New motor vehicle sales have remained relatively stable during the last six months. This followed a series of major sales swings throughout much of 2005 which were influenced by the introduction and subsequent removal of major incentive programs. After a steep decline at the end of 2003, new motor vehicle sales recovered partially and then levelled out for the remainder of 2004.

Based on preliminary sales figures from the auto industry, the number of new motor vehicles declined again in May, falling by about 1%. Truck sales accounted for the bulk of this decline, although passenger car sales also decreased during the month but to a lesser degree.

Car and truck sales reverse course

Sales of both passenger cars and trucks dipped in April, although car sales showed a slightly larger decline.

Car sales decreased by 0.9%, pulled down by weak sales of North American built vehicles. Overseas built cars raced ahead 7.4% in April for a third consecutive month of gains. Those gains, however, were erased by a 4.6% slump in North American built vehicles which account for about two-thirds of passenger car sales in Canada.

Overall, car sales have generally stabilized in the past six months, following a softening in sales at the end of 2005 as generous incentive programs came to an end. Prior to this, sales had increased gradually during the first half of 2005. In 2004, sales remained relatively stable following some increases early in the year.

Truck sales (which include minivans, sport-utility vehicles, light and heavy trucks, vans and buses) decreased 0.6% in April. This was the first decline for truck sales in 2006. Despite rising gas prices, truck sales have been fairly stable for the last five months. Truck sales have gradually improved since the beginning of 2004, although they showed great volatility in 2005.

Sales decline in most provinces

Sales declined in seven provinces in April. Only Newfoundland and Labrador recorded a sizeable gain during the month (+4.8%), following two months of declining sales.

Quebec (+0.3%) and Alberta (+0.1%) were the only other provinces to post gains during the month. There have been slight gains in Quebec sales in each of the last three months. Sales in Alberta had been on a tear, with strong growth since January 2004.

Five provinces have yet to see a notable recovery in new motor vehicle sales since certain incentives were introduced in the summer of 2005 and subsequently removed.

In Eastern Canada, sales in Newfoundland and Labrador have been steadily declining since July 2005, despite the recent gain this April. Sales in New Brunswick also rallied briefly in the summer of 2005, but generally have been decreasing since the beginning of 2002. Sales in Quebec have been sliding since last summer, although the recent string of small gains may signal some stabilization.

Out West, vehicle sales in Manitoba and Saskatchewan have declined since last summer, with the trend somewhat more pronounced in Manitoba.

New motor vehicle sales
	April 2005	March 2006r	April 2006p	April 2005 to April 2006	March to April 2006
	seasonally adjusted
	number of vehicles			% change
New motor vehicles	140,800	137,731	136,724	-2.9	-0.7
Passenger cars	74,102	70,931	70,317	-5.1	-0.9
North American1	50,961	48,899	46,659	-8.4	-4.6
Overseas	23,141	22,032	23,659	2.2	7.4
Trucks, vans and buses	66,698	66,800	66,406	-0.4	-0.6
New motor vehicles
Newfoundland and Labrador	2,181	1,856	1,945	-10.8	4.8
Prince Edward Island	432	415	391	-9.5	-5.8
Nova Scotia	4,089	4,270	3,832	-6.3	-10.3
New Brunswick	2,983	2,838	2,796	-6.3	-1.5
Quebec	35,069	33,081	33,187	-5.4	0.3
Ontario	52,380	51,633	51,502	-1.7	-0.3
Manitoba	3,930	3,806	3,627	-7.7	-4.7
Saskatchewan	3,584	3,264	3,141	-12.4	-3.8
Alberta	18,984	20,075	20,099	5.9	0.1
British Columbia2	17,167	16,492	16,205	-5.6	-1.7
	April 2005	March 2006r	April 2006p	April 2005 to April 2006
	unadjusted
	number of vehicles			% change
New motor vehicles	167,441	155,990	159,436	-4.8
Passenger cars	91,395	79,363	86,258	-5.6
North American1	62,166	54,748	57,142	-8.1
Overseas	29,229	24,615	29,116	-0.4
Trucks, vans and buses	76,046	76,627	73,178	-3.8
New motor vehicles
Newfoundland and Labrador	2,872	1,992	2,575	-10.3
Prince Edward Island	510	399	442	-13.3
Nova Scotia	5,592	4,842	4,845	-13.4
New Brunswick	3,755	3,419	3,483	-7.2
Quebec	45,583	39,979	41,885	-8.1
Ontario	59,703	59,060	57,558	-3.6
Manitoba	4,647	4,111	4,192	-9.8
Saskatchewan	4,193	3,404	3,565	-15.0
Alberta	22,193	20,961	23,427	5.6
British Columbia2	18,393	17,823	17,464	-5.1
r revised p preliminary 1. Manufactured or assembled in Canada, the United States or Mexico. 2. Includes Yukon, the Northwest Territories and Nunavut.

