Ford, GM, Fiat Chrysler make gains in Canada

JANUARY SALES

SUSAN TAYLOR TORONTO • The Canadian arms of Ford Motor Co., General Motors Co. and Fiat Chrysler Automobiles NV reported single-digit per centage gains for January car and light truck sales on Wednesday, contrasting with a 1.8 per cent drop in the United States.

FCA Canada said sales of its vehicles gained 2.0 per cent in January, over the same month last year, to 18,443 vehicles. Higher-profit retail sales to individual consumers, which U.S. automakers are pushing, were 75 per cent of sales, FCA Canada said. Bulk fleet sales were 25 per cent of its overall sales.

Sales at Ford Motor Co. of Canada increased 3.5 per cent in January over the same month of the previous year to 17,232 vehicles. Truck sales rose 6.1 per cent to 15,371 vehicles, offsetting a 13.9 drop in car sales to 1,861 vehicles.

GM Canada said its Chevrolet, GMC and Cadillac dealers sold 14,605 vehicles in January, up 1.5 per cent on the year. Sales of Chevrolet vehicles gained four per cent, Buick models 40 per cent and GM utility vehicles 14 per cent, while Cadillac sales dropped 19 per cent, it said.

Honda Canada Inc. reported a two per cent increase in January sales, to 10,173 vehicles, as Honda sales climbed two per cent to 9,131 vehicles to offset a two per cent drop in Acura sales, to 1,042 vehicles.

Monthly U.S. vehicle sales declined from strong yearago levels as automakers scaled back bulk sales to focus on retail sales, but the numbers were still better than analysts expected.

January sales fell 1.8 per cent to 1.14 million vehicles, or a seasonally adjusted annualized rate of 17.61 million vehicles, down from 17.9 million vehicles a year earlier, according to Autodata. The annualized rate was roughly in line with a forecast of 17.55 million in a poll by Thomson Reuters.

Industry executives are optimistic 2017 U.S. sales could reach another record, lifted by pro-growth economic and regulatory policies expected from U.S. President Donald Trump.

In the United States, automakers reported mixed sales for January, with General Motors posting a 3.8 per cent decline while crosstown rival Ford topped analysts forecasts on strong truck sales.

Ford’s F-series pickup truck sales rose 12.5 per cent, while passenger cars dropped 17.5 per cent, leading the company to report a decline of 0.6 per cent in total sales. Industry analyst expected, on average, a fall of about three per cent.

Overall, early auto sales reports showed results slightly better than expected, considering that both Fiat Chrysler Automobiles and Nissan Motor Co. surprised to the upside.

FCA U.S. sales were down 11 per cent while analysts forecast a decline of 16 per cent. Nissan’s U.S. sales rose 6.2 per cent versus forecasts for a decline of about 2.5 per cent. Nissan’s Rogue SUV continued to be its top seller as sales soared 45.5 per cent.

GM said it is emphasizing more profitable retail sales, or those directly to consumers. Lower fleet sales to businesses and government pressured overall volume in January, said Kurt McNeil, GM’s U.S. sales chief. Analysts looked for GM sales to fall about two per cent.

GM expects U.S. January sales were about 17.6 million vehicles on a seasonally adjusted annualized rate, near the forecast of 17.55 million vehicles in a poll of 40 economists by Thomson Reuters.

December’s surprisingly good showing pulled sales from January, normally the weakest month of the year in terms of sales volume. Some analysts cautioned against putting too much emphasis on last month’s annualized selling rate.

Still, the overall U.S. auto market remained on a roll, with rising sales the past seven years, and record highs for the past two, they said.