Canadian auto sales to reach 1.6 million in 2011

The cost of a new car in Canada today is the same as it was in 1994, a fact that has driven sales to new levels, according to the Canadian Automobile Dealers Association, which employs 140,000 Canadians in 3,300 dealerships. A number of factors have contributed to the low prices: competition among automakers, manufacturer incentives, greater efficieny in manufacturing, reduced labour costs and a higher Canadian dollar are among them. Consumers armed with more information than ever before have also forced manufacturers to be more competitive on price.

Canadian auto sales are expected to reach 1.6 million units in 2011. Sales are growing at a "healthy pace" in the $70 billion-a-year auto sector, which accounts for about 5 per cent of Canada's GDP and more than 16 per cent of retail dollars spent in Canada, including related goods and services. Sales have grown by about 2 per cent so far this year, though not to pre-recession levels of 1.65 million units. Affordability has been the most important factor in the increased sales activity.

Of the big three North American car makers, Chrysler had its best September since 2001 with sales of 19,255 vehicles, up 19 per cent year over year. Before that, Chrysler experienced its best July ever, making it the fastest growing car maker in Canada for the second year in a row.

Ford also had a good September, its second best since 1978, though sales actually fell 3 per cent year over year. Ford sold 25, 656 vehicles in September.

General Motors sold 16,799 units in September, a drop of 6.1 per cent year over year.