The Canadian automotive industry is on a roll, says the Conference Board
Automakers in Canada should know their most profitable year last decade, according to the Conference Board of Canada.
The organization of economic forecasts estimated that the industry will reap a profit before tax of $ 1.35 billion this year, its best performance since 2002.
The study explains that rising demand in the United States will support the recovery of the Canadian automotive exports.
Canadian auto production was up nearly 20 percent during the first eight months of 2012, the Conference Board says.
Canadian sales jumped 7.1 percent between January and August and is expected to reach 1.72 million vehicles _ the highest since 2002.
Across the country, truck sales continue to surpass those cars, especially in the area of the Prairies or the mining and construction activity stimulate sales.
Sales to the United States is experiencing robust growth over the last three years, culminating with an increase of 15 per cent of Canadian exports this year.
Sales to the United States remains still below 1.7 million vehicles to their 2007 level, which means that there is still room for improvement if the American leaders fail to agree to avoid the "fiscal precipice "a series of spending cuts and taxes which should enter into force in early 2013.
The production growth is expected to slow over the next five years, predicts the report, while sales growth will suffer a loss of demand harvested during the recession.
The Conference Board said that General Motors will close one of its plants in Oshawa in 2014 and that sales growth will stabilize in the United States.
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