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Tough spring for Canadian car companies,…

Tough spring for Canadian car companies, sales drop again

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Following a difficult March, Canadian passenger vehicle sales dropped again in the month of April.

DesRosiers Automotive Consulting is reporting that passenger car sales dropped a steep 15.6% and light truck sales saw an increase of 1.8% for a total industry decrease of 3.5%.

While GM, Ford, and FCA saw decreases (-4.4%, -4.3% and -9.8% respectively), Toyota saw an increase of 5.6% and rose to the fourth highest volume spot.

Car makers that saw double digit increases include Infinity, Jaguar, Lexus, Volkswagen, Genesis and Volvo representing an overall increase in the luxury market despite the huge decreases experienced by Mercedes (-19.6%) and Audi (-17.7%).

U.S. auto sales also saw a 2.3% decrease even with an extra selling day, the high employment rate and a strong stock market.

Forecasters anticipated a decrease due to high interest rates and vehicle prices, but the decline was steeper than anticipated bringing the sales rate at its lowest since Feb. 2014.

The decreasing sales rates have car manufacturers reducing incentives in an attempt to offset the decreasing sales.

www.desrosiers.com

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