January 2013 Sales

On a few occasions we have mentioned that increasingly there are more individuals / pundits sharing their thoughts and spreadsheets on Canadian sales. Its a good thing!

By now you know our perspective, when you focus on the numbers, one perhaps gets immersed in the numbers and misses the bigger picture and view of what is truly developing. 

With the myriad of programs that all manufacturers deploy as a monthly tactic to achieve results often monthly comparisons are strategically vague. Its the reason that at Strada we focus on quarterly reviews which provide increased insight and a deeper understanding. 

If you have been in the auto business long enough to see various perspectives, from various levels, while having an opportunity to experience new vehicles from a variety of manufacturers the sales results become fascinating to say the least. 

A few points:

• January 2012 was very strong, perhaps too strong!
• During 2012 there was a constant sense of exuberance by folks in the auto business comparing Canada to the US, conveniently forgetting that Canada did not take a sales hit like the US.
• During the second half of 2012, and especially during the last quarter the message was increasingly blunt that CSM (Citizen Main Street) is over extended. 
• If homes and mortgages remain the central focus of CSM being over extended, lets not forget that vehicles remain the second most expensive acquisition after a home. 
• In 2012 we saw the continued escalation of new vehicle loans above 72 months, accompanied by an increase in negative equity of vehicles being traded. Which prompted us to publish our first e-book Money for the Deal.
• Sales were good in Canada in 2012, and one was left wondering how much sales management was exercised at the end of 2012 by the various manufacturers. Not much...if any compared to the previous year.

January 2013:

1. Momentum was slowing during the last quarter of 2012 - not a surprise.
2. The truck segment went through the roof, with Chrysler - Ford - GM being the beneficiaries. 
3. Confirming that the love affair endures.
4. It was a challenging month for most manufacturers in Canada.
5. First time in several years that January generated lower sales than the previous year.
6. Lets give everyone the benefit of the doubt, that in January they were slowly executing their startegy for 2013, while practicing their tactics. 

Regearing our Economic Growth

As you know we have often mentioned that CSM (Citizen Main Street) has been powering the Canadian economy for the past few years, we have also mentioned that Canadian companies are sitting on mountains of cash. We have all been reading that the Canadian housing market is cooling.

What does any of this have to do with the "auto business"? Simple...cash flow will support continued auto sales, and hopefully the cash flow that was directed towards a vehicle will remain constant in 2013.

A thought provoking and perhaps sobering brief from the Bank of Canada...take a moment its worth the time.

Vroom Room

Good Morning!

Its Friday, almost mid month, its the Vroom Room...come in make yourself comfortable. We have cappuccino and biscotti this morning.

We came across this thought provoking video on the value of time...here. Which reminds us of our mantra that you have to be your own editor, and make sense of the flood on information, thoughts, opinions that are disseminated, published every nano second. 

Who has time for all this stuff, and have you noticed this social trend where everything is interconnected, and follows through...this platform wants to identify you, this other platform too, and so on. Are human beings engineered to always be on stage 24/7/365? What do you think? 

In case you missed it we shared our thoughts on Canadian sales...here. We are not surprised by the results at the end of September...we are perhaps surprised by the non results. Do you remember when the Detroit 3 a generation ago were extolling the virtues of assembling vehicles in Canada, and the US compared to the emerging Japanese. To reinforce our saying that the Koreans are doing to the Japanese, what the Japanese did to the Detroit 3. Now the Japanese are mentioning that they assemble vehicles in Canada and the US. Do you remember when Hyundai in 1989 opened an assembly plant in Bromont, Quebec? 

Informative, and thought provoking article on "Customer Online Comments"...here. Although it seems that everyone is seeking an opinion, it also seems that its the same cross section of society that express their opinions on social media platforms.

Looking for some cool guy stuff, or want to do some online browsing take a look at MR PORTER...here.

Today its old Alfa Romeo's 8C and spectacular photography...here. 

Vroom Room

Good Morning!

Its Friday...its the Vroom Room...its a new month. Come in make yourself comfortable we have espresso and biscotti today.

August...the last month of the "dog days of summer" prior to the Labor Day reality check. There is still time to catch up on your summer activities while slowly....very slowly getting ready for the post Labor Day reality.

After a wet and miserable start, we are having a reasonable summer so far...hopefully you are enjoying time with family, friends, and taking occasional moments to be thankful, and appreciative. 

The other day it struck us that some Japanese manufacturers (you can fill in the blanks) in Canada, have been caught in a powerful maelstrom of competitive forces. One gets the feeling...the moment these manufacturers lost their priviliged position of having a "license to print money"....(yes...you can fill in your thoughts).

You have to wonder the effects of the "intellectual shrapnel" that were flying around during the "intellectual standoff" over the American debt ceiling....perhaps everyone knew the outcome, while everyone was wondering how the last deal was going to be structured. 

Can you lose credibility if the deal making takes too long...while becoming too public? What do you think?

Canadian sales in July did not dissapoint, after a strong June to conclude the 2nd quarter, and first half, it was expected that July would be a soft month. Soft for some, downright scary for others, while the manufacturers with momentum just keep on going, and going. 

Yes...the Car Wars are still going strong...we have the feeling that BMW will not blink this year. Out of the 3 warriors (MerBimAu) one will be a "little short" on sales by the end of this year. Which one do you think?

Is the downward spiral of the stock markets the first indications of "intellectual shrapnel" flying around the globe?

Some cool cars...here.

Vroom Room

Good Morning!

Its Friday, yes...its the Vroom Room come in, we have cappuccino and biscotti make yourself comfortable. 

Agreed...we have been under/in a heat bubble this week, breaking a few records.

Did you notice, The Colonel missed a Vroom Room, imagine after all these years missing a Vroom Room...he did...he atoned and shared some of his thoughts...this week.

We must have started something in Canada with Car Wars last year, with the fender to fender competition between BMW and Mercedes. When BMW blinked we mentioned that some folks were not counting correctly...this year it seems that again the count is not correct...YTD June BMW 14,454 and Mercedes 14,502 they might just start "trading paint" during the next 6 months. As usual, same as last year some folks count the Sprinter when comparing sales. Lets agree to keep the Mini, smart, Sprinter, motorcycles out of the count...what do you think?

Perhaps we should throw CPO vehicles in the count, they are fender to fender with CPO too...YTD June BMW is at 6,482 and Mercedes at 6,124. Yes we have been mentioning Certified Pre Owned for some time now.

There is a real possibility that BMW and Mercedes will be trading paint with new and CPO vehicles in the following months till year end....stay tuned.

If you remember Stanley Mouse, and perhaps had a "something" air brushed leave a comment. 

Take a moment to peruse Nowness...here.

The ALMS race is at Mosport this week end...

This week its a bunch of old dragsters, and a drag racing video from way way back in the day. The long lever is not a shifter, it the brake lever...take a look...here. If you went to drag races when the "flagman" was starting the races...leave a comment.