BMO Financial Group

BMO Financial Group
BMO Bank of Montreal

BMO Bank of Montreal

January 06, 2011 07:00 ET

BMO: Canadian Auto Sales Bounce Back

BMO Study Shows New Car and Truck Sales Poised to Grow to 1.62 Million in 2011

- Low Interest Rates, Improved Credit Conditions, and a Strong Loonie Will Support Sales and Benefit Dealers and Consumers

- Dealership Sales, Including Service and Parts, Set to Grow by About Seven Per Cent Next Year, Supported by Steady Expansion of Aftermarket Sales

TORONTO, ONTARIO--(Marketwire - Jan. 6, 2011) - Canadians returned to dealer showrooms in 2010 - significantly reversing the auto sales decline in 2009 - and are positioned to drive auto sales back to pre-recession levels in 2011. According to a new report from BMO Bank of Montreal, sales are estimated to rise from 1.56 million vehicles in 2010 to 1.62 million this year.

"With increasing confidence, Canadian customers returned to showrooms in 2010 and drove auto sales higher, buying more light trucks in relative terms than ever before, an unprecedented 54.4 per cent for the year. In 2011, amid solid economic growth and favourable pricing, we expect sales to rise further to 1.62 million, which would be a return to levels more typical of the five years prior to the recession," said Kenrick Jordan, Senior Economist, BMO Capital Markets.

"BMO has a long history of partnership with automotive dealers and has worked closely with them through the good times and challenging periods. Looking to 2011, it is clear that dealerships in Canada are well positioned to meet increased consumer demand and are much stronger financially with leaner inventories, improved cost efficiencies and a renewed focus on their customers," said Robert Sadokierski, Vice President, Dealership Finance, BMO Bank of Montreal. "Overall, 2011 should be a good time for Canadian consumers to consider making a purchase, especially with the added confidence of knowing that their local dealer is stronger and there for them for the long haul."

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