By on April 10, 2008

imgsplashbranding.jpgWhile Standard & Poor's are planning for a seven percent slide in auto sales for the U.S. of A, things north of the border are looking up. The CBC reports that the Canadian automotive  market will nip at the heels of last year's totals (their second best year ever). The forecast comes courtesy of DesRosiers Automotive Consultants head honcho, Dennis DesRosiers. After seeing double-digit jumps throughout the first quarter, Dennis deduced an improved forecast was due. DesRosiers reckons the strong Loonie, decreased taxes (one percent G.S.T drop), and healthier Canuck economy will entice more Canadians to throw down for price-reduced whips this year. Don't figure on this news making up for the U.S. slide though. The improved forecast accounts for a mere 8k unit improvement (1.645m total).

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9 Comments on “Canadian Auto Sales Soaring. In a Way....”

  • avatar

    I am not sure who the big winners will be. On the oil patch, I am sure pick-ups will get a boost. Out east, economy cars seem to be the order of the day for most people, where the Japanese and Koreans tend to dominate.

  • avatar

    Compacts and sub-compacts are certainly leading the charge in the Vancouver area. Lots of Fits, Civics, 3s, Yarii, and even Cobalts and G5s. I’ve even seen several new Aveo/Waves.

    I’ve yet to see a new Malibu or Accord sedan, although I’ve seen the Accord coupe.

    Trucks and SUVs are getting hammered here right now with gas at $1.25/liter and a new carbon tax on the way in July. We’re expecting gas in the $1.40 range by mid-summer. Good thing my motorcycle gets good mileage.

  • avatar

    Just to clarify, that’s a $1.25/$1.40 per litre.

    And in the east the situation is virtually the same

  • avatar

    I’m still waiting for a few manufacturers to lower their MSRPs to match the current currency situation. Though many have already done some “special time limited offer” pricing, it’s still not reflective if a near par CDN/USD exchange rate.

    Those special offers are probably why the sales numbers have improved.

  • avatar

    A double-digit increase in sales for the first quarter is soaring sales. The sales already occurred. An 8K hike in forecast sales for the year is a different statistic.

  • avatar
    John B

    “Just to clarify, that’s a $1.25/$1.40 per litre.”

    Toronto prices are about $1.15 per litre with no carbon tax planned.

  • avatar
    Brendon from Canada

    John B: same price out here in Kitchener – however, I’ve noticed that every day this week and last the price has dropped to $1.04 for a few hours in the afternoon (morning commute price is ~1.12)!

  • avatar

    Are high gas prices the reason for pickup sales slumping or is it also the fact that the housing crisis in the US has nuked the construction trade. Contractors are one of the biggest users of pickups and they are hurting. Not only are there few new home starts but a lot of them are sitting on $millions in unsold houses. Pickup sales are further depressed by the fact that with people losing or barely hanging onto their homes there’s no money for DIY renos so no need for a new truck.

  • avatar

    Speaking of per liter gas prices…

    It finally had to happen one day. I’m driving along and see that the gas prices have shot up to 1.27, up from 1.12 earlier today.

    But, lo and behold, what’s this? A lone Ultramar station is still holding out at 1.12.

    Zip! In I pull. I wait my turn, because, as one might expect, there is a lineup. (I don’t ever recall a $0.15 jump in day like this; most I’d seen so far was $0.10.)

    In any case. Get to the pump, insert card…. card not read… insert card again. Okay, authorizing, authorizing…

    …ZING! Price goes up to 1.27 on the pump as I’m standing there. I look up at the digital gas price billboard… 1.12… and zap! Up goes that one too. $1.27.

    So it finally did happen with the fast-changing, frequently-changing retail gas prices: I was the one at the pump just before it jumped up.

    I put in $5.00 and drove off, dejected.

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