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TORONTO, ON - Automakers saw strong Canadian sales in the opening month of 2012 with many reporting double-digit growth from a year ago and some setting January sales records.

Overall sales grew 15.4 per cent to 97,497 vehicles last month, according to data released Wednesday from the Association of International Automobile Manufacturers of Canada.

Sales have been boosted by persistently low interest rates, buyers searching for better fuel efficiency, and those looking to replace older vehicles as the average vehicle age on Canadian roads climbs.

"January light vehicle sales in Canada surprised everyone including myself," said Dennis DesRosiers of DesRosiers automotive consultants.

"Sales have been anemic for about 4 years and this is an excellent start to the year ...January sets us up for some positive surprises through the rest of the year."

DesRosiers believes the surprising boost was driven by pent- up demand for foreign nameplates — at the expense of General Motors and Ford.

Chrysler Canada, which has been one of the fastest growing brands, had its best January in a decade, Ford lost its spot as Canada's top seller but continued to gain traction, and Toyota sales jumped as supply caught up to demand.

One sour spot was at General Motors, where sales dropped 10 per cent.

Chrysler Canada's sales in January jumped 22 per cent from a year before, helping it to wrest the title of Canada's best-selling automaker from Ford, which fell to the No. 2 spot.

Chrysler said it sold 16,584 vehicles last month, besting the 13,587 sold in the year-earlier period and enough to make it Chrysler's best January since 2002.

“We have been the fastest growing automaker in Canada for the past two years and it is great to start 2012 as the highest selling vehicle company in Canada,” said Dave Buckingham, Chrysler Canada's chief operating officer.

Chrysler reported January sales in both Canada and the U.S. on the same day it announced that 2011 was its first profitable year since 1997. The company, now controlled by Italian automaker Fiat, was forced to seek bankruptcy protection and a government bailout in 2009 due to a severe market downturn.

Ford Canada sales also grew, by five per cent, to 14,978 vehicles, compared with 14,324 in January 2011.

Last year's best-selling automaker made no comment about Chrysler usurping that title last month and instead focused on positive momentum in January.

"We are off to a great start in the new year with strong car sales," said Dianne Craig, president and CEO at Ford of Canada.

However General Motors, which has been struggling lately with declining sales, saw a 10.9 per cent drop to 12,959 vehicles sold in January.

The company that was Canada's top auto seller for decades, hasn't fully recovered after restructuring under bankruptcy protection three years ago. It finished third in January, with marketshare coming below its 15 per cent target.

"Now that the Japanese are coming back strong GM may be the target so further loses in market share may be in the works," DesRosiers said.

Sales of the major brands from outside North America were up 26 per cent to 53,082 last month, said the association representing foreign automakers.

“Improving consumer confidence levels as well as some improving economic indicators have contributed to the vehicle sales market starting off the year on the right foot,” said David Adams, president of the AIAMC.

“For AIAMC members, the fact that the negative consequences of natural disasters last year are largely behind us as well as the fact that companies are bringing a number of new and exciting models to the Canadian market this year has contributed to early sales success, which should bode well for our members’ overall sales this year,” said Adams.

Japanese automakers, which have struggled with supply issues since the Japanese earthquake and tsunami last March, indicated that sales levels may be returning to normal.

Honda Canada reported a whopping 127 per cent increase over last January's sales, with a total of 9,168 Honda and Acura vehicles sold.

Sales of its popular Honda Civic — which had been in short supply after a parts shortage caused by the disasters — rose 333 per cent on the back of a recent ramp-up in production.

Toyota Canada saw an 18 per cent increase in sales from a year earlier. It said last month was its best-ever January, with 9,850 vehicles sold.

Foreign automakers captured a greater share of the market this January — 54.4 per cent compared with 49.8 per cent last year.

Among the highlights from other foreign-made brands, Hyundai sales grew 11.6 per cent, BMW sales were up 34.4 per cent, Nissan sales rose 23.4 per cent, Volkswagen sales grew 8.7 per cent and Kia had a record January with 23.8 per cent growth.

The AIAMC said Canadian car sales grew by 29 per cent, outpacing the seven per cent growth seen in the truck segment, which still outsold the car sector on a total volume basis.

The January sales data suggests industry sales continued to gain momentum after three previous months of growing sales.

