The last time the Canadian automotive market saw a sales increase as large as was observed last year was in 1997, according to DesRosiers Automotive Consultants.

In its Canadian December sales update, DAC said final sales for 2023 from reporting OEMs came in at 1.664 million units — an increase of 11.8% per cent from the 1.489 million units sold in 2022. An improvement in vehicle supply during the second half of 2023 helped boost sales, which notably and impressively rebounded as pent-up demand from the million units of “lost sales” from 2020-22 was “more than enough to overcome high interest rates, and worrisome economic weakness.”

“Of the many remarkable aspects of 2023’s performance, one of the most notable was the continued gain in light truck share,” said Andrew King, Managing Partner of DAC, in a statement. “For 2023, light trucks continued to push out an ever-shrinking pool of passenger cars, with trucks reaching a record share of 85.8% for the year, as Canadian consumers enjoyed the freedom to choose the vehicles they want to purchase.”

DAC had previously predicted that 2023 would be one of those “rare occurrences” when auto sales increased, regardless of the onset of a recession.

December sales were estimated to be 120,000 units, which represents an increase of 10.7% from the same month in 2022. According to DAC, the market has now experienced 14 consecutive months of year-over-year growth. Furthermore, sales are up in all provinces in Canada, from coast to coast to coast. They were also up 17.2% in the fourth quarter of 2023, with the SAAR “regularly tracking at levels near or above 1.8 million units.”

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Vietnamese electric vehicle manufacturer VinFast has officially signed agreements with five dealers in four states across the United States, the company recently announced in a news release.

“This is an important step affirming VinFast’s commitment to expanding its retail sales network and shortening the time to deliver our products to market,” said Tran Mai Hoa, Deputy CEO of Sales and Marketing at VinFast Global, in a statement.

The first group, which will begin selling the VF 8 all-electric SUV, includes Leith VinFast in North Carolina, Smith Haven VinFast in New York, Principle VinFast Grapevine and Hiley VinFast of Fort Worth (both in Texas), and VinFast Wichita in Kansas. The company also said there are plans to have them sell other models (the VF 6, VF 7, and VF 9) when they launch in the U.S. market.

“Collaboration with dealers allows VinFast to quickly bring U.S. customers high quality electric vehicles, good prices and excellent aftersales policies, further promoting our mission of a sustainable future for all,” added Mai Hoa.

Customers who buy or lease one of the brand’s EVs can benefit from the company’s aftersales policies, including 10-year unlimited mileage for the battery under non-commercial use. VinFast is hoping to expand its dealer network to 125 points of sale across the U.S. Outside of its partnership with dealers, the company already operates 13 retail stores and service centres in California.

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The 2024 event season is about to launch, with automotive and technology shows and conferences already scheduled for the beginning of the year. Among the many options is the Consumer Electronics Show (CES) event in the United States that will explore, among its many tech-related themes, vehicle technology.

“With features like adaptive cruise control, collision prevention and lane guidance, technology is paving the way to safer roads,” said CES on its website. “Discover what’s driving the innovations behind concept cars, connected vehicles and autonomous mobility.”

Canadian auto dealer Publisher Neil Hiscox will be onsite to attend conferences on self-driving cars that will explore the roadblocks to the larger dream of having driverless cars everywhere.

There will also be a conference on vehicle accessibility, a topic that will explore the design innovations aimed at improving vehicle accessibility and how designers and OEMs can build accessibility from early on. And a session on self-driving in rural areas and how this can empower the isolated and cut energy costs will also be offered.

Furthermore, as part of the vehicle technology theme, the event will see an Autonomous Challenge@CES take place at the Las Vegas Motor Speedway. CES describes the event as a “head-to-head autonomous racing competition.”

Other themes that will be covered at CES include  artificial intelligence, augmented and virtual reality, advanced air mobility, 5G, among others. CES will take place from Jan. 9-12 in Las Vegas, Nevada.

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Although news of new vehicle sales units are in for December 2023, it is also worth keeping an eye on the Canadian used wholesale market — which saw a decline in prices of -0.54% for the week ending on Dec. 30, compared to the prior week’s -0.43%.

