Its Friday, its the Vroom Room, come in make yourself comfortable, yes we did get our first snow that lingered for a few days.
As we approach Christmas, with the usual time pressures, lets not forget...take a moment to share love!
A few days ago GM built the 100 M small block Chevy at the Wixom plant (where else). Think about this, 100 million small blocks in 56 years! Does it get more iconic? If you remember working on a 265, tell us about it.
We often mention that you have to be your own editor, and filter what is being disseminated.
There is an ongoing intellectual direction that used vehicles are scarce in Canada, and that prices will go up due to the scarcity.
Lets take a look at a few relevant facts:
> Back in 2007 (seems an eternity) there were 1.65 M new vehicles sold in Canada with a lease penetration rate of at least 40%...we all remember the high prices prior to the Canadian dollar reaching parity towards the end of 2007.
> In 2008 there were 1.64 M new vehicles sold in Canada with a dramatically reduced lease penetration due to the financial turmoil, some manufacturers on the brink of insolvency, and other manufacturers running for cover.
> We also remember that in 2008 there were numerous new/used vehicles imported into Canada, it was a thriving activity....lets say that in 2008 there were 125,000 used vehicles imported into Canada.
> In 2009 there were 1.46 M new vehicles sold in Canada, with a continued low leasing penetration. There continued an active importation activity from the US as the economy struggled, the Canadian dollar remained high. We can conclude that an additional 100,000 used vehicles were imported into Canada.
> As you know several manufacturers did not change their intecctual direction on leasing, increased their new vehicle sales, upheld their leasing penetration, and are enjoying exceptional CPO results.
> Agreed that in 2009 sale of new vehicles in Canada were down by 200,000 units, we can agree that in 2008/2009 there were 225,000 used vehicles imported, and lets say 75,000 new vehicles for a total of 300,000 vehicles.
> The 200,000 new vehicles missing in 2009 from the previous highest sales in Canada, are easily alleviated by the vehicles that were imported into Canada.
> We agree that there is a scarcity of lease returns compared to the golden years of 2006/2007 (returning in 2009/2010 window) which negatively impacts certain areas of the auto industry. To say that there is a scarcity of vehicles (based on the lack of lease returns) is a blanket statement which does not portray the factual reality.
> Yes...dealers will have to earn more vehicles in their showrooms from their owners, than simply clicking the buy button on an auction site.
What do you think?
Our usual old cars..."Behind the scenes at Villa d'Este"...here
First day of December...
We have the feeling that this month a few outstanding issues that have been festering the planet, creating turmoil, generating anxiety, will begin to be better aligned with the respective expectations of the various stakeholders.
We could make a list, but we all know some of the major issues that need to align themselves...to arrive at an improved level of global confidence.
Let's hope that more, than less issues align themselves to decrease turmoil, and stop churning the insecurity...yes we are being subtle here.
What do you think?