22°c A few clouds
The Canadian Press - ONLINE EDITION
Canada's vehicle makers headed for most profitable year since 2001: report
A worker on the production line at Chrysler's plant in Windsor, works on an engine on January 18, 2011. (THE CANADIAN PRESS/GEOFF ROBINS)
OTTAWA - Canada's vehicle manufacturers are poised to have their most profitable year in a decade in 2012, according to the Conference Board of Canada.
The Ottawa-based economic forecaster estimates the industry will have $1.35 billion in pre-tax profits this year, its best year since 2002.
"The industry will continue to benefit from brisk growth in vehicle sales, both this year and next," said Michael Burt, director, industrial economic trends.
Burt noted that while Canadian sales are set to surpass their pre-recession level this year, sales in the United States are not expected to return to 2007 volumes until 2014.
"This increasing U.S. demand is expected to lead to a prolonged recovery in Canadian auto exports," he said.
Through the first eight months of 2012, Canadian automotive production rose almost 20 per cent compared with the same period last year, according to the Conference Board report.
Sales in Canada surged 7.1 per cent between January and August of this year and are on track to reach 1.72 million vehicles — the most since 2002.
Across Canada, truck sales continued to outnumber passenger car purchases, particularly in the Prairies where brisk activity in the mining and construction industries is driving sales.
Sales to the U.S. have posted double-digit sales growth three years in a row, culminating in a 15 per cent increase in Canadian exports this year.
Yet, U.S. sales remain 1.7 million units below where they stood in 2007, leaving room for further growth assuming that Congress and the White House take measures to avoid the looming "fiscal cliff" — the combination of big U.S. government spending cuts and the end of Bush-era tax breaks set to kick in automatically at the start of 2013.
Going forward, production growth will slow over the next five years from this year's "torrid pace," with Canadian sales gains limited because demand that built up during the recession "has effectively dried out," the report said.
The Conference Board also noted that General Motors will close one of its Oshawa plants in 2014 and growth in sales will also start to level off in the United States.
More FP News Top Story
- Back to Top
- Return to FP News Top Story
More FP News Top Story
(1 of 50 articles for this year)
Harper assailed for cutting Elections Canada budget despite vote problems
05/1/2013 5:40 PM 0
Poll
Most Popular FP News Top Story
- Dates set for recreational food fishery in Newfoundland and Labrador
- Pakistani model's tattooed nude photo in Indian magazine causes uproar
- Newest adaptation of classic 'Star Wars' film will feature characters speaking Navajo language
- Anti-prostitution laws targeted at Pickton inquiry, not failed police probe
- Stop those Nazi salutes at Quebec student protests: B'nai Brith
- Military ombudsman appeals to defence chief over home-equity losses
- Retired Toronto teacher, husband found slain in their Florida home
- American-US Airways merger could jeopardize major hub airports, as mega airline consolidates
- EU Commission sees excessive economic imbalances in Spain and Slovenia, warns France
- Landing gear part believed to be from Sept. 11 plane found between NYC mosque site, high-rise
- Harper government has no plans to sell Via Rail: Transport spokesman
- Dates set for recreational food fishery in Newfoundland and Labrador
- American-US Airways merger could jeopardize major hub airports, as mega airline consolidates
- Pakistani model's tattooed nude photo in Indian magazine causes uproar
- CGI establishes Ottawa centre focused on cyber security for businesses
- US couple flees house infested with garter snakes, describe living in a 'horror movie'
- Afghan army gives donated rifles back to Canada in favour of U.S. weapons
- Canadian submarine HMCS Windsor slowly lowered into Halifax harbour
- Israeli archaeologists discover ancient clay seal in Jerusalem, suggest link to Temple ritual
- CBC-TV's 'nice' dragon Robert Herjavec leaving the den
- Dates set for recreational food fishery in Newfoundland and Labrador
- Pakistani model's tattooed nude photo in Indian magazine causes uproar
- Harper government has no plans to sell Via Rail: Transport spokesman
- Israeli archaeologists discover ancient clay seal in Jerusalem, suggest link to Temple ritual
- Unidentified victims of Bangladesh collapse buried as more graves are readied; toll now 420
- Pressure grows to improve human rights for transgender people in Newfoundland
- Police: Boston Marathon bomb suspect fired shots from boat, hospitalized in serious condition
- In unusual pattern, Oklahoma tornado tracked path of 1999 monster twister with record winds
- Ten years after 9-11, Canada-U.S. relationship has both trouble spots and bright spots
- US couple flees house infested with garter snakes, describe living in a 'horror movie'
Ads by Google
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?
Login SubscribeHave Your Say
Comments are open to Winnipeg Free Press Subscribers only. why?
SubscribeThe 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.