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WEEKLY VIDEO: Chevy Volt Engine Plant to Open

October 04 2008: Darwinian Economics - An interview with Minister Sandra Pupatello

by Michael Pistol

There is little doubt that September 2008 will be remembered for a long time to come, primarily for the historic highs and lows of a credit crisis that is reshaping entire industries.
Within automotive Canada - despite surprisingly robust September sales numbers, the angst is palpable and tension is high as we edge toward what promises to be a raucous end of the year.

As the US situation fails to improve, despite the approval of the highly contentious $700-billion (US) bailout package, the fear is real amongst Ontario’s autoparts manufacturers, highly relying on the health and wealth of the US automotive markets. And the perspectives are not pretty: September’s tally of the US auto sales tells a story of –26% contraction, a continuation of an abysmal August. In the US, Detroit’s automakers are under severe pressure due to their worsening cash position. According to the latest estimates, each of the three are burning through more than $1 billion (US) a month, and several analysts are already concerned about Detroit’s Three making it past the end of 2009.

According to aggregated data, about 80% of the entire Canadian auto production goes straight south of the border, while almost all the parts produced here, go either to the US or are used in Canada. On a larger scale, nearly 40% of all Ontario’s export volume to the US is auto related.

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Ipso Facto - Fundamentals October 2008

INVESTMENT: Warren E. Buffett Goes Electric - MidAmerican and Berkshire Hathaway Announce Investment in BYD Company Limited

MidAmerican Energy Holdings Company, a Berkshire Hathaway Inc. subsidiary, has announced that it has agreed to purchase 225 million shares, representing approximately a 10 percent interest...
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AUTOMOTIVE POLITICS: International Automakers Test Drive NDP Platform - AIAMC

Mr. Layton has committed to an early adopters program that would support the purchase of commercial electric hybrid vehicles. “The AIAMC is supportive of technology neutral incentives for consumers and businesses to purchase advanced technology vehicles...
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STATISTICS: Canadian Vehicle Survey - January to March 2008

The use of large passenger styles (vans, sport utility vehicles and pickup trucks) dropped by 14.8% compared with the first quarter of 2007. Smaller styles (cars and station wagons), on the other hand, were driven 8.1% more...
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AUTOS FORECAST: Synchronized Housing and Vehicle Sales Cycles Will Remain Lower For Longer - Scotia Economics

Households have become more frugal in this environment, with vehicle sales averaging 1.66 million units over the last three months, down from 1.76 million in the first quarter. “As a result, we have reduced our 2008 and 2009 sales forecasts...
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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___________Oct.04 - Oct.10, 2008

SEPTEMBER AUTO SALES: International Automakers Increase Market Share to 51.5% YTD - AIAMC

MARKETING: ZENN Launches Grass Roots Marketing Campaign to Acknowledge Role Eco-Consumer Played in Changing...

INSURANCE: Kingsway announces completion of sale of York Fire & Casualty

APPOINTMENT: Wakefield Canada Inc Appoints Dave Fifield as Chief Operating Officer

TECHNOLOGY: Toyota Develops World's First Rear Window Curtain Shield Airbag

RETAIL: Trade-In Patterns Vary Across Canadian Markets – J.D. Power and Associates

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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