Summary
The sales of new vehicles fell 0.3 per cent to 126,401 after rising 5.2 per cent in the month of July. This was blamed on the decline of passenger-car sale. Compared to the August of 2008, sales were lower 6.6 per cent this August. Six provinces reported a decline. The biggest drop was a 5.7 per cent drop in Saskatchewan while the largest increase was in New Brunswick with a 3.8 per cent gain. The sales of oversea vehicles increased 11.0 per cent and the sales of truck, vans and buses increased a 0.4 per cent gain. On the contrary, North American vehicle sales decreased a whopping 9.3 per cent, passenger car sales with -1.0 and new motor sales with -0.3.
Connection
The connection of this article to chapter 11 is the decrease in sales. A decrease in sales is not good for any business, especially for a vehicle company. I would imagine that the freight-in cost of the vehicles is quite hefty. That and the building up of inventory is the last thing a car dealership needs. If the sales of vehicles continue fall, they will lose a lot of money.
Reflection
I think that the car companies really need to start developing innovative vehicles that consumers want to buy. Vehicles need to be more fuel efficient. This is particularly crucial for North-American car which had a massive drop in sales of 9.3 per cent from July to August. They also have to make the vehicles more affordable for the average citizen. Some more environmentally friendly vehicles would also be nice for the planet and would appeal to consumers as well. The motor companies need to get more sales to be more profitable. Some adjustments of their vehicles would help attact more of today's frugal buyers.
sources - http://www.google.com/hostednews/canadianpress/article/ALeqM5g4UBhdGos4Nr9or1_gUYP5x9SjKw
http://www.vancouversun.com/business/Vehicle+sales+turn+lower+August/2099982/story.html
