August was a month of extremes for vehicle sales in Canada, with some major automakers posting double-digit losses and others posting double-digit gains.
Data from DesRosiers Automotive Consultants shows overall vehicles sales in Canada were down 7.9% in August to 135,351 compared to 146,978 a year earlier.
Ford Canada had a tentative grip on top market share for two months in a row, but was edged out of that spot by General Motors Canada in August.
GM’s Canadian sales declined by 27.5% year over year to 23,018, but the struggling automaker still managed to grab the largest portion of the market at 17.6%.
“Rebuilding our inventory levels in August has improved our sales performance,” stated Marc Comeau, GM Canada’s vice-president of sales, service and marketing.
“The new and recently launched GM cars and trucks are being very well received and we are positioned to capitalize on the growing market momentum.”
Following GM in terms of market share were Ford, Toyota, Chrysler and Honda. South Korean automaker Hyundai came in a close fifth after seeing its sales jump by nearly 40%.
“Once again we see a Big Six rather than a Big Three emerging in the market in Canada with the Detroit one, the government two, the Japanese two and the new kid on the block from Korea,” said auto analyst Dennis DesRosiers. Both GM and Chrysler were given billions of dollars in bailout money from the U.S., Canadian and Ontario governments earlier this year after restructuring under bankruptcy protection.
Ford’s sales were up 7% to 22,166 units in August–its third consecutive month of gains–and it captured 15.7% of the Canadian auto market.
The automaker known for its F-150 pickup trucks has been focusing its marketing on smaller, more fuel-efficient cars. The shift in focus seems to be paying off, with car sales up 17% year over year.
Ford is the only North American automaker that didn’t require government assistance and a trip to bankruptcy court this year and it has benefited from the uncertainty and temporary shutdowns at GM and Chrysler.
Other automakers weren’t so lucky. Toyota Canada claimed third but its sales fell 24.2% from the same month last year at 16,707 vehicles. Toyota’s Lexus luxury brand sold 1,532 vehicles, up 31.3% from last year.
In fourth was Chrysler, which saw its sales fall 6.8% to 14,393.
Meanwhile, Honda Canada reported sales of 10,574 units, a 21.8% decrease from last year. Honda’s Acura brand boosted sales by 26.4% to 1,644.
Hyundai Canada posted a 38.4% improvement in its sales to 10,418, after the automaker announced it would give consumers between $500 and $1,000 in savings, depending on the vehicle, as an incentive to scrap old cars for new Hyundais.
“Here in Canada, August was our eighth straight month of sales increases, and our seventh straight month of broken records. I think these results are helping people take notice of us,” stated Hyundai Canada vice-president John Vernile.
Nissan Canada’s sales improved by 4.2% to 7,071; Kia Canada reported a 20.6% increase to 4,672 vehicles sold; and Audi’s sales soared by 89.6% to 1,058.
In the United States, the Cash for Clunkers program boosted sales at Ford, Toyota and Honda in August as consumers snapped up their fuel-efficient offerings.
The program, which ended last week, drew hordes of buyers into quiet showrooms by offering up to US$4,500 toward new, more fuel-efficient cars and trucks.
