Top Selling Luxury Vehicles in Canada

Franz Jung, the new president and CEO of BMW Group Canada, takes one look at the BMW X3 crossover and says, “We can do better.”

What he means is that BMW AG, the parent, can help provide an X3 with more “substance” and BMW in Canada can support it better in the marketplace. BMW Canada's No. 1 dealer, Brian Jessel of Brian Jessel Motors in Burnaby, B.C., agrees.

“The problem is, they gave up on it; they stopped supporting it,” says Jessel, whose flagship store sold 1,644 BMW vehicles last year – and nearly 900 more certified pre-owned cars.

Jessel wants BMW to put more muscle behind the X3, but in a tough market – where BMW Canada is pushing monthly payments more than design, technology, quality, safety, style, performance and cachet combined – company resources are stretched thin. Globally, the parent company is struggling to find profits and reverse a sales slide that matches the global economic woes.

But the fact is, cars – even luxury cars – are sold one at a time. And Jessel thinks that with a little help from above – from Munich – the X3 can be a much bigger player.

“It's a great car,” he says.

Ah, but X3 sales last year were down nearly 23 per cent, and slipped to No. 7 overall among luxury sport-utes. Not only is the X3 feeling the heat, but BMW, the No. 1 luxury brand in Canada, can also feel the hot breath of its competitors.

Mercedes-Benz, in particular, is charging hard in a highly competitive market. Mercedes' sales last year were up 26.4 per cent, while BMW's slipped 3.3 per cent. Of the top six luxury brands, only BMW lost market share last year.

Jung says he believes Mercedes-Benz is “buying” market share by selling some vehicles at unprofitable prices and supporting others with inexplicably low cut-rate deals. But BMW, too, is offering deals on its models.

“I don't want to give up [luxury] segment leadership in Canada, but I do not really understand the approach of our colleagues from Stuttgart,” Jung says. “I do not really think there is profit there. I do not want to play this [discounting] game, but I do not want to give up leadership.” Quite the dilemma.

The X3 is a good example of what is happening in the bigger luxury picture in Canada. When it arrived in 2004 as a lower-priced, car-based crossover riding on the basic bits and pieces of the 3-Series, the X3 almost instantly became a strong contender in a market with only a handful of rivals – Lexus RX, Mercedes-Benz M-class, Volvo XC70 were the others in its price range among the top 10 premium SUVs.

Now, consumers have all sorts of new choices, in addition to what was around five years ago. Audi is just launching the Q5, Mercedes has the new GLK, which is selling like gangbusters, and there are other relatively new players such as the Acura RDX, Infiniti EX35 and Lincoln MKX. Of course, the established models have received updates, too.

“We now have more competitors than ever before,” Jung says.

And they are all chasing a shrinking market with more products. Last year, the luxury segment did not escape the bigger global economic crisis and that is continuing this year. Luxury sales in 2008 fell to 8 per cent of the total market.

According to analyst Dennis DesRosiers of DesRosiers Automotive Consultants, the luxury market peaked in 2006 with 8.5 per cent of the total new-vehicle market. That was the end of a steady rise from 3.1 per cent of the market in 1990.

All that growth was the result of what you might call the “democratization” of the luxury segment. That is, small luxury cars now represent about 50 per cent of all sales, whereas in 1992, some 42 per cent of the luxury market was comprised of high-priced luxury models, DesRosiers says.

As well, in 1990, there were no luxury SUVs at all, while last year they made up 34.1 per cent of the segment. The vast majority of those premium SUVs are so-called entry-luxe models like the X3, Q5, GLK and EX35. Yet even as models have come down in price, even the most affordable ones come loaded with gee-whiz features such as the EX35's around-view camera.

“Despite this preference for ‘lower-end' luxury, don't think that our luxury vehicles are bereft of content,” says DesRosiers, adding that while Canada gets some less pricey models than in the United States – the BMW 323i, for instance – “Many Euro luxury brands choose to sell their most heavily contented vehicles in Canada, making unavailable certain lower-end accoutrements (cloth seats, for instance) that are available in other parts of the world.”

