National Post (National Edition)
AUTO SALES IN CANADA ON PACE TO BREAK RECORD.
STRONG AUGUST
TORONTO • Vehicle sales in Canada are on pace to break last year’s annual record of 1.95 million, after posting a 6.9 per cent monthly increase in August, as sales continue to rise around the world despite concerns that demand has peaked.
The Global Automakers of Canada, which represents 15 industry manufacturers, said Tuesday more than 1.4 million new vehicles have been sold this year, 5.3 per cent more than last year’s recordbreaking pace. Demand for light trucks and SUVs continued to bolster sales, with sales increasing by 10 per cent and 5 per cent respectively, offsetting declining passenger car sales, which fell 0.5 per cent. August sales came in at 183,945 units, Global Automakers said.
GLOBAL SALES STAND IN CONTRAST TO ‘PEAK AUTO’ FEARS.
“Unless we hit some unexpected economic turbulence, it seems reasonable that Canada will achieve another new sales record in 2017,” GAC president David Adams said in a statement.
General Motors Co. led the way in terms of sales, surpassing Ford Motor Co. for the first time in five months. GM said vehicle sales jumped by 28.5 per cent in August when compared to last year, the company’s best results for that month since 2008. GM Canada sold 28,981 vehicles in August, bringing the yearto-date total sales to 205,329, an 18-per-cent increase from last year.
GM’s GMC and Cadillac brands reported strong results, with record high sales for both in the month of August. GMC sales increased by 54.7 per cent from last year, with year-to-date sales up by 22.9 per cent, while Cadillac saw its sales increase by 19.3 per cent from last year, with year-to-date sales up by 19.3 per cent.
Ford sold 27,296 vehicles last month, a six-per-cent drop from 2016, but the firm has sold 215,224 vehicles in 2017, 3.2-per-cent more than the same time last year. Fiat Chrysler Automobiles NV posted weaker sales in August, dropping 9.2 per cent from last year to 19,648.
While auto sales in the U.S. struggle — August sales fell two per cent, according to the Associated Press, marking the eighth-straight month of decline — Canada has seen sales increase as the economy continues to grow at a betterthan-anticipated pace.
Global auto sales are also poised to set an eighth-consecutive annual record, according to the Scotiabank Global Auto Report released last week. Sales in Canada are projected to reach two million.
“Record global sales stand in sharp contrast to ‘peak auto’ fears that have become popular with pessimists and appear regularly in media headlines,” Scotiabank economist Carlos Gomes wrote in the report. “While the auto industry is cyclical, declines in global car sales have historically only occurred during economic downturns, such as in 2001, and 2008/2009. Outside of those years, global auto sales have consistently moved higher.”
Gomes said the U.S. sales have been lower this year in part due to a sharp decline in purchases by car rental companies. In Canada, he pointed to an improving economy, expanding labour and strong growth in the Prairie provinces, particularly in Alberta, as having contributed to improved auto sales.
“Economic activity is much stronger than people generally expected and, in particular, the labour market has gained significant momentum. That’s really what’s the key driver of the auto sales outlook, “Gomes said.