TORONTO - Canadian sales of cars and light trucks continued to creep ahead last month, creating a stark contrast to the slip-sliding away experienced south of the border, according to industry figures.
Overall vehicle sales in Canada rose to 122,711 vehicles in October -- up 1.5 per cent over the same month of 2007, according to monthly figures compiled by DesRosiers Automotive Consultants.
Auto industry analyst Dennis DesRosiers attributed the positive numbers to lower vehicle prices, but said they're still "shocking'' when compared to the U.S. sales figures and the stock-market downturn that took a huge chunk out of many investors' portfolios.
"I must say that I am absolutely, completely surprised by the Canadian performance. Did Canadians not open their investment statements in October?'' DesRosiers said in a commentary.
"Or are they kidding themselves, or did they enter the market in the summer and ordered their new vehicle and September and October are just showing the deliveries from these earlier-in-the-year sales?''
General Motors and Ford continued to show year-over-year declines, but nothing like their American parents -- which fell 45 per cent and 30 per cent respectively.
The Canadian Auto Workers union said the dramtic slump in North American auto sales last month also reflects the crisis in credit in the industry, which has dried up leasing and new vehicle purchase financings. The union said government help is needed to get the money flowing again to consumers so they can finance their vehicle purchases.
"The federal government and the Bank of Canada have channeled close to $50 billion in financial assistance to Canadian banks and other financial firms,'' CAW president Ken Lewenza said in a release. "But banks aren't the only victims of this crisis.''
"It is essential that our government, in concert with U.S. officials, move quickly to get credit flowing again through the auto industry,'' he added. "Otherwise, we will face an industrial disaster, with consequences that will haunt us for decades to come.''
The sharp drop in the U.S. market could have severe repercussions for Canada, which ships 90 per cent of its auto assembly plant output and two-thirds of Canadian made auto parts to the United States. Canadian plants have already been shut down and the industry has lost thousands of jobs in earlier streamlining by the so-called Detroit Three -- GM, Ford and Chrysler.
In the Canadian sales report, the biggest gains among the Top 5 auto companies in Canada were at Toyota Canada, where combined sales of its Toyota- and Lexus-branded cars and trucks were ahead 9.4 per cent to 15,843 units from 14,484 in October 2007.
"Toyota came in at second place again this month and now are building a strong lead year-to-date over both Ford and Chrysler for the No. 2 spot,'' DesRosiers said.
"This would be a first. Chrysler on rare occasions have beaten Ford for the No. 2 position but never has an import nameplate OEM come in second in the Canadian market.''
Chrysler's Canadian sales rose 1.5 per cent in October while Honda Canada sales of Honda and Lexus-branded vehicles increased by about 0.7 per cent.
In contrast to Toyota's numbers, General Motors' industry-leading volume (including the Saab brand) was nearly twice as big at 28,220 vehicles sold in Canada in October, but that was down 6.1 per cent from a year earlier. GM's share of the Canadian market for the first 10 months of 2008 was 21.9 per cent.
"Despite continued uncertainty in the U.S. marketplace, Canadian industry sales remain on track for the year,'' said Marc Comeau, GM Canada's vice-president of sales, service and marketing.
He added that October continued the trend of more and more consumers purchasing small, fuel-efficient cars and crossover vehicles.
Toyota's share of the Canadian market so far this year is No. 2 at 14 per cent -- just ahead of Chrysler at 13.5 per cent and Ford at 12.5 per cent. Honda Canada rounded out the Top 5 with 10.6 per cent of Canadian sales in the first 10 months of 2008.
Chrysler sold 15,643 vehicles in October, up from 15,411 a year earlier. Ford sold 15,123 units, down 10.3 per cent from 16,863, and Honda Canada's Honda- and Acura-branded cars sold 11,455, up 0.7 per cent from 11,377 in October 2007.
The positive Canadian sales numbers won't do much to help the country's struggling manufacturing industry, as about 80 per cent of finished vehicles and 62 per cent of automotive parts manufactured in Canada are exported to the U.S.
If the lower sales continue in the U.S. industry, further cuts could be looming for auto assembly and parts plants in Canada, the U.S. and Mexico.
The major automakers have already shut down plants and laid off thousands of workers in recent months.
In Canada, GM, Ford and Chrysler have been streamlining operations at many plants in southern Ontario, including the pending shutdown of a GM truck plant in Oshawa, with the loss of about 2,600 jobs.