Based on Canadian Black Book’s market insights report, the car segment decreased by -0.53% (it was -0.41% the week before), while truck/SUV segment prices were down -0.55% (versus -0.45% the prior week). None of the 22 segments’ values increased for the week.

“The Canadian market continued to decrease, and the overall decrease slowed during the holidays with declines closer to the historical average,” said CBB in its update. “Supply is building with decreasing demand for vehicles at auction on both sides of the border. Upstream channels continue to tap supply before it can be available to wholesale markets.”

In comparison, the United States used vehicle market saw its overall car and truck segments decrease -0.68% last week and -0.70% the week before that. The volume-weighted car segments were down -0.51%, and the volume-weighted truck segments decreased by -0.80%.

As for the Canadian market, the car category saw a decrease across all of its nine segments, with the most significant decline coming from compact cars (-1.20%). This was followed by sub-compact cars (-0.72%) and mid-size cars (-0.70%). Segments experiencing the least decreases were full-size cars (-0.11%) and sports cars (-0.14%).

For trucks/SUVs, the segments with the largest declines were minivans (-1.59%), full-size crossovers/SUVs (-1.36%), sub-compact luxury crossovers/SUVs (-1.16%), and sub-compact crossovers (-1.03%). Other segments with notable depreciations were full-size pickups (-0.64%), mid-size crossovers/SUVs (-0.62%), and full-size vans (-0.61%).

You can read the full report here.

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Cox Automotive released its December sales forecast for the United States and anticipates that the automotive industry will end 2023 with an increase of more than 11% year-over-year. It also foresees General Motors retaining its top spot, and Hyundai Motor stepping ahead of Stellantis.

In a news release, the company said December new-vehicle sales are expected to show gains over last year’s “product-constrained market,” which means that sales volume for the month should increase 6.2% over December 2022. Furthermore, they expect the seasonally adjusted annual rate (SAAR) to finish around 15.1 million in December — 1.6 million higher compared to 2022’s sales pace, but slightly lower than November’s 15.3 million level.

“December is generally a strong month for new-vehicle sales as holiday shoppers look for year-end deals, and this year will be no exception,” said Charlie Chesbrough, Senior Economist at Cox Automotive, in a statement. “With supply much higher now and incentives higher as well, this December is expected to finish significantly better than last year.”

However, he also noted that high vehicle prices and high interest rates “remain the industry’s Grinch right now, and that trend will continue into next year.”

As for the automakers, Honda, Nissan, General Motors and Tesla benefited from large year-over-year gains this year. The Hyundai Motor Group (Genesis, Hyundai, and Kia brands) enjoyed a strong year in the U.S. market, with sales up more than 12%. The group surpasses Stellantis (Jeep, Ram, Dodge, Chrysler and other brands) to slot fourth in overall U.S. sales, right behind Ford. Stellantis is the only OEM expected to post lower YOY sales, due to a lower volume/higher revenue per sales strategy.

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Credit: DSMA and The Executive team in Zacapa, Guatemala on an incredible journey with Hope of Life International in their mission to saving lives.

DSMA: Valuations, Mergers & Acquisitions announced a partnership with non-profit humanitarian aid organization Hope of Life International, which aims to create positive changes in Guatemala. As part of the partnership, DSMA’s executive team traveled to Guatemala to try and make a difference in-person.

The non-profit organization is focused on empowering children, families, and communities in Guatemala to help them overcome the root causes of poverty and malnutrition. Part of their goal is to implement lasting change and community-driven sustainability.

“The true measure of a company’s success lies not just in its profits, but in the positive change it can bring to the world,” said Farid Ahmad, CEO of DSMA, in a statement. “Charitable work isn’t just a choice; it’s our responsibility. As a company, we believe that our success is intertwined with the well-being of the communities we serve. The more we give, the richer we become in the currency of humanity.”

On its website, DSMA said the non-profit works alongside marginalized and oppressed people and groups in Guatemala to implement programs. DSMA sent the executive team, which included Ahmad, to Guatemala with Hope of Life International this year.

“DSMA’s journey with the Hope of Life International is a testament to the enduring value of corporate philanthropy, reminding us that, in the end, the most meaningful returns are measured in the lives we touch and the hope we ignite,” added Ahmad.

