Flood of leased cars swamping dealers' lots

Article Abstract:

Ford Motor Company of Canada Ltd. is hit the hardest by the increased number of off-vehicles returning to the used car market. An increasing number of people, who leased cars in the first half of the 1990s, are opting not to purchase the cars as soon as their leases ends. Ford Canada President Bobbie Gaunt said that the company is trying to cut its dependence on leasing, while Ford's new vehicle deals in the country were nearly 70% leases. Some companies are starting to offer lower loan rates and place less emphasis on leasing as a way to lure buyers. The surge in volume of leased vehicles resulted from low residual values, or the value of the vehicle at the end of the lease, for past two years from 1996, and the falling prices of new vehicles, making it a more attractive buy.

Comment:

Is hit the hardest by the increased number of off-vehicles returning to the used car market because of low residual values

Sales & consumption, Motor Vehicle Dealers, Motor Vehicle and Parts Dealers, Automotive dealers

Navistar eyes Ont. plant for upgrade

Article Abstract:

Navistar Inc., a truck manufacturer in, is planning to funnel $250 million into its existing facility in Chatham, Ontario, rather than invest in its plants in Mexico and the US, indicated Canadian Auto Workers assistant to the president Bob Chernecki. Chernecki clarified that Navistar cannot reduce the benefits or wages of its employees in Ontario by amending work regulations as a condition of the investment. Aside from those terms, the union has expressed its willingness to talk with the company regarding extension of its present labour agreement that should expire in 1999.

Comment:

Is planning to funnel $250 million into its existing facility in Chatham, Ontario, rather than invest in plants in Mexico and US

Trucks, Motor Vehicle Manufacturing, Facilities & equipment, Navistar Inc.

Toronto Ford dealers assail auto maker's franchise plan

Article Abstract:

Ford Motor Co of Canada Ltd is being criticized by its dealers in the Toronto, Ontario, area for not consulting them in their plan to eliminate Lincoln-Mercury dealerships. The dealers are complaining that the automaker's 'custom franchise' plan is biased towards the Lincoln-Mercury franchises, which will be converted into Ford dealerships but will still be able to sell Lincolns.

Marketing procedures, Automobile Manufacturing, Automobiles