While Mercedes sales surged last year, other luxury or premium brands also had strong years. Acura, the luxury arm of Honda, held steady at 16,000 units, for instance, and Lexus grabbed the fourth sales spot just behind Acura by about 1,000 units. Audi was also a big story, with sales up 12 per cent. And Infiniti's sales jumped 12.6 per cent.

In each case, new models keyed sales growth. Infiniti, for example, added the EX35 to its lineup last year and it accounted for 2,300 of the brand's sales total of 8,159.

While great products are critical, DesRosiers insists that strong dealers are an underappreciated asset – that they are essential for healthy and profitable premium brands. Without customer-oriented dealers working out of well-kept, modern stores, even very good products can get overlooked.

“A great example is Cadillac,” says DesRosiers, “which addressed a number of its product issues, but remains a second-tier luxury OEM [original equipment manufacturer] due to long-standing dealer issues.” Ford's Lincoln brand is in a similar situation.

“Having the best-performing, and therefore the most powerful, luxury dealer network in Canada has served BMW very well,” DesRosiers says. “This is one of the key reasons they have emerged as the No. 1 luxury brand in Canada over Mercedes-Benz, and it's on the strength of this solid dealer network that they have remained in first place during 2008.”

Meanwhile, the relative weakness of the Detroit-based auto makers in luxury vehicles – in terms of both products and dealers – has left room for plenty of others to step in. Today, 27 luxury brands compete for the Canadian buyer, DesRosiers says.

Of them, BMW dominates the most important and largest segment – entry-level luxury. The 3-Series is a stunning sales success in Canada, as it is around the world.

That said, Jung says BMW plans to expand slightly down-market with at least one new version of the 1-Series. Jessel suggests it will be a hatchback version that will broaden the lineup from the current 1-Series coupe and convertible. A diesel 1-Series hatchback is a likely possibility.

However, BMW's rivals are anxious to move into this territory, stealing sales and share away from the Bavarian auto maker.

Lexus has grown its sales by adding the IS and positioning it as a sporty sedan with a very good price. Audi, too, is there with the new A4 and the face-lifted A3. Mercedes launched a new C-Class for 2008 and, by emphasizing its sporty handling and aggressive pricing, the C has been a huge success.

“A lot of Mercedes-Benz's overall improvement last year came from growth in the small luxury segment, with sales of entry-luxe products up an incredible 51.7 per cent to 11,173 units in 2008,” DesRosiers says.

Mercedes also cut the price and repositioned the B-Class wagon. That's another problem for BMW's Jung.

“We don't really have an answer for this,” he says, hinting that BMW is working on one feverishly.

Feverish is, in fact, a good word to describe the competition here. The serious luxury brands continue to expand their lineups into an ever-increasing number of segments. This could very well lead to lower prices and devalued brands, DesRosiers says.

Nonetheless, look for more new models to come this year and next. Auto makers, for the most part, simply cannot resist the temptation to grow sales even if the reward on the bottom line is minimal, non-existent or worse – entirely unprofitable.

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How the brands rank

The top luxury brands in Canada (ranked by 2008 sales)

BMW 23,244
Mercedes-Benz 20,363
Acura 16,381
Lexus 15,001
Audi 9,271
Infiniti 8,159
Chrysler 7,852
Cadillac 7,337
Volvo 5,365
Lincoln 5,227

2009 Ford F-150 Pickup: Top Selling Vehilces Reviews

If you talk to pickup enthusiasts, they are not just folks who like the image of the hard-working utilitarian vehicle; rather, they are individuals who rely on the modern workhorse to get the job done every day.

Since 1948 millions of Ford trucks have been sold, and they have performed more tasks than you can imagine on farms, construction sites and in park districts across America.

Talking to Ford about the F-150 is like talking to the Bulls about Michael Jordan or to the Bears about franchise quarterbacks. On one hand, you knew when you were at the top who got you there, and when things were not going so well you knew where you had to focus to go to the next level.

