A slow sales upswing is just beginning

Inventory and semiconductor shortages continue to almost new vehicles sales — and will do so for some time — but 2023 could mark a return to pre-pandemic production levels, say industry analysts.

February sales were up an estimated five per cent over the same month in 2022, although it was the second worst February sales performance of the last 10 years, said DesRosiers Automotive Consultants (DAC).

There was a wide chasm between automakers still reporting monthly.

Honda Canadafor example, posted a 37-per-cent drop in total sales — including both Honda and Acura brand sales — down to 4,551 vehicles compared with the same month a year ago.

On the opposite end of the spectrum, Kia saw its Canadian sales climb 32 per cent to 15,632.

Neither automaker offered reasons for the significant swings.

Despite historically low sales in February, “the market has now achieved year-over-year gains in four straight months as the breadth of improved vehicle availability gradually widens, and consumer spending remains resilient,” DAC Managing Partner Andrew King said in a statement.

The seasonally adjusted annual rate of sales for the month came in at 1.7 million units which King said is “broadly in line with the level seen in January.”


But Sam Fiorani, vice-president of global forecasting at US-based AutoForecast Solutions, said those automakers who were best prepared for the global semiconductor shortage and didn’t expect it to simply blow over are outproducing — and outperforming — those that just assumed the shortage would pass.

In his March report, Fiorani said this year “is expected to begin the long recovery to full production and ‘normal’ sales levels.”

Michael Carmichael, CEO of southwestern Ontario-based group UpAuto, isn’t so sure.

“There’s lots of promise that things are going to get better, but we haven’t seen it yet,” said Carmichael, whose dealerships sell General Motors, Nissan, Honda, Volkswagen and Subaru brands in the Stratford area. “We still can’t fill all our orders. It’s across brands. The stuff that isn’t in high demand, that we can get.”

He has a customer at a recently acquired Volkswagen store waiting for a Golf R ordered in September 2021. Another is waiting on one ordered in March 2022. And three more orders were placed in January.

“It’s like, ‘where are we at on these’?” Carmichael said. “But they haven’t complained to us. Like so many things, ‘yeah, I have to wait six months, a year.’”


Despite the bottlenecks, Fiorani said automakers are still on pace to sell 1.64 million new vehicles in Canada this year.

AutoForecast Solutions projects that US, Canadian and Mexican manufacturers will end up cutting about 936,400 vehicles because of the microchip shortage by the end of the year — roughly a third of the projected global total. That level would be significantly lower than the chip-related production losses of 2022 and 2021, when a total of 4.85 million North American vehicles were lost, according to AutoForecast Solutions.

Globally, the firm expects automakers to produce 2.8 million fewer vehicles in 2023 due to a shortage of chips.

Scotiabank Economics agrees automakers are working toward more traditional production numbers, and aren’t there, yet.

“The prolonged recovery in North American auto production stagnated in the second half of 2022 and automakers expect slow production to linger in the upcoming months,” the bank said in its most recent Global Auto Report.

“Though facing strong headwinds, the demand side factors remain relatively solid as incoming data suggests greater economic resilience,” Scotiabank said. “Economic conditions have proven to be more resilient than anticipated, particularly reflected in tight labor markets, where strong employment growth and still-high job vacancies support greater job stability and provide a buffer in the case of a downturn.”


Global Automakers of Canada CEO David Adams, who represents the interests of overseas brands in Canada, called January and February “two positive months to start off 2023.”

He said light-truck sales comprised almost 87 per cent of all new vehicles sold. That’s up a percentage point from the previous month.

UpAuto’s Carmichael said despite current inventory shortages, automakers are giving him increased monthly and annual sales targets in 2023 when compared with a year ago.

He called one automaker’s new goals a “huge lift” and said some of the numbers had gone up “dramatically.”

He said on the face, the numbers looked good and seemed to forecast a robust sales year, but it was difficult to hit some of those new, higher numbers in February.

“I’ve got the vehicles sold, but I don’t have the inventory,” Carmichael said. “So, ask me about how I feel about January and February inventory in December.”

Despite more than two years of inventory shortages, demand remains strong.

