TORONTO – After years of sluggish performance, the Canadian automotive manufacturing industry is finally on the upswing.
According to a report released on Thursday by the Conference Board of Canada, the automotive industry is expected to rake in profits that it hasn’t seen since 2002. Vehicle sales across Canada are projected to surpass their pre-recession levels by the end of the year.
While this is clearly a win for the manufacturing industry, consumers looking to buy used vehicles may also benefit.
That’s because an increased production in cars may mean that manufacturers, like GM and Chrysler, will be more aggressive about getting into leasing again, according to Bob Pierce, who is the director of Member Services with the Used Car Dealers Association of Ontario.
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Pierce says that the affects of the bailouts caused many car manufacturers to get out of leasing, which was about 40 per cent of the marketplace. With fewer cars being returned, fewer cars could be turned around as quality used vehicles for consumers to purchase at a lower price than a new car.
Pierce says the supply of used cars is still low today, which drives prices higher.
Pierce says the there’s been a lot of pressure on Canadian auto manufacturers to build a lot more cars than they need, so exports to the U.S. are important.
He adds that car sales are really adding to the retail sector in Canada which also benefits other industries like plastics, rubber and glass manufacturing for the country so this latest report is an overall benefit to the country.
With files from Postmedia News
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