By on July 3, 2009

Commentator dinu01 sent us some Canadian sales data (data day at TTAC) courtesy TheStar.com. “Booming Hyundai Auto Canada, which bucked the market trend this year, broke into the top five for the first time in June as sales surged 25.5 per cent to 10,104. Its sales have shot up 21.4 per cent to 52,454 in the first six months despite the industry’s sharp downturn.” The Korean automaker’s fortunes have soared even as GM and Chrysler Canadian sales have tanked. Hmmm. I wonder what that’s all about . . .

Analysts said yesterday months of lingering consumer uncertainty about the survival of GM of Canada Ltd. and Chrysler Canada have contributed significantly to the companies’ continuing decline, including a slide in sales in June of 31 and 58 per cent, respectively, despite the aid. “There’s no ifs, ands or buts. When you are a company that is bankrupt, consumers are hesitant to buy your products,” said prominent industry watcher Dennis DesRosiers.

But Ford Motor Co. of Canada Ltd., which did not pursue any public aid, climbed to the top of the monthly market in June for the first time since 1949. The company’s sales surged 24.6 per cent, or almost 5,500 vehicles, to 27,408 in June from the same period last year.

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32 Comments on “Oh Canada! Oh Ford!...”


  • avatar
    86er

    While GM Canada and Chrysler Canada are not technically in Chapter 11, obviously the ramifications are hitting us hard up here with factory and dealer closures. Kia and Hyundai are filling the gap (up 37.9 and 25.5% respectively), and they’re willing to haggle at the dealership, unlike Toyota and Honda. I don’t mean factory rebates, I just mean the good ol’ sense of entitlement to more of your dollars that permeates most Toyota and Honda dealerships in this country.

    We Canadians love a bargain.

  • avatar
    wsn

    The people have spoken.

  • avatar
    Point Given

    There’s a lack of inventory problem (Alberta) with GM and Chrysler and it’s affecting sales.

    It’s getting tough to find trucks and the dealers are charging more for them. I used to buy them $500 over dead, now dealers are up to 1200 over holdback kept. There’s just none around. Search for a GMC SLE crew 8 foot box, frustration ensues.

    So we are switching our clients to Fords as they have the inventory kicking about.

  • avatar
    lw

    So do people actually have to buy cars from GM and Chryco anymore for them to stay in business?

    Did Ch. 11 fix that?

  • avatar
    TonyJZX

    while i generally believe people shun away from companies in trouble even Ford, I also believe an iconic product with massive consumer demand and hype will nullify those bad feelings

    is the Camaro in short supply?

    what about the Mustang?

    there’s a lesson there for GM and Ford

  • avatar
    psarhjinian

    There’s a lack of inventory problem (Alberta) with GM and Chrysler and it’s affecting sales.

    You can take the trucks out of Alberta, but you can’t take the Albertans out of their trucks

  • avatar
    Point Given

    Chrysler seems to be the one the clients ask for a quote on the least. GM isn’t being avoided, just can’t find the trucks to make something happen. Inventory glut in the US, not so in Alberta.

    Typically we lease about 90% trucks. however;

    We’ve done two Camaro’s and I’ve seen a few on the roads. I expect that the suppply is ok. As an aside I drove an SS at a GM fleet show the thursday before bankruptcy and man what a complete disappointment.

    The mustang I haven’t heard anything yet about availability. We haven’t done any yet (to my knowledge). As per standard Ford operating procedure wait 8-12 weeks and the dealers will be swimming in pony cars.

  • avatar
    psarhjinian

    Typically we lease about 90% trucks. however;

    Wasn’t GM and Chrysler’s ability to offer leases functionally destroyed in Canada? Last I checked, Chrysler wasn’t leasing and GM was offering terms between 10 and 17%. In Canada, where leases make up a higher percentage of sales, this hurt.

    Meanwhile, everyone else, including Ford, was offering the usual 1-7% on most models.

  • avatar
    Point Given

    psar : Yes. GMAC and Chrysler Financial no longer offer leases(except for very high interest rates). Dealers offer leases through 3rd party companies (Bodkin, WS Leasing etc etc).

    I work for a private leasing company that does commercial leases specifically targeting fleet business. Happily, I do extremely little retail.

