02 Apr 08 March sales of cars and light trucks in Canada slip 0.5 per cent from year ago

Canadian sales of cars and light trucks dipped in March as a sharp drop at General Motors more than offset increases by import brands, according to data compiled by DesRosiers Automotive consultants Tuesday.

Canadian light vehicle sales totalled 150,023 in March compared with 150,748 a year ago, a drop of half a percentage point. The slight dip followed strong growth in Canadian sales in January and February.

Industry consultant Dennis DesRosiers noted that despite last month’s decline it was the still the second-best March on record.

“Because of the very strong January and February, the year-to-date sales are still up 7.3 per cent to the end of March,” DesRosier wrote in his commentary on the sales data.

“Our forecast is for sales to ultimately come down a little over the rest of the year and finish down about 50,000 units. Despite the market being up during the first quarter we, at least at this point, are sticking to our forecast. The next three months will tell the tale.”

DesRosiers noted collectively the Big Three Detroit-based automakers - GM, Ford, Chrysler - registered the lowest market share on record as imports posted strong gains.

General Motors soled 29,972 vehicles in Canada in March, down from 35,655 a year ago, a decline of 15.9 per cent.

Chrysler sold 21,602 vehicles, up from 21,011 a year ago, while Ford sold 20,050 cars and light trucks, down slightly from 20,286.

Toyota sold 19,523 vehicles, up from 17,047, up 14.5 per cent, while its luxury Lexus brand sold 1,126 vehicles, down from 1,215, a year ago.

Honda sold 14,197 vehicles, up from 13,242, while Acura sold 1,088 in the month, up from 1,927 last March.

In the U.S., automakers reported double-digit U.S. sales declines in March as demand for trucks and sport utility vehicles plummeted and consumers held back because of concerns about gasoline prices, the housing slump and tightening credit.

GM’s truck and SUV sales were down 22 per cent in March while its car sales fell 14 per cent. New vehicles like the Chevrolet Malibu were a bright spot, with sales up 17 per cent, but sales of Chevrolet pickups were down 25 per cent while sales of GM’s gas-guzzling Hummer brand fell 29 per cent. GM’s sales were down 11 per cent for the first quarter.

A 24 per cent jump in sales for Ford’s popular Edge crossover couldn’t make up for falling sales of pickups and large SUVs. Ford’s truck and SUV sales dropped 16 per cent versus March 2007. Sales of the Ford Expedition SUV fell 34 per cent, while sales of the perennially popular F-Series pickup - which will be replaced with a new version this fall - were down 24 per cent.

Ford’s car sales fell 10 per cent, dragged by declining demand for the Ford Mustang and Crown Victoria sedan. Ford’s overall sales for the first quarter were down nine per cent.

Toyota Motor Corp., which beat Ford to become the No. 2 automaker by U.S. sales last year, held onto its lead in the first quarter, outselling Ford by more than 43,000 vehicles. But Toyota took a beating in March, reporting truck and SUV sales down 14 per cent and car sales off 7 per cent. Toyota’s sales dropped 6 per cent for the quarter.

Chrysler’s car sales fell 13 per cent and its truck sales plunged 22 per cent, in part because it cut low-profit sales to rental car agencies. Chrysler saw no boost from its much-hyped, newly redesigned Chrysler Town and Country and Dodge Caravan minivans, which saw sales drop two per cent and 21 per cent, respectively. Chrysler’s sales fell 16 per cent for the quarter.

Honda Motor Co., which had bucked the downward trend in February, saw its 3 per cent increase in car sales eroded by a 12 per cent decline in truck and SUV sales. That drop was led by the Honda Pilot SUV, which fell 24 per cent. Honda’s sales were flat for the first quarter.