After more than 20 years as a joint venture operation between Suzuki Motor Corporation and General Motors of Canada, the CAMI plant is now wholly owned by GM as Suzuki recently agreed to sell its 50 percent interest in the assembly plant in Ingersoll Ontario.

While mass production of the Suzuki XL7 compact sport utility vehicle stopped in late 2008, Suzuki continued to hold it’s equity in CAMI through the global economic recession which hit the auto industry hard in 2009, particularly in the US market where sales plummeted to levels not seen since the recession in the early 1980’s. In spite of the bankruptcy woes of GM in the US, the CAMI plant has performed well for GM in North America due to strong demand for the Chevrolet Equinox and GMC Terrain vehicles built at CAMI, which led to the addition of a third shift in October 2009.

CAMI opened in 1989 and within a couple of years was producing several models for both General Motors and Suzuki in Canada and the US. One assembly line made sub-compact passenger cars including the Geo Metro, Pontiac Firefly, Chevrolet Sprint and Suzuki Swift; while the second line built compact SUVs including the Geo/Chevrolet Tracker and the Suzuki Sidekick. For the most part, these vehicles were designed and engineered by Suzuki and were manufactured at CAMI utilizing the Suzuki production system.

However, consumers in North America had an abiding preference for larger vehicles, particularly when the price of gasoline was low compared to other regions in Europe and Asia, which was a challenge for CAMI with a focus on small vehicles. As a result, CAMI closed down the small passenger car line in the late 1990’s, and GM began engineering new vehicles in Canada for CAMI beginning with the Chevrolet Equinox which was launched in 2004.

Finally, as CAMI is now a  wholly owned GM plant with no Suzuki equity or production, JAMA Canada will no longer collect and report production data from CAMI.

Sales mixed in November

Light vehicle sales in Canada slid 2.9% in November to 102,122 units over 2008 when the market first started to plunge in Canada as a result of the global economic crisis. As a result, the SAAR for November has slipped back to less than 1.4 million units after rising to over 1.5 million SAAR in the previous four months. Analysts suggest this has weakened the nascent recovery of the auto market in Canada.

For the first month ever, Toyota was the top selling automaker in Canada as their sales jumped 26.0% in November to 16,113 units. Also notable: Subaru sales jumped 50.4% in November to 2,215 units, while Nissan sales gained 7.8% to 5,312 units for the month. 

For the 11 months of 2009, total light vehicle sales in Canada have fallen 12.5% from the same period in 2008, a drop of 192,000 units to 1,349,395 units. While passenger car sales have declined 18.0% to 696,554 units, light trucks have lost only 5.6% to 652,841 units. Japanese automakers’ sales have declined 12.6% to 509,200 units, with market share almost unchanged at 37.7% for the YTD. 

Sales – November 2009

Source: AIAMC / JAMA Canada members

Member sales up in October

Light vehicle sales in October fell just 1.0% to 121,500 units over October last year, the last month before the onset of the ’great recession’. The SAAR (seasonally adjusted annual rate) shows a gradual improvement over the past six months or so, suggesting that the worst may be over. In October, passenger car sales were down 2.6%, while light trucks, vans & SUVs were up 0.7% for the fourth month in a row.
 
Japanese automakers as a group had a sales gain of 6.7% to 47,657 units, the first month of YOY improvement in 2009. Toyota, Subaru, Acura, Lexus all recorded double digit sales gains in October, while Mitsubishi  and Suzuki were up in single digit territory. Honda, Mazda, Nissan and Infiniti brands were down in October.
 
For the year to date, the Canadian market was down 13.2% to 1,247,273 units. Passenger cars have dropped 19.1%, while light trucks were off 5.7% compared to 2008. Japanese automakers’ sales declined 14.2% for the YTD to 469,660 units representing a market share of 37.7%, almost unchanged from 2008.

