Auto sales take a beating in U.S., picture brighter in Canada

04.11.2008 17:03 Shopping - Source: cbc.ca

Analysts anticipating weak North American vehicle sales figures for October in the face of low consumer confidence and tight credit were largely proved right on Monday.

While not all automakers have reported their figures, in the United States the numbers so far are especially grim. In Canada, the news is more encouraging.

In the U.S., General Motors dealers delivered 170,585 vehicles in October, down 45 per cent compared with a year ago. GM truck sales of 97,119 were down 51 per cent and car sales of 73,466 were off 34 per cent.

Ford reported auto sales dropping 30 per cent compared with the same month last year. Toyota's decreased 23 per cent in October.

Dearborn, Mich.-based Ford Motor Co., the first automaker to report its monthly sales in the U.S. on Monday, said its Ford, Lincoln and Mercury car sales were off 27 per cent, while light truck sales were down more than 30 per cent.

Overall, Ford, including its Volvo brand, sold 132,278 light vehicles last month compared with 189,515 in the same month last year.

Toyota Motor Corp. sold a total of 152,101 vehicles, down from 197,592 in October 2007. The drop included a 34 per cent fall in light truck demand, while car sales fell 15 per cent.

Some analysts are suggesting sales for the U.S. industry as a whole may be the worst in 25 years.

Canadian sales rise

But in Canada, total sales of light vehicles were up 1.5 per cent in October compared with the same month last year.

"The Statistics Canada price index for new vehicles indicated price deflation in the seven to nine per cent range, and when you lower prices, consumers take advantage of the deals and buy more. I suspect this largely explains positive auto sales for Canada," Dennis DesRosiers, president of Richmond Hill, Ont.-based DesRosiers Automotive Consultants, said in an e-mail.

"But I must say that I am absolutely completely surprised by the Canadian performance. Did Canadians not open their investment statements in October?"

Toyota Canada surpassed its 2007 record sales performance in October.

Sales of Toyota and Lexus cars and trucks hit 15,843 over the past month — up 9.4 per cent from October 2007 — for a year-to-date total of 201,614. That surpasses 2007's record-setting 201,326 vehicles sold, with two months still to go in the year.

Honda Canada reported a one per cent increase over last October in its combined Honda and Acura divisions. It reported October sales of 10,293 Hondas, up two per cent from last year, while its Acura division reported sales of 1,162 units, down seven per cent from last year.

Chrysler Canada saw a 1.5 per cent increase in sales, with 15,643 light vehicles sold in October compared with 15,411 sold during the same month last year.

Ford Canada's numbers were in negative territory, dropping to 15,123 from 16,863 for a decrease of 10.3 per cent.

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