Canada-US disconnect data point du jour

July’s auto sales numbers in the US:

WSJ – Auto Sales Sink, With Big Three Hit Worst: The downtrend again hit a wide swath of auto makers, with the Big Three taking the brunt of it. GM, on the same day it posted a $15.5 billion quarterly loss, reported that its sales of cars and light trucks declined 26% to 233,340.

Ford’s sales dropped 15% to 161,530, likely its worst July since the early 1980s, according to company sales analyst George Pipas. Chrysler LLC reported a 29% drop to 98,109.

In another weak month for a once strong performer, sales at Toyota Motor Corp. fell 12% to 197,424 vehicles.downtrend again hit a wide swath of auto makers, with the Big Three taking the brunt of it. GM, on the same day it posted a $15.5 billion quarterly loss, reported that its sales of cars and light trucks declined 26% to 233,340.

Ford’s sales dropped 15% to 161,530, likely its worst July since the early 1980s, according to company sales analyst George Pipas. Chrysler LLC reported a 29% drop to 98,109.

In another weak month for a once strong performer, sales at Toyota Motor Corp. fell 12% to 197,424 vehicles.

A very different story up here:

Globe and Mail – Canada car sales post ‘gravity-defying’ rise: Auto sales in Canada were up 5 per cent in July, with General Motors
and Toyota posting increases despite high gas prices and pressure from
a weak U.S. economy.

Passenger car sales were up 10.2 per cent, while light trucks were
down 1.4 per cent, according to auto sales figures released by analyst
Dennis DesRosiers.

General Motors Canada posted a 5.2 per cent increase, with dealers delivering 33,893 units in July, up from 32,205 a year ago.

Toyota Canada posted record sales in July, with 21,990 Toyota and
Lexus cars and trucks purchased in July, up 18.3 per cent from the same
month last year, boosted by fuel-efficient cars.

4 comments

  1. westslope's avatar
    westslope · · Reply

    Anybody care to guess at the probability of GM going bankrupt?
    GMAC bonds are paying ~20% on an annualized basis. The outcome is binary [0,1].

  2. Ken Houghton's avatar

    Hmmm…maybe I should sell my Grand Caravan in Canada instead of the US…

  3. Alykhan Virani's avatar

    I am surprised that the car sales were up given the price of gas and the economy. It goes to show that we are living in a false economy

  4. Bryan M's avatar
    Bryan M · · Reply

    As long as employment remains strong, auto sales will maintain strength. It’s a different story with housing. Since people expect house to appreciate over time, if they feel house prices are dropping, they will wait to sell, or wait until they feel the bottom has hit to buy. Cars depreciate in any market, so as long as you have income you’ll replace your car regularly. The deals are good right now too. 0% financing for as long as 72 months on a great car like the Malibu? I’m thinking of trading in…

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