Leave a Comment

Your email address will not be published. Required fields are marked *

https://scatterhitam-slot.com powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 slot thailand https://pariamantimur.pariamankota.go.id/assets/ https://sipatudia.bpsdm.sumbarprov.go.id/assets/mahjong/ slot jepang http://simokata.tabanankab.go.id/dist/img/thailand/ scatter hitam slot thailand link slot thailand 777 slot powergaming88 slot luar negeri slot gacor maxwin slot gacor hari ini slot gacor terbaru mahjong ways 2 slot thailand jp slot slot bni slot bri slot bsi slot danamon slot gopay slot server korea slot malaysia slot amerika slot rusia fan tan monopoly live lightning roulette mega ball sweet bonanza candyland mega sic bo mega baccarat andar bahar sbobet88 ktm303 slot dubai slot qris powergaming88 Slot Thailand Slot Zeus Pg Soft Starlight Princess Slot Gacor Maxwin Joker123 Sv388 Slot Thailand Slot Thailand Slot Qris slot thailand joker123 mahjong ways 2 888slot slot thailand slot88 sweet bonanza slot jepang slot thailand slot mahjong ways slot qris slot deposit dana slot dana nolimit city slot thailand sv388 slot888 slot kamboja http://labse.ce.undip.ac.id/sejarah/gacorx/ Slot Thailand Starlight Princess Mahjong Ways 2 Slot Maxwin slot thailand akun pro kamboja slot filipina joker123 slot zeus slot88 slot thailand slot mahjong slot megaways NEW SLOT POLA GACOR Slot Server Luar https://mandiri-gacor.angkolatimur.tapselkab.go.id/ jp slot slot ganas https://cheat-gacor.angkolatimur.tapselkab.go.id/ crazy time live slot qris https://sqris.angkolatimur.tapselkab.go.id/ slot akurat slot bca slot bni qris https://pragmaticplay.dharmasatyasarana.co.id/ https://dana.sidamaju.skom.id/ https://joker123.putramuko.co.id/ https://akun-pro-rusia.mariyadl.sch.id/ slot zeus server thailand server hongkong slot ovo slot gopay slot linkaja joker123 nolimit city sv388 starlight princess mahjong ways pg slot slot zeus sv388 idn slot https://joker123.elearningmansatuokit.sch.id/ slot server thailand slot thailand https://slot-thailand.itr.ac.id/ https://pn-watansoppeng.go.id/media/jui/server-thailand/ https://dinkes.hsu.go.id/wp-content/uploads/server-thailand/ ladangtoto nolimit city koi gate sicbo online roulette online lice casino live22 baccarat online nolimit city slot ovo slot gopay pragmati play starlight princess slot pg soft slot mahjong slot zeus sv388 digmaan slot mania slot zeus slot thailand server thailand ying77 slot thailand judi bola live casino sv388 pg soft slot dana mahjong ways slot mania slot x500 ladangtoto slot server kamboja digmaan digmaan slot88 scv388 sabung ayam online slot live casino sicbo online live casino online slot thailand ladangtoto sv388 ladangtoto powergaming88 66kbet powergaming88 slot thailand ladangtoto slot thailand server thailand slot thailand slot thailand slot thailand slot gacor ladangtoto2 ying77 bet server thailand slot thailand ying77 slot88 ladangtoto ladangtoto slot maxwin sv388 sv388 slot gacor 66k bet slot dana sabung ayam inline slot mahjong slot toto slot server thailand slot gacor slot server thailand slot gacor slot thailand situs slot wwg slot slot daftar judi slot online indonesia slot gacor slot mawin slot gacor slot thailand slot gacor slot gacor demo slot pragmatic sv388 slot88 pgsoft Daftar Judi Slot Online Indonesia Paling Gacor di Indonesia Daftar Situs Judi Slot Online SLOT88 lucky neko slot gacor slot88 slot kakek slot maxwin slot thailand Slot Mahjong Ways 2 Mudah Jackpot Paus di PG Soft Hari ini 2023 Lucky Neko Situs Slot Gacor Pgsoft Hari Ini SITUS SABUNG AYAM SV388 ONLINE DAFTAR LINK LOGIN APK AGEN SV388
Scroll to Top