Welcome!

News Feed Item

Canadian Auto Industry Hits Record Sales in 2013; Industry Poised for Another Solid Year: BMO Economics

- Third consecutive year auto sales have grown, up 10 per cent since 2011

TORONTO, ONTARIO -- (Marketwired) -- 01/29/14 -- Canadian auto sales had another banner year, with light vehicle sales growing for the third consecutive time, with the industry on track for another solid year, according to a new report by BMO Economics.

Preliminary numbers indicate the industry saw continued growth with light vehicle sales - which comprise all passenger grade vehicles and exclude trucks larger than the standard pickup - jumping to 1.74 million units sold in 2013, an increase of 4 per cent since the previous year (1.68 million units sold) and a 10 per cent increase since 2011 (1.59 million units sold).

"A solid model lineup and new offerings from manufacturers at very generous financing terms will continue to generate interest from the Canadian consumer," said Alex Koustas, Economist, BMO Capital Markets. "Sales activity will remain brisk, but will likely drop off last year's pace given rising ownership rates and more elevated debt levels. Nevertheless an overheating is unlikely as long as financing terms remain balanced."

Mr. Koustas predicts that auto sales will slide marginally from 1.78 million units in 2013 to 1.71 million units in 2014. Despite this drop in projected volumes in 2014, projected auto sales for the year are still expected to mark the third best performance on record.

Factors Fueling Auto Sales

Mr. Koustas notes that continued investments in the auto industry are helping to fuel growth. Factors such as technological advancements and improved fuel economy in every segment, from compact cars to full-sized pickups, have helped with the continued growth. For example:


--  Boom in Auto Loans: Since 2009, Canadian automotive loan balances have
    increased by a staggering 165 per cent, compared to a mere 35 per cent
    in total consumer loans. With loans showing some of the best performance
    on record and rates expected to remain low, it's likely that the credit
    wheels should remain well-greased over the next year.

--  Leasing Rebounds: Before the 2007 financial crisis, the leasing market
    accounted for nearly half of all auto sales but, by 2009, the number
    sunk to below 10 per cent. Since then, however, lease activity has made
    a nice comeback, climbing back to more than 20 per cent of sales.

--  Competition Continues to Heighten: Automakers are feeling the heat, with
    their competition causing a stir with redesigned vehicles that boast
    greater amenities, performance and value than those of previous
    generations. For example, fuel efficiency has improved by nearly 20 per
    cent across the board in the last five years and the evolving
    technology, size, safety and functionality of these vehicles have also
    expanded.

"As manufacturers look to strengthen their brand and attract new customers, prospective buyers can really benefit from attractive finance offers and the competitive nature of the industry," said Robert Sadokierski, Head of Automotive Finance, BMO Financial Group. "Additionally, BMO recently consolidated its Automotive Finance Group which is designed to provide an enhanced customer experience more closely aligned with the evolving Canada-U.S. marketplace.

"This new structure allows us to provide dealerships with a full spectrum of customized financial solutions to support clients' businesses more effectively."

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 $537 billion as at October 31, 2013, and more than 45,000 employees, BMO Financial Group provides a broad range of personal and commercial banking, wealth management and investment banking products and solutions.

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

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

Valerie Doucet, Montreal
(514) 877-8224
[email protected]

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

Web: 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
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...