Note to readers

Seasonally adjusted estimates of new motor vehicle sales have been revised for 2004 and 2005 to reflect an update in seasonal adjustment factors. Because of the constant evolution of seasonal factors, revisions can be more significant for some months of the year. However, the annual sum of seasonally adjusted figures corresponds to the annual sum of adjusted estimates.

All data in this release are seasonally adjusted.

Passenger cars include those used for personal and commercial purposes, such as taxis or rental cars. Trucks include minivans, sport-utility vehicles, light and heavy trucks, vans and buses.

North American built new motor vehicles include vehicles manufactured or assembled in Canada, the United States or Mexico. All other new motor vehicles are considered to have been manufactured overseas.

For reasons of confidentiality, data for Yukon, the Northwest Territories and Nunavut are included with those for British Columbia.

The New Motor Vehicle Sales Survey is compiled on the basis of figures obtained from motor vehicle manufacturers and importers. These results may vary from those obtained directly from auto dealers, due to possible differences in record keeping.

Further, David Buckingham, 39, is appointed to the position of Vice-President, Sales, effective immediately. Buckingham is an 18-year veteran of DaimlerChrysler Canada's sales organization, most recently serving as Senior Manager, Eastern Business Center Operations in Mississauga. In the position of Vice-President, Sales, Mr. Buckingham will be responsible for all Canadian sales, franchise development and service operations and will report to the President and CEO of DaimlerChrysler Canada. Former Vice-President, Bernie Clement left the company in May to become President of Pembina Chrysler Dodge Jeep in Winnipeg, Manitoba.

"Returning to Canada has been a wonderful experience for me, and I look forward to continuing to play a strategic role in Canadian operations as I move to lead the company's sales and field operations in the U.S.," said Steven Landry. "I am also proud to announce that David Buckingham will lead our sales organization. David has worked his way up through our organization and thus brings great first-hand experience working with our dealers and in diverse markets.

"David and his team have an opportunity to build DaimlerChrysler Canada's sales momentum, and successfully launch a host of new products. His expertise in sales, field operations and dealer relations will be critical to keeping our momentum in the marketplace going strong."

Since joining the company in 1988 as a sales trainee, Mr. Buckingham has worked in the Toronto and Calgary markets, as well as the Windsor headquarters. He has a business administration degree from the University of Calgary.

Through the end of May, DaimlerChrysler Canada's sales are up 9.4 percent.

RBC Rewards points can also be used to purchase parts and accessories, or applied to vehicle service at a Toyota dealership. To be eligible to participate, cardholders must use their RBC Rewards Visa card to pay for the Toyota purchase, which gives them the opportunity to receive a rebate towards their purchase using accumulated RBC Rewards points.

"This is an exciting new feature for the RBC Rewards program. We were looking for new ways to broaden the scope of the reward options for our loyal cardholders," said Andrew Mitchell, senior manager, RBC Rewards & Partnerships. "Working with Toyota Canada was a perfect fit."