Sales – October 2009

Source: AIAMC / JAMA Canada members

Sales down in September, with mixed results

Sales of new light vehicles fell a modest 3.5% in September to 129,503 units. Passenger car sales dropped 9.4% to 67,469 units, while light trucks rose for the fourth consecutive month, up 4.0% to 62,034 units. Analysts suggest that the prospect for a recovery have improved as the annualized sales rate has climbed above 1.5 million units for the third month in a row.
 
Japanese automakers as a group underperformed in September as sales dropped 6.4% to 49,351 units. Subaru had a stellar month with a 68.4% gain and Mitsubishi had a double digit increase of 18.5% over last year. Suzuki recorded a small improvement up 3.6% in September. While Toyota sales were 11.1% lower in September, Lexus sales improved 11.1% to a monthly high. Honda struggled in September as sales slipped 12.2%, and Acura brands dropped 45.0% over last year. Finally, Nissan and Mazda sales both had single digit losses in September (-2.3% and -3.6% respectively).
 
For the year to date, light vehicle sales in Canada have fallen 14.3% through the third quarter to 1.125 million units. Passenger cars were off 20.6%, while trucks fell 6.3% compared to 2008.

Japanese automakers’ sales have slid 16.0% to 422,003 units through the end of the third quarter of 2009, representing a 37.5% market share, down from 38.3% in 2008.

Sales – September 2009

Source: AIAMC / JAMA Canada members

Slowing sales decline suggests the recovery may be near

New light vehicle sales in August totaled 135,351 units, down 7.9% from August 2008. While sales of passenger cars dropped 15.5% in August, light truck sales were up 1.4% to 66,968 units, the third consecutive month of rising YOY sales.

Among Japanese automakers, Mitsubishi had strong results as sales jumped 24.9% and Nissan Subaru and Suzuki all enjoyed single digit sales gains. Honda and Toyota recorded double digit declines, down 17.5% and 21.4% respectively (however, both Acura and Lexus sales made strong gains, up 26.4% and 31.3% respectively).
 
For the year to date, the light vehicle market was down 15.5% to 996,270 units, a drop of 184,000 units compared to last year. However, looking at the SAAR (seasonally adjusted annual rate) sales data, the turnaround seems to getting underway without the benefit of a similar government sponsored ’cash for clunkers’ program as in the US.

Japanese automakers as a group recorded a sales decline of 17.1% to 372,652 units for a market share of 37.4%, down from 38.1% in 2008.

Sales – August 2009

Source: AIAMC / JAMA Canada members

Sales decline continues to ease as trucks rebound

New light vehicle sales in July were down 6.4% to 139,901 units. The decline continues to slow down creating some optimism that we’ve reached the bottom, and hope that the recovery is close at hand. In particular, truck sales were up for the second month in a row, gaining 4.4% in July to 66,474 units.
 
Japanese automakers combined light vehicle sales dropped 12.8% in July to 51,124 units (36.5% market share). Truck sales in particular were remarkably strong in July for Japanese automakers, up 15.1% over July 2008 to 16,887 units.
 
For the year to date, the total light vehicle market in Canada fell 16.6% YOY to 860,919 units. Passenger cars were off 22.7%, while light trucks were 8.8% lower than 2008. Japanese automakers’ sales have decreased 17.8% over the first seven months of 2009 to 322,534 light vehicles, representing a 37.5% market share (roughly unchanged from last year).

Sales – July 2009

Source: AIAMC / JAMA Canada members

Mixed sales results in June

Light vehicle sales in Canada were down 13.2% YOY in June to 138,500 units, slightly better than in both April and May, but still in negative territory.
 
Japanese automakers’ light vehicle sales as a group fell 14.0% in June to 51,267 units. Only Nissan and Suzuki recorded sales gains in June, up 3.5% and 1.8% respectively.
 
For the first half of 2009, the overall market in Canada has dropped 18.3% to 721,018 units.
 
