At the Canadian International Auto Show, Nissan announced that the new Micra, slated for Canada only, would slot in just under $10,000, making it the cheapest new car on sale in Canada. Compared to world markets, the Micra has some Canadian-only features, like an upgraded HVAC system and split-folding rear seat (to carry hockey bags and other large parcels).
On the heels of reports that put a $3.6 billion pricetag on Chrysler’s investment at two Canadian plants, another Canadian outlet is reporting that the money would ensure the future of the two plants for decades to come.
With Canada’s federal government set to increase its own Auto Innovation Fund by $500 million CAD, a report by The Globe and Mail’s Greg Keenan now claims that Chrysler will look for as much as $700 million in government funding as part of a $2.3 billion investment in its Windsor, Ontario manufacturing facilities. In addition, the increased sum would also see funds allocated to the Brampton, Ontario plant that builds the Chrysler 300, Dodge Charger and Dodge Challenger
Hyundai Auto Canada reached a settlement with consumers in a class action lawsuit over exaggerated fuel economy numbers among their Hyundai and Kia lineup of vehicles, paying a total of $46.65 million CAD ($41.85 million USD) in the deal, according to just-auto.
Imported vehicle sales by country. Source: Canadian Vehicle Manufacturers Association
Companies building cars in Canada are lobbying at the last minute to, kill an “imminent” free trade deal between Canada and South Korea that the automakers say would damage the Canadian auto industry and the greater Canadian economy. Ford Motor Co. of Canada Ltd. president and chief executive, Dianne Craig, said on Thursday that the U.S.-Korea trade agreement enacted in 2007 has been a “disaster” for auto makers. Craig urged the Conservative government not to make the same mistake as the United States.
“We understand that [the Canadian government] need[s] to look for what’s in the best interests of Canada,” Ms. Craig said in an interview with Toronto’s Globe & Mail. “But, frankly, autos are the greatest driver of GDP and we think we need to have a pretty strong voice in this conversation. This is not good for autos, which means it’s not good for the economy, which means it’s not good for Canadians.”
Despite rapid SUV/crossover sales growth and the continued ascent of the pickup truck market, slowing passenger car sales were a drag on the Canadian auto industry in December 2013. Sales of utility vehicles jumped more than 20%, trucks were up 10%, and even full-size minivans were up 10%.
Canada and the European Union’s newly inked free trade agreement will eliminate the 6.1 percent tariff on imported vehicles, but one big obstacle remains: the lack of harmonization between Canadian and European vehicle standards. According to a report by The Globe and Mail, Mercedes-Benz Canada’s President is calling for an end to the differing standards, which feature unique requirements and add costs to Canadian vehicles.
November 2013 went down as the highest-volume November in the history of Canadian auto sales. It followed three consecutive years with November improvements.
The UAW’s troubles with organizing Volkswagen’s Chattanooga plants are well known throughout the auto world, but Unifor, the Canada union that was once known as the Canadian Auto Workers union, now claims that it has enough union cards to hold a vote on representation.
Reports out of Australia claim that GM will be ending Australian vehicle production by 2016, turning Holden into a brand that sells imported cars, rather than locally produced vehicles.
The land of Canadian Tire, Tim Hortons and Michelle Creber has yet another thing going for it: Their auto workers have a cost advantage over their two-tiered brothers and sisters down south according to a study from Toronto, Ontario-based Scotiabank.
With forecasters calling for another year of improved Canadian auto sales, 2013’s early months didn’t add up. January volume fell 2.2%, February sales were down 3.3%, and March’s results were off the pace by 0.7%. But not since the first quarter ended have the players competing for sales in Canada reported anything but collective improvement.
55,000 more vehicles have been sold during the first ten months of 2013 than during the equivalent period in 2012, a 3.8% increase. 2013’s rise follows three consecutive years of improved Canadian auto sales. The current pace suggests Canadians will end 2013 having registered more than 1.7 million new vehicles for the first time since 2002.
As part of a new free trade agreement due to be signed with the European Union, Canada will remove its 6.1 percent tariff on imported vehicles from the European Union, while the EU will remove its 10 percent duties on autos and and its 4.5 percent duty on parts.
A brief memo from General Motors Canada confirmed that the Oshawa consolidated line, scheduled to close in 2014, will stay open until 2016. GM is citing strong market demand for the Chevrolet Equinox and the outgoing, Chevrolet Impala (sold as a fleet-only model) as a reason for the decision, but cautioned that ” All scheduling adjustments are subject to market demand”.
Under the terms of the bailout, GM must keep 16 percent of its production in Canada until it has repaid its loan obligations to the Canadian government, or until December 31, 2016. After that date, the future of Oshawa is uncertain.
September’s record Canadian auto sales were powered by huge gains among many of the country’s most popular nameplates. The record-setting industry performance occurred despite the declining volume reported by the manufacturer which sells the greatest number of vehicles south of the border. Numerous small-scale luxury automakers continue to post vastly improved sales compared with results from 2012.
Automobile manufacturers collectively reported a 4.1% year-over-year improvement in September sales, an increase of nearly 6000 units, an increase of more than 14,000 units compared with September 2011. 42.9% of the new vehicles registered in Canada in September were sold by the Ford Motor Company, Chrysler Group, and General Motors, down slightly from 43.2% in September 2012 as volume at the Detroit Three grew 3.5%. In September, those three manufacturers owned 45.3% of the U.S. market, where General Motors wasn’t outsold by Hyundai-Kia. (Read More…)
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