February brings record Canadian auto sales

Last Updated: Monday, March 3, 2008 | 6:02 PM ET

CBC News

February was a record month for sales at new car dealerships in Canada, according to figures released Monday.

Total sales of cars and light trucks came to 110,951 last month — a 14.3 per cent increase from the same month in 2007 and greater than in any other February, DesRosiers Automotive Consultants said.

Car sales posted bigger gains than light trucks — a market segment that includes SUVs, pickup trucks and minivans.

Light truck sales were up only 6.6 per cent, while car sales surged 22.4 per cent.

All of the big car companies saw their sales jump year-over-year, with the biggest increases reserved for the import nameplates.

GM Canada reported sales were up 14.5 per cent; Ford of Canada said sales rose 4.1 per cent; Chrysler Canada sales were up five per cent.

Some Japanese brands scored even bigger gains. Toyota's Canadian sales jumped 28.1 per cent last month. Toyota was among several automakers that reduced the sticker prices on many of its models in February.

Honda Canada's sales in February set a record — soaring 53.2 per cent.

"Serious price cuts at the MSRP level last fall and into this winter together with aggressive incentives together with some great products and you have a blow-the-doors-out February across most [automakers]," auto analyst Dennis DesRosiers said in e-mailed comments.

U.S. sales not as rosy

The sales picture was entirely different in the United States, where GM reported a sales drop of almost 13 per cent last month as consumers shied away from showrooms in light of high gas prices and the possibility of a recession.

Ford sales slipped seven per cent, while Chrysler's sales dropped eight per cent.

Both GM and Ford announced second-quarter production cuts in the face of falling U.S. sales.