Japanese auto sales for the YTD were down 18.6% to 271,401 units from 333,310 units during the same period in 2008. Japanese market share for the YTD was 37.6%, down slightly from 37.7% in 2008 as a result of marginally underperforming the market as a whole. Also notable, 63.9% of Japanese brand vehicles sold in Canada in the first half were built in North America, up from 60.1% last year. At the same time, sales of imports from Japan have fallen 26.4% over 2008.

Sales – June 2009

Source: AIAMC / JAMA Canada members

Light vehicle sales in May recorded a year-over-year drop of 16.5% to 154,018 units. Passenger car sales were particularly soft, down 24.0%, while light truck sales slid 5.6% in May.
 
Japanese automakers’ combined sales declined 18.8% in May to 58,465 units. Among JAMA Canada members, Mitsubishi had record sales for this month (up 4.5%), and Subaru stayed in positive territory, up 0.5% over 2008. All others had negative double digit results including Toyota down 25.2%, Honda down 17.3% and Nissan down 13.3% compared to May 2008.
 
For the year to date, overall light vehicle sales in Canada were 19.5% lower than the same period in 2008 at 582,518 units.

Japanese automakers as a group saw sales slump 19.6% to 220,134 units for a 37.8% market share.

Sales – May 2009

Source: AIAMC / JAMA Canada members

HONDA Canada donates the 5 millionth vehicle built in Canada to Ontario & Safe Kids Canada

Honda Canada president and CEO, Manabu Nishimae, gives Ontario Premier Dalton McGuinty a ceremonial key to the 5 millionth Civic donated by Honda to the Province of Ontario which, in turn, was presented to Pamela Fuselli, executive director of Safe Kids Canada

Honda Canada Inc. recently commemorated the 5 millionth vehicle made in Canada at its Honda of Canada Mfg. vehicle manufacturing facility in Alliston, Ontario.  This milestone reflects Honda’s commitment to Canada since it began manufacturing vehicles in Ontario 23 years ago.

The 5 millionth vehicle built – a 2009 Honda Civic sedan – was presented by Honda Canada president and CEO, Mr. Manabu Nishimae, to the Province of Ontario in a ceremony held at Queen’s Park.  Ontario Premier Dalton McGuinty received the keys to the new Civic of behalf of the Province of Ontario and, in turn, presented the car to Pamela Fuselli, executive director of Safe Kids Canada. 

“This is a significant accomplishment for Honda in Canada,” said Manabu Nishimae, president and chief executive officer of Honda Canada Inc.  ”In 1986, we built the first of three factories in Alliston, based on our company’s philosophy to build our products close to our customers. Honda continues to invest its profits back into Canada as we strive to be a company that Canadians will want to exist.  We are also committed to the manufacturing of green, safe, fun vehicles.  Our donation to the Province, and to Safe Kids Canada is a reflection of this pledge to our Canadian consumers and to consumer safety.”

“Honda has been a major contributor to Ontario and Canada’s economy for forty years,” said Premier McGuinty. “We are honoured by Honda’s gift of its 5 millionth vehicle to the Province of Ontario, and to one of our local charities, from a company that has become part of the Canadian manufacturing landscape.” 

“We are grateful to Premier McGuinty, the Ontario government and Honda Canada for their support and commitment to keeping children safe on our roads,” said Pamela Fuselli, executive director, Safe Kids Canada. “It is donations like this from our partners and supporters that enable Safe Kids Canada to provide Canadians with practical and reliable solutions to prevent injuries so that our children can be active, healthy and safe.”

While light vehicle sales in Canada fell 17.8% in April to 143,931 units, on an annualized basis (SAAR), the rate was 1.42 million units, up from 1.34 million in the first quarter of 2009. In April, passenger car sales declined 23.4%, while light trucks dropped 10.8% compared to April 2008 (which remains the record high for that month).
 
Among JAMA Canada members, Subaru and Lexus recorded higher sales in April 2009, up 4.1% and 4.0% respectively. Altogether, Japanese automakers’ sales in April were 19.0% lower than the previous year to 54,595 units.
 
