Canadian Sales 2010

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STRADAJ A N U A R Y 2 0 1 1

Canadian Sales2010

2010 Year of the

Low HangingFruit

Several manufacturers had new models,

opportunities, and/or seized the moment.

It was easy in 2010.

To pick low hanging fruits, while maximising

results.

Congratulations to the manufacturers that

grasped opportunities and seized the moment.

TrendOctober: Up 1% MTM and 6% YTD

November: Up 14% MTM and 7% YTDDecember: Up 0% MTM and 6.5% YTD

The last quarter was a balancing, and heavy

lifting act on the part of manufacturers and

dealers.

Sales increased by 6.5% in 2010.

The first half was easier, more encouraging. The second half not as easy,

a taste of things to come.

“MerBimAu” seized the Entry Luxury segment…while everyone else had a ring side seat.

Mercedes:

C Class…….….8,090

GLK Class…….5,852

BMW:

3 Series………14,009

X3………………2,840

Audi:

A4………..…….5,211

Q5…………..…3,060

MerBimAu...…39,062

They lapped the entire field.

Certified Pre Owned ….a bright spot!Offering a unique opportunity.

The ones that walk the talk in the CPO arena

have done very well with this distinctive capability.

CSM (citizen main street) is highly receptive towards the benefits of

CPO vehicles.

Mercedes-Benz retailed over 10,000 - BMW over 12,000 CPO vehicles in

2010.

Manufacturers that continue to have lease

returns will further strengthen their CPO

position.

Deluge of Data and AnalyticsIs Analytics the New Path to Value?

Manufacturers use a copious amount of

analytics to justify their actions, decisions, arrive

at a higher value.

Some manufacturers make a productive and

prescient use.

Others prefer the historical look from the

rear view mirror.

Questions:

How do you use analytics?

Is the management bandwidth present?

Compact Mid Size Sedans

Honda Civic……..57,501 Mazda 3………….47,740 Toyota Corolla…..38,680

Should Honda thank Mazda for keeping the Civic on top? How was Honda going to explain losing 1st place?

Imagine next year with a much busier segment.

Sales results from: Automotive News

Ford Fusion………..19,364 Honda Accord.........14,659 Hyundai Sonata…...13,856 Nissan Altima…..….13,425 Chevy Malibu….…..13,092 Toyota Camry….….12,251 Mazda 6………...…..6,092

The most popular is the Fusion. The Accord pulled into 2nd, passing Sonata. Again should Honda thank Hyundai.

Some Numbers 2010

CUV/SUV Pick Ups

Ford Escape…………43,038 Hyundai Santa Fe…...27,882 Honda CR-V…………24,930 Chrysler Journey…….23,785 Toyota RAV4…………22,810 Chevy Equinox……...19,261

Hyundai passed Honda. The Journey passed the RAV 4. These vehicles “transcend winter” at a reasonable

price.

They are very popular.

Ford F Series……………97,913 Ram………………………54,267 GMC Sierra………………45,457 Chevy Silverado…………41,737

Pick up sales have been torrid all year. Ford, and Ram have gained the most in

this segment.

A solid race among the competitors prior to the price of gas escalating.

Some Numbers – 12010

The Months of 2010 Our Thoughts

January: (+6%) Out of the gate, evaluating the market and competitive landscape. February: (+25%) January was a little scary, lets raise the intensity of the game. March: (+13%) Keeping the momentum going, Q1(+14%), stronger than last year. April: (+4%) Lets pause to measure the strength of the spring market. May: (+ 0%) Oops, not as strong as we anticipated, need to get aggressive. June: (+11%) Lets step it up, end of Q2 (+5%), we need the numbers. July: (+6%) Gauging a new quarter, and second half. August: (+0%) Oops again, this market without incentives…flatlines. September: (+4%) Saved Q3 (+3%), the market responds to stimulation. October: (+1%) Last quarter, who will blink? who will step up? November: (+14%) Lets “throttle up” to cover the year, create a blink? December: (+0%) Safe close to the year, Q4 (+5%) last chance for some. Customer: Informed on the tactics/strategies of the manufacturers/dealers. Waits till later

in the month to do a deal. To get the most for his money. The customer “buy month” is from the 10th to the 40th .

Entry Luxury Luxury CUV/SUV

BMW 3 Series………...14,009 M-B C Class………...…8,090 Audi A4…………………5,211 Infiniti G…………………4,408 Buick LaCrosse…………3,947 Cadillac CTS……………2,974 Acura TL…………………2,895 Lexus IS…………………2,233

Good thing Infiniti was there! MerBimAu ran away with the market.

