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TORONTO — The Canadian vehicle market skidded to its worst performance of the year in August as a pullback in leasing hurt sales and the slump battering the U.S. market spilled over the border.

Vehicle sales tumbled 7 per cent in Canada, paced by big declines at Chrysler Canada Inc., General Motors of Canada Ltd. and Honda Canada Inc.

Moves by Chrysler and GM to dramatically scale back vehicle leasing in Canada contributed to their sales drops of 25 and 17 per cent respectively, dealers and analysts said Wednesday.

Toyota recorded a 29-per-cent jump, which enabled it to leapfrog Chrysler into second place in the Canadian market.

http://www.globeinvestor.com/servlet/story/RTGAM.20080903.wcarsales0903/GIStory/
 

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"Toyota, however, cut prices on several of its models for the second time in two months Wednesday, despite being among the leaders in companies that bucked the downdraft last month."

Very true. Toyota is the only major brand that is adjusting its pricing to the rise in the Canadian dollar.
 

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I'm seeing a lot of Camry fleet vehicles on the road in Ontario... seems like every new hydro/works/inspection vehicle I see is a new Camry.
 

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Very true. Toyota is the only major brand that is adjusting its pricing to the rise in the Canadian dollar.
Yep. Lexus IS250 starts at CDN$31K, which is lower than pretty much anything comparable and even lower than optioned up mainstream midsizers like Malibu, Altima, etc

Super value...
 

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Double-digit slides at those three auto makers and Ford Motor Co. of Canada Ltd. overshadowed record August sales for BMW Canada Inc., Mercedes-Benz Canada Inc., Subaru Canada Inc. and Toyota Canada Inc...

Toyota recorded a 29-per-cent jump, which enabled it to leapfrog Chrysler into second place in the Canadian market.
Two filthy pieces of news. One of these decades, we'll be getting consistently positive news about Detroit. I'm still holding out for it.
 

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One of these decades, we'll be getting consistently positive news about Detroit. I'm still holding out for it.
Warning, if you are holding your breath you may die. I've started my quest for a new family vehicle this week as I have some time off before going back to work next week. Toyota and Honda have surprised the hell out of me. Both have VERY agressive lease plans (GM has NONE) and both claim sales have not dropped at all (at their dealers anyway). Buying a Honda or Toyota comes out the same or slightly higher than GM (Saturn anyway). Sales may be down overall but GM is not doing a hell of a lot to gain customers here in Canada. 0% purchase financing over 72 months with little or no incentives is a joke. I feel bad for those out there in the GM dealer network that are trying to sell this concept.
 

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I agree about GM, they appear to have conceded defeat as they are making little attempt to retain or gain market share. Buyers are looking everywhere else for winning deals. A friend of mine is a 25 year GM parts veteran who is looking at Toyota and Honda for his next vehicle. He told me that he sees no reason for him to spend his hard earned dollars on a vehicle that costs as much as others yet will depreciate at a faster rate. Not a good sign for the future when GM faithful start looking elsewhere.

This 72 month thing kills me, what a great plan, tie up your buyers for 6 years of car loans. Three years from now GM will be dying for customers that won't be visiting their showroom.
 

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A friend of mine is a 25 year GM parts veteran who is looking at Toyota and Honda for his next vehicle. He told me that he sees no reason for him to spend his hard earned dollars on a vehicle that costs as much as others yet will depreciate at a faster rate. Not a good sign for the future when GM faithful start looking elsewhere.

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BINGO! GM seems to have forgotten that their residual values have fallen through the floor. Do they think buyers won't notice the depreciation will be so great that they will have to pay for over 5 years before they are on the upside of the loan??? Much further than many other brands out there. How many happy customers will GM have when they realize they are upside down way past a normal lease term. Even worse, they will be adding maintenence costs beyond the 4th and 5th years. Suffice to say, people who leased before and jumped on the 0%/72 month bandwagon will run from GM like they were on fire. I have had several GM vehicles in the last 10 years, what is GM doing to get me to stay? VERY LITTLE. Offering cars that are as much or often more expensive to own in the long term? I see things the same way your friend does, I'm now looking at other brands. Particularly, Toyota.
 
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