Lower gas prices contributed to “stunning” Canadian auto sales in October, but strong demand is creating a new problem for dealerships: they’re running out of cars.
Vehicle sales came in at a seasonally adjusted annualized rate of more than two million for the second month in a row, according to data compiled by DesRosiers Automotive Consultants — a pace the consultancy called “stunning.”
Canadian auto sales hit a record in July as cars and trucks continue to fly off dealership lots at a blistering pace in 2013.
Canada is not the only country experiencing strong demand from consumers with a dearth of used vehicles in the market four years after the recession, when fewer cars were taken on leases and are coming off lease now.
Global auto sales are on pace to hit a record in 2013, a remarkable turnaround for the industry that was in the midst of a crisis just four years ago.
Canadians flocked to dealership lots at a record pace in August, enticed by generous incentives and a dearth of used vehicles in the marketplace.
But the blistering pace at which new cars and trucks are flying off the lots is starting to raise some yellow flags for the road ahead for both automakers and consumers.
Overall auto sales in Canada hit an record high in August, up 6.5% over the same month last year. It marked the second-straight monthly sales record in the country.
Canadian auto sales are expected to come in just shy of a new record in 2012 after another strong month of sales across the country in November.
Ford Motor Co. of Canada, Ltd. remained the top seller in Canada for the month – and for the year to date – with sales up 7.4% year-over-year. The company said that was driven by a 14% jump in car sales during the month and a 6% rise in truck sales.
The Canadian auto industry has seen incredible growth in 2012
General Motors of Canada astounded analysts after it reported a 25% jump in July sales despite an ongoing quality crisis that has seen nearly 30 million vehicles recalled worldwide.
The strong showing from the third-biggest seller of vehicles in Canada helped boost total industry sales 11.3% in July to 177,000 vehicles.
Chrysler Fiat announced this week that its U.S. auto sales in May jumped 17% over the same time last year, beating industry projections by 3%. In fact, with more than 849,000 cars sold so far this year, the much-maligned automaker is having its best year in nearly a decade.
Volkswagen AG, Europe’s largest automaker, will maintain a high level of spending on developing new vehicles and upgrading factories over the coming five years to underpin its bid to become the world’s largest automaker.
VW plans to invest 84.2 billion euros (US$114 billion) through 2018, the Wolfsburg, Germany-based company said today in a statement. The plan calls for a reduction in average annual spending on property, plants and equipment of about 500 million euros a year, compared with its previous budget.
Following ongoing promises from the Fed that the Taper will continue at a pace of $10 billion per month come rain or shine, suddenly good news are critical for stocks, as the stock market is desperate for a strong economy to which Yellen can pass the baton. It did not get that with Friday's payrolls number so it was hoping for some good news in today's retail sales. And judging by the market response to the just released December retail sales, it got it, if only for now: headline December retail sales rose 0.2%, on expectation on a 0.1% increase even as auto sales tumbled -1.8%.