CANADA: Car sales set to surpass pre-recession level in 2012
The Canadian motor vehicle manufacturing industry is expected to post its third consecutive annual year of profitability in 2012. At CAD1.35bn (US$1.35bn) in pre-tax profits, the industry will enjoy its best bottom-line result since 2002, according to The Conference Board of Canada's Industrial Outlook-Autumn 2012 outlook for Canadian automakers.
"The industry will continue to benefit from brisk growth in vehicle sales, both this year and next," said Michael Burt, director, industrial economic trends. "While Canadian sales are set to surpass their pre-recession level this year, sales in the United States are not expected to return to 2007 volumes until 2014. This increasing US demand is expected to lead to a prolonged recovery in Canadian auto exports."
Through the first eight months of 2012, Canadian automotive production rose almost 20% compared to the same period last year. Sales in Canada surged 7.1% between January and August of this year and are on track to reach 1.72 million vehicles-the highest levels since 2002. Across Canada, truck sales continue to outnumber passenger car purchases-particularly in the Prairies where brisk activity in the mining and construction industries is driving sales.
US sales have posted double-digit sales growth three years in a row, culminating in a 15% increase in Canadian exports this year. Yet, US sales remain 1.7 million units below where they stood in 2007, leaving room for further growth - assuming that Congress and the White House take measures to avoid the looming fiscal cliff.
Going forward, production growth will slow over the next five years from this year's pace. Canadian sales gains will be limited as the demand that built up during the recession has effectively dried out. Also, in 2014 General Motors will close one of its Oshawa plants and growth in sales will start to level off in the United States.
I wouldn't have thought that, with the current state of play in the European auto industry, there'd be too much niggle in the union ranks. But we've reported on a bit this week....
Opel has moved swiftly at its militant plant of Bochum in Germany, announcing the Zafira Tourer will be manufactured at Russelsheim from 2015....
General Motors has opened a new US$130m 'enterprise data centre' that will serve as the computing backbone for the automaker's vast global operations....
Sales of General Motors' Cadillac brand rose 4% year on year to 354 units in the Middle East last month as dealers booked their best sales for April since 2008....
Echoing a similar model-sharing deal with the Renault-Nissan alliance in Europe, General Motors is to rebadge Nissan's NV200 van to sell in the US and Canada as the Chevrolet City Express....
Ongoing sovereign debt crises across Europe are continuing to have a major impact on the Continent's automaking development, with 2007 production levels not expected to return until 2017, says analyst...
- THE WEEK THAT WAS - platforms to go to
- General Motors' platform strategy decoded
- INTERVIEW - Geely/Volvo architecture cooperation b
- Delphi Powertrain VP on compliance - Q&A
- Dayco on building aftermarket brand identity - Q&A
- Peugeot reveals revamped 3008 compact SUV
- Volvo previews 2017 40 series on CMA platform
- US and UK motorists divided on driverless cars
- Nissan spells out autonomous drive timeline
- Storm causes Toyota to halt output at Texas plant