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.

Is the Canadian Government bribing you with your own money to stimulate weakened new car sales?

Is the Canadian Government trying to bride citizens with their own money to stimulate a weakening economy? In reading the article below titled : Feds to spend $90M on scrapping clunker cars posted Tue. Apr. 1 2008 5:23 PM ET by The Canadian Press it seems to me that this has nothing to do with emissions and everything to do with increasing new car sales.

OTTAWA -- The federal government has quietly given the green light to a national program offering drivers incentives get older, polluting vehicles off the roads. Environment Canada's annual planning report, released this week, earmarks $90 million over the next three years for a so-called vehicle "scrappage'' program.

The department has mulled the prospect of starting a national program since last year's budget set aside federal money for two years' worth of scrapping initiatives. But aside from yearly spending estimates, the planning report yields few details about the new program. It's not known, for instance, how the national program will work with the patchwork of regional scrapping groups that now receive federal funding.

Seven groups across the country get money from Ottawa to offer incentives -- ranging from rebates on new vehicles to free transit passes and charitable receipts -- in exchange for older vehicles. The groups then turn the rusty clunkers over to scrap yards, which crush and recycle them according to provincial guidelines. At least three of these groups say Environment Canada hasn't told them how -- or if -- they figure into the government's plans. "We're just waiting for the announcement,'' said Margaret Bernhardt-Lowdon, director of health initiatives for the Manitoba Lung Association, which runs a Winnipeg-based scrapping program called Bye Bye Beaters. "I'm kind of in the dark ... I'm certainly looking forward to hearing what they have to say, though.''Bye Bye Beaters, Halifax-based Steer Clean and the national Car Heaven program say they were unaware the department had set aside money for the federal scrapping program. "That sounds great, but to whom, and where, and why, and what?'' said Car Heaven's program manager, Fatima Dharsee, referring to the new program.

The department passed queries to Environment Minister John Baird's office, which offered no details about the national program. "We remain committed to implementing an effective vehicle scrappage program. When we have something to announce, we will announce it,'' Baird spokesman Eric Richer wrote in an e-mail. Environment Canada consulted with environmental groups, regional scrapping organizations and other stakeholders last year to explore the possibility of starting a national program. "All I know is they want to have one program available to all Canadians. Something very big and accessible,'' Dharsee said. The department e-mailed the regional outfits in January letting them know Baird was poised to announce the program. "We anticipate that minister Baird will make an announcement about the new program within the next few weeks,'' said the Jan. 21, 2008 e-mail, obtained by The Canadian Press. But more than two months later the department has yet to make that announcement.

The government estimates five million vehicles from 1995 or earlier -- predating today's tougher emissions standards -- were on the roads last year.These older vehicles make up just a fraction of the estimated 18 million vehicles in Canada, but they account for up to two-thirds of the pollution that causes smog.

Yes I agree; emissions should be reduced regardless of whether the global warming issue is valid or not. But why does it always come at a cost to the citizens not the industrial business sector and why does it always fall in the laps of the consumers? If the Canadian government was a responsible governing body then they should have developed a plan for this when air quality started to fall. Would it have been too much to ask that the entire country implemented carbon emissions for all vehicles at that point? Perhaps then, we would not be facing this issue now. Instead of bribing Canadians to junk their cars wouldn't it have been a good idea to have used the money earned from emission testing as grants to car manufacturers for the advancement of technology to develop affordable parts and methods to keep older cars running clean. People could then update older vehicles and keep them running in an environmentally friendly way.

The plan devised by the Canadian Government may sound wonderful but once it is implemented they'll change the rules just as they do with everything else and before you know it they will make it MANDATORY to scrap all older vehicles. This is what most people do not realize - so for those that think it is a great plan and want to help the environment here are some things to think about before you support this plan.

