Sector remains sluggish in U.S., Europe
A new report by Scotia Economics suggests Canadians are buying new and used cars at a record pace. New and used auto sales combined could reach as high as 4.4 million vehicles this year, beating 2007’s record-setting 4.3 million sales. “While fleet volumes have only recently started to improve, purchases by Canadian households began to rebound last year, and are currently on a near-record pace,” says report author Carlos Gomes. “In fact, we expect 2010 retail volumes to climb to the second-highest annual level on record — only behind the 2008 peak.” Despite the healthy rebound in auto sales in Canada, the sector is still struggling due to weak sales in the U.S. and Western Europe.