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Ford market share gains continue streak
Grace Macaluso, January 06, 2010
WINDSOR, Ont. - Ford Motor Co.'s Canadian division continued its winning streak last month, posting annual market-share gains in Canada.
In December, Ford of Canada's overall sales increased 25.5%, with total car sales up 9.5% and total truck sales increasing 30.1% compared with December 2008, the automaker said yesterday.
December also marked the 14th consecutive month of market-share increases at Ford of Canada and the company's seventh straight month of retail sales gain, said David Mondragon, chief executive. The automaker increased its market share last year to 15.4% from 12.9% in 2008.
"Our products drove our sales success in 2009. Canadian consumers showed confidence in the Ford brand and recognized the quality and value in our lineup," Mr. Mondragon said. "We grew our sales despite a down industry, powered by the freshest showroom in the country."
In the United States, Ford posted a 33% sales gain for December as auto sales ended a crushing 2009 on an upswing.
With a 26% increase in sales last month, the Ford Fseries pickup truck was the best-selling vehicle in Canada, Ford said.
Ford of Canada sold a total of 225,216 vehicles last year, up from 211,060 in 2008.
General Motors' vehicle sales in Canada sustained a 9.6% decrease in December, compared with the same period in 2008. Total annual sales fell 29.1% from 358,253 in 2008 to 254,257 last year.
However, GM retained its status as Canada's automotive sales leader last year. Sales were led by its mid-size crossover vehicles, including the Chevrolet Traverse, GMC Acadia and the Ingersoll, Ont.-built Chevrolet Equinox, GM said.
Chrysler Canada sales rose 12.4% in December compared with the same month in 2008. However, year-to-date sales plummeted 26.8% to 163,182 units from 222,996 in 2008.
Honda Canada's annual sales fell 26.7% last year, while December sales dropped 9.3% compared with the same period in 2008.
Toyota sales grew by an impressive 86.2% in December, but the automaker posted an annual decrease of 9.5% last year compared with 2008.
Overall Canadian sales in 2009 totalled 1.46 million units, down 10.7% from 1.63 million in 2008, according to auto analyst Dennis Des-Rosiers. It's the lowest level since 1998 when sales were about 1.427 million units, Mr. DesRosiers said.
Chrysler LLC's sales dropped 4% in the United States, while GM posted a sales decline of 9%. In the United States, December sales of the Windsor-assembled Dodge Caravan minivan rose 24% compared with the same period last year, while Chrysler Town and Country sales increased 4%.
However, annual sales of the Caravan fell 27% last year compared with 2008, while sales of the Town and Country plunged by 29%. In the United States, full-year sales are expected to be just above 10.3 million vehicles, down 40% from where the industry began the decade in 2000.
Meanwhile, major automakers are betting the U.S. market is poised for a gradual but steady rebound this year and next and have set production plans higher for the current quarter to restock inventories.
The U.S. Ford sales surge ran beyond the expectations of analysts and sent the company's stock sharply higher. Ford shares powered above US$11 to hit their highest level since August 2005.
The stock has gained 55% in a rally since early November and has more than quadrupled in value over the past year as investors bet the No. 2 U.S. automaker would steer clear of the federal bailouts that wiped out equity in its domestic rivals.
"Ford's plan is working," said Ken Czubay, the automaker's head of U.S. sales.
Other automakers trailed Ford's gain. Sales for Nissan Motor Co. were up 18% in December. Chrysler sales dropped 4%. GM shares dropped 6.1% in December and were down 30% for the year.
After adjusting for population, U.S. auto sales in 2009 suffered their deepest decline since the Second World War. Full-year sales are expected to be just over 10.3 million vehicles, down 40% from where the industry began the decade in 2000.
In an historic reversal, vehicle sales in China surged to overtake the U.S. market as the world's largest in 2009.
With a final sales tally due this week, analysts expect China sales to have soared 44% to 13.5 million units in 2009. Slower growth is projected for this year.
Illustration: David McNew, Getty Images / A Ford dealership in Glendale, Calif. Ford posted a 33% December sales gain in the United States as auto sales ended a crushing 2009 on an upswing.
