April car sales highlights
Published on Wednesday, May 5, 2010
During the slump that battered the auto industry last year and in the tepid recovery since, the Canadian market outperformed the U.S. market. That trend ended last month.
U.S. sales jumped 20 per cent in April from the same month last year, while Canada eked out a 4-per-cent gain as double-digit declines at General Motors of Canada Ltd. and Toyota Canada Inc. offset robust results from other auto makers.
But on both sides of the border, incentives fuelled the overall gains and some companies extended and enhanced their offers as the industry tried to push the recovery into a higher gear.
Weak indicators in the broader economy are holding back the U.S. auto recovery, industry analysts said yesterday.
“The consumer continues to struggle with unemployment, even though people are spending a little more,” said Rebecca Lindland, an analyst at IHS Global Insight in Lexington, Mass. “Ford and GM have come in pretty close to our expectations. Still, from an economic standpoint, we don't have the steady upward trend from all indicators.”
The 4-per-cent rise in April sales in Canada was the weakest performance so far this year and is not much of an improvement from April, 2009, which was one of the worst months of the slump. Dealers delivered 149,658 new vehicles last month, compared with 143,931 a year earlier.
“With the exception of last year, this is the weakest April since 2001,” said industry analyst Dennis DesRosiers, president of DesRosiers Automotive Consultants Inc. in Richmond Hill, Ont. “Not good when your sales are up only 4 per cent compared to a very bad month the year before.”
U.S. sales hit 11.5 million on a seasonally adjusted annual rate basis. That was down from March and also compared with an exceptionally weak April in 2009.
In both countries, some auto makers put in strong performances.
Ford Motor Co. and Hyundai Motor Co. picked up market share in both Canada and the United States. Ford sales jumped 24 per cent in Canada and 25 per cent south of the border, while Hyundai Canada sales jumped 16 per cent and Hyundai USA sales soared 30 per cent.
Chrysler Group LLC was among the strongest performers in both countries. Chrysler Canada Inc. sales surged 35 per cent, while U.S. sales jumped 25 per cent.
All the Germany-based auto makers outperformed the market in April with gains in excess of 20 per cent.
Although GM Canada’s sales fell 21 per cent, it edged out Ford to take top spot in the market in April.
The auto maker introduced new incentives starting in May, including interest-free loans for 60 months and cash rebates, including $2,000 on Malibu mid-sized cars and $2,500 on Impala sedans.
Toyota Canada, whose sales slid 17 per cent in April, extended its interest-free loan deals to May in both Canada and the United States.
Source : Greg Keenan, Globe and Mail