If ignored, your franchise players can slip away, leaving you wondering what might have been. Well, the folks at Ford decided to be proactive and talk to F-150 owners across the country to get their feedback on what they wanted from their next truck.

What they wanted is what you see in the new 2009 Ford F-150 pickup.

One of the great things about the Ford F-150 is also one of the things that drives me crazy (in a good way). Going in to shop for an F-150 reminds me of shopping for a new computer. There are so many options and variations, looks and designs. You have to start with what suits your day-to-day requirements, then add some fun bells and whistles. The same goes for the F-150 – and it is so much prettier (in a tough, take-no-prisoners way, for sure).

The 2009 Ford F-150 comes in three cab styles: regular, supercab and supercrew; in three V-8 powertrain options; in 6.5-, 5.5- and 8-foot boxes; and in 4x2 and 4x4 configurations. Base prices for the 2009 F-150 start at $21,095. That’s a great price to instantly buy you a little cred and a lot of opportunity to turn yourself into one tough cowboy.

I love the styling of the new F-150. It is contemporary without being un-trucklike. That simply means it looks tough, a really important part of any pickup that takes itself seriously. My tester had an impressive chrome package ($1,420) that really amped up the class factor. This may not be the look for the rancher or the park district, but for the road warrior who may never hit the dirt it is a great option.

The engine on my 4x4 supercab was the brutish 24-valve 5.4-liter Triton V-8, which delivered 320 horsepower and 390 pound-feet of torque. The power plant was mated to a flawless six-speed automatic. The Environmental Protection Agency mileage per gallon rating was 14/18, not great, but par for the pickup class at this size. The good thing is the 36-gallon fuel tank will help minimize stops.

When talking pickups, you have to mention engine ranges and F-150 has several options in the 16-valve, 4.6-liter 248-horsepower V-8 linked to four-speed automatic with 294 pound-feet of torque and the 24-valve, 4.6-liter V-8 coupled to a six-speed automatic with horsepower ratings of 292 and torque of 320 pound-feet.

I found the big Triton power plant to be extremely responsive in city driving situations and more than capable getting around in highway traffic. I cannot speak for having a serious payload weighing me down, but I get the sense this F-150 is up for anything you can throw at it.

The F-150 cabin offers lots of space and a great design. The dash is thoughtfully laid out in front of the driver. Power adjustable pedals and driver’s seat make getting the perfect seating position a breeze. You sit high in the F-150 and sightlines are good. My tester had a nice rear-view camera option ($450) that made maneuvering the big truck a lot easier.

A long list of options made the interior a great place to be. From the power-sliding back window ($250) and the upgraded six-disc stereo ($300) to the Sirius satellite radio ($195) and the amazing (a $395 must-have) Sync system that allows you to link the command center in the truck to your cell phone and iPod, the new F-150 has really earned all those awards it has garnered so far this year.

The automaker boasts that its all-new 2009 F-150 has a class-leading towing ability of 11,300 pounds and a cargo-carrying rating of 3,030 pounds. According to Ford, improvements to the chassis have helped with torsional rigidity and make delivering the additional payload and towing abilities possible.

Some features worth mentioning are the thoughtful capless fuel filler that automatically opens with the fuel door and seals shut to reduce fueling emissions and a great tailgate step that allows the buyer to easily access the cargo bed with an integrated step ladder – a lot easier than trying to launch yourself into the truck’s bed.

Ford made sure it had all the information it needed about its franchise player; it got feedback on what customers wanted and responded with a great truck. The new F-150 shows it can help Ford stay at the top of the pickup heap for some time to come.

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+ 2010 Ford F-150 SVT Raptor Off-Road Truck Webpage Launched
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+ 2008 SEMA Show: Ford F-150 Electric Trucks

2009 FORD F-150 SUPERCAB 4X4

ENGINE: 320-horsepower 24-valve 5.4-liter Triton V-8

TRANSMISSION: six-speed automatic

DRIVETRAIN: four-wheel drive

FUEL ECONOMY: 14 city/18 highway

BASE PRICE: $28,610
Gallery: 2009 Ford F-150 Pickup Truck

2010 Toyota Prius, Would It Be U.S. Top Model?

Memo to the beleaguered U.S. car industry: As the recession eases, torment from Toyota may increase.