For the year to date, the total Canadian light vehicle market is off 20.5% to 428,500 units. Japanese brand sales are down over 40,000 units at the end of April, a year over year decline of 19.8% to 161,669 units, representing a market share of 37.7% for the first four months of 2009.

Sales – April 2009

Source: AIAMC / JAMA Canada members

While total new light vehicle sales in Canada were down 15% to 127,489 units in March over 2008, many analysts have reported rather optimistically that the results were "less bad" than expected. Canada certainly fared better than sales in the US which dropped 36.8% in March. Passenger car sales slipped 18.2% in March compared with a drop of 11.4% for light truck sales. This was the slowest March sales in Canada since 1997.
 
Combined Japanese automakers’ sales were off 18.6% to 47,945 units in March for a 37.6% share. Among JAMA Canada members, two companies were in positive territory in March — Subaru sales climbed 14.6% and Mitsubishi sales gained 8.9% over 2008. At the same time, Toyota Canada sales fell 23.0% overall – although Lexus sales were up 21.0% in March – while sales at Honda Canada and Mazda Canada were 22.8% and 22.0% lower respectively. Finally, Nissan Canada sales slipped 8.8% in March, while retail deliveries in March from Suzuki Canada were down 14.4% compared to last year.

For the first quarter of 2009, light vehicle sales in Canada were down 21.8% to 284,569 units. JAMA Canada members’ sales fell 20.3% to 107,074 units in the first quarter, which pushed Japanese brand market share up to 37.6% having slightly outperformed the overall market in Canada.

Sales – March 2009

Source: AIAMC / JAMA Canada members

   

Dwindling demand for new light vehicles in February drove total Canadian sales down 27.7% to 80,230 units from 110,951 units in February 2008. 
 
As a group, JAMA Canada members’ sales decreased 25.4% (approximately 10,000 units) compared to February 2008, slightly outperforming the market and as a result increasing market share to 37.4% from 36.2% in 2008. Among individual members, Subaru Canada and Suzuki Canada had sales gains in February up 8.1% and 3.4% respectively. Other members recorded lower sales in February – Honda fell 41.7%, Toyota sales slumped 25.5%, Mazda and Nissan declined 19.7% and 12.6% respectively, and Mitsubishi sales slid 1.3% compared to February 2008.
 
For the year to date, total light vehicle sales in Canada have declined 26.5% to 157,080 units. JAMA Canada members’ sales were down 21.6% in the first two months to 59,129 units. Among Japanese automakers, only Subaru and Suzuki have increased sales in 2009 compared to last year.

Sales – February 2009

Source: AIAMC / JAMA Canada members

As expected, Canadian light vehicle sales in January were pretty dismal, having dropped 25.3% overall to just under 77,000 units, a level not seen in many years. On the brighter side, it was not as bad as sales in the US. (The dark side of US sales in Canada will be seen in Canadian production figures due to our export focus.)  Sales of passenger cars fell almost 31%, while light trucks were down just under 20% compared to January 2008.
 
Japanese automakers’ combined retail deliveries declined 17.2% to 29,124 units. Among individual companies, two JAMA Canada members made gains: Mitsubishi (up 9.1%), and Suzuki (up 4.3%). Toyota and Subaru had single digit declines (down 2.7% and 1.3% respectively), while Mazda (-12.3%), Nissan (-16.1%) and Honda (-37.1%) all had double digit losses.

Sales – January 2009

Source: AIAMC / JAMA Canada members

Toyota opens new RAV4 plant in Woodstock

In early December, Toyota Motor Manufacturing Canada officially launched production of the 2009 Toyota RAV4 at their new $1.1 billion manufacturing facility in Woodstock, Ontario.

"We started production in nearby Cambridge almost exactly 20 years ago, and this Woodstock plant shows our commitment to Canada is continuing," said Katsuaki Watanabe, President & CEO of Toyota Motor Corporation.

