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
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors!
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.