Detroit Big Three post strong growth as consumers tighten spending

The Big Three automakers from Detroit reported strong Canadian sales growth in August even as consumers fretted about household finances, high gas prices and the state of the economy. Ford Canada said Thursday that it saw an 8% increase in overall sales in August over the prior year. General Motors Canada saw a 7% increase, and […]

The Big Three automakers from Detroit reported strong Canadian sales growth in August even as consumers fretted about household finances, high gas prices and the state of the economy.

Ford Canada said Thursday that it saw an 8% increase in overall sales in August over the prior year. General Motors Canada saw a 7% increase, and sales at Chrysler Canada grew 18% compared with August 2010.

All three cited growing interest in fuel-efficient vehicles as important drivers of growth.

Consumers are continuing their trend toward purchasing more fuel-efficient vehicles as gasoline prices remain high and people look for ways to save in tight economic times, said Ford Canada chief executive David Mondragon.

“The Canadian economy is still in a period of economic recovery, but despite the challenges, the auto industry in Canada is still on a path of moderate growth in 2011 with Ford maintaining its leadership position for the second consecutive year,” said Mondragon.

The industry is expected to see growth this year, but remains cautious in its outlook as consumer confidence falters amid renewed fears the global economy could slip back into recession.

Ford, Canada’s top-selling automaker, sold 25,927 vehicles in August, its best results for the month in 23 years. Since January, the company has sold 193,648 cars and trucks, 5.2% higher than the prior year.

Overall car sales were up 18% to 6,898 units in August. Sales since January are up 22% to 52,622. Truck sales grew 5% to 19,029 and by 0.1% to 141,026 for the year to date.

Meanwhile, General Motors Canada took the No. 2 position, with 25,045 vehicles sold — a 7% increase from that month last year.

It said demand for its fuel-efficient cars and crossovers grew across the lineup, with sales of its Cruze, Malibu and Equinox leading the way.

Chrysler Canada saw the biggest increase in sales among the so-called Detroit Big Three automakers, driven by a doubling in car sales. An 18% increase in Jeep sales also helped the company.

Sales increased 16.6% to 18,816 units sold from 16,144 over the same month in 2010. Car sales grew to 1,736 for the month, 53.2% higher than a year ago, while truck sales were up 13.8% at 17,080 vehicles from 15,011 a year ago.

In the first eight months of the year, sales at Chrysler Canada have improved by 13.8% to 163,816 vehicles.

In the U.S., automakers reported surprisingly strong sales with GM’s sales up 18% and Chrysler’s climbing 31%.

Industry analysts had expected a weaker month because of consumer anxiety about the economy and bad weather on the East Coast.

Auto sales had been a bright spot for both the Canadian and U.S. economies through May, but began sputtering in the summer as consumer confidence waned and a March earthquake in Japan caused shortages of Honda and Toyota models.

Honda sold 8,060 vehicles in August, down 30% from last year, while its luxury Acura banner totalled 1,449 vehicle sales, helped by strong results for its MDX sport-utility vehicle.

Meanwhile, Hyundai said it sold 11,507 vehicles in Canada in August, up 0.9% from a year ago and Kia Canada reported 5,804 new vehicles sold, up 6.9%.

BMW Group Canada had sales of 2,844 vehicles in August, including both its BMW and Mini brands, up 4.1% over August 2010.

Brands Articles

30 Under 30 is back with a new name, new outlook

No more age limit! The New Establishment brings 30 Under 30 in a new direction, starting with media professionals.

Diageo’s ‘Crown on the House’ brings tasting home

After Johnnie Walker success, Crown Royal gets in-home mentorship

Survey says Starbucks has best holiday cup

Consumers take sides on another front of Canada's coffee war

KitchenAid embraces social for breast cancer campaign

Annual charitable campaign taps influencers and the social web for the first time

Heart & Stroke proclaims a big change

New campaign unveils first brand renovation in 60 years

Best Buy makes you feel like a kid again

The Union-built holiday campaign drops the product shots

Volkswagen bets on tech in crisis recovery

Execs want battery-powered cars, ride-sharing to 'fundamentally change' automaker

Simple strategies for analytics success

Heeding the 80-20 rule, metrics that matter and changing customer behaviors

Why IKEA is playing it up downstairs

Inside the retailer's Market Hall strategy to make more Canadians fans of its designs