A recent report from Scotiabank indicated that January sales put the industry on track to grind slowly above 1.6 million units in 2012 for the first time since the recession, a one per cent increase from the 1.59 million vehicles sold last year. The 2011 total represented a two per cent increase from the year before.

Generally, analysts expect about the same level of sales in 2012 compared with last year as recession in Europe, slower growth in emerging markets and an uncertain economic and political climate south of the border continue to weigh on consumer sentiment.

Still, Chrysler reported Wednesday that January sales in the U.S. jumped 44 per cent year over year, while Ford's rose seven per cent. However, General Motors suffered a six per cent decline, saying demand for its trucks and crossovers fell when compared with strong sales a year ago.

-- 2013 Mazda CX-5 will have the best highway fuel economy of any SUV sold in Canada when it goes on sale in February 2012 --

Richmond Hill, ON - Mazda Canada today announced that the 2013 Mazda CX-5 compact SUV will have a starting manufacturer suggested retail price (MSRP) of $22,995. The 2013 Mazda CX-5 will go on sale in Canada in February 2012.

The all-new Mazda CX-5 will be available in three trim levels: a well-equipped entry-level GX, the mid-grade GS with many additional standard features, and the top-of-the-line GT.

Starting at $22,995, the entry-level CX-5 GX trim comes with an extensive list of standard safety features including an Anti-Lock Brake System with EBFD and Brake Assist, hill hold assist, advanced dual front air bags, front seat side air bags and side air curtains, Dynamic Stability Control (DSC), and a Tire Pressure Monitoring System. AWD is available as an option on GX and GS trim levels, and comes standard on the GT trim. A Convenience Package is offered for the GX, which adds features such as 17" alloy wheels, privacy glass, Bluetooth® Hands-free Phone System with Audio Profile, HD radio, and a 5.8” colour display screen.

Starting at $27,895, standard equipment on the GS includes everything from the GX with Convenience Package and automatic transmission and adds even more features such as a power moonroof, foglights, Blind Spot Monitoring System, and rearview camera.

For the GT, which starts at $32,495, additional features become standard equipment, such as 19” alloy wheels, intelligent key system, and a BOSE audio system with 9 speakers. An available Technology Package further enhances the already-luxurious standard features of the GT, adding Bi-Xenon headlights, Adaptive Front Lighting System, auto headlamp levelling, TomTom®-based navigation system, and SIRIUS® Satellite radio.

All 2013 CX-5 compact SUVs are equipped with the SKYACTIV-G 2.0-litre gasoline engine, which features the world’s highest compression ratio for a mass-produced vehicle at 13:1. This means SKYACTIV Technology is able to squeeze more energy out of every litre of gasoline than conventional internal combustion engines. CX-5 also is the lightest compact SUV in its class, weighing in at a total curb weight of 1,459 kg for entry models and up to 1,555 kg for premium trim levels.

With its all-new 4-2-1 exhaust system, CX-5 delivers 155 horsepower at 6,000 rpm and 150 lb-ft of torque at 4,000 rpm; redline is reached at 6,500 rpm. With a choice of transmissions in either the SKYACTIV-MT six-speed manual or SKYACTIV-Drive six-speed automatic, a 900 kg (2,000 lb) towing capacity, and an optional all-new all-wheel drive system, the 2013 CX-5 truly offers a little of everything for everyone.

Official fuel consumption for the 2013 CX-5 is also being announced today by Mazda Canada, as rated by Transport Canada. The CX-5 offers the best highway fuel economy of any SUV sold in Canada at 5.7 litres per 100 km, outperforming many hybrids. Front-wheel-drive models equipped with the standard SKYACTIV-MT six-speed manual transmission are rated with a fuel economy of 7.8 L/100km in the city and 5.7 L/100km on the highway. When equipped with the optional SKYACTIV-Drive six-speed automatic transmission, front-wheel-drive models receive a fuel consumption rating of 7.7/6.1 L/100km. SKYACTIV-Drive is standard on all-wheel-drive models, which return an estimated fuel economy rating of 8.0/6.4 L/100km.

TURIN – In another step marking further integration between Fiat and Chrysler Group, the parts and service operations of both automakers will merge under Chrysler's Mopar brand.

The move will save the companies costs and remove any aftersales obstacle to deciding which model or brand to sell in a specific market, the company's CEO, Pietro Gorlier told Automotive News Europe.

"The ongoing Fiat-Chrysler integration and platform sharing makes it fundamental to pursue a similar integration from an aftersales point of view and Mopar is the ideal brand to become the global umbrella for our parts and services," Gorlier said.

