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
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, will discuss how from store operations...
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 b...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., will introduce you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He will explore applications in several industries and discuss technologies that allow the deployment of advanced visualization solutions to the cloud.
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, will discuss some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he’ll go over some of the best practices for structured team migrat...
As people view cloud as a preferred option to build IT systems, the size of the cloud-based system is getting bigger and more complex. As the system gets bigger, more people need to collaborate from design to management. As more people collaborate to create a bigger system, the need for a systematic approach to automate the process is required. Just as in software, cloud now needs DevOps. In this session, the audience can see how people can solve this issue with a visual model. Visual models ha...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they bu...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
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...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Datera will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera offers a radically new approach to data management, where innovative software makes data infrastructure invisible, elastic and able to perform at the highest level. It eliminates hardware lock-in and gives IT organizations the choice to source x86 server nodes, with business model option...
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.