|The Canadian market for luxury vehicles has quadrupled in the past 20 years. Despite this growth, luxury brands as a whole have only added around 75 new store locations since the year 2000. Given the expected growth in the market, there is likely room for more store fronts for these brands in select markets across the country.
In this month’s Observations, we discuss the impact of the number of luxury dealers on sales per dealer, the impact on aftermarket services, and whether luxury dealers can fill aftermarket demand given high survival rates for these vehicles. Furthermore, we discuss the role and the future of used luxury vehicles, as well as provide an analysis of the current luxury market by segment and brand.
Data relating to survival rates (the percent of vehicles on the road after specific periods of time) can offer interesting perspectives on the industry and the vehicle parc. On the surface, overall survival rates have increased in recent years as manufacturers place more emphasis on quality. At a more granular level however, the study of these survival rates offers insight into the types of vehicles that last longer and why that might happen.
In this month’s Observations, Dennis compares historical and current survival rates to answer questions relating to the types of vehicles that last longer and what it means for the industry. Topics of discussion include the survival rate by engine type, how segment characteristics play a role in a vehicle’s longevity, usage rates, and the potential impact on environmental policy.
Last week marked the 2017 North American International Auto Show. Normally, the focus and the conversations around the show are centered on the product. This year, however, the main focus was Donald Trump. This comes as no surprise as the 2016 U.S. presidential election generated a lot of interest—more so than usual—because of the heated politics and the potential impact on the auto industry.
In this month’s Observations we will examine some of the changes that could come in the wake of Donald Trump’s inauguration. Topics of discussion will include the potential steps that the Trump administration will take, the potential impact on Canadian automotive manufacturing, and the possible impact on the North American automotive industry at large.
Automotive manufacturing employment tends to be the topic of great debate in politics and everyday media. If a factory closes down in Canada and production of a vehicle is moved elsewhere, those manufacturing jobs tend to be lost forever. On the other hand, automotive service jobs are less concerning in this regard largely due to the fact that if an outlet closes generally another will open up to fill that gap. While maintaining a strong manufacturing presence is important, there are multiple variables to consider when looking at overall automotive employment and growth in the sector.
In this month’s Observations Dennis looksat the current environment for automotive manufacturing and automotive service outlets. Topics of discussion include manufacturing productivity, employment loss and the outlook for automotive employment in the near future.