Smoker

Ford and Honda lead huge crash in new auto sales
GM, Toyota and Mazda see gains

Worst January results since 1998


TONY VAN ALPHEN
BUSINESS REPORTER

Plunging sales at Ford and Honda have pulled down the auto market in Canada for the sixth consecutive month.

Sales and leases of new vehicles tumbled 11.5 per cent or almost 10,800 to 82,728 in January from the same month last year, manufacturers reported yesterday.

"Canadians significantly overbought during the last few years and are sitting on the sidelines," industry watcher Dennis DesRosiers said about the current losing streak.

Sales in 2003 dropped for the first time since 1995 and DesRosiers expects a continuing decline for the next few years. Last month's results represented the worst January since 1998.

The decline came despite a plethora of incentives, including no-interest financing, payment of taxes and cashbacks.


Industry leader General Motors of Canada Ltd., Toyota Canada Inc. and Mazda Canada Inc. increased sales but most other companies fell significantly.

DesRosiers, president of DesRosiers Automotive Research, said industry indicators such as scrappage, ownership, vehicle usage, resale values and lease returns do not bode well for a recovery in new sales this year.

Ford Motor Co. of Canada posted a 33.3 per cent drop in sales or more than 5,200 to 10,483 vehicles during January. Car sales crashed 47.4 per cent to 2,473 while truck deliveries tumbled 27.3 per cent to 8,010.

The F-Series pickup truck, the country's most popular vehicle, accounted for 3,700 of the sales but even its volume was down from January, 2003.

Ford's Chris Banks said the firm could not offer any major reasons for the steep decline.

Honda Canada added that its sales, including the Acura luxury division, tumbled 23.1 per cent to 7,047. However, Kalim Ansari, executive vice-president of Honda, said the company remains confident the market will rebound in early spring.

DaimlerChrysler Canada Inc. said its sales slid 12 per cent to 12,224. Car deliveries plunged 22.9 per cent to 2,746, while truck sales including minivans dropped 8.2 per cent to 9,478.

Sales at Hyundai Auto Canada fell 20.7 per cent to 3,142; Kia's deliveries dropped 36 per cent to 1,108 while volumes at Nissan Canada, including Infiniti luxury cars, slid 16 per cent to 3,149.

Volkswagen Canada said sales plunged 44.2 per cent to 1,247. Sales at newcomer Mitsubishi Canada slid 40 per cent to 676.

But GM increased sales 2.4 per cent to 26,330 vehicles, including heavy trucks. Car sales inched up 0.4 per cent to 13,745, while truck volume improved 4.7 per cent to 12,585.

Booming Toyota Canada said sales, including its Lexus luxury vehicles, climbed 4.6 per cent to a record 8,857 for the month, while Mazda Canada's sales soared 30.7 per cent to 4,463.

Subaru Canada's sales inched up 0.2 per cent and Suzuki's sales rose 47.6 per cent to 586.

Among luxury car makers, BMW's sales dipped 4.7 per cent to 820; Jaguar's deliveries fell 56.3 per cent to 73; Land Rover's volume declined 13.7 per cent to 107 and Mercedes-Benz business tumbled 37 per cent to 546.

Article Link:

click here