GM Canada’s CEO is expressing apprehension over the way cheap auto loans are fueling vehicle sales in Canada.
Categories:
Tag: Canada
The Globe and Mail‘s Greg Keenan reported some bleak news for Canada’s auto industry today, with Canada’s auto manufacturing output set to decline by as much as 25 percent by 2020.
Canada’s affinity for small cars may result in it getting yet another exclusive product that won’t be offered to Americans. In addition to the Toyota Echo hatchback, Acura EL and Mercedes-Benz B-Class, the Nissan Micra may be sold in Canada.
Barring the unforeseen, 2013 will end as the fourth consecutive year of improved auto sales in Canada and one of the best years on record for total industry volume. After a first quarter in which Canadian sales slid 2%, volume has increased in each of the last five months.
Ford Oakville, Ontario, Canada Assembly Plant
The Toronto Star is reporting that Ford Motor Co. will soon announce a ~$700US million investment in it’s Oakville, Ontario plant, where it assembles the Ford Edge and Lincoln MKX midsize crossovers. According to Toronto’s Globe and Mail newspaper, $135 million of that will come from the Ontario and Canadian governments, which recently divested some of their bailout related shares in General Motors. The investment by Ford follows commitments made to the Canadian Auto Workers, now under the banner of Unifor, to add 600 jobs to the Oakville facility. (Read More…)
GM and Unifor (the union formerly known as the CAW) have reached a tentative agreement for the 2,500 workers at the CAMI plant in Ingersoll, Ontario, which builds the Chevrolet Equinox and GMC Terrain.
The national Canadian and provincial Ontario governments have agreed to sell 30 million shares in General Motors that they received in exchange for their contributions to the 2009 bailout of the automaker. According to Bloomberg, the shares are worth about $1.1 US billion, and were purchased by the Bank of America and the Royal Bank of Canada as a block.
The transaction will be completed early next week. The sale reduces the Canadian governments’ stake in GM by 21%, down to 110 million shares. Canada and Ontario had been, since the bailout, the third largest stockholder in General Motors, behind the UAW and the U.S. Treasury, and after the sale will own about 8% of the company’s shares.
“As we said from the start, our investment in GM was always meant to be temporary as we worked to maximize the return to Canadian taxpayers,” Finance Minister Jim Flaherty said in a statement. “The government of Canada is committed to exiting from ownership of GM as quickly as feasible, while maximizing the return for Canadian taxpayers, as we demonstrated today.”
The banks purchased the shares at a discount from Tuesday’s closing price, $37 a share, up 28% from the start of 2013.
While TTAC is known for Panther Love above all else, there are some of us here who possess an iconoclastic streak and long for a General Motors B-Body. The LT1 powered Buick Roadmaster is arguably the finest of the bunch, and an essay in today’s edition of The Globe and Mail illustrates why.
For the fourth consecutive month, Canadian auto sales increased in July 2013. An extra 10,600 units translated to a 7% increase, the second-best improvement so far this year. Passenger car volume, which travelled in the wrong direction in the first half of 2013, jumped 11% in July.
Bloomberg and Sky News have reported that the Canadian government has started a selection process to find investment banks for selling off of the stake the government took in General Motors as part of its own contribution to bailing out the automaker. Late last year, Finance Minister Jim Flaherty said that Canada had no intention of holding those shares long-term. Together the federal Canadian and provincial Ontario governments own 140 million shares of common GM stock, valued at $5.1 billion (US), a 10% stake in the automaker, which makes Canada the company’s third biggest shareholder behind the U.S. Treasury and the UAW’s VEBA health plan. The governments had originally invested $9.5 billion in GM back in 2009, selling off 35 million of its shares when GM made its initial public offering of stock in the reorganized company.
Canada’s auto industry grew 1.3% in June 2013, an increase of a couple thousand vehicles. No brand sold more often than Ford. No manufacturer sold more vehicles than Ford Motor Company. No June in history saw Canadians buy more vehicles than they did last month.
Happy Canada Day. We here in America Jr. will be spending the day in polite celebration, perhaps a few pages of a Margaret Atwood novel, perhaps a little Tom Cochrane, perhaps two or three fireworks set off in celebration of our continuing success in exiling all our worst citizens to the Los Angeles music industry; perhaps just a little self-reflection on life in a land where most of the population settles at the bottom, leaving huge expanses of airy nothingness above – less a country than a enormous family-sized bag of potato chips.
We build cars here in Canada. We make Hondas and Chevys and Fords and Dodges, and some of them we drive, and some of them you drive, but they’re not really Canadian cars, per se. The ideal of the Canadian car remains the Bricklin SV-1, Canada’s DeLorean. Neat car, that thing, with motorized gullwing doors and an integrated roll-cage. I seem to remember as a kid I had a Transformer that looked just like it. Well actually, considering the SV-1’s issues with acrylics, perhaps it was a Go-Bot.
Anyway, as today is a day for a celebration of all things maple-syrup flavoured, I’d like to take minute or two of your time and talk about a much less well-known Canadian-built car that is extremely interesting and very slightly crappy. It all starts with a man with the quite silly name of Jacques About, and before you ask, no, that is not pronounced “aboot”. (Read More…)
One of the consequences of Canada’s high gas prices is the prevalence of propane conversions. In the Greater Toronto Area, a fair number of vehicles, typically in fleet use as taxi cabs, airport limos or construction vehicles, get converter to run on propane gas. The conversions are expensive, running approximately $5,000, and if you want to see any return on your investment, you better run the car well into the six-figure range of the odometer.
(Editor’s note: Despite being a close neighbor, ally, and NAFTA member, Canada usually receives short shrift when it comes to the counting of cars. TTAC is a prime offender. We cover sales in Europe, Japan, China, and of course America – but Canada? Our resident car counter Cain will now cover the Canadian market on a monthly basis. Any volunteers for Mexico?)
For the second time in what was predicted to be yet another year of growth for the Canadian auto industry, volume grew significantly in May 2013. January volume was down 2%. By the end of February, the market was off 2012’s pace by 3%. March’s decline wasn’t as bad, but through the first quarter, sales were still down 2%. After April’s 9% increase, auto sales in May reached their highest level in six years. (Read More…)
Even as Canada’s manufacturing sector continues to dwindle, Ford is set to invest even further in its Canadian operations, putting together a new investment package for its Oakville assembly plant – provided the federal and Ontario governments can come up with the scratch.
Recent Comments