Winnipeg Free Press - PRINT EDITION

Overseas, domestic car sales booming

  • Print

TORONTO -- Worldwide vehicle sales continued to climb in September, including in North America, where vehicle production is forecast to hit levels not seen in years, says a report by Scotiabank.

The bank's monthly Global Auto Report says car and truck sales rose three per cent in September year-over-year, although moderating from a 6.5 per cent rate of increase in July and August.

The increase in sales was due to strong demand in China, Western Europe and South America, as those economies saw signs of stabilization in their job markets and a surge in consumer confidence.

Car and truck sales in Canada also jumped, as October produced a fourth consecutive month of record sales, with a stronger-than-expected annual sales rate of 1.84 million units, up from 1.73 million in September.

As a result, the bank has revised its full-year forecast for Canada to 1.735 million vehicles from 1.72 million. It also bumped up its forecast for 2014 to 1.745 million units.

Carlos Gomes, Scotiabank's senior economist and automotive industry specialist, said this is good news for North American auto manufacturers.

"Rising vehicle demand across North America has boosted production on the continent, including Canada, to the highest level in nearly a decade, lifting operating rates and leaving some plants bursting at the seams," he wrote.

The report forecasts vehicle production in North America will hit more than 16 million units this year for the first time since 2005. Gomes said production is on pace to hit 17 million units in 2014 and a record 17.6 million by mid-decade.

"We estimate that ongoing output gains will lift North American capacity utilization to an unsustainable 95 per cent by mid-decade, putting pressure on automakers to add new capacity," he wrote. He said although some car manufacturers have moved production to lower-cost regions in the southern U.S. and Mexico, "cost competitiveness" in North America will still make Canada an economically viable location to make vehicles.

-- The Canadian Press

Republished from the Winnipeg Free Press print edition November 15, 2013 B13

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Winnipeg Cheapskate: Preparing for Boxing Day

View more like this

Photo Store Gallery

  • Marc Gallant / Winnipeg Free Press. Local- WINTER FILE. Snowboarder at Stony Mountain Ski Hill. November 14, 2006.
  • MIKE.DEAL@FREEPRESS.MB.CA 100615 - Tuesday, June 15th, 2010 The Mane Attraction - Lions are back at the Assiniboine Park Zoo. Xerxes a 3-year-old male African Lion rests in the shade of a tree in his new enclosure at the old Giant Panda building.  MIKE DEAL / WINNIPEG FREE PRESS

View More Gallery Photos

Poll

Do you think the provincial NDP’s approval rating could drop below the current 26 per cent?

View Results

View Related Story

Ads by Google