2008-09-13 09:17:03 -
Canada Autos Report Q3 2008 - a new market research report on www.companiesandmarkets.com
www.companiesandmarkets.com/Summary-Market-Report/Canada-Autos-R ..
Canadas new vehicle market has so far resisted the pressures facing its southern neighbour and looks set to achieve growth again in 2008, according to BMIs recently published Canada Automotives Report. Light vehicle sales for the year to July were up by 2.7% year-on-year (y-o-y), in line with BMIs forecast for full-year growth of around 2%. This is not to say that the industry is without its problems, as plant closures and job cuts by the US Big Three also impact upon their Canadian operations. General Motors (GM) has announced the closure of its truck plant in Oshawa, Ontario from 2009 and also plans to cut 15% of its North American salaried workforce.
Some stability for the industry has been achieved, as the Canadian Autos Workers union (CAW) reached new labour agreements with the three main carmakers ahead of schedule in May. Ford and the CAW made history by reaching an agreement four months before the current deal expires. While wages for Ford workers have been frozen, they will receive signing bonuses of CAD2,200. The terms of the GM agreement include bonuses for improved productivity and quality, as well as increases in cost of living allowances in the second and third years of the contract. Product commitments have also been given to protect the future of the company´s plants in Oshawa and St Catharines. Chrysler´s product commitments are aimed at its plant in Brampton home to the new ´C´ series of vehicles from 2010 and Windsor, which will retain its position as the company´s North American minivan hub. While GM, Chrysler and Ford retain the top three places in the market, one clear similarity with the US market is the emergence of Asian brands. Both Japans Honda and South Koreas Hyundai achieved record monthly sales in May, with Hyundai also recording the sale of its one millionth vehicle during its 25th year in Canada. In better news for domestic production, Honda has announced plans to increase production at its plant in Alliston, Ontario, in line with its sales performance. According to Honda Canada executive vice president Jerry Chenkin, fuel prices have played a vital role in turning consumers towards the smaller, more fuel efficient models offered by Honda such as the Civic and Fit. Indeed, the Fit compact enjoyed record May sales of 1,821 units, a rise of 11% over May 2007.
www.companiesandmarkets.com/Summary-Market-Report/Canada-Autos-R ..
