cent to 12,022.
GM, the industry leader, said its volumes soared 18.1 per cent or more than 4,000 to 26,404 because of surging business for its small cars, the Chevrolet Malibu sedan and sport utility vehicles.
Deliveries at Chrysler Canada Inc. rose 3 per cent to 16,952 vehicles in January. It was the 18th consecutive month that the automaker has reported sales increases.
Ford Motor Co. of Canada Ltd. also posted a strong improvement as sales climbed almost 10 per cent to 12,733 because of booming business for the Edge cross-over vehicle, Focus compact, Escape sport ute and F-Series pickup trucks. .
Toyota Canada inc. said its sales, including the Lexus luxury brand, improved 3.8 per cent to a record 10,559 for the month.
Mazda Canada Inc.'s sales rose 5.8 per cent to 4,732 while Hyundai Auto Canada Inc.'s deliveries increased 3.3 per cent to 3,874.
However, Volkswagen Canada Inc. volumes tumbled 18.6 per cent to 1,923 and Nissan Canada Inc.'s deliveries dipped 2.2 per cent to 5,074.
Feb 02, 2008 04:30 AM
Tony Van Alphen
Business Reporter
Auto shoppers bucked recession talk in Canada last month with a flurry that almost set a record for vehicle sales.
Sales and leases of new cars and light trucks jumped 12.8 per cent or more than 11,600 vehicles to 102,831 during January in comparison to the same 2007 period, manufacturers reported yesterday.
It marked the second highest January on record for auto sales. The industry set the record for the month in 2002 when sales shot up to more than 110,000.
"January was a spectacular month and kick-starts the year in a very positive way," said industry watcher Dennis DesRosiers.
Most analysts have forecast a downturn in auto sales this year because of a slowing Canadian economy and they still are holding to those predictions despite the strong month.
DesRosiers attributed the surprising numbers to continuing high incentives, the number of new models in showrooms and federal government moves to stimulate the economy including a cut in taxes.
He added some consumers may have also thought that incentives worth thousands of dollars on models since last fall will end soon.
"There has been quite a bit of talk in the media that some of this spectacular pricing was soon to disappear so maybe consumers, fearing `losing the deal,' jumped into the market before it was too late," he said.
General Motors of Canada Ltd. and Honda Canada Ltd. led the winners last month with huge gains.
Sales at Honda, including Acura, rose a stunning 68 per cent to 12,022.
GM, the industry leader, said its volumes soared 18.1 per cent or more than 4,000 to 26,404 because of surging business for its small cars, the Chevrolet Malibu sedan and sport utility vehicles.
Deliveries at Chrysler Canada Inc. rose 3 per cent to 16,952 vehicles in January. It was the 18th consecutive month that the automaker has reported sales increases.
Ford Motor Co. of Canada Ltd. also posted a strong improvement as sales climbed almost 10 per cent to 12,733 because of booming business for the Edge cross-over vehicle, Focus compact, Escape sport ute and F-Series pickup trucks. .
Toyota Canada inc. said its sales, including the Lexus luxury brand, improved 3.8 per cent to a record 10,559 for the month.
Mazda Canada Inc.'s sales rose 5.8 per cent to 4,732 while Hyundai Auto Canada Inc.'s deliveries increased 3.3 per cent to 3,874.
However, Volkswagen Canada Inc. volumes tumbled 18.6 per cent to 1,923 and Nissan Canada Inc.'s deliveries dipped 2.2 per cent to 5,074.