rc2002
07-04-2008, 08:02 AM
GREG KEENAN
From Friday's Globe and Mail
July 3, 2008 at 9:09 PM EDT
The number of vehicles Canadians bought in the United States soared in the first six months of the year and is on pace to smash the record set in 2007, despite some moves by auto makers last year to adjust their prices to reflect the rise in the value of the Canadian dollar.
Canadians imported 151,169 vehicles as of June 30, compared with 189,738 in all of 2007, according to data compiled by the North American Automobile Trade Association, a group that represents dealers, brokers and others who participate in cross-border automotive sales.
Vehicle imports set a record in May at 31,458 – a 56-per-cent surge from year-earlier levels – and more than doubled in each of the first six months of the year from the same months in 2007.
“Consumers in Canada have become acutely aware of the savings associated with U.S. imports and are now actively shopping for American vehicles,” the organization said in a statement scheduled to be released today.
It's not clear how many of the vehicles imported are new and how many are used.
But the numbers began soaring late last year when the Canadian dollar reached parity with the U.S. dollar and Canadian consumers became aware of a significant price gap between essentially the same vehicles offered for sale in the two markets.
Auto makers reacted by cutting prices on vehicles sold in Canada and launching a public relations and advertising offensive that emphasized features available on Canadian vehicles that cost extra on U.S. vehicles. Some companies refused to honour warranties on cars originally destined for the U.S. market that were later imported into Canada.
There are still differences in manufacturers' suggested retail prices.
The DX version of the Honda Civic compact, which is the best-selling car in Canada, has an MSRP of $18,190 in this country. The DX version of the U.S. model carries an MSRP of $15,810 (U.S.).
The Chevrolet Impala mid-sized car is listed on the General Motors of Canada Ltd. website at $25,695 (Canadian). GM Canada is offering a $1,250 price adjustment. The U.S. website of General Motors Corp. offers the Impala at an MSRP of $22,725 (U.S.) and a special buying incentive of $2,500.
“Canadians are tuned in to the price differences and know that they can get a great deal by buying an American import,” Brian Osler, president of the association, said in a statement. “The numbers show people are buying.”
Importing U.S. vehicles became easier last week when Transport Canada announced new bumper standards that are the same as those for vehicles sold in the United States and Europe.
Sales of vehicles in the United States have plunged this year and auto makers have not yet adjusted production to compensate, which means there is a larger-than-usual pool of vehicles for Canadian buyers to consider.
http://www.reportonbusiness.com/servlet/story/RTGAM.20080703.wrimports04/BNStory/Business/home?cid=al_gam_mostview
I made a thread not too long ago about the resale market drying up in here in recent months. Looks like it's true that there's an oversupply of cars. It's going to be a car bubble!
From Friday's Globe and Mail
July 3, 2008 at 9:09 PM EDT
The number of vehicles Canadians bought in the United States soared in the first six months of the year and is on pace to smash the record set in 2007, despite some moves by auto makers last year to adjust their prices to reflect the rise in the value of the Canadian dollar.
Canadians imported 151,169 vehicles as of June 30, compared with 189,738 in all of 2007, according to data compiled by the North American Automobile Trade Association, a group that represents dealers, brokers and others who participate in cross-border automotive sales.
Vehicle imports set a record in May at 31,458 – a 56-per-cent surge from year-earlier levels – and more than doubled in each of the first six months of the year from the same months in 2007.
“Consumers in Canada have become acutely aware of the savings associated with U.S. imports and are now actively shopping for American vehicles,” the organization said in a statement scheduled to be released today.
It's not clear how many of the vehicles imported are new and how many are used.
But the numbers began soaring late last year when the Canadian dollar reached parity with the U.S. dollar and Canadian consumers became aware of a significant price gap between essentially the same vehicles offered for sale in the two markets.
Auto makers reacted by cutting prices on vehicles sold in Canada and launching a public relations and advertising offensive that emphasized features available on Canadian vehicles that cost extra on U.S. vehicles. Some companies refused to honour warranties on cars originally destined for the U.S. market that were later imported into Canada.
There are still differences in manufacturers' suggested retail prices.
The DX version of the Honda Civic compact, which is the best-selling car in Canada, has an MSRP of $18,190 in this country. The DX version of the U.S. model carries an MSRP of $15,810 (U.S.).
The Chevrolet Impala mid-sized car is listed on the General Motors of Canada Ltd. website at $25,695 (Canadian). GM Canada is offering a $1,250 price adjustment. The U.S. website of General Motors Corp. offers the Impala at an MSRP of $22,725 (U.S.) and a special buying incentive of $2,500.
“Canadians are tuned in to the price differences and know that they can get a great deal by buying an American import,” Brian Osler, president of the association, said in a statement. “The numbers show people are buying.”
Importing U.S. vehicles became easier last week when Transport Canada announced new bumper standards that are the same as those for vehicles sold in the United States and Europe.
Sales of vehicles in the United States have plunged this year and auto makers have not yet adjusted production to compensate, which means there is a larger-than-usual pool of vehicles for Canadian buyers to consider.
http://www.reportonbusiness.com/servlet/story/RTGAM.20080703.wrimports04/BNStory/Business/home?cid=al_gam_mostview
I made a thread not too long ago about the resale market drying up in here in recent months. Looks like it's true that there's an oversupply of cars. It's going to be a car bubble!