Auto industry on track for solid growth

The Canadian and U.S. auto industries are poised for solid growth this year, according to a new report by BMO Economics.

With a notable pick-up in consumer spending, manufacturing sales are expected to accelerate.

The industry is coming off some momentum that was building last year. Canadian auto sales saw an increase of 5.5% in 2012 compared to 2011. November sales were up 6.5% in dollar terms over 2011, at a total of C$98.6 billion compared to C$92.6 billion the year prior.

In the U.S., auto sales experienced an increase of 15% from 2011. Year-end sales at U.S. dealerships and auto part stores reached US$891 billion in 2012 — an increase of 7.7%.

Continued investments in the auto industry — both north and south of the border — are fueling manufacturing innovation and consumer demand. Notable announcements from government and manufacturers include a C$250 million commitment from Prime Minister Stephen Harper and a US$600 million investment in a General Motors plant located in Kansas City, Kansas.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.