Automotive

Automotive Sales numbers Q1 2020 (post covid breakout)

  • Last Updated:
  • May 6th, 2020 9:17 pm
[OP]
Deal Fanatic
Apr 16, 2007
7979 posts
3270 upvotes
Financial District B…

Automotive Sales numbers Q1 2020 (post covid breakout)

Image
-
Image

"March sales plunged 48 percent because of the COVID-19 pandemic.

Automakers and analysts spent much of March warning that plunging sales were on the horizon in the wake of the ongoing novel coronavirus pandemic and the economic pain it has wrought in North America over the past 20 days or so.

The moment of truth slowly arrived over the course of two days this week as automakers reported sinking sales figures for the first quarter.

Sales plunged 20 percent to 331,718 in the quarter, according to the Automotive News Data Center in Detroit.

Several provinces and municipalities across Canada have stay-at-home orders in effect. In most of those areas, dealer service operations are considered essential and have remained open to address vehicle needs for customers and government agencies. Some showrooms are also open, but it hasn’t been enough to sustain sales.

“As the full impact of the COVID-19 virus became apparent in mid-March, and dealers either were forced to shut down due to emergency measures enacted, or voluntarily shut down due to minimal consumer traffic, the impact on sales has been dramatic,” David Adams, head of the Global Automakers of Canada said in a news release. “The industry is trying to sustain itself and working cooperatively together and with governments to keep the service departments at dealerships open where possible.

“This will ensure that recall programs can be undertaken and that the vehicles of doctors, nurses, and other health-care workers and other essential service providers can be kept operational in a safe working manner.”

The consultancy told The Canadian Press that March sales appeared to be “declining moderately” during the first half of the month, before provinces and municipalities started implementing stay-at-home recommendations and orders.

Scotiabank issued a dire warning for the industry Wednesday.

