Wholesale cars sales drop 1.8%

Wholesale trade drops 1.8% in February
By Krystle Chow, Ottawa Business Journal Staff
Fri, Apr 18, 2008 8:00 AM EST


Wholesale trade fell by 1.8 per cent in February, wiping out the gains made in the previous month as declines occurred in five of the six wholesale sectors, according to a report by Statistics Canada.

Sales by Canadian wholesalers dropped month-over-month to a seasonally adjusted $42.6 billion, driven down by a four-per-cent decline in automotive product sales to $7.1 billion. It was the segment's lowest level since July 2005, as motor vehicle sales fell for the third month in a row.

"Some of the recent decline can be explained by lower prices, as manufacturers took advantage of the strength of the Canadian dollar to offer attractive discounts on new vehicles sold in Canada," the report read. "The total value of motor vehicle sales has also been affected by a shift in consumer preferences to smaller, more fuel-efficient vehicles."

Significant downward pressure also came from the "other products" category, which includes wholesalers of agricultural chemicals, recycled materials, paper products and non-agricultural products, where sales fell by 3.4 per cent to $5.8 billion.

After adjusting for price change effects, wholesale trade fell by two per cent month-over-month.