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Canada: Rich Incentives Drive Vehicle Sales Record In August
May 01, 2007

Canadiansin Canada bought higher number of cars and light trucks during the previous month (August '06) than in any August in the past.

Canadians bought higher number of cars and light trucks during the previous month (August '06) than in any August in the past, however slow sales in U.S. made the main story for the automakers of North American and Canadian pace might be set to loosen, said and analyst yesterday.

Manufacturers on 6th September reported, Auto buyers smashed Canadian sales record for August as rich incentives fuelled a big increase in business, particularly in Ford and Daimler Chrysler showrooms in Canada, August Sales and leases of new cars, trucks, minivans and sport-utility vehicles jumped 7.8 percent or more than 11,000, to 153,638 last month from 142,500 in August last year (2005).

Strong performance that surprised analysts also topped all previous records for August, which was set in 2000 when volume hit 148,100. While sales boomed in Canada, U.S. sales slid about five per cent compared to a year earlier, led by a twelve percent decline in Ford Motor Company contrasting with a twenty eight point six percent rise for the same in Canada.

In U.S, sales dropped 5 percent last month. Ford and Daimler Chrysler volumes fell; General Motors reported flat sales and Toyota made big gains. But, sales at Ford Motor Co. of Canada Ltd. shot up 28.6 percent to 21,287 here in August from the corresponding 2005 month.

BMW Canada's sales, including Mini brand, jumped 12.3 percent reaching 2,003, whereas deliveries improved seven point seven per cent reaching 1,129 at Mitsubishi Motors. However business at Nissan Canada, including Infiniti luxury brand, dropped 4.4 percent to 6,788 and Volvo Canada sales slid 7.1 percent to 968. Hence, the credit goes mainly to the thriving resource economy and continuing solid housing market of Canada.

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