by

Strada IQ

October 2014

CANADIAN SALES THIRD QUARTER 2014

The Perfect Storm

We are witnessing a “perfect storm” for auto sales in

Canada.

When all the variables align its awesome to see the

effect.

With impressive results.

Breaking Records

July-August-September are literally off the charts.

This year:

July: + 11%

August: + 8%

September: + 13%

3rd Quarter: + 11%

Three Quarter: + 5%

2014 2013 20120

20406080

100120140160180200

Third Quarter

July August Sept

WHAT GENERATES STRONG NUMBERSTHE BACKSTORY

• Monthly Payments: The magical $500.00 per month

• Dealing With Negative Equity: Being able to “Roll Over Deficiencies”

• Longer Loan Terms: The terms persist in getting longer, more widespread.

• Throttled Up: All manufacturers are being competitive.

• Big Data: Manufacturers using big data to laser focus incentives.

• Customers: Using the “incentives” to support the deficiencies.

• “Which manufacturer has an incentive on a model that suits our requirements, that we can roll over the trade, get a new vehicle, and keep on paying $500/month.”

Who Is Really Ahead YTD

Porsche: + 36%

Nissan: + 29%

Land Rover: + 28%

Jaguar: + 18%

Subaru: + 16%

Audi: + 16%

Infiniti: + 11%

VW: + 10%

Lexus: + 9%

Chrysler: + 9%

Mercedes-Benz: + 9%

Who Is Behind

Mini: - 20%

Volvo: - 7%

Kia: - 4%

Acura: - 4%

Notice that only a few are slightly behind

Who is Disrupting?

Some models keep on “rattling” the established order.

Jeep Cherokee….16,402

Lexus IS……..……3,094

M-B CLA…….……2,730

BMW 4 Series….…2,499

Porsche Macan…......798

Free Flowing Money

Long Terms

Low Rates

Loans

It’s a manifesto to the financial services that

empower vehicle sales in Canada.

The power of money, long terms, rolling over

deficiencies.

Chart from JD Power PIN

• Jetta……………….26,216

• Ford Fusion…..…..14,508

• Honda Accord........13,483

• Toyota Camry……..12,008

• Hyundai Sonata..…10,611

• Chrysler 200…..…..7,864

• Nissan Altima…..…7,719

• Chevy Malibu……..5,345

The Jetta what can you say.

• Honda Civic……..51,936

• Hyundai Elantra…40,060

• Toyota Corolla…..39,035

• Mazda 3……....….33,016

The Civic is a constant, with the Elantra and Corolla trading paint.

All Figures from Automotive News

SOME NUMBERSTHIRD QUARTER 2014

Compact Mid Size Sedans

• Ford F Series…..…..97,223

• Ram…………….……66,675

• GMC Sierra…..……..36,342

• Chevy Silverado……31,757

The new GM pick ups are gaining ground on the Ram.

• Ford Escape……….40,584

• Toyota RAV4……….27,183

• Honda CR-V……….25,861

• Hyundai Santa Fe…24,981

• Chrysler Journey…..19,516

• Chevy Equinox….....15,402

An hyper competitive segment. As usual Escape is ahead, with a surge by the

RAV4.

SOME NUMBERS – 1THIRD QUARTER 2014

CUV/SUV Pick Up

• Audi Q5……………………5,971

• Lexus RX…………………5,785

• Acura RDX…………….….5,865

• Acura MDX…….….…...…4,496

• BMW X5…………………..4,349

• M-B M Class………….…..4,206

• M-B GLK…………..………4,053

• BMW X3…………....…..…3,956

• Cadillac SRX…… .........…3,274

• Infiniti QX60………….....…2,598

• Buick Enclave…….….……2,540

• BMW X1……………….……2,137

• Lincoln MKX……………....2,115

• Range Rover Sport………1,912

The gun fight persists in the corral.

• BMW 3 Series………7,462

• M-B C Class……..…4,958

• Audi A4………......…4,301

• Lexus IS……...……..3,094

• Cadillac ATS……...…2,612

• Infiniti Q50………...…2,497

• Acura TL…………….1,669

• Lincoln MKZ………...1,167

• CTS………………….…794

The IS - ATS – Q50 impressive!

SOME NUMBERS - 2THIRD QUARTER 2014

Entry Luxury Luxury SUV/CUV

• Lamborghini…..………..85

• Maserati………..….….393

• Ferrari………….….…..155

• Panamera…..…..…….182

• GT-R………………..…109

• R8……………..…..….100

• Rolls-Royce……..…….54

• Bentley…………...….103

• Tesla Model S…....…450

• Volt…………..…….1,294

• Leaf…………….….….805

• Mustang…………….4,391

• Camaro……………..2,630

• Challenger……...….1,331

Frozen in time. Yes, the new Mustang is cool.

SOME NUMBERS - 3THIRD QUARTER 2014

Pony Cars Did You Know

OUR THOUGHTS ON THE THIRD QUARTER OF 2014

• Huge 3rd quarter…impressive and off the charts.

• Is MerBimAu cannibalizing sales with new models?

• We are disappointed by Ford.

• The new GM pick ups are finally gaining ground.

• When will the financing backlash occur?

• The segments remain hyper competitive.

• Every manufacturer will stay throttle up to the end of the year.

• On track to achieve new heights in sales.

• Expect judicious sales management during the last month.

Thank You