Canada In April 2013: Detroit's Push Makes Use Of Trucks And Cars

Timothy Cain
by Timothy Cain

Canadians registered just under 172,000 new vehicles in April, more than in any April since 2008. Through the first quarter of 2013, auto sales in Canada were down 1.9%. Imports, by which we mean non-Detroit brands, were suffering the most. Including Toyota, Hyundai, Honda, and Kia, nine Asian brands had posted year-over-year declines at the end of March.

April is a much bigger month for auto sales in Canada, however, as we’ve all exited our hibernation caves and developed an alarming degree of excitement about the soon-coming month of summer. We need new cars to drive from our igloos to the beach. Consequently, by the end of April, a month in which Canadian auto sales increased 8.9%, the year-to-date change measured 1.4% on the plus side.

And how? Light truck sales, which includes everything from pickups to SUVs and minivans, grew 16% compared with April 2012. Passenger car volume was up just 1% and formed 44.9% of the overall market’s volume, down from 48.4% a year ago. In Toyota Canada showrooms, for example, where overall volume was up 7.2%, car sales fell 1.9%. Honda passenger car sales grew 11.5%, but with strong CR-V and Pilot growth, light truck sales jumped 27%. Nissan car sales fell 1.3%; Nissan light truck sales rose 50.5%.

April was clearly a much improved month for import nameplates, including Audi, BMW, Porsche, and Volkswagen. Nevertheless, through the first quarter, the biggest headlines continue to be created by Detroit’s increased influence in Canada. Cadillac, Ram, Chrysler, Ford, Chevrolet, GMC, and Dodge have all reported year-over-year increases through four months. Collectively, Ford Motor Company, the Chrysler Group, and General Motors have posted a 5.2% increase this year. They’re now accounting for 45.9% of the industry’s volume in Canada, up from 44.3% in the same period of 2012.

Most surprising is the fact that they’re producing a healthy amount of the increased volume with cars. At Chrysler’s three car-selling brands, sales are up 13% in 2013. Light trucks at Dodge, Ram, and Jeep are up just 2.3%. In April, General Motors light truck volume grew 18.9%, yet car sales rose 22.5%. At Ford, where 6217 extra F-Series sales (in just four months) have helped push trucks and utilities and commercial vans up 8.3%, car sales have risen 6.3% thanks to a strong push from Canada’s best-selling midsize car, the Fusion.

Much attention has been paid this year to the Hyundai Elantra’s status as Canada’s best-selling car. Its significant two-month lead nearly disappeared in March but then grew slightly, to 161 units, by the end of April. But as much as Canadians prefer small cars over midsize cars, Canadians also love pickup trucks, especially deeply discounted pickup trucks. Despite the market’s stagnation, the loss of the Ford Ranger and Dodge Dakota – 2634 units between the pair at this point in 2012 – and the near disappearance of the Chevrolet Colorado and GMC Canyon – only 120 units between the pair in 2013 – truck sales are up 9.9% in 2013, having risen 21.9% in April.

Automobile sales north of the border represent just 10% of Canada/U.S. sales volume, but 13% of Canada/U.S. truck sales occur in Canada.

Also: Fiat 500 sales have plunged in Canada this year, but the 500 is still outselling the whole Mini brand by 884 units through four months. With the new RDX selling very well and the MDX surging, Acura is only 723 units back of Audi for third place in premium brand standings. They’re both well back of Mercedes-Benz and BMW. The Chevrolet Trax, which Americans can’t buy, at least not in America, outsold the Chevrolet Malibu by four units in April. 8% of the Porsches sold in Canada were Caymans, up from 0% in March. On a year-over-year basis, Volkswagen Jetta sales rose for the ninth consecutive month in April. Subaru sold more vehicles than in any month in the company’s Canadian history, helped no doubt by the fact that the company markets more nameplates than ever before, but also by the Forester’s best month ever. 45% of the Scions sold in April were of the FR-S variety, as the volume achieved by all four of Scion’s other models declined.

Timothy Cain
Timothy Cain

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  • Zip89123 Zip89123 on May 06, 2013

    I got to hand it to the Canadians, you folks really get hammered on auto pricing. If I had to pay what you folks pay I'd probably have purchased a third less vehicles. Peace.

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    • Corntrollio Corntrollio on May 07, 2013

      @Gardiner Westbound Within the US, it's because "destination" charges are averaged across the fleet within the country. So someone in California or Florida pays the same destination for a Honda Accord as someone in Ohio. I assume it's the same for Canada -- there's a Canada-wide destination charge, so people in Vancouver and PEI pay the same as Ontario. I wouldn't be surprised if that destination charge is higher in Canada due to western Canada being even less populated than the western US, but historically, Canadians have always paid a lot more for cars. I believe in some cases Hawaii or Alaska could have a higher destination charge, but some of that is also dealers screwing people. For example, it's routine to charge above MSRP in Hawaii due to the captive audience. Dealers will try to scare you by saying you will pay higher sales tax if the car is brought from another state, but it's much cheaper to ship the car yourself from out-of-state than buy from a Hawaii dealer in many cases (I've heard of 25% markups or more in some cases). Some dealer service departments in Hawaii will also lie and say that they won't service out-of-state cars, but a quick call to the head office in the US should fix that if they give you trouble. The bigger scam is PDI.

  • Mikey Mikey on May 06, 2013

    As rust proofing method's get more, and more, advanced,you are going to see us keep our cars longer. Last winter my buddy was looking for a new Silverado. The dealers had rows, and rows, of them..January and February are supposed to be slow months. Nobody wanted to make a deal. My buddy ended up with a babied 2011 on a private sale.25000 KLMS and it had three documated Rust Check sprays The seller couldn't get close to his price on a trade in. Yes, our market up here is completly different.

  • CanadaCraig My 2006 300C SRT8 weighs 4,100 lbs. The all-new 2024 Dodge Charge EV weighs 5,800 lbs. Would it not be fair to assume that in an accident the vehicles these new Chargers hit will suffer more damage? And perhaps kill more people?
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  • Michael Gallagher I agree to a certain extent but I go back to the car SUV transition. People began to buy SUVs because they were supposedly safer because of their larger size when pitted against a regular car. As more SUVs crowded the road that safety advantage began to dwindle as it became more likely to hit an equally sized SUV. Now there is no safety advantage at all.
  • Probert The new EV9 is even bigger - a true monument of a personal transportation device. Not my thing, but credit where credit is due - impressive. The interior is bigger than my house and much nicer with 2 rows of lounge seats and 3rd for the plebes. 0-60 in 4.5 seconds, around 300miles of range, and an e-mpg of 80 (90 for the 2wd). What a world.
  • Ajla "Like showroom" is a lame description but he seems negotiable on the price and at least from what the two pictures show I've dealt with worse. But, I'm not interested in something with the Devil's configuration.
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