Car sales slump hits Canada

THE ASSOCIATED PRESS

Cadillac will roll out the 2010 SRX at next week's Detroit auto show.

John LeBlanc

SPECIAL TO THE STAR

Canadian new-car sales fell off a cliff in the final month of 2008, six months after the rest of the world. The 21 per cent drop made it the worst December since 1996.

And it wasn't just the Detroit Three that got hammered.

Although Honda and Toyota reported record Canadian sales over the entire year, Honda dealers saw sales drop 41 per cent compared with the final month of 2007, while Toyota's were down 35 per cent.

Despite the December decline, Toyota/Lexus sales have leapfrogged past both Ford and Chrysler. The Japanese automaker is now second only to sales leader General Motors, which sold 355,172 vehicles in Canada last year.

Overall, the Canadian market only saw a 1.1 per cent annual sales decline to 1,635,986 units for 2008.

While the main issue with U.S. new-car buyers is access to credit, Canadian auto analyst Denis DesRosiers said December's sharp decline is more reflective of a "difficult" economy.

"I don't have year-end employment or unemployment stats, but from the media I read the numbers are in the toilet and this would explain much of the decline the last few months," said DesRosiers.

Last year the market share of the import brands exceeded the combined share of the Detroit Three for the first time in Canada, capturing 51.2 per cent of the market.

While the U.S. has been suffering through poor sales not seen since 1992, December south of the border was no worse than the previous two months.

GM to unveil SRX, allure

In addition to the Chevrolet Equinox, General Motors will introduce 2010 production versions of the Cadillac SRX and Buick Allure at next week's Detroit auto show.

Aimed directly at the Lexus ES 350 luxury sedan, the new Allure is the first example of GM's new mid-size front-wheel-drive platform, dubbed Epsilon II.

Reflecting Buick's sales success in emerging markets, the Allure's design was a joint effort between designers in the U.S. and China. Compared to the current model, GM has ladled on in-car entertainment, advanced safety features and up-to-date drivetrains.

Available in-dash navigation, Bluetooth connectivity, an auxiliary audio input and a USB port are expected in this class. But a power rear-window sunshade and a DVD entertainment system with two display screens integrated into the seatbacks for rear-seat passengers are also available.

More impressive may be the Allure's available safety features, which are designed to meet the U.S. National Highway Traffic Safety Administration's highest safety ratings. Front-, side- and roof-mounted head-curtain airbags, as well as stability- and traction-control systems come standard.

A heads-up display in the windshield, adaptive headlights, Side Blind Zone Alert and rear view camera will be all-new options.

Both V6s – a 255 hp 3.0-litre and 280 hp 3.6-litre unit – get direct injection (which GM says delivers a 25 per cent reduction in hydrocarbon emissions) and are mated to a six-speed automatic gearbox.

Allure production will begin this summer.

While the current Cadillac SRX crossover is based on the last CTS sedan chassis and has available third-row seating, the new version is more closely related to the 2010 five-passenger Chevrolet Equinox.

The SRX gets the smallest engines Cadillac offers: a 260 hp 3.0-litre direct injected and a 300 hp 2.8-litre turbocharged V6 is optional.

Both mills get hooked up to a six-speed transmission with either standard front-wheel drive or an optional all-wheel drive. That all-wheel drive system features an electronic limited slip rear differential similar to Saab's new Haldex system.

Production begins in the spring.

World's cheapest car MIA

Last year, Indian automaker Tata shocked the industry with its ambitious plans to build what would effectively be the world's cheapest car: the $2,500 Nano.

Almost one year later, a sinking global economy has cut Tata's home market December sales nearly in half.

In a Reuters report, a company official said, "A deepening recessionary trend in the economy, coupled with continuing credit squeeze and high interest rates, has further depressed customer sentiments.

"As a result, automobile purchases are being severely impacted."

Maybe. But those same market conditions didn't stop India's number two automaker, Hyundai, from seeing its production rise nearly 56 per cent last month, helped by exports, discount schemes and other incentives.

With this news, and a site for a Nano production facility still not resolved, the world's least expensive new car's original launch date of late 2009 looks less likely to happen.

Genesis wins more praise

Already a finalist in the 2009 North American and Canadian Car of the Year contests, Hyundai's new Genesis luxury sedan keeps collecting accolades. Most recently, Consumer Reports named the Genesis as its top-rated upscale sedan.

Tested against four other new or redesigned rivals, the Hyundai achieved an "Excellent" overall road test score, ahead of 12 vehicles from Lexus, Acura, Lincoln and others.

CR said the rear-wheel drive Genesis is spacious and well-appointed, offers good value starting at $37,995 for the V6 and $43,995 for the V8 model, and is a compelling alternative to luxury vehicles costing thousands more.

"This car's forte is swaddling passengers in silence. The engine sounds polished and road noise is strikingly absent. The interior rivals those of the very best luxury cars, with its optional stitched-leather dashboard facing and consistently high-quality materials," said CR staff.

CR commented that the only real criticism is its ride, which can be "unsettled at times" and doesn't live up to the standards set by other luxury cars.

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