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As the year comes to a close the Motor Vehicle Retailers of Ontario (MVRO) is celebrating the successes of 2023, which saw some big advocacy wins for Ontario’s new car and truck retailers — particularly in the area of skilled trades and fines for curbsiders.

In a news release, the MVRO said changes were made to the education system so that students will be introduced to skilled trades at a younger age. And the minimum fine for curbsiders (illegal, unlicensed car dealers) has doubled from $2,500 to $5,000.

In 2023, the provincial government continued to show their “tremendous support for Ontario’s auto retail sector,” said Frank Notte, Director of Government Relations for the MVRO, in a statement. He added that Premier Doug Ford “is making crucial changes to support the sector.”

Some of the MVRO’s accomplishments for 2023 include the passing of Bill 139, which increases the minimum fine for curbsiders; a commitment to consult on the topic of allowing students in Grade 11 to transition to a full-time, skilled trades apprenticeship program; expanding the functionality of the Digital Dealer Registration program to include the registration of used vehicles, among other things; and doubling the federal Tradesperson’s Tool Deduction in Budget 2023 (it’s now $1,000).

“This deduction will greatly benefit auto technicians by lowering the cost of their tools,” said Notte.

The MVRO also managed to secure $18 million in provincial funding for the Preventing Auto Thefts (PAT) grant, which will help police in their fight against auto theft in Ontario.

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Hyundai Canada, Hyundai Capital Canada, CDK Global, and PBS Systems joined forces to raise $15,283 during the annual Hockey Helps the Homeless (HHTH) tournament to support people experiencing homelessness in York Region, Ont.

In a news release, Hyundai Canada said this was its second year participating in the tournament. The funds will go towards helping kids in crisis (through 360°kids) and enabling housing stability for vulnerable community members (through Blue Door), which all connect to the issue of homelessness.

“Supporting the important work of 360°kids and Blue Door through hockey, a game that is close to many Canadians and is a core pillar for Hyundai in Canada, has been incredibly rewarding to our team members,” said Kirk Merrett, Director of Human Resources and Administration for Hyundai Canada and board member at 360°kids, in a statement.

Hockey Helps the Homeless has provided more than $24 million since its inception in an effort to fight homelessness on a national level. On its own, the York Region tournament has granted over $1.7 million to local partner agencies, which provide support services to people that are currently experiencing homelessness.

“We are delighted to join hands with Hyundai Canada and Hockey Helps the Homeless — a wonderful cause that brings positive change to our communities,” said Jen Cole, Vice President of OEM Business at CDK Global, in a statement.

“Playing with purpose applies in all aspects of life, not only on the ice,” said Lynn McNeill, Senior Vice President of PBS Systems, who also offered a comment. “PBS Systems is pleased to support Hockey Helps the Homeless and the meaningful work they do to help eliminate homelessness.”

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The automotive forecast in the United States for the month of December, in terms of total new vehicle sales that include both retail and non-retail transactions, is expected to reach 1,396,700 units, according to a joint forecast from J.D. Power and GlobalData.

The projection represents a 13.2% increase from December 2022, which had one additional selling day compared to December 2023’s 26. The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to come in at 15.4 million units — an increase of 1.9 million units from December of last year.

“December results cap off the year with a strong performance, illustrated by double-digit year-over-year sales growth and the second-highest consumer expenditure on new vehicles ever recorded for the month,” said Thomas King, President of the Data and Analytics division at J.D. Power, in a statement.

He added that total sales of just under 15.5 million for 2023 are notable as they represent an increase of 12.8% from 2022, which saw 13.7 million vehicles sold. Furthermore, and of additional interest, is the record $578 billion stemming from consumer expenditure on new vehicles this year; this marks the third consecutive year in which U.S. consumers spent over half a trillion dollars on purchasing new vehicles.

“As inventory improves, the average new-vehicle retail transaction price is declining. Transaction prices in December are trending towards $46,055, down $1,274 — or 2.7% — from December 2022,” said King. “However, even with the decline in average transaction prices, consumers are on track to spend nearly $50.4 billion on new vehicles this month — the second highest on record for the month of December and 5.1% higher than December 2022.”

