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Entries in Canada (108)

Friday
Jan232015

Vroom Room

Good Morning!

Its Friday, its the Vroom Room come in enjoy the cappuccino and biscotti, join the conversation.

Is it the passing of time?

Detroit Auto Show: The Ford GT inspired everyone in a collection of same story different year.

Barrett Jackson: Give them credit for having an enduring show, V16 Cadillacs are cool, 4.10 gears were cool a couple of generations ago. Some cars that sold from the Ron Pratte Collection.

NADA: If you are involved in the auto business you are surely aware of the NADA convention held in San Francisco this year, its another case of the same in a different location.

Really Cheap Gas: If you remember Aramco, you remember truly inexpensive gas with lead to fuel ICE engines, wash parts, kill weeds.

Before we forget tomorrow is the start of the Rolex 24 at Daytona, yes we remain Corvette fans.

Canadian Economy: If you have been reading our publication for some time you are aware that we never subscribed to the "great recession of 2008/09" for Canada. We often mentioned that many Canadian companies were sitting on mountains of cash, instead of productively making the cash work for Canada. CMS (Citizen Main Street) carried the Canadian economy, empowered by banks. Obvious the folks that should have done something sat on the sidelines and cashed in on the spending of CMS.

We could have a lenghty discussion, lets just say that now we are subscribing to the great Canadian recession of 2015.

Our usual old race cars from the Zandvoort Grand Prix.

 

 

Wednesday
Jan212015

The Ongoing Oil Conversation

You have surely noticed the various conversation, opinions, thoughts from a wide spectrum of pundits on the price of a barrel of oil, and gas at the pumps.

Lets take a look at this from a Canadian perspective:

Price of Oil:

Its not a good thing for Canada, cheap oil has more negative than positive implications for Canada. Alberta is the 3rd largest auto market after Ontario and Quebec. We all know where vehicle sales in Alberta are headed. 

Lower Canadian Dollar:

The lower Canadian dollar is a minor buffer for the lower price of oil. On par $100 US was $100 Canadian now $50 US is $57 Canadian (rounded amounts). At the same time the lower Canadian dollar is increasing prices of a myriad of items that a family requires, from food, clothes, even iTunes. 

Its possible that with the imminent closing of Target, other retailers will be very tempted to raise their prices to compensate for the lesser competition, and cheaper gas.

Savings at the Pump:

Agreed we are all saving at the pump, but CMS (Citizen Main Street) is astute to quickly grasp that the savings at the pump are required elsewhere with price increases from the lower Canadian dollar. Save at the pump and pay more everywhere else.

Utility Vehicles:

The auto market is inexorably shifting from sedans to utility vehicles, especially smaller versions. Is it the price of gas or a consumer preference? Its easy to correlate cheaper gas with increased sales of utility vehicles especially when the market is already headed in the direction of utility.

Pick Ups:

If pick up sales remain the same in 2015, we can says that cheaper gas perhaps was a motivator. At the same time how much of an influence is cheap gas on the enduring pick up love affair?

Disruption:

The oil sands and fracking in the US have disrupted the established order of oil. Target was a disrupter in Canada signaling its vector, strategy to the competition. The same with oil sands and fracking. The competition gets aggressive and disruptive in its own fashion. 

Finite Resource: 

There is not an infinite, endless supply of oil on the planet. Technology has enabled disruption. A fracking well has a life expectancy of 12 months. The oil sands have been there for centuries...in both cases they make sense at a certain price level. In the meantime oil remains a finite resource...with over time an escalating price.

Who Wins?:

Not Canada, not the Canadian consumer, not Alberta, not the Canadian oil industry, not the Canadian auto industry. Canadian retailers will win further...developing economies will win.

 

 

Monday
Jan192015

Canadian Sales 2014

Our review of Canadian sales for 2014...

 

Friday
Jan092015

Vroom Room

Good Morning!

Its Friday, its the Vroom Room, make yourself comfortable with a cappuccino and biscotti.

Agreed its been chilly this week.

Stuff that caught our attention:

"Pick Up sales have exploded due to cheap gas" - Really?

"The Canadian consumer will save billions at the pumps" - Agreed, although CMS (Citizen Main Street) will pay up all over the place to compensate for the lower dollar.

"GM had a record year in Canada in 2014" - Really, a distant 3rd behind Ford and Chrysler in Canada. Its a record alright.

"Oil might reach $40 a barrel" - Everyone in the oil business will keep on pumping the stuff to uphold cash flow.

"Self Driving, connected cars" - Its inexorably moving in that direction, although with CES this week there is some hyperbole.

"Making a dent, leaving a mark" - This week we were quickly reminded how some folks prefer to leave a mark on the world...and its not love.

As if you needed a reminder, next week is the Detroit Auto Show (NAIS)...the start of the season.

Our usual old race cars from the Old Timer Grand Prix.

 

 

Wednesday
Jan072015

December Canadian Sales

Usually December in Canada is a slower auto sales month since at some point everyone starts competing with Santa Claus.

This past December from the activity in online, radio, TV, print advertising one could sense that most if not all manufacturers were motivated to generate a strong month. Literally break from recent tradition, especially in light of several events, the price of oil being one.

December concludes 16% ahead of the previous year, the strongest December in the past 10 years with 131.4K units for the month.

Think of this...1.85 Million vehicles were never sold in Canada in any year.

From our perspective its gratifying to see all manufacturers throttle up, get hyper competitive. We had not seen such competitiveness in several years.

How do you power sales?

New Product: Its still the major part of the equation.

Incentives: They are a compelling motivator to finalise decisions.

Free Flowing Money: What can you say...2014 was a watershed year in money powering sales.

Pick Ups: The love affair continues, not the cheap gas, the enduring love affair with pick ups.

Chrysler and Ford were trading paint to who would finish as number 1 in Canada. December was the deciding month with Ford winning by a bumper.

The Koreans and Japanese have their ongoing scrap for market space.

When everyone gets competitive, the incentives are strong, the money flows, fascinating to see how much iron can be moved in Canada.

Its a beautiful thing...