Coronavirus Impact: Canadian Auto Sales Drive Off a Cliff

Steph Willems
by Steph Willems

Mirroring its southern neighbor, Canadian auto sales took a dive last month as measures designed to slow the spread of COVID-19 went into effect across the country. First-quarter volume, as a result, fell roughly 20 percent across the industry, with March’s decline pegged at 48 percent by DesRosiers Automotive Consultants (via Bloomberg).

Still, amid all the gloom were statistical bright spots.

First off, due to incredibly low volume and the timing of orders, sales of the loftiest automotive products in the land actually rose in Q1 2020. Marques like McLaren, Lamborghini, Bentley, and Rolls-Royce posted quarterly gains. It’s likely only a vanishingly small amount of their combined volume hit sales sheets in the last half of March, resulting in the skewed results.

January and February were seen as fairly healthy sales months on both sides of the border.

According to figures from the Automotive News Data Center, the Detroit Three fared better in the U.S. than in Canada last quarter. While the Fiat Chrysler, Ford, and General Motors posted Q1 declines of 10.9 percent, 12.5 percent, and 7.1 percent, respectively, in the U.S., the Canadian tally revealed drops of 18.9, 13.8, and 12.8 percent, respectively.

Product timing and heightened demand for pickup trucks versus all other segments meant some mainstream product fared better north of the border. Ram volume was nearly flat (a 0.7-percent loss), thanks to a 50-percent increase in Heavy Duty volume over the quarter. Sales of the soon-to-die Dodge Grand Caravan rose 2 percent. Brand-wise, Jeep and Chrysler fared the worst, with drops of 35 and 55 percent, respectively.

At Ford, Explorer, Expedition, and Super Duty sales all rose significantly over Q1 2019, the result of new product and higher volumes in the first two months of the year. The Ranger was also the beneficiary of this phenomenon. Bright spots span the pricing ladder at GM, with such models as the Chevrolet Trax and Corvette, Silverado and GMC Sierra all posting quarterly gains. The Chevy Bolt and new-for-2019 Blazer appear on that list, too, as does the Buick Envision.

Leading the volume-loss pack among import brands was Infiniti, whose sales fell more than 50 percent in Q1 2020. If you’ve paid attention to the brand’s trajectory in the U.S., you’ll know that coronavirus can’t take the blame for the entirety of that loss. Other Japanese brands, including Honda, Nissan, and Acura, recorded a volume loss of greater than 30 percent.

Looking to Europe, BMW Group brands sank a combined 30 percent last quarter, while Volvo came close with a 29-percent drop.

[Image: Fiat Chrysler]

Steph Willems
Steph Willems

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 7 comments
  • ToolGuy ToolGuy on Apr 03, 2020

    Canada was the second-largest producer of automobiles in the world from 1918 to 1923. I say it's time for a comeback. Step one: Think outside Ontario. https://www.ic.gc.ca/eic/site/auto-auto.nsf/eng/am00767.html Yukons could be assembled in Yukon, for example. (Why must I think of everything?)

    • See 4 previous
    • RHD RHD on Apr 05, 2020

      @Inside Looking Out Kia will be making small SUVs in Colorado and Hyundai's factories will be in Arizona and New Mexico. Dodge will be making pickups just east of Montana.

  • Arthur Dailey Arthur Dailey on Apr 04, 2020

    "Marques like McLaren, Lamborghini, Bentley, and Rolls-Royce posted quarterly gains." The rich will always be rich. And often they get richer during times of economic crisis as they pit unemployed workers against each other to lower wages, and buy up real estate and stocks at deflated prices.

  • Jalop1991 The intermediate shaft and right front driveshaft may not be fully engaged due to suspected improper assembly by the supplier. Over time, partial engagement can cause damage to the intermediate shaft splines. Damaged shaft splines may result in unintended vehicle movement while in Park if the parking brake is not engagedGee, my Chrysler van automatically engages the parking brake when we put it in Park. Do you mean to tell me that the idjits at Kia, and the idjit buyers, couldn't figure out wanting this in THEIR MOST EXPENSIVE VEHICLE????
  • Dukeisduke I've been waiting to see if they were going to do something special for the 60th Anniversary. I was four years old when the Mustang was introduced. I can remember that one of our neighbors bought a '65 coupe (they were all titled as '65 models, even the '64-1/2 cars), and it's the first one I can remember seeing. In the '90s I knew an older gentleman that owned a '64-1/2 model coupe with the 260 V8.
  • SCE to AUX "...the complete Mustang model lineup to peruse"Will the fake Mustang show up, too?
  • SCE to AUX We don't need no stinking badges.
  • SCE to AUX I've never been teased by a bumper like that one before.
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