Lexus RX………………..7,383 Acura MDX…………...…5,994 M-B GLK…………………5,852 Lincoln MKX……………..4,458 Buick Enclave……….…..4,135 BMW X5……………….…4,012 M-B M Class………….….3,871 Acura RDX……….…..….3,163 Audi Q5……………..……3,060 Cadillac SRX………..…...2,918 BMW X3…………….……2,840

Seriously competitive segment.


Pony Cars Did You Know?

Mustang…………….5,232 Camaro……………..4,113 Challenger………….3,097

Parnelli Jones won, Mark Donahue second, with Sam Posey trailing to

uphold the Trans Am race analogy of 40 years ago.

SLS AMG…………..….111 Lamborghini……………..73 Maserati………..……….138 Ferrari…………..….…..105 Panamera……….……..387 GT-R…………….…….…62 R8……………………….137 Bentley………….….…….82


Manufacturers in 2010 - 1Our Thoughts

Audi: (+27%) Drawn in by the draft of the leading Germans, did well drafting!

Acura: (+2%) Last minute signs of life in SUV/CUV sales, + incentives on cars.

BMW: (+10%) Blinked! Increasingly relying on 3 series sales, + lease orphans.

Chrysler: (+26%) Re acquired its Mojo…knows how to move iron in Canada.

Ford: (+19%) Deserved # 1 in 2010, undisputed leader in segments, where is Lincoln.

GM: (-2%) Impacted by absence of Pontiac and leasing, Cadillac needs to get it on.

Honda: (+1%) Stopped drinking the Kool Aid, and started selling vehicles.

Manufacturers in 2010 – 2Our Thoughts

Hyundai: (+15%) Value, styling, aided by events/circumstances, seized opportunities.

Infiniti: (+16%) Distinctive branding, and styling language, the alternate to MerBimAu.

Jaguar: (-6%) Is the best yet to come?

Kia: (+17%) On a roll with value, evocative styling, seized opportunities.

Land Rover: (+27%) Loyal customer base.

Lexus: (-10%) What happened? Fortunately the RX is there.

Mazda: (+7%) Forward momentum on the strength of the 3, and the emerging 2.


Mercedes-Benz: (+22%) On a roll, new models, seizing the moment with lease orphans.

Mini: (+6%) Steady considering the model line up.

Mitsubishi: (-2%) Dated product, pushed further down stream by competition.

Nissan: (+4%) Clear identity, and brand message, forward momentum.

Porsche: (+21%) The fashion house, Panamera saves the day with Cayenne assisting.

smart: (-24%) The “nuclear” version might just do it…in the meantime….

Subaru: (+21%) Unique identity, benefits, value proposition, captured the moment.


Suzuki: (-26%) More questions than answers, where is Kisashi?

Toyota: (-17%) Vulnerable underside was exposed, consumed goodwill and momentum.

Volkswagen: (+13%) New products uphold the momentum.

Volvo: (+0%) Gaining traction in the market.

Sales in Canada were up 6.5% for the year.

The low hanging fruits have all been picked!

The vacuums are filled, the “moments” seized!

The easy lease effect from 2007 is a done deal.

Where is oil headed in 2011?

Imagine for a moment the frightful thought of

regular gas hovering at $1.50 a liter.

Scary…and perhaps a reality!

Suddenly “little cars” with more offerings in

the segment, will become increasingly

popular.

The crew cab 4x4 used as a family car and

financed for 84 months at 0%...ouch!

Is it a reason that manufacturers were

aggressive to move pick ups?

2011 Year of the “Higher Up”

Fruit

Will require “more” of numerous resources to

achieve results comparable to 2010.

Which manufacturers have the “depth”, “fortitude”, and

“stamina” to reach and reap the “higher up”

fruits?

What do you think?

Which way….? The only way is...

Everyone will verbalise that 2011 will go up.

Is there another way?

It will be interesting to see how the “talk”

evolves into the “walk”.

When every manufacturer and dealer has to reach/stretch for higher fruits, and deal with more variables.

While the consumer raises his demands, expectations, and

harvest the benefits.

Our Thoughts

2010 was the year of the “low hanging fruits” for several manufacturers. The “little car” segment became more competitive in the last quarter with Fiesta-Cruze-

Mazda 2 elbowing into the segment. Manufacturers seized the opportunity to move pick ups prior to the escalation of the price

of gas. Every month that incentives were pulled back the market flatlined. Fascinating to see a rise in the competitive spirit during the last quarter, some things

never change. Certified Pre Owned is a bright light, especially with Gen Y having a frugal approach

towards vehicles. 2011 will generate results comparable to 2010 with everyone seeking the magical 1.6M

for the year….will they do it?

Thank You