People who can afford a new car sometimes forget about how decisions like this impact those that can't. As stated in the article 5 million cars are older vehicles - that means 5 million families may be without a vehicle because you did nothing to stop it. I am sure you know someone who drives an older car and is not able to afford new car payments - are you willing to drive them to work, their kids to school, to soccer, church and to the grocery store? If not, seriously consider not supporting this plan because it will become mandatory shortly after. Why - because the Canadian economy much like the US economy is in financial trouble.

Take the bus you say? Why should they have to take public transit when they worked hard to make their car payments and high interest rates to pay off their vehicle. Isn't that the idea to own a car outright? If not, maybe everyone should just rent cars! A car is suppose to be an asset but how can it be an asset if you keep flipping it every few years only to enter into a never ending payment? You don't own it then, the banks do and you never will . The continuous process of trading in to buy new only enslaves you to the masters who are getting rich. So while pseudo governments and capitalists profit from your decisions you struggle to get ahead.

The mainstream media is busy keeping everyone in a state of confusion about a recession. One day it states that we are facing a recession and the next it spells a tale that everything will be okay as long as you keep spending. Fact of the matter is... Canada is far from being safe. We are already starting to feel the impact of a recession that will most likely end in a depression. What many Canadian fail to notice or understand is how the NAFTA deal is affecting Canadians. Bottom line is we are the USA now - Canada as you know is no longer. Whatever economic difficulties the United States has - we have. I won't get into that too much - if you would like to research it for yourselves please visit Global Research who is dedicated to exposing the truth: http://www.globalresearch.ca/index.php?context=region&regionId=2

Bribing you with your own money to get into something more expensive and beyond your means is a dirty tactic. By dumping your car that is already paid for and hopping into a new car you will most likely need to buy on credit. Hmmm... so by helping the so called emissions you are adding to the credit bubble and aiding in the downfall of the economy. But doesn't spending stimulate the economy? No, not if it is on credit. By purchasing on credit you are stimulating the pockets of capitalists who prey on you. It does nothing for the economy but bring it further down. They get rich while driving you and your country into the poorhouse. The more you spend on credit; the more money the Federal Reserve has to issue which weakens the dollar and just keeps adding to the credit bubble. If people keep buying on credit the problem can and never will be corrected. It is time to start living within our means and start owning our assets. Don't work your butt off for someone else because if we do hit hard economic times assets that have been financed are not yours to keep if you can no longer make the payments.

Failure to implement a Canada wide emissions program instead of junking good cars is cause for concern. My cars are all older and they all pass emissions with flying colors as do many of our clients. So what is the Government of Canada really saying with a plan like this - emissions testing is a fraud - it doesn't cut down emissions? If that is the case; what have Ontario citizens been paying for? It makes me wonder because it was only a year ago that the Ontario government was talking about cancelling emissions testing all together. If the Ontario Government believes global warming is valid why would they even consider stopping a program like emission's testing. Where has the profits earned by the government from emissions testing ? Certainly it didn't go to cleaning the air! This is a real concern as some provinces are considering charging all drivers a carbon tax - what is your money being used for? Is it really correcting the so called global warming problem if so how? Or is this another Y2K money making scheme conjured up by the elite. Yes there is an environmental issue just look around but is it caused by the things they would have you believe? Maybe they should stop spraying toxic chemicals of unknown origins in the air otherwise known as chem trails. Perhaps they industrial revolution needs to slow down and maybe we as citizens need to stop aiding it.

Stereotyping older cars as rust buckets or cars that are in poor mechanical condition is crap. Again all my cars are in supreme mechanical condition and the bodies are mint as are my clients with older cars. In fact as a automobile detailing centre we see the condition of cars both on the interior and exterior and have noticed that the majority of people with older cars maintain their cars better than those with new vehicles. We have seen more rust, broken parts and, mechanical problems on new cars than we have old. Go figure... older cars are made better, are easier to fix and cheaper to fix than new cars. Yes there are some cars like this on the road but in provinces that have vehicle safety laws you should see this problem. So again, why not implement a vehicle safety law across Canada. In my opinion stereotyping vehicles in this manner is just another way to make people feel they are not maintaining an image or status. By making a person feel as though they are being irresponsible for driving an older vehicle and have others look at them in this way it forces them to upgrade. This status thing is so out of whack and that is why we are in such an economic trouble today.