Designers of the Prius, the curiously shaped hybrid that since 1997 has allowed up-to-the-minute Americans to advertise their eco-correctness, are going after the Average Joe.

The third-generation Prius is not just for "some special people," said Wahei Hirai, Toyota's managing officer for design. "This is a mainstream car."

The new model is more powerful than its predecessors, with more headroom, a bigger trunk, better gas mileage and a lower price. It is only now being rolled out in the United States, but judging from exceptionally brisk Japanese sales and effusive early reviews, the car looks like a hit. In May, the Prius was Japan's best-selling car.

To keep up with surging domestic demand, overtime has been brought back at the two plants that assemble the car. Workers have been transferred in from factories around the country. Production has grown to 50,000 cars a month, but customers in Japan must wait three to four months to drive home a new Prius.

The car's sudden popularity comes in a country where the recession has been roughly twice as severe as in the United States and where car sales have been slumping for years. Sales here have been helped by new tax incentives.

Yet, the real test for the new Prius is the United States, where sales of earlier models have historically dwarfed sales in Japan or Europe. As Toyota executives, engineers and designers explained to reporters during a two-day tour here, the world's largest car company has spent 4 1/2 years tweaking the Prius so it can become much more than merely an "eco-icon."

"We are not forsaking the people who want to make an environmental statement," said Paul Nolasco, a Toyota spokesman who helped lead the tour in and around Toyota City. "But the objective of the Prius is to get the family to the mall, not to see how far you can go on so many drops of gas."

The car is hardly a gas hog. It is rated at 50 miles a gallon, 10 miles better than its principal hybrid competition, the Honda Insight. The Insight was the best-selling car in Japan in April, costs less than the Prius and also seems likely to bedevil Detroit's comeback hopes.

A legion of Toyota brass explained during hours of PowerPoint presentations that the new Prius has been designed to elbow its way into the upper ranks of the U.S. passenger car market, where the No. 1 and No. 2 bestselling cars last year were the Toyota Camry and Honda Accord.

Toyota sold about 437,000 Camrys last year, while sales of the second-generation Prius lagged well behind, at about 159,000. Its buyers were mostly Americans in their 50s and 60s.

But even the new larger Prius faces tough challenges in the United States this year. Gasoline prices are running about $1.50 a gallon lower than last year, making hard-pressed consumers less likely to pay extra for a hybrid. And sales across the industry have been plunging. Prius sales in the United States fell to 10,091 in May, down 30.1 percent from May 2008. For the year to date, sales of the Prius in the United States have skidded to 42,753, down more than 45 percent from the first five months of 2008.

Moreover, Honda has crafted an ad campaign designed to appeal to younger car buyers, an audience Prius has had trouble reaching. The campaign -- whose slogan is "The hybrid for everyone is here" -- features popular music and images young people driving to an outdoor music concert or to the beach.

Prius engineers and designers said that cracking open the family-sedan market in these environmentally stressful times is not yet a job that an all-electric car can handle.

Battery technology has not developed to the point where it can provide most commuters with the range, acceleration and comfort they demand, said Masatami Takimoto, an executive vice president in research and development.

"Fundamental issues are unsolved," he said, noting that Toyoto sees gasoline-electric hybrids like the Prius -- not all-electric, plug-in cars -- as the "core" of its future, at least until there are significant breakthroughs in battery development.

The company, though, is hedging its bet by investing heavily in a joint battery project with Panasonic, and it plans to sell a small all-electric car by 2012.

While Toyota sees the hybrid as its main meal ticket for the medium-term, General Motors is hoping to move beyond hybrid technology with the Volt, which it calls an "extended-range electric vehicle."

