According to BMO: the automotive industry will be better

Canadian and American auto industries are about to know a strong growth according to a new report from the Economic Research Department of BMO.

The study published Tuesday shows that these industries should finish 2013 strong with a planned increase of 7 percent to 17.5 million vehicles sold, thanks to a momentum that is established last year. 2011 to 2012, Canadian auto sales were up 5.5 percent.

In the United States, car sales have increased by 15 per cent compared to 2011. Annual sales among dealers and sellers of auto parts in the United States totaled U.S. $ 891 billion in 2012, an increase of 7 7 percent.

Alex Koustas, economist at BMO Capital Markets, said that the force of the internal market due to North America an attractive place for investments by automakers in 2013. In his view, they will accelerate their production capacity and technological development in North America.

Mr. Koustas underlines that four years, many technological innovations have been introduced on vehicles, especially in matters of economy of fuel. Thirty-seven percent of vehicles have reached a consumption of less than 9.41 liters per 100 km, more than twice that in 2008.

The report aujoute the three major North American manufacturers, Ford, General Motors and Chrysler have made significant changes to their regular lines that will boost sales this year. Meanwhile, Toyota and Honda have redesigned some of their most popular models to protect their position in Kia and Hyundai.

BMO also noted that in 2008 to 2012, the price of used cars has increased by 12 percent compared to 5.7 percent for new cars.

For its part, the National Automobile Dealers Association indicates that prices have increased slightly in 2012, while new vehicles are more affordable than they have been for several years.