Canada’s three big car companies saw sales slip dramatically in April as stiff competition from the Japanese producers and fallout from costly incentive packages chipped away at market share, Reuters reported.
Go deeper with GlobalData
While the Big Three – General Motors, Ford and DaimlerChrysler –reported sharply lower April sales, offshore companies such as Toyota and Nissan delivered record-setting months.
“The overall market is shrinking and it’s clear who is taking the beating,” said independent auto consultant Felix Pilorusso in Toronto told Reuters. “It would seem we’re finally starting to see what everyone said we were going to see. The weakening market and also the effects of the incentives.”
Reuters said North American car makers waged a fierce battle for market share last year as they tried to attract reluctant buyers back into the showrooms following the fallout from the September 11 attacks on the United States with attractive incentive packages, including low-interest or interest-free loans, cash back, or no down payments.
While the companies enjoyed a flood of sales, analysts warned the incentives could not be sustained, Reuters noted.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“To the end of the year, there was the common perception that they were just stealing sales from future periods. It looks like we’re just seeing that now,” Pilorusso told the news agency.
General Motors of Canada, the country’s biggest car maker, said sales of cars and trucks fell 16.1% to 41,033 in April from 48,916 in the same month a year earlier, Reuters said, adding that GM car sales fell 19.3% to 21,472, from 26,617 last year. Light truck sales – which include minivans, pickups and sport utility vehicles – dropped 12.3% to 19,561 from 22,299.
According to the news agency, Ford Canada said its combined sales fell to 19,486 in April, down 18.5% from 23,895 a year earlier, while car sales fell 20.7% to 5,852 in April from 7,378. Truck sales dropped to 13,634, down 17.5% from 16,517.
DaimlerChrysler Canada saw combined sales dip 15.1% in April to 20,868, from 24,575 a year earlier with car sales down 14.1% to 5,896 from 6,867. Truck sales dropped to 14,972, down 15.5% from 17,708, Reuters said.
The news agency said that, among the import brands, Toyota Canada topped previous April figures with record sales of 16,516 units, up 6.5% over last April’s numbers, while Nissan Canada sold 6,654 vehicles in April, up 2.6% from a year earlier.