The globalization of the Mopar brand under the two automakers begins on Wednesday with the unveiling of a new packaging design at Mopar's engineering lab in Center Line, Michigan, to coincide with 75th anniversary of the brand.

The packaging design incorporates the Mopar logo together with the 10 brand logos of the two automakers: Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional (light commercial vehicles), Jeep, Lancia, SRT and RAM.

In a move to cater to the global reach of Fiat-Chrysler, the "genuine parts" description is now translated into 28 languages, including Arabic, Chinese, Russian and Turkish.

"Essentially, we need to support a flawless movement of parts between the regions, without additional cost and inefficiencies for re-coding or re-packaging," Gorlier said.

The global package would remove any aftersales obstacle to choosing which model or brand to sell in a specific market, he added.

Specific packaging will be maintained only for Abarth transformation kits, SRT performance parts, as well as for Alfa Romeo engine parts.

Distribution of the new packaging will begin in the second half of the year.

Gorlier estimates it will take a couple of years to fully apply the packaging to the more than 500,000 parts and accessories which will be part of Mopar's new global catalog.

For efficiency reasons, existing material will not be repackaged and this will extend the transition period, he added.

Collectively Fiat and Chrysler have a global vehicle car park of approximately 70 million units in more than 120 countries, serviced by 50 parts distribution centers which manage 350,000 order lines daily.

Common vehicle diagnostics

Fiat-Chrysler also plan to converge their service diagnostic platforms and again, the two companies will switch to Chrysler's system.

"Chrysler was already in a more advanced phase in its service diagnostic platform evolution and thus its Wi-tech Diagnostic System will become the alliance tool," Gorlier said.

The first vehicles to be sold in Europe that comply with the new diagnostic system are the Chrysler-sourced Fiat Freemont, the Lancia Thema and the Chrysler Voyager.

The Fiat Panda is the first European-built vehicle to be recognized by the new diagnostic system.

Fiat raised its stake in Chrysler Group by 5 percent to 58.5 percent earlier this month.

WASHINGTON, D.C. — The parent company of an electric car battery maker that received a $118 million grant from the Obama administration filed for Chapter 11 bankruptcy protection on Thursday.

New York-based Ener1 said it has been affected by competition from China and other countries.

Ener1 subsidiary EnerDel received a $118 million stimulus grant from the Energy Department in 2009, and Vice President Joe Biden visited the company's new battery plant in Indiana last year.

Ener1 is the third company to seek bankruptcy protection after receiving assistance from the Energy Department under the economic stimulus law. California solar panel maker Solyndra Inc. and Beacon Power, a Massachusetts energy-storage firm, declared bankruptcy last year. Solyndra received a $528 million federal loan, while Beacon Power got a $43 million loan guarantee.

Solyndra, of Fremont, Calif., was the first renewable-energy company to receive a loan guarantee under the 2009 stimulus law, and the Obama administration frequently touted it as a model for its clean energy program.

Since then, the company's implosion and revelations that the administration hurried a review of the loan in time for a 2009 groundbreaking has become an embarrassment for President Barack Obama and a rallying cry for GOP critics of the administration's green energy program.

The chairman of a House subcommittee that is investigating Solyndra said the latest bankruptcy showed that the administration's clean energy program has failed.

"Unfortunately, you can now add Ener1 to the growing list of failed companies that went belly up after hundreds of millions of dollars in administration backing," said Rep. Cliff Stearns, R-Fla.

"One bankruptcy may be a fluke, two could be coincidence, but three is a trend," Stearns said. "Our investigation continues, and we are working to ensure taxpayers are never again stuck paying hundreds of millions of dollars because of the administration's risky bets."

An Energy Department spokeswoman said EnerDel had received $55 million so far under a program in which EnerDel matches federal investment dollar-for-dollar. Ener1 said in a statement that the restructuring would not affect EnerDel's operations. The company makes lithium-ion batteries for electric cars such as the Chevrolet Volt.

"While it's unfortunate that Ener1, the parent company, has entered a restructuring process," a recent infusion of $80 million in private investment "demonstrates that the technology has merit," said Jen Stutsman, a spokeswoman for the Energy Department.

"The restructuring is not expected to impact EnerDel's operations and they do not expect to reduce employment at the site" near Indianapolis, Stutsman said.