Canada’s government is planning to sell some of its most expensive cars, trucks and vans to US buyers under a new program that the country hopes will bolster its struggling auto industry.
The Canadian Automobile Association (CAA) said Friday that it plans to sell more than a million vehicles in the United States, more than double its previous target.
The CAA expects to sell an average of about 40,000 vehicles a year from 2021 to 2023, which would be an increase of almost 20 per cent over current sales levels, according to CAA President Tom Houghton.
The goal is to bring down costs, Houghson said.
CAA’s previous goal was to sell 25,000 of the most expensive vehicles in Canada each year.
The sale of vehicles will be driven by a new, streamlined auction system that allows buyers to bid for a vehicle on behalf of their companies.
This is the first time a government-owned company has taken the lead in selling vehicles, and Houghston said it is a first for Canada.
“We’ve been talking about this for a long time,” he said.
“We are really excited to be here to sell Canadian-made vehicles to our American customers.
This has never been done before.”
The CAAs goal is more than just making the Canadian auto industry stronger, he said, adding that it is also about helping the Canadian economy.
Houghton said the CAAs new initiative will also provide support for the auto industry, including to help Canadian manufacturers produce more cars and trucks and more efficient vehicles.
The new initiative, called the Global Automotive Market Opportunities Fund, will be funded through CAAs existing annual sales of vehicles.
CAAs current annual sales are in excess of $30 billion, and the CAA has estimated the fund would be able to buy up to 100,000 more vehicles over the next three years, according the CAB.
Hughton said CAAs plan to sell a total of 30,000 cars a year in 2021, which is an increase from current sales.
The average Canadian car currently sells for $1,542,000, according data compiled by Edmunds.com.
The average Canadian truck sells for between $1.2 million and $1 million.
Humphrys, the Canadian car maker, has been selling vehicles in Ontario since 2007.
It has not yet said whether it plans the new sale of Canadian vehicles to be in Ontario.
“There’s no doubt we’re going to make a lot of money selling Canadian-built vehicles to the U.S. market,” Houghtons predecessor, Jim Clark, said in an interview with the Globe and Mail.HUGHTS CHANGE OF POSITION Houghts change of position in March, following a public outcry from auto industry stakeholders and unions, resulted in the creation of the Automotive Finance Initiative.
In September, Haughts announced the CABA will be moving its annual sales from Ontario to the United Kingdom to ensure it is fully compliant with the U,K.
government’s new rules.
The Ontario Automotive Dealers Association has long pushed for an independent regulator to oversee the auto dealers’ market, arguing it is the only way to protect the dealers from being hit with new government regulations.
CAAA has said that the new regulator would be made up of independent groups, and there is a good chance the group would include auto dealers.
The CABA said it would only seek the support of the Ontario government, and not any other industry groups.CAAA, which has been in existence since 1993, has long been at odds with the Ontario Automobile Dealers’ Association, which represents about 3,000 dealers.
In 2014, CAAA withdrew from the Ontario Auto Dealers Federation.
The province, in a statement on Friday, said that it was pleased to have reached a new agreement with the CAAB and the Canadian Automotive Industry Association that would allow it to sell vehicles in other parts of Canada.
“The new agreement will strengthen the CAAA’s position and ensure it remains a responsible and independent regulator in Canada,” it said.CABA says it has invested $250 million in the initiative and will continue to expand it.
Hougton said it was a “fair trade deal” and the end result would be “more Canadian-designed vehicles to drive our economy and reduce pollution.”
The CAAA said it plans “to be a strong partner” with the government in the U