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WEEKLY VIDEO - IIHS: Most Small Cars Aren't Economical for Crash Repairs - Ford Focus Performs the Best, Rabbit and Prius are the Worst in Low-Speed Bumper Tests

SEPTEMBER 6, 2008: A Fall's Preamble: August's Vehicle Sales

by Michael Pistol

Finally the shoe dropped, and for the month of August the Canadian auto sales went in reverse, a good -7.2% that is. Sorry...
I usually don’t get into commenting about the sales numbers, as certainly, there is no shortage of competent commentators and analysts to dissect this subject at length, every month.

Yet, August proved to be a turning point, and it is interesting to observe what’s behind these numbers – and briefly, from a strictly business perspective, here is my two cents worth.

The difference of 11,400 cars seems to be quite high, but when you deduct the could-have-been leases from GM and Chrysler and the shortage of gas-sippers from several manufacturers, especially from Honda, the results are actually in line with expectations. You can’t sell what you don’t have, can you?

Going ahead into a soft autumn market, shortages aside, the primary headaches for all manufacturers will certainly revolve around pricing, competent product vis-à-vis Canadian market, and image/branding issues.

Quickly, here is a more granular look at the main players and what is going on.

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Ipso Facto - Fundamentals September 2008

POSITIVE GROWTH: Labour Force Survey, August 2008 - Statistics Canada

Following a decline in July, employment edged up by 15,000 in August. The unemployment rate remained unchanged at 6.1%. Since the start of the year, employment has increased by 87,000 (+0.5%)...
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PRICING FUNDAMENTALS: Toyota announces new pricing on 9 models.

As part of Toyota’s commitment to transparent pricing, new prices were announced on 9 Toyota models. Revised pricing reflects new specifications changes, new 2009 model year introductions and retaining competitively priced products with the U.S. and Canadian...
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INTREST RATES: Bank of Canada keeps overnight rate target at 3 percent

The Bank of Canada has announced that it is maintaining its target for the overnight rate at 3 percent. The operating band for the overnight rate is unchanged, and the Bank Rate remains at 3-1/4 percent...
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ENERGY: Higher Electricity Prices Needed for Cleaner Power Production

InOntario, the 2003 price freeze saw rates reduced to $1 billion below the actual price for power. Ontario taxpayers are also paying more than $900 million a year to service the remaining $19 billion...

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RESOURCES 2009

CANADIAN AUTOMOTIVE INDUSTRY RESOURCES

Need results? Meet our industry's key players.
Essential data, contacts, website.

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NEWS - Seven Days___________Sept.06 - Sept.12, 2008

PRODUCTION: Toyota Canada to halve production of RAV4 at Woodstock plant indefinitely.

APPOINTMENT: UltraFit Manufacturing appoints Tim Creasy to the position of Vice President – Sales and Marketing

INVESTMENT: Industry Canada to invest in Ford's Renaissance Project - New flexible engine assembly plant and North America Centre...

ENVIRONMENTAL COMPLIANCE: Chrysler LLC completes program to eliminate use of lead wheel weights.

LAWSUIT: Class action lawsuit filed against auto manufacturers for misrepresenting taxes on new cars

APPOINTMENT: Stephen Odell appointed President and Chief Executive Officer of Volvo Car Corporation

PRODUCT: Lexus Canada introduces All-Wheel Drive Performance on its LS 460 and LS 460 L Luxury Sedans

PARADIGM SHIFTS - Open Source for Automotive Business Leadership /October

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Happy Birthday GM!

Fascinating week – don’t you think? The third week of September 2008, will be remembered for a long time, no doubt, and it won’t be much related to September 16 General Motors’s 100 anniversary...
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Creative Destruction - And an update on alternative fuels

While the business world is gripped by venerable banks deathwatch, hair-raising Wall Street’ cliffhangers, Detroit Three’s bailout schemes and oil’s sudden abandonment by your pension plan or investment bank...
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