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Detroit big three automakers see dramatic boost in June vehicle sales
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By Sunny Freeman, The Canadian Press
TORONTO - Some of Canada's top automakers reported a strong rebound in sales last month after a weak performance in May.
Automakers in Canada saw their sales improve dramatically on an annual basis and monthly basis.
Overall, the sales in the industry were up 6.6 per cent to 164,796 from 154,565 a year ago, according to data compiled by DesRosiers Automotive Consultants. That was an industry best since at least 2004.
Most automakers also saw a bounce from weak sales activity reported in May, when the industry recorded a 3.8 per cent drop, with 149,034 sales.
"Car and light truck sales bounced back in June, rebounding from a weak performance in May, when purchases were undercut by negative headlines emanating from the European sovereign debt crisis," said Carlos Gomes, an auto analyst at Scotia Capital.
May was the only month of the year that many automakers reported a decline in sales, led by falling truck sales. That made observers question whether high gas prices might have forced drivers to rein in purchases.
But truck sales outpaced car sales once again in June, with figures up seven per cent compared to car sales that were up 6.2 per cent, according to DesRosiers' research.
Automakers had been reporting larger increases in car sales for most of this year due to soaring fuel costs.
Gomes noted that last month's strong performance lifted vehicle purchases to an annualized 1.67 million, partially reflecting enhanced incentives to lure customers back, including employee pricing.
"Several automakers reported record sales last month. With manufacturers maintaining enhanced incentives in July, the Canadian auto market promises to remain hot through the summer."
Ford Canada once again claimed the top spot with June sales that increased six per cent to 33,450 from 31,707 from year-earlier levels. That was its best June since 1989.
"After some uncertainty in May, we experienced a nice uptick in showroom traffic in June," David Mondragon, president and CEO, Ford of Canada said in a statement.
"In fact, the Canadian market may come in stronger for 2011 than first forecasted."
In June, Ford car sales were up 32 per cent, driven by its Focus, Fusion, Taurus and Mustang. Truck sales, however, fell nearly four per cent.
General Motors Canada, Canada's second best selling automaker last month, said sales grew 12 per cent from a year ago, led by its Chevrolet Cruze and other fuel efficient cars and crossovers. The company reported total sales of 27,865 vehicles, compared to 24,897 a year earlier.
Car sales rose 14 per cent, while truck sales gained 11 per cent.
"With gas prices on the rise, customers have embraced fuel efficiency leaders such as the Chevrolet Cruze, Chevrolet Equinox and GMC Terrain," said Marc Comeau, vice-president of sales, service and marketing at GM of Canada.
Chrysler Canada reported the largest improvement from year ago sales among Detroit's so-called big three automakers, and the top three selling brands in Canada. The company said its sales soared 27 per cent to 23,576 vehicles from 18,502 a year ago. That was its best June since 2005.
Meanwhile, many Japanese automakers saw another decline in monthly sales, DesRosiers found. Toyota Canada saw a nearly 28 per cent drop to 10,564 units from 14,607. Suzuki sales fell 37.4 per cent to 457 from 730 a year ago. Mazda sales dropped three per cent to 7,010 from 7,218 a year ago.
Honda Canada said its sales, including the luxury Acura model, fell by 19 per cent to 9,584 vehicles.
The companies are still struggling with supply chain issues following a disruption caused by Japan's earthquake and tsunami in March.
However, sales at some smaller Japanese automakers made gains, according to DesRosiers. Mitsubishi sales grew 19 per cent to 1,911 to 1,604, while Nissan sales reached 47.4 per cent to 10,686 from 7,248.
Luxury automaker BMW Group Canada saw sales jump 19 per cent over June 2010 to 4,164 vehicles, while Porsche Canada sales were up 34.4 per cent to 242 from 180 a year ago, according to DesRosiers.
Volkswagen Canada sales grew 11.8 per cent to 5,006 from 4,479. Hyundai sales were up 17 per cent to 13,435 from 11,501. Kia sales grew 21 per cent to 7,077 from 5,864 20, the auto analyst said.
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