Canadian auto sales hit new high
Pickup trucks lead in popularity as sales reach 1.74 million in 2013
Auto sales in Canada roared to a record high in 2013. Canadians bought 1,743,112 vehicles last year, eclipsing a high last set in 2002, based on company reports.
The industry hit the record despite a soft landing in December, always a volatile sales month that was made more so by an ice storm that wreaked havoc in eastern Canada, industry analyst Dennis DesRosiers said Friday.
For most of the year, Canadians “shrugged off record household debt levels and a lukewarm economic recovery,” DesRosiers wrote in a commentary.
Ford of Canada was once again the market leader, recording its best sales year since 1997, the Oakville-based automaker said.
Sales grew 2.7 per cent to 283,588 vehicles in 2013, as more of its market-leading F-Series trucks roared off dealer lots.
For the month of December, the Oakville-based auto maker said Canadian sales slid 4.2 per cent to 16,161 vehicles as car sales, a relatively small group, slumped 19.4 per cent while truck sales held steady.
Meanwhile, second-ranked Chrysler Canada said it had its best year since 2000.
Annual sales jumped 7 per cent to 260,015 units, while December sales rose 5per cent to15,445 vehicles, the Windsorbased auto maker said. It cited strong demand for its Jeep Cherokee and Ram pickup truck.
The full-year data is the latest indication that the North American auto industry has finally recovered from its near collapse during the financial crisis of 2008.
The full-year data is the latest indication that the North American auto industry has finally recovered from the financial crisis of 2008
Whether the auto industry can carry the momentum through into 2014 is up for debate
In the U.S., auto industry sales came in at 15.5 million in December on an annualized, seasonally adjusted basis. That was below analysts’ expectations, but still the industry’s best year since 2007, when incentives drove 16.1 million in vehicle sales.
In Canada, it was the year of the truck, with sales smashing through their 2012 record to hit 978,730 units, DesRosiers noted.
Total pickup trucks crossed the 300,000-unit threshold for the first time on higher demand in Western Canada and growth in personal use pickup trucks.
Whether the industry can carry the momentum through into 2014 is up for debate.
“The great news for consumers is that 2014 will be another very competitive year in the industry and we look forward to introducing our fantastic new products,” Dianne Craig, Ford of Canada president and chief executive officer, said in a statement.
The Ford Fusion, Escape and FSeries all had record years, while Lincoln also performed well.
Third-place General Motors of Canada finished the year on a strong note, with December sales up 17 per cent to17,036 vehicles. Full-year sales grew 4 per cent to 234,944 vehicles for the Oshawa-based maker of Chevrolet, Buick, GMC and Cadillac brands.
“Consumer response to our awardwinning launch products drove a strong close for 2013,” said John Roth, GM Canada’s vice-president, sales, service and marketing.
The GMC Sierra and Chevrolet Corvette Stingray both experienced double-digit increases in December, he noted.
Fourth-ranked Toyota Canada Inc. said sales grew 1.7 per cent in 2013 to 195,360 vehicles and Lexus, its luxury brand, had its best year ever, rising 5.6 per cent to 15,949 vehicles.
Led by the Canadian-made Toyota RAV4, it was also a record year for truck sales, up 8.6 per cent at 92,781 units, the company said.
Fifth-place Honda Canada said it had its best year since 2008, with sales up 10 per cent to 164,236 units, led by higher sales of its Honda CR-V. December sales rose 1 per cent to 13,316 units.
Its Civic was the most popular selling passenger car for the 16th year in a row, with 64,063 units sold in 2013, down slightly from the previous year, the company said.
Kia Canada Inc. recorded its second-best year with 72,449 in vehicle sales, down 6.9 per cent versus previous year. Sales of its Rio sub-compact were up 11.8 per cent to 15,601 while its Sorento SUV rose 3.7 per cent to 14,542.
In the U.S., sales ended the year on a “frosty” note, TD Bank research associate Andrew Labelle wrote in a note to clients.
Overall, sales in the first part of December were relatively weak, likely due to some purchases being brought forward into November during the U.S. Thanksgiving weekend, Labelle wrote.
As in Canada, Ford led the pack in the U.S., the only major automaker to post double-digit growth, with sales up 10.4 per cent for the year.
Nissan and Chrysler reported sales increases of 9.4 per cent and 9 per cent, respectively.
Toyota, GM and Honda also enjoyed a solid year, with sales up 7.4 per cent, 7.3 per cent and 7.2 per cent, respectively.
Although light-vehicle sales were down in December, the general momentum is upward, and the rebound in U.S. consumer confidence, as well as gains in the labor market, will support higher sales going forward, Labelle predicted.
In the U.S., Ford ended the year on a high note, with sales up 2 per cent in December. With files from Star wire services