    My life is all about depreciation and future residuals.

  • avatar
    wsn

    psarhjinian :
    July 3rd, 2009 at 12:44 pm

    You can take the trucks out of Alberta, but you can’t take the Albertans out of their trucks

    ———————————————

    That’s something I am very troubled by. My cross-street neighbor always buy older trucks and flip them. The worst thing is that he parks them along the street and not on his own driveway.

    I mean, this is Edmonton, Alberta. Get a life. Flip a house, not a truck.

  • avatar
    mitchim

    Yes in alberta we are all about trucks. I care not for them. One day I may have a need for one and may change my mind about having a truck. Many around Fort McMurray have a truck and almost always the CAB and BOX are empty.

    I would say once a car guy always a car guy.

  • avatar
    petrolhead85

    You can take the trucks out of Alberta, but you can’t take the Albertans out of their trucks

    Well it’s summertime here in Kelowna, BC which means we can now qualify as a suburb of Calgary (anybody who has been to the Okanagan in the summer knows exactly what I mean). And yes, practically every chrome rimmed F-350, Silverado, Escalade, Hummer, Land Rover and Cayenne in town has Alberta plates. And an $80,000 (or more) ski-boat towed behind it.

    While we’re on the subject of Canada and cars, here’s some rather depressing news for everyone:

    http://www.time.com/time/business/article/0,8599,1908205,00.html

  • avatar
    jmhm2003

    It’s clear to me why we have so many “Trucktards” in Alberta. Just take a look at the size of most of them.They couldn’t squeeze into a compact if it was the only way to get to Timmy Ho’s for the last Timbits on earth. Alberta is a truly disgusting place.

  • avatar
    50merc

    mitchim: “Yes in Alberta we are all about trucks.”

    It’s that way down here too. Okies love trucks. Twenty years ago I used to say Oklahoma is a place where “compact sports car” means Japanese pickup.

  • avatar
    NickR

    The people have spoken.

    Exactly. By the time GM and Chrysler emerge from bankrupcy they will be so far back of their rivals in terms of customer awareness they’ll have to park their cars on potential customers lawns to get noticed.

    I can just see my fellow Moparites and their Chevy rivals nursing their Molson Canadians and muttering about the injustice of it all.

  • avatar
    AGR

    Some Canadians are “trading down” the reason Hyundai and Kia are doing very well. Other are “trading up” the reason BMW and M-B are doing very well, especially with their aggressive leases.

    Manufacturers in the “middle of the market” are struggling in Canada. Chrysler and GM are “walking business” to the competition.

    Canadians love their CUV’s and perhaps even SUV’s must be the climate.

    YTD June Canadian sales are down 18.3% compared to 2008, US sales are down 35.1% for the same time frames.

    How much of a factor is the strong lease penetration in Canada in upholding sales momentum?

  • avatar
    86er

    How much of a factor is the strong lease penetration in Canada in upholding sales momentum?

    That, perhaps, and also that the recession hasn’t hit nearly as bad here. In fact, in my jurisdiction (Saskatchewan) they’re still projecting positive GDP growth in ’09.

  • avatar
    psarhjinian

    How much of a factor is the strong lease penetration in Canada in upholding sales momentum?

    What really makes the difference, quite frankly, is that Canada had perhaps the best financial discipline (at a business, not personal) level of any G8 nation going into the recession, and thusly hasn’t seen the credit to businesses dry up nearly to the degree the US or parts of Europe have.

    Let’s hear it for heavy-handed government regulation of the financial sector!

  • avatar
    Potemkin

    GM sales have tanked in part because like the mothership dealers don’t seem to understand the very nature of their business, which in their case is dealing. They don’t want to order, they want to sell what they have but they won’t deal on price. They will offer whatever GM put on the hood but not a penny out of their own pocket. My neighbour went truck shopping 2 weeks ago and found GM dealers wouldn’t deal but Ford would so now he has a loaded 150 crew cab. Anybody else have a similar story?

  • avatar
    beken

    On my way to work, I noticed the Chrsyler dealer I drive by everyday is now a Mitsubishi dealer. I had thought about going in and having a closer look at a Challenger. But I guess I don’t need to anymore.

    Now where’s that EVO?