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U.S.-based e-mobility solutions company eBliss Global has hired auto industry veteran Dave Boyle to help bring the company’s Always Brand e-bikes to dealerships.

In a previous Canadian auto dealer news we discussed that eBliss Global had partnered with Pretra Automotive Products, an auto parts manufacturer based in Texas, to do the same thing. In this case the hiring of Boyle, described as having “decades of experience” working with dealerships, appears to be part of the company’s next move in introducing its e-bikes to the auto retail world.

“This is the perfect marriage of something dealers need and consumers want,” said Boyle in a statement. “The electric bike market is exploding, but the space desperately needs the legitimacy car dealers will bring. Adding this alternative form of transportation to a dealer’s portfolio will be great for e-bike consumers, many of whom are not traditional bike people.”

Boyle started his career with Newgen in the early 1990s and went on to serve as the President and COO of MPI/SRS. He most recently served as the CEO of TraXtion, formerly known as Tire Profiles, and spent eight years as a professional race car driver, according to eBliss Global.

The company’s primary goal is to change the American consumer mentality about transportation. Riding the electric vehicle push/switch, eBliss said in its news release that bikes can help ease that shift for consumers before they make a market investment in an EV.

“Today successful auto dealerships realize the business is changing, and that there will be many different forms of transportation choices in the future,” said Boyle in a statement. “We’re looking to partner with forward-thinking dealers who believe and understand that diversification of revenue will be the key to success in the coming years.”

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Kelley Blue Book has revealed its list of 10 Best Used All-Wheel-Drive Vehicles Under $20,000 for 2023. The 2018 Subaru Outback tops the list, thanks in part to its standard AWD and interior space, but also due to a more refined and better-handling wagon body style.

The 2016 Toyota RAV4 was second on the list; it was available for the first time that model-year as a hybrid, and featured more standard safety equipment and parking aids than previous models. Following the RAV4 is the 2016 Honda CR-V, third on Kelley Blue Book’s list, because it can manage an impressive 27 mpg and includes Honda’s Real Time AWD system.

“There are plenty of great AWD hatchback, SUV, sedan and wagon models out there at almost any price point, so car shoppers should have many options from which to choose,” said Brian Moody, Executive Editor for Kelley Blue Book U.S., in a statement.

The other vehicles on the list include the 2015 Toyota Highlander (number four on the list), due to its nice ride quality, spacious cabin layout, and safe driving manners. The 2017 Subaru Crosstrek was listed as number five because it comes with standard AWD across all trims, has high ground clearance, and provides a nimble and practical “hatchback-meets-SUV” body style. And the 2016 Mazda CX-9 was slotted as number six on the list due to its three rows (seating for seven), and fun-to-drive steering — among other things. 

The 2019 Ford Fusion slotted seven on the list, followed by the 2021 Mazda3, 2018 Nissan Rogue, and 2019 Subaru Impreza.

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Ontario’s AWIN Group of Dealerships announced that they have collected 7,497 pounds of food donation and $10,000 to support the Daily Bread Food Bank in hopes of supporting people in need during the holiday season.

“At AWIN, we believe in the power of collective action, and through initiatives like these, we strive to make a real difference,” said Pauline Chuang, Vice President of Human Resources at AWIN Group of Dealerships, in a statement. “Our team and clients have shown incredible generosity, and we are honoured to support the Daily Bread Food Bank in their mission to end hunger in our cities.”

All of the group’s AWIN dealerships and service locations helped collect non-perishable food items, with three Mercedes Sprinter vans, two Metris vans, one Volvo XC90, and a GLE 450 SUV driving around the Greater Toronto Area to gather the contributions from staff and clients. The non-perishable items were delivered to the Daily Bread Food Bank warehouse in Etobicoke.

Neil Hetherington, CEO of the Daily Bread Food Bank, said the dealerships involved — from Oakville to Markham to Thornhill to Toronto — helped provide much-needed food donations for families that are currently facing hunger. He added that they also helped raise awareness about food insecurity. “The food bank needs all the support it gets,” he said.

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