Welcome!

News Feed Item

BMO Economics Predicts North American Auto Industry to Finish Strong by End of 2013

- Canada and U.S. auto industry on track for solid growth

TORONTO, ONTARIO -- (Marketwire) -- 02/11/13 -- The Canadian and U.S. auto industries are poised for solid growth this year - finishing strong with a predicted increase of 7 per cent to 17.5 million units sold - according to a new report by BMO Economics. With a notable pick-up in consumer spending, manufacturing sales are expected to accelerate.

The industry is coming off some momentum that was building last year. Canadian auto sales saw an increase of 5.5 per cent in 2012 compared to 2011. November sales were up 6.5 per cent in dollar terms over 2011, at a total of C$98.6 billion compared to C$92.6 billion the year prior.

In the U.S., auto sales experienced an increase of 15 per cent from 2011. Year-end sales at U.S. dealerships and auto part stores reached US$891 billion in 2012 - an increase of 7.7 per cent.

"The solid domestic market positions North America as an attractive location for auto manufacturers to invest in for 2013," said Alex Koustas, Economist, BMO Capital Markets. "The recent growth suggests automakers will continue to expand capacity and increased technological developments in North America - a trend we expect to continue in the coming years."

Investment Fuelling Innovation and Demand

Continued investments in the auto industry - both north and south of the border - are fueling manufacturing innovation and consumer demand. Notable announcements from government and manufacturers include a C$250 million commitment from Prime Minister Stephen Harper and a US$600 million investment in a General Motors plant located in Kansas City, Kansas.

Mr. Koustas noted that numerous technological innovations have been made over the past four years, most notably related to fuel economy. Thirty-seven per cent of vehicles achieved a fuel efficiency rating of 25 miles per gallon, more than doubling since 2008.

"Every segment, from compact to full-sized pickups, has seen improved fuel economy as manufacturers vie to meet new U.S. efficiency standards scheduled for 2016," noted Mr. Koustas.

Compact and midsize vehicles are now adopting amenities which in the past were reserved for their upper-market counterparts. This luxury segment, however, has been the fastest-growing and most profitable area for manufacturers over the past four years.

Affordability in the New Vehicle Sector

The National Automobile Dealerships Vehicle reports vehicle prices rose modestly in 2012, while new vehicle affordability is enjoying its best stretch in years.

According to BMO Economics:


--  Used car prices rose 12 per cent between 2008 and 2011, compared to 5.7
    per cent over the same span for new cars 
--  Consumers are purchasing new vehicles due to improved car quality; used
    cars are maintaining their value for longer

The Big Three automakers (Ford, General Motors and Chrysler) have caused a stir with new supercar designs, but big changes in their core lineups will drive sales this year. Revamped pickup truck lineups will be a big boost for the profile of these automakers as the housing market heats up. Meantime, Toyota and Honda have redesigned some of their best-selling models to bolster their position in the mid-sized segment against hard charging competition from both Kia and Hyundai.

Robert Sadokierski, Head of Dealership Financing for BMO, expects auto manufacturers will continue to offer more incentives for consumers. "There is good news for prospective buyers as companies roll out redesigned models in the compact, mid-sized and luxury segments. In addition, the loonie's strength should support sales and benefit both dealers and consumers by lowering the costs of vehicles and enhancing purchasing power."

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $525 billion as at October 31, 2012, and more than 46,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.

Contacts:
Media Contacts:
Russell Baker, Toronto
(416) 867-3996
[email protected]

Peter Scott, Toronto
(416) 867-3996
[email protected]

Ron Monet, Montreal
(514) 877-1873
[email protected]

Laurie Grant, Vancouver
(604) 665-7596
[email protected]

Internet: www.bmo.com
Twitter: @BMOmedia

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Outlyer, a monitoring service for DevOps and operations teams, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outlyer is a monitoring service for DevOps and Operations teams running Cloud, SaaS, Microservices and IoT deployments. Designed for today's dynamic environments that need beyond cloud-scale monitoring, we make monitoring effortless so you ...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
China Unicom exhibit at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE FDD, TD-LTE), fixed-line broadband, ICT, data communica...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and micro services. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your contain...
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...