So if you are still thinking about buying a new car; here is one final point to consider - nanotechnology! New car parts are being made with nanotechnology, complete interiors, exteriors, glass and engine parts. Diamond Detailing Guelph's Finest Automotive Detailing Technician does not use any chemical or product that contains nanotechnology for the safety of our customers and our own protection. We feel the dangers associated with nanotechnology are so great that we now protect ourselves with the appropriate gear when working on any new car made with this technology. If you are unaware of the health dangers of nanotechnology please read my other posts: http://guelphautodetailing.blogspot.com/2007/05/nanotechnology-dangers-in-automobile.html
and if your really curious as to what other daily household, cosmetic, stationary products and cars you may be using that have nanotechnology visit: http://www.nanotechproject.org/inventories/consumer/browse/products/

I'm fully in favor of stimulating new car sales as the car industry does represent a major portion of the economy but perhaps the Canadian Car manufacturers need to tend to their pricing problem rather than the Government bribing and enslaving citizens to buy new and put themselves into further debt . Cars manufactured here and shipped to the United States are sold to the dealers at a remarkably lower price than the same vehicle being sold here. Today we are seeing rebates and so called Canadian pricing incentives but they still do not match prices of the cars being sent to the USA. Why is that? Perhaps if car dealers and consumers stop buying cars across the border we could stimulate our own economy but instead Canadian tax payers keep paying to bail corporations out of trouble? As we bail out one to stimulate the economy we end up picking up the tab in another area like the Ontario Health Care tax. When does it end? It doesn't - at least until you stop allowing your government to take away your hard earned money, your rights and your freedom ? It is time to start researching issues before you support them. Find out the real agenda's behind them, question authority, demand answers and see to it that you order the change. Don't take the word of your government because they haven't done a very good job up till now of telling you the truth. Instead they change laws under your nose and don't tell you till it's too late. Give the dog an inch he'll take a mile. What's next - maybe you should scrap your old house too so you can buy new? Just some food for thought.

Used car sales what's in the future for Canada

As talks continue across the globe about the ban on older vehicles one country has followed through. While this new law may be inviting from an environmental point of view it doesn't come without major implications especially in a time where the economy is so fragile. The banning of older vehicles will only add to the decline of car sales and therefore damage the economy further. If other countries follow suit this will take money out of every ones pocket - everyone accept large greedy consumer financing companies. Small used car lots and large automobile dealerships will feel the wrath - when they feel it the economy will feel it as a whole also. A move like this will force more people to buy new; meaning that we will only be adding to the current credit crisis. For the middle and lower incomes citizens a law like this will leave them without affordable transportation, force them into further credit debt or leave them car less.

Our environment is a major concern - perhaps a Federal law for annual vehicle safety's and Federal emissions laws should be imposed before we start banning vehicles based on age and we should look deeper into converting older cars to bio-fuel.

I find it interesting that this ban comes at a time when Canada/US/Mexico are in their final stages of their Globalization NAFTA deal, in a time when the car economy is weak in the USA and Canada and that this law takes place in a country where our automotive manufacturers have moved after closing the doors here. This sounds much more like an economic strategy than an environmental strategy.


See the following articles:

Mexico abruptly restricts car imports
By CHRISTOPHER SHERMAN Associated Press Writer
Article Launched: 03/02/2008 12:37:30 PM PST
http://www.contracostatimes.com/nationandworld/ci_8429774


Texas—Some are dented, scratched and rusty. Others rattle and belch under faded paint jobs. But the "'98" soaped onto their windshields and a surprise change in Mexican import rules have turned a single year's worth of used cars into pick of the used-car lot.