Among the dignitaries taking part in the ceremony were Ontario Premier Dalton McGuinty, Japan’s Ambassador to Canada H.E. Tsuneo Nishida, Federal Minister of Industry Tony Clement, Ontario Minister of Economic Development Michael Bryant and Mayor of Woodstock Michael Harding.

Currently the Woodstock plant will be operating on one shift with 1,000 employees with a capacity to build 75,000 vehicles a year. Toyota has announced that a second shift would be added when market conditions improve sufficiently to support a planned capacity of 150,000 units per year. When fully operational, the plant will employ 2,000 team members.

"At Toyota, we are committed to building our most popular models in the markets where they’re sold, focusing on quality and safety. With the official grand opening in Woodstock, Toyota now builds four models in Canada, which together represent almost 50 per cent of our total sales in this country."

Including the Woodstock plant, Toyota’s manufacturing investments in Canada currently total over $5.6 billion which altogether employ 6,000 Canadian team members. Apart from three assembly plants in Cambridge and Woodstock, Ontario, Toyota owns and operates Canadian Auto Parts Toyota Inc. (CAPTIN) in Delta, British Columbia which manufactures aluminium wheels primarily for plants in North America, and employs about 300 team members.

Member sales reach new record in 2008, inspite of nosedive in December – outlook for 2009 looks rocky


For the 2008 calendar year, light vehicle sales in Canada ended up 1.1% down over 2007 to just under 1.636 million units – the third best sales year on record. The Canadian market withstood the economic turmoil in vehicle demand that has plagued the US in 2008 — at least that was the case until November.

Canadian passenger car sales in 2008 gained 3.8% while light trucks were down 6.4% over 2007. Sales at the Detroit Three were 7.9% lower year over year to 787,378 units: GM (-10.9%); Ford (-5.9%) and Chrysler (-4.8%).
 
Japanese automakers as a group increased light vehicle sales by 6.1% in 2008 to a new record of 615,914 units, which increased Japanese market share to 37.6% up from 35.1% in 2007. All JAMA Canada members (except Mazda Canada, down 1.9%) were in positive territory in 2008, with new record sales at Toyota, Honda, Nissan, Subaru, and Mitsubishi.
 
Korean automakers’ sales rose 7.6% in 2008 to 118,152 units, while European automakers’ combined sales were up 5.9% over 2007 to 114,542 units.
 
A dismal December:

Sales in Canada fell sharply in December, down 21% to 94,423 units from 119,894 units in December 2007, the lowest December results in twelve years. Through October, total sales in Canada were 1.4% ahead of 2007, but in November sales started a serious slide, down 10.3% and then further accelerated in December. Declining consumer confidence as a result of rising unemployment, tighter credit and growing economic malaise were likely factors in the dismal December results, along with early winter weather in many regions of Canada that curbed demand for new vehicles.   Passenger car sales dropped 15.6% in December, while sales of light trucks lost 25.8% compared to December 2007.
 
In December, the biggest monthly sales decline was recorded by Honda Canada with an alarming drop of 40.8% over December 2007. Chrysler sales fell 35.9%, Toyota Canada was down 35.4%, GM slid 19% and Ford slipped 5.5%. Nissan Canada sales were off 16%, while Mazda Canada and Mitsubishi Canada lost 6.3% and 3.6% respectively. On the other hand, Suzuki Canada sales were up 31.6% and Subaru Canada improved 16%, while Volkswagen sales jumped 82.5% in December over last year.
 
The depth of the sales slide over the past two months in Canada has prompted forecasters to revise their outlook for 2009 downward: the Bank of Nova Scotia most recent sales forecast for 2009 is down about 10% to 1.475 million units, while DesRosiers’ recent light vehicle forecast is a little more optimistic at 1.5 million units for the year ahead.

Sales – December 2008

Source:  AIAMC / JAMA Canada members