CTV News Article
Canadian car sales post ‘gravity defying' rise
By Romina Maurino, The Canadian Press
TORONTO — Auto sales in Canada were up 5 per cent in July, with General Motors and Toyota posting increases despite high gas prices and pressure from a weak U.S. economy.
Passenger car sales were up 10.2 per cent, while light trucks were down 1.4 per cent, according to auto sales figures released by analyst Dennis DesRosiers.
General Motors Canada posted a 5.2 per cent increase, with dealers delivering 33,893 units in July, up from 32,205 a year ago.
Toyota Canada posted record sales in July, with 21,990 Toyota and Lexus cars and trucks purchased in July, up 18.3 per cent from the same month last year, boosted by fuel-efficient cars.
Chrysler, meanwhile, saw a slight decline of 7.6 per cent but was still up 2.4 per cent on the year, and Ford Canada sold 18,171 units in July, down from 21,097, with total truck sales off 12.2 per cent at 13,554 units and total car sales of 4,617 units mark.
Mr. DesRosiers called the sales increase “gravity defying,” saying the 2.7 per cent year-to-date rise comes “despite a recessionary quarter in Ontario, weakening employment numbers, a par dollar, a weakening energy sector out West.”
He attributed the increase to lower prices, which have been down in real terms all year somewhere in the three to five per cent range.
“Basic economics says that if you reduce the price of goods then consumers buy more – and buy more they certainly did in July and indeed most of the year,” he wrote in a commentary.
GM Canada parent General Motors Corp. posted a $15.5-billion (U.S.) second-quarter loss Friday, the third-worst quarterly performance in the company's nearly 100-year history. The Detroit-based auto maker is being hit by a drop in North American sales and expenses due to labour unrest and a massive restructuring plan.
The company also agreed to cash incentives of up to $120,000 (Canadian) for workers in a deal with the Canadian Auto Workers union this week to settle a grievance over the closure of an Ontario plant next year that will cut employment by 2,600 people.
“GM Canada's July sales continue to illustrate the ongoing shift toward cars and smaller crossovers and we have the vehicles and retail finance rates to satisfy that need,” said Marc Comeau, GM of Canada's vice-president of sales.
The Chevrolet Malibu, as well as the fuel-efficient Pontiac G6 and crossover vehicles GMC Acadia and Buick Enclave all had increased sales in July.
“When GM is up, the market is usually up since they are still the dominant seller in Canada by a wide margin,” Mr. DesRosiers said.
Still, as a group, GM, Ford and Chrysler were down 3.8 per cent while import brands were up 13.9 per cent. Import brands accounted for 53.7 per cent of the market in July, the single largest market share in any particular month in their history, Mr. DesRosiers said.
Honda Canada reported combined record July sales of 15,996 units by its Honda and Acura divisions, up 17 per cent. The auto maker said its Honda Automobile Division reported record July sales of 14,465 units, while the Acura division ended the month with sales of 1,531 units.
Nissan Canada, meanwhile, reported sales of 7,773 Nissan and Infiniti vehicles in July, an increase of 27 per cent over the same month last year. The Nissan brand accounted for 7,060 unit sales in July, while Infiniti sales totalled 713 units.
And Subaru Canada Inc. said its July sales totalled 2,002 units, up 62.2 per cent over the same period last year.