by

Strada IQJuly 2016

CANADIAN SALES FIRST HALF 2016

Record Half

Words are not enough.

The auto business in Canada is reshaping reality.

By now moving a ton of iron is “normal”.

Yes…trucks are mainstream.

Is it a Challenge?

April: + 8%

May: - 2%

June: + 7+

YTD: + 6%

A bit if a roller coaster in the 2nd quarter.

But still appreciably ahead for the year.

Incentives

Where would the auto business be without tactical

monthly incentives?

Programs powered by money.

It’s the perfect storm.

What else can you say.

Elephant

Negative equity is the elephant.

Managing and “rolling over” negative equity is crucial to conduct business and close

deals.

Consumers love it.

Trucks

Who wants a truck?

More and more and more.

Who wants a sedan?

Less and less.

At the end of the first half the split is 65% trucks and 35%

cars.

Who Is Ahead

Land Rover: + 39%

Volvo: + 34%

Audi: + 16%

Ford: + 12%

Honda: + 12%

Nissan: + 10%

Who Is Behind

VW: - 14%

Acura: - 7%

Mazda: - 2%

For the year the market is up by 6%.

Free Flowing Money

Not to be repetitive, but free flowing money is a great

enabler for the auto business.

Especially when it comes to used vehicle sales which are an intrinsic component of the

business.

Longer Loan Terms

The length of the loan terms is inexorably creeping up.

Obvious that everyone is pushing the envelope in

dealing with negative equity.

While the terms get longer.

Chart from JD Power

Too Much Car

How often do you hear that “Canadians are buying too

much car with too many features”

Who trades down?

Easier to roll over when trading up. Same monthly, newer, with more features.

Is it a good thing?

• Jetta…………..……10,749

• Toyota Camry……....9,350

• Ford Fusion…….…..7,263

• Honda Accord..........7,230

• Chevy Malibu………6,417

• Nissan Altima……….4,912

• Hyundai Sonata….…4,502

• Chrysler 200………..4,087

Jetta persists…Wow

• Honda Civic….…..33,193

• Hyundai Elantra…..25,511

• Toyota Corolla……24,370

• Mazda 3………......14,156

• Chev Cruze……….11,368

The effect of the new Civic, Elantra and Corolla are trading paint.

All Figures from Automotive News

SOME NUMBERS FIRST HALF 2016

Compact Mid Size Sedans

• Ford F Series…..…..72,233

• Ram…………….……49,087

• GMC Sierra…..……..25,831

• Chevy Silverado……22,652

Surprising what a good supply of F Series can do. Notice that the RAM and GM

pick ups are “scraping paint”.

• Toyota RAV4……….24,465

• Ford Escape……….20,554

• Honda CR-V……….19,906

• Nissan Rogue………18,433

• Hyundai Santa Fe…16,882

• Jeep Cherokee….…16,750

• Chevy Equinox….....9,482

• Chrysler Journey…..7,980

RAV4 still ahead with Escape clawing its way back, CRV and Rogue trading

paint.

SOME NUMBERS – 1FIRST HALF 2016

CUV/SUV Pick Up

• M-B M Class………….…..4,031

• Audi Q5……………………4,029

• Lexus RX…………………3,809

• Acura RDX………..…..….3,511

• BMW X5…………………..3,352

• BMW X3………....…….…2,850

• Acura MDX…….……....…2,446

• Cadillac SRX & XT5.....…2,367

• BMW X1……………..……2,268

• Infiniti QX60………......…2,035

• M-B GLK…………....……1,983

• Buick Enclave……………1,916

• Lincoln MKX……………..1,732

• Range Rover Sport…..…1,573

It’s a street fight!

• M-B C Class……..…4,592

• BMW 3 Series………3,271

• Audi A4……….....…2,736

• Acura TLX.……….…2,082

• Lexus IS…….…..…..1,435

• Infiniti Q50………..…1,365

• Cadillac ATS……..…1,191

• Lincoln MKZ……....….442

• Cadillac CTS……….…362

A ton of market pressure and competition on entry level luxury sedans.

SOME NUMBERS – 2FIRST HALF 2016

Entry Luxury Luxury SUV/CUV

• Lamborghini…...………..85

• Maserati………….….….268

• Ferrari…………...….…..108

• Panamera…..…….…….129

• GT-R…………………..…53

• R8……….….…….…..…..59

• Rolls-Royce……………..42

• Bentley……….….…..….41

• Tesla Model S…….…1,080

• Volt……………..……..1,292

• Leaf…………..….….….617

• Lexus NX…………….2,825

• M-B GLA…………….2,476

• Audi Q3……….……..2,068

• Volvo XC90……….…1,462

• Lincoln MKC…………1,326

• Porsche Macan……..1,168

• BMW X4………….….…600

• Chrysler Pacifica……..248

The NX persists. Yes the XC90 is the best selling Volvo. Let’s watch the Pacifica.

SOME NUMBERS – 3FIRST HALF 2016

New Entrants Did You Know

OUR THOUGHTS FIRST HALF 2016

• Record shattering first half what else can you say.

• Mobility is the model…forget ownership.

• Migration from sedans to trucks continues.

• Entry level luxury sedan segment under increasing pressure.

• Luxury utility segment continues to expand.

• F 150 is almost through the roof with improved availability.

• Power of money endures + longer term loans.

• Is it competitive? Absolutely…what do you think?

• Will it continue? We believe it will, just imagine if Alberta was all good.

Thank You