Its batteries can take the car 40 miles between charges and a small back-up gasoline engine can take it more than 300 miles. But the estimated cost of the Volt, which GM expects to bring to the market late next year, is about $40,000. The third-generation Prius is selling for between $22,000 and $28,000, depending on options.

In its all-electric mode, the Prius can go 1.2 miles.

Toyoto, in effect, says so what?

Its designers say they have made a gas-sipping, low-emission car that's fun to drive, accommodates large people in the back seat and has room in the trunk for three golf bags.

If the Prius proves as popular in the United States as it seems to be in Japan, Toyota does have a problem, company officials acknowledged. Collapsing U.S. car sales in the past year forced Toyota to put off plans to open a factory in Mississippi that could assemble the Prius.

"Yeah, supply is going to be an issue," said Nolasco, the company spokesman.

Best Selling Car May 2009 of Japan: 2010 Toyota Prius Hybrid

Toyota Motor Corp's Prius hybrid was Japan's best-selling car in May, a dealers' group said on Thursday, attesting to robust demand for low-emission cars helped by government incentives amid flagging auto sales.

Competition is also heating up between automakers as the Prius, of which a new model hit the market last month, grabbed the top slot for the first time after Honda Motor Co's new Insight became the first hybrid to head the best-seller list in Japan in April.

"I think a green car tax break and other incentives helped the sales performance (of the Prius) quite a bit," Akihiko Otsuka, chief engineer for the new Prius, told reporters in Toyota City, home to the automaker.

The third-generation model Prius, which went on sale on May 18, was priced about $3,000 less than the previous version and there were more than 80,000 advance orders for it.

Toyota said on its web site that factory shipment would be mid-November or later for orders made after May 31.

"The Popularity of hybrid cars will undoubtedly continue as their prices have come down to affordable levels and will be more so in coming models," said Kazutaka Oshima, CEO of Rakuten Investment Management. "In addition, oil prices have been rising again lately," he said.

A ranking of Japan's top 30 excluding 660cc minivehicles by the Japan Automobile Dealers Association showed the Prius selling 10,915 cars in May, followed by Honda's Fit compact with sales of 8,859 cars. The Insight was in third place with 8,183 cars.

Gas-sipping hybrid cars have become a rare bright spot in an industry hit hard by recession, and Toyota and Honda are locked in a fierce battle in the category.

But some analysts have pointed to a growing challenge for Toyota to strike a balance with sales of gasoline cars, which have higher profit margins.

+ 2010 Toyota Prius Hybrid Tax Credit is Good!
+ 2010 Prius Hybrid Sales is a Bright Spot in Gloomy Market
+ Prius vs. Insight: Better and Wores

The 2010 Hybrid line-up has a great outlook and some meaningful gas savings for consumers.

Gallery: 2010 Toyota Prius Hybrid

US Top 10 Best-Selling Vehicles May 2009

It seems that low gas prices are fueling truck sales, as the two best-selling vehicles are once again full-size pickups. However, the Dodge Ram, usually a staple of this top 10 list, has fallen off, just barely beaten out by the Ford Escape. Ford had three of the top 10 best-sellers, including a sales record for the Fusion; the redesigned sedan seems to be attracting shoppers.

While sales for nearly every brand were down, GM, Ford and Hyundai stayed competitive, seeing sales losses of 29%, 25.5% and 20% from last May, respectively.

That’s competitive when you compare them to Chrysler, Toyota and Honda, which saw mind-boggling falls of 47%, 39.7% and 38%.

Of course, Honda and Toyota were setting sales records at this time last year, so their negatives are a bit higher than you'd expect.

Check out the full top 10 below:

#1 Ford F-Series: 33,381
#2 Chevy Silverado: 31,463
#3 Toyota Camry: 31,325
#4 Toyota Corolla: 23,576
#5 Honda Accord: 22,597
#6 Honda Civic: 20,723
#7 Ford Fusion: 19,786
#8 Chevy Impala: 18,709
#9 Nissan Altima: 18,408
#10 Ford Escape: 16,391