“Though auto dealerships in some provinces have been deemed essential, consumers are not out shopping,” the financial institution said in its Global Auto Report. “Only urgent replacement purchases and end-of-lease transactions are expected for the most part in the near-term. April sales declines could conceivably bottom out at around 80 percent year-over-year as the virus continues to escalate over the month.”
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
45 replies
Deal Addict
Jan 15, 2017
3927 posts
3391 upvotes
Wow, the coming months I expect will not be kind.
[OP]
Deal Fanatic
Apr 16, 2007
7979 posts
3270 upvotes
Financial District B…
skeet50 wrote: Wow, the coming months I expect will not be kind.
Yes, the following months will be brutal.
Any dealer with a lot of inventory will forsure be liquidating stock to bare bones nothing, if they haven't already done so.
But the big issue will be applicant qualifying. Those not working in the 'essential' businesses/services may not get loan approval.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
Deal Addict
User avatar
Nov 7, 2016
1721 posts
786 upvotes
Ontario
Whys the YTD for 2019 and current quarterly number match? Isn't YTD accumulated for the year? Doesn't make sense to me.
·Ï¢årµ§·
Deal Expert
Aug 22, 2011
35542 posts
21598 upvotes
Center of Universe
Keep service and migrate sales to online.
No more stupid song and dance with a money in a suit.
[OP]
Deal Fanatic
Apr 16, 2007
7979 posts
3270 upvotes
Financial District B…
IcarusLSC wrote: Whys the YTD for 2019 and current quarterly number match? Isn't YTD accumulated for the year? Doesn't make sense to me.
the YTD column measures the first quarter for 2019
For the Current Quarter column the chart uses the same first quarter numbers as 2019 right adjacent to the 2020 numbers just for easy comparison
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
Banned
Jul 24, 2009
834 posts
575 upvotes
kitchener
This is excellent news for anyone looking for a great deal on a new vehicle.
Now they are over a barrel with their pants down.
Deal Addict
User avatar
Nov 7, 2016
1721 posts
786 upvotes
Ontario
Thanks for the info mikeymike1, but why different columns for YTD and Current Quarter then? Sorry it makes no sense to me.
·Ï¢årµ§·
[OP]
Deal Fanatic
Apr 16, 2007
7979 posts
3270 upvotes
Financial District B…
IcarusLSC wrote: Thanks for the info mikeymike1, but why different columns for YTD and Current Quarter then? Sorry it makes no sense to me.
When the second quarter and third quarter comes along that YTD column will be cumulative while the first column will just show sales results per Quarter
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
Deal Addict
User avatar
Nov 7, 2016
1721 posts
786 upvotes
Ontario
I won't fill this up with a rant about a lousy setup of that file, but 2019 is last year, so YTD for it should have been the cumulative amount as you said.
Thanks for trying to explain even though I don't get it...
·Ï¢årµ§·
[OP]
Deal Fanatic
Apr 16, 2007
7979 posts
3270 upvotes
Financial District B…
IcarusLSC wrote: I won't fill this up with a rant about a lousy setup of that file, but 2019 is last year, so YTD for it should have been the cumulative amount as you said.
Thanks for trying to explain even though I don't get it...
Here is the sales chart for July 2019
Image
This is a sales numbers for one month (July 2019) while the top chart I posted first is for 1 Quarter.
Notice how the totals in the columns change. If this chart was just for January then the numbers would be the same as you are describing
Last edited by mikeymike1 on Apr 2nd, 2020 9:33 pm, edited 1 time in total.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
Deal Addict
User avatar
Nov 7, 2016
1721 posts
786 upvotes
Ontario
k, I dunno,(I'm to tired or something, sorry.) Thanks for the help mikey
Last edited by IcarusLSC on Apr 2nd, 2020 9:40 pm, edited 5 times in total.
·Ï¢årµ§·
Member
Dec 4, 2017
319 posts
286 upvotes
I think some automakers may not build certain 2020 models that are slow selling anyways. They will try to offload some cars to rental fleets but it may not work this year as no one is flying these days. Other than that they will just start building the same vehicles in the summer and label them as 2021 model year so they make next year's number better than this year.
[OP]
Deal Fanatic
Apr 16, 2007
7979 posts
3270 upvotes
Financial District B…
sunnykw2305 wrote: I think some automakers may not build certain 2020 models that are slow selling anyways. They will try to offload some cars to rental fleets but it may not work this year as no one is flying these days. Other than that they will just start building the same vehicles in the summer and label them as 2021 model year so they make next year's number better than this year.
Well all the manufacturing plants are now closed anyways so nothing is being made.
There was a positive COVID case at the Toyota Cambridge plant last week so Toyota Canada closed the entire plant immediately.
The Honda plant in Alliston is also closed so they're not making anything too - they were the first auto maker to stop production.
Same with Ford, FCA and GM, all closed. Besides all that, the bulk of 2020 model year was probably near finished for most of them. They would be re-tooling for 2021 by June/July anyways.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
Deal Fanatic
Mar 27, 2004
5374 posts
3275 upvotes
Toronto
The margin on new vehicles is like 8%. I just don't see many deals. I think 0% financing /lease is something Dealers should offer on new cars.
Full-time Realtor
Deal Expert
User avatar
Apr 21, 2004
54622 posts
19420 upvotes
vkizzle wrote: Keep service and migrate sales to online.
No more stupid song and dance with a money in a suit.
I hope you didn't mean monkey.
Deal Expert
User avatar
Apr 21, 2004
54622 posts
19420 upvotes
What is the floor financing rate (or what their lenders charge them) for these dealerships?

Or were they getting 0% from the manufacturers?
Banned
Feb 7, 2005
4498 posts
1183 upvotes
Looking forward to Honda Pilot deals .
<sig removed> by moderators . Yet no moderator told me they removed or why ?
[OP]
Deal Fanatic
Apr 16, 2007
7979 posts
3270 upvotes
Financial District B…
alanbrenton wrote: What is the floor financing rate (or what their lenders charge them) for these dealerships?

Or were they getting 0% from the manufacturers?
Our floorplanning rate has not changed but without the retail sales numbers all the dealers in our dealer network will not be covering their financial obligations.
Everything is on a standstill.
Many manufacturers for the most part do not offer floorplanning but some are coming around. Dealer Principles are normally all on their own most of the time and have to secure their own wholesale funding..
Ford just got back into floorplanning two years ago. Not sure what floor rates would be.
https://www.autofinancenews.net/allpost ... itization/
Toyota also offers floorplanning and is stepping up probably more-so as a relief program so no dealer goes bankrupt
https://www.autofinancenews.net/allpost ... is-coming/
In some cases floorplanning has become a net profit for some dealers if they can retail lots of product

In rare cases a manufacturer my even take back unsold product(credit goes to floorplanning lender) and then unloads them to other dealers but this pandemic has created some rare and unfamiliar territory for everyone so a lot of policy doesn't even exist, everything is new.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
Deal Addict
Jan 5, 2004
3755 posts
343 upvotes
Toronto
Here's hoping to most people are just holding out until there are more certainty about their future job outlook. Otherwise, this is going to decimate more dealerships than the financial crisis.

Top