B Y

ST RADAA P R I L 2 0 1 1

Canadian SalesFirst Quarter 2011

High Hanging Fruits

We mentioned that 2011 would involve

reaching, and picking higher fruits.

A time to see who has developed strategies

and effective tactics to get the higher fruits.

The Sweet Spot

Where is the sweet spot of the Canadian

market?

Trucks!

Transcending Winter!

Are there some remaining low hanging

fruits?

Probably not…

Strategy

The direction disseminated by every

manufacturer is to increase sales.

The basic strategy in a compressed market is to acquire every sales

that is available.

Yes…take from the competition.

Tactics

The Canadian consumer is highly

receptive to a “deal”.

The “deal” is very effective to stimulate

the market.

Especially during the last month (March) of

the quarter.

More Tactics

Folks are pressed for time, with a limited

attention span.

Why be subtle or discreet?

Ensure that even “glancers” are aware of

the “deal”

Trend Of The First QuarterJanuary: + 3%February: - 4%March: + 5 %

YTD 2011: + 2%

The strategy of starting the year conservatively, seeking track position.

By the second month it’s the habitual Oops, the market is demanding

stimulation.

On the third month the special offers abound to close the quarter, and

take sales.

The first quarter is marginally ahead of the previous year by 2%.

Who is taking?Who is losing?

Which is worse taking or losing?

In a compressed market, with future uncertainties, losing in the first quarter

is precarious.

Who lost when the music stopped at the

end of March.

Acura: - 15%

Honda: - 8%

Infiniti: - 8%

Lexus: - 5%

Mazda: - 20%

Suzuki: - 38%

Toyota: - 13%

Volvo: - 2%

Certified Pre OwnedStill a Bright Spot

CPO continues to gain momentum in the Canadian market.

The manufacturers that are pro active in CPO continue to increase

sales.

Does a CPO from one manufacturer compete

with a new from another manufacturer?

What do you think?

Compact Mid Size Sedans

Honda Civic……..11,957 Hyundai Elantra.…9,976 Toyota Corolla…....8,566 Chevrolet Cruze.…7,513 Mazda 3…………..6,370 VW Jetta………….5,464

Honda is ensuring the Civic remains in the lead. The Elantra and Cruze are disrupting the

segment. Mazda 3 has receded. Look at the Jetta, recalibrated, and with an attractive

lease.

Sales results from: Automotive News

Hyundai Sonata……3,901 Ford Fusion………...3,588 Nissan Altima……….2,787 Chevy Malibu….…...2,447 Toyota Camry………1,720 Honda Accord..........1,496

The Sonata ahead of the Fusion!

The mid size segment is losing sales to the CUV/SUV segment. Obvious that a utility vehicle transcends winter better

than a mid size sedan.

Some NumbersFirst Quarter 2011

CUV/SUV Pick Ups

Ford Escape…………9,655 Chrysler Journey…….7,616 Honda CR-V…………6,658 Toyota RAV4…………5,452 Chevy Equinox………5,024 Hyundai Santa Fe……4,830

The Escape stays in the lead, while the Journey capitalizes on its momentum.

An active segment.

Ford F Series……………20,364 Ram………………………13,469 GMC Sierra………..………9,543 Chevy Silverado……..……8,524

Solid competition, sales continue to increase from the previous year.

Some Numbers – 1First Quarter 2011

Entry Luxury Luxury CUV/SUV

BMW 3 Series…………2,106 M-B C Class…….....…2,090 Audi A4……………..…1,340 Infiniti G…………..………851 Cadillac CTS…….….……784 Buick LaCrosse……..……673 Acura TL………….….……585 Lexus IS………….….……456 Volvo S60……….………..256

MerBimAu is increasing its lead on the strength of Audi. Infiniti is fading.

Lexus RX………………..1,598 Audi Q5…………....……1,286 Lincoln MKX…..………..1,103 Acura MDX…………..…1,058 M-B GLK…………..……1,019 BMW X3……….…….……897 BMW X5……….……….…887 M-B M Class…….…….….845 Cadillac SRX………..……670 Buick Enclave….…….…..631 Acura RDX…….….…..….547

Hyper competitive, with Q5 and MKX gaining.

Some Numbers – 2First Quarter 2011

Our Thoughts

Some manufacturers are already in a vulnerable position for 2011. Manufacturers that “blinked” (1 month), are recalibrating their strategies. New Models make an immediate contribution to gain sales, some manufacturers are

increasing their sales on the strength of new models only. The Detroit 3 are gaining sales, the Koreans are gaining sales. MerBimAu is increasing its lead in the entry luxury segment. The Japanese are losing sales! Pick Ups continue their pace and momentum…will it subdue? The escalating price of gas has not impacted sales…yet. The mid size sedan segment is migrating towards the CUV/SUV segment. Certified Pre Owned is acquiring increased momentum. The blocking and tackling to gain or simply salvage sales will increase for the balance of

the year.

Thank You