RBC Rewards Visa cardholders are also automatically entered into a contest to win a 2006 Toyota Prius gasoline/electric hybrid, by redeeming points for any of the more than 275 merchandise items from the 2006 RBC Rewards catalogue. This catalogue now also includes a new Toyota Prius as a points redemption option.

"Adding this trend-setting new vehicle to our catalogue as a redemption offer has attracted a lot of interest from our cardholders - and there's a lot of excitement about the contest to win one as well," added Mitchell.

"With the addition of a Toyota Prius to the program, cardholders can redeem 4,000,000 points to drive one off the lot," explained Stephen Beatty, Managing Director at TCI. "We're very happy to be able to team up with RBC to provide yet another innovative way for Canadians to purchase the Toyota vehicle of their dreams."

"Road deaths are a global epidemic on the scale of malaria and tuberculosis and world leaders must do more to address the issue, a report entitled, ‘Make Roads Safe’ said on Thursday," reports Reuters.

"The Commission for Global Road Safety said 1.2 million people were killed and 50 million injured every year worldwide in traffic accidents. More than 85 percent of the casualties were in low and middle income countries, with road deaths second only to AIDS as a global killer of young men. The Commission said the Group of Eight (G8) must back a $300 million, 10-year action plan to address the issue in developing countries. …"

The BBC adds that "… the Commission will present its findings to world leaders ahead of the G8 summit in St Petersburg in July. …

‘In 2005, millions of people and the leaders of the G8 responded to the call to Make Poverty History. Yet many of the gains for development...will be at risk if action is not taken to reverse the growing epidemic of road traffic death and injury, with its terrible human and economic cost.’ Robertson said ‘political leadership’ from G8 members and a ‘significant increase in resources’ were needed to make roads safer. … The report says more young men die on the roads than have died in recent wars - and only HIV and Aids take more lives. …"

The Guardian (UK) notes that "… poor people tend to be more vulnerable as they are more likely to be pedestrians or cyclists. … Africa has the highest road mortality rate of any continent, with 28 deaths for every 100,000 people, followed by the Middle East, where the rate is 26 for 100,000. In wealthy European countries 11 people die on the roads annually for every 100,000 of population. …

Saul Billingsley, a spokesman for the FIA Foundation, a Paris-based global motoring group, said, ‘The problem with road safety is that there was no lobby organized when the millennium development goals were being set. Malaria, Aids and tuberculosis quite rightly occupied a lot of attention. We want to get road safety recognized as a global disease on the same scale as those others.’

The new fund will be used to incorporate safety measures into new road building schemes, improve driver training and provide expertise to governments in developing countries."

The Irish Independent writes that "… to promote the messages of the report, a campaign was launched this week, led by the European automobile group the FIA Foundation and the RAC Foundation."

Nowhere is more critical to the outcome of a grand prix than the pit lane and the BMW Sauber F1 Team Pit Lane Park brings all the excitement of pit stops, race strategies and team tactics to life in an entertaining, interactive attraction. Spanning 5,400 square meters, with a capacity of up to 1,400 visitors at a time the Pit Lane Park features authentic BMW Sauber F1 Team pit garages and a 90-metre-long stretch of track leading to a 23-metre turning area flanked by grandstands.

The star of the show is the BMW Sauber F1.06 Formula 1 race car, offering fans up-close access to the sound, speed and dynamics of the world's most state-of-the-art racing machinery. Powering up throughout the day, the F1 car will alternate on-track with a Formula BMW racing car, offering visitors an insight into the full spectrum of BMW motorsport's abilities and achievements.

As an additional highlight to the Pit Lane Park schedule in Montreal, BMW Motorrad's renowned stunt and racing champion, Christian Pfeiffer, will be performing a series of incredible demonstration rides aboard the new BMW F800S motorcycle.

