Strong sales make Ford king of the hill in Canada

BMW LONDON

The Canadian Press

TORONTO - Ford Canada claims it was the top-selling automaker in Canada last month, as it reported its best April since 2000.

The Detroit automaker says sales increased nine per cent to 25,548 vehicles from 23,441 in the same month last year. Ford saw car sales rise 33 per cent, while truck sales were up three per cent as higher gas prices drive some consumers to make more fuel-efficient choices.

"Ford's strategy to improve fuel economy in anticipation of higher gas prices is paying off as consumers are placing a higher priority on fuel efficiency in the showroom," said David Mondragon, president and CEO, Ford of Canada.

Still, the number of trucks it sold last month continued to be about three times bigger than the number of cars it sold. Ford sold 6,571 cars compared to 19,203 trucks.

But, the company noted that about half of customers buying its F-150 are choosing the EcoBoost engine, which has up to 20 per cent better fuel-efficiency, suggesting that customers are focused on gas consumption even when buying big trucks, Ford said.

The increase in sales of smaller, more fuel-efficient vehicles suggests that at least some buyers are factoring fuel costs into their vehicle choices as gasoline prices have risen to a Canadian average of nearly $1.33 a litre.

Crude has jumped 34 per cent since mid-February to around US$113 a barrel in recent days.

The rally has been fuelled by disruption of oil supplies in Libya, and the possibility of further interruptions if violent outbursts erupt in nearby countries in the oil-rich Middle East and North Africa.

A falling U.S. dollar has also helped to send crude prices soaring.

Hyundai Auto Canada Corp. said Monday that sales in April have broken the company's all-time record for a single month. The South Korean automaker sold 14,267 units in April, a gain 14.2 per cent over the same month last year and its 28th consecutive month of year-over-year sales growth.

Meanwhile, sales at Honda Canada, the Japanese car maker that has been dealing with parts shortages causing vehicle output problems since the Mar. 11 earthquake and tsunami, fell six per cent to 12,269 units.

"With production issues that may affect availability of certain Honda and Acura products through the coming months, we sincerely apologize for any unfortunate delay our customers might encounter in taking delivery of their new car or truck," it said in its report.

Source: Wheels