Beginning Monday, only cars made for the 1998 model year—none older and none newer—can be legally imported into Mexico. Car dealers were given notice only a month ago.

Until now, used cars 10 to 15 years old were scooped up at auction by South Texas used car dealers and rapidly sold to Mexicans hungry for affordable transportation and "la novedad"—or novelty—of unfamiliar makes and models.

Cars newer than that were banned from imports as unwelcome competition for Mexican car dealers, and anything more than 15 years old was seen as a potential environmental and safety hazard.

But now, under pressure from Mexico's new car dealers who say "vehiculos chatarra," or jalopies, undercut their sales, the Mexican government is allowing only 10-year-old used cars to be legally imported into Mexico.

All of a sudden, 1998 Luminas, Astro vans and Ranger pickups are sought-after trophies.

The Mexican Association of Automobile Distributors, which pushed for the change, said it was needed to "stop the accelerated conversion of our country into the world's biggest automotive garbage dump."

The Mexican Consulate in McAllen said the change was made "to
restrict the entry of vehicles that compete with the Mexican car industry."
A mile north of the Rio Grande, 80 percent of the customers at Walester Auto Sales are Mexican. But this past week, only one out of the 24 cars on the dirt lot boasted the magic "1998."

That vehicle was a white Chevrolet Blazer with a "Redneck" sticker on the windshield and a vanity plate of a silhouetted couple embracing in front of a tropical sunset. It was priced at $3,200.

With the sudden change in demand, such 1998 models are appreciating for the first time since they rolled off the lot, their prices rising by $500 to $800, while dealers cut prices on slightly older models in a frantic effort to move them out before Monday's deadline.

"At this point we have a lot of merchandise that was going to Mexico that now will stay," said Elena Garcia, who owns Walester with her husband, Armando Garcia, who was in Florida scouring auto auctions for more vehicles.

At Gutierrez Brothers, a few Mexican car dealers milled about, shaking their heads at the limited selection.

"The worse thing we can do is buy something that we don't know if it can go across (the border)," Juan Gutierrez said. "If a 1997 worth $3,000 can't cross, it's not even worth $1,500."

He had to unload about 1,000 cars last month at sharply reduced prices just to avoid getting stuck with them in March.

Gutierrez said his buyers at auto auctions across the country tell him that when a 1998 rolls into the garage, 20 buyers line up where there used to be a handful.

Mexico bans all imported used cars from U.S. except 1998 models
Posted Mar 3rd 2008 7:32AM by Chris Tutor posted on AUTOBLOG

All you people with a 10-year-old car – drive it, drag it, push it or pull it! Mexico is paying top dollar!

Starting today, the only used cars the Mexico government will allow across its borders for resale are those exactly 10 years old. That means your 1998 Hyundai Accent has appreciated in value for the first time since you drove it off the lot. But your 1997 Astro van is, believe it or not, worth even less than it was last year, and you 1999 Daewoo Nubira drivers will have to wait until next year to cash in.

There are two main reasons for Mexico's seemingly arbitrary automotive adjudication. First, its new-car dealers are tired of trying to compete with all manner of relatively inexpensive, recent-model used cars from the U.S. Second, the government says cars older than 10 years are wreaking havoc on the country's air quality.

Until now, it was legal to import cars into Mexico that were between 10 and 15 years old. The Mexican Association of Automobile Distributors fought for the newer, more restrictive law to, as quoted by The Detroit News, "stop the accelerated conversion of our country into the world's biggest automotive garbage dump."

Funny Car Sales Videos

Here are some funny car sales videos from YouTube that will make you laugh!

SEXIST CAR SALESMEN


WAITING FOR THE NEXT PREY


WIGGLE ROOM


CHICK MAGNET



WE READY TO MAKE A DEAL



DO I LOOK LIKE I CARE


CAR ON CREDIT


HOOK LINE AND SINKER


JOY RIDE


WE AIM TO PLEASE