North American Auto Industry in High Gear: Scotiabank
TORONTO, ON --(Marketwired - November 10, 2015) - Global car sales regained momentum in September, showing its strongest performance since March. The improvement was led by double-digit year-over-year (y/y) advances in North America and Western Europe, as well as a rebound in China after three consecutive months of declining volumes, according to the latest Scotiabank Global Auto Report.
In October, there was a further acceleration in North America, with purchases in the United States jumping 14% y/y to a higher-than-expected annual rate of 18.1 million units. In Canada, sales climbed to an all-time high of 2.01 million units in October, up from an average of 1.88 million through September.
"The North American auto industry is a key driver of overall economic activity and is outperforming other industrial sectors," said Carlos Gomes, Senior Economist and Auto Industry Specialist at Scotiabank. "The September and October sales results represent the best back-to-back monthly performance since the global economy was in the midst of the 'tech boom' in early 2000."
Stronger economic conditions should continue to buoy industry volumes over the next several years, but significant concerns have been raised about the potential dislocation of sourcing patterns for vehicles and parts if the Trans-Pacific Partnership (TPP) is implemented.
"The TPP provides the North American auto industry with preferential access to the rapidly growing markets of Asia and South America, but reduces the rules of origin requirement for vehicles and parts that have been in place under the North American Free Trade Agreement (NAFTA). However, the strength of the North American auto industry is that it has become more innovative in recent years, responding better to pressures triggered by globalization and is in a much stronger competitive position than in the previous decade."
Other highlights from the report include:
-- North American auto industry exports are outpacing the increase in
overall global automotive exports.
-- The North American auto industry has the most highly integrated supply
chain network. More than 75% of all motor vehicle parts used in the
region are sourced within NAFTA -- a much higher level than the current
-- NAFTA's export growth to its TPP partners is nearly five times larger
than the advance in auto parts shipments from the European Union to the
TPP members in Asia and Latin America.
Read the full Scotiabank Global Auto Report online at: http://www.scotiabank.com/ca/en/0,,3112,00.html.
Scotiabank provides clients with in-depth research into the factors shaping the outlook for Canada and the global economy, including macroeconomic developments, currency and capital market trends, commodity and industry performance, as well as monetary, fiscal and public policy issues.
Scotiabank is Canada's international bank and a leading financial services provider in North America, Latin America, the Caribbean and Central America, and parts of Asia. We are dedicated to helping our 21 million customers become better off through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of more than 87,000 employees and assets of $863 billion (as at July 31, 2015), Scotiabank trades on the Toronto (TSX: BNS) and New York Exchanges (NYSE: BNS). Scotiabank distributes the Bank's media releases using Marketwired. For more information, please visit www.scotiabank.com and follow us on Twitter @ScotiabankNews.
FOR FURTHER INFORMATION PLEASE CONTACT:
For more information, please contact:
For media enquiries only:
Public, Corporate and Government Affairs