  • avatar
    p00ch

    AGR:
    Some Canadians are “trading down” the reason Hyundai and Kia are doing very well.

    While there’s definitely truth to that, I think Hyundai’s products are much more competitive these days, making people think twice before buying a Toyota or Honda. I, for one, am seriously considering a Genesis Coupe as an alternative to the G37 I’ve been setting my sights on. Nothing to do with trading down – it’s just a good alternative.

  • avatar
    mikey

    Trading down to a Hyundai or a Kia? A good alternative you say?

    Three or four Canadian winters and you will understand what “trading down is all about”

  • avatar
    AGR

    June 2009 vs June 2008

    Chrysler -12,887
    Ford +5,414
    GM -9,853

    Ford is picking up business at the expense of Chrysler and GM.

    Honda -2,976
    Hyundai +2,055
    Kia +1,428
    Mazda -1,799
    Nissan +255
    Toyota -3,673

    Hyundai and Kia are offering an exceptional value package with all their vehicles.

  • avatar
    cpmanx

    A trend we’re seeing south of the 49th parallel, too: Toyota and Honda soared last year, and are crashing down to earth this year.

  • avatar
    psarhjinian

    Trading down to a Hyundai or a Kia? A good alternative you say?

    Three or four Canadian winters and you will understand what “trading down is all about”

    I truthfully haven’t seen that kind of rot on a Kia or Hyundai since 2000 or so; even then, they’re no better or worse than any other marque, and I can’t think I’ve seen an Accent or Elantra that’s any worse than the average Cavalier, Civic or Neon**.

    In the salt belt (which I’m blissfully north of, now) any car will start rusting out in a few years if you a) park it in a heated garage and/or b) don’t wash the undercarriage. Bathe any car that isn’t wrought from aluminum or carbon fibre in electrolyte and let it sit above zero and the results will be the same.

    The whole “Asian cars rust” thing is kind of bogus. Outside of the Tacoma and Tundra (which rust not because of bad steel, but because salt pools on the frame) it’s a carry-over stereotyping from the 1980s that isn’t real.

    ** original Focuses, though, seem to be the only modern car that I see with significant, regular rusting.

  • avatar
    Kman

    To add to 86er‘s comment that, in response to GM and Chrysler selling less cars, “Kia and Hyundai are filling the gap (up 37.9 and 25.5% respectively)“.

    *Exatly* what I was saying pre-bailout. If the market needs 10M cars a year (down from 15M), and two manufacturers stop producing some of those, *other* manufacturers will obviously fill in that need.

    I want my $(how much is it now?) billion back.

  • avatar
    TireGuy

    Well, time to kill the Ford Death Watch. Late enough they took hard steps to change things or just rescue liquidity. Still in big trouble, they will be the one and big survivor of the Big-3.

  • avatar
    ZekeToronto

    AGR wrote:

    “Other are “trading up” the reason BMW and M-B are doing very well …”

    Don’t forget Audi. June ’09 was their best month ever in the Canadian market.

  • avatar
    cdnsfan27

    Canadians have always been smart shoppers and that is why Ford, Hyundai and Kia are gaining market share. We want good quality at good prices. Go Ford, its about time they got the sales they have deserved for the last 4-5 years. Not flaming but where is good old Crown Vic to s**t all over this good news Ford story?

    Happy 4th of July weekend to my American friends…

  • avatar
    Kyle Schellenberg

    As a Canadian I concur that the buying tendencies are different here. We’re a highly taxed society so people here are frugal. We tend not to dwell on stereotypes as much (like Hyundai is still making the Pony). We make friends with pretty much anyone including Cuba, so we’re a bit more likely to admit that Korea can make a decent car. We have different buying patterns too; small cars, hatchbacks, diesels so that might be part of it too.

  • avatar
    rx8totheendoftime

    and the two companies with the best (cheapest) financing available in the country are…Ford and Hyundai

  • avatar
    orenwolf

    Full Canadian Sales Breakdown

    There’s no doubt the market is polarizing into luxury (via Audi/M-B and to a lesser extent, BMW), and “value” brands. Everyone in-between is treading water or worse.

    It’s an interesting situation to watch because “domestic” (US) badges typicaly outsell imports even in Canada, but not this year.

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