"BMW Canada has a strong legacy of fan events surrounding the Canadian Grand Prix as evidenced by the success of the former BMW M Night on Peel Street", states Joe Lawrence, Director, Marketing, BMW Group Canada. "The BMW Sauber F1 Team Pit Lane Park will take that legacy to a whole new level, allowing tens of thousands of F1 enthusiasts to experience an insider's view of Formula 1 racing over the three day period."

Also featured at the BMW Sauber F1 Pit Lane Park will be:

- BMW race cars and technical exhibits.

- An authentic pit wall Team command centre.

- A view inside the driver's track life at the Team motorhome exhibit.

- Pit Stop Challenge where visitors can test their skills.

- Fan photo opportunity with BMW Sauber F1.06 race car.

- Formula 1 quiz.

- F1 inspired driving simulators.

- BMW Sauber F1 Team merchandise shop.

- Speaker's Corner for fans to ask questions of F1 experts and drivers.

Taking the success of the former BMW M Night fan event in Montreal as inspiration, the BMW Sauber F1 Pit Lane Park debuted at the European Grand Prix at the Nuerburgring this year. It has since thrilled F1 fans at the Spanish Grand Prix in Barcelona, moving next to the British Grand Prix at Silverstone. Additional sites on the 2006 Formula 1 schedule for the Pit Lane Park include the Italian Grand Prix at Monza and the Chinese Grand Prix in Shanghai

"We are committed to exceeding the expectations of those who own, drive and ride in Lexus and Toyota vehicles, and that means delivering to Canadians the comfort and convenience features they demand," explained Kenji Tomikawa, President of TCI. "We are happy to be working with XM Canada to provide our customers with access to this state-of-the-art entertainment and information technology."

TCI, which in Canada sold more than 175,000 vehicles last year and more than three million vehicles since 1965, recorded its best sales month ever in May 2006.

"The growth of the Toyota and Lexus brands in Canada in the past five years alone has been astounding and we are excited that our popular XM brand of satellite radio will now be offered in these vehicles," said Stephen Tapp, XM Canada's President and COO. "We are thrilled to have Toyota Canada join our other auto manufacturing partners."

"The Toyota and Lexus driving experience will be enhanced by XM Canada's incredible programming, dozens of commercial-free music channels, all NHL games and the entire Major League Baseball season, plus specialty programs like Bob Dylan and the FIFA World Cup," said Tapp.

Under the multi-year service distribution agreement, for a limited time, TCI will contribute an additional three months, for a total of six months, of promotional XM Canada premium service on select versions of the Toyota Camry, Avalon, Solara, 4Runner and FJ Cruiser, as well as Lexus IS 250/350, ES, GS (including GS 450h), LS, RX 350 and LX 470.

The subscription will include up to 100 channels of XM Canada's revolutionary programming, including the deepest commercial-free music playlists, NHL games coverage, FIFA World Cup coverage, Major League Baseball play-by-play game coverage, PGA TOUR and groundbreaking news, as well as the biggest names in comedy and entertainment.

XM Canada is the only satellite radio provider in Canada to produce unique Canadian content from a street front studio located at Avenue Road & Davenport in Toronto as well as another broadcast studio in downtown Montréal.

A total of 1,333 Mercedes-Benz units were retailed in May, accounting for a 13.4% increase for the month while 6,036 units were sold on a year-to-date basis for a gain of 37.5% compared to the first five months of 2005.

On the smart side, a momentous total of 456 smart fortwo coupés and cabriolets was delivered in May. This corresponds to an increase of 23.6% against May 2004 sales and is the best month ever for smart since the launch of the brand in September 2004.

For the group (Mercedes-Benz and smart), 7,560 units have been delivered so far this year which represents a gain of 1,535 units or 25.5% when compared to last year's results for the first five months. May's compelling results follow in the wake of strong previous months' sales.

The B-Class, C-Class and SLK-Class performed particularly well in May. The new 2007 S-Class also achieved stellar results as did the award-winning

M-Class SUV.

President and CEO of Mercedes-Benz Canada, Marcus Breