Car sales and production rise: Scotiabank

Global vehicle sales bounced back from a sluggish performance at the end of the first quarter, advancing 8% year-over-year (y/y) in April, according to the Scotiabank Global Auto Report.

The report noted the improvement was broad based, but was led by more than a 30% y/y surge in South America.

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Data for May point to further gains across North America. U.S. passenger vehicle sales climbed to an annualized 15.3 million units in May, up from an average of 15.1 million during the previous three months.

The improvement reflects the highest consumer confidence since early 2008, easy credit and an improving housing market. Pickup truck volumes — a barometer of the health or weakness of the small business and construction sectors — were the main beneficiaries, with purchases of Detroit Three pickups surging 26% y/y, triple the overall industry increase.

Sales also continued to improve in Canada last month, climbing 5% above a year earlier to an annualized 1.78 million units — the best performance since early 2008, prior to the global economic downturn.

The gains were broad-based, with seven manufacturers posting double-digit y/y increases, partly due to enhanced incentives. As in the U.S., light trucks — especially pickups and crossover utilities — led the way with an 8% year-over-year increase. So far this year, light truck purchases have advanced 6% year-over-year, with most of the strength concentrated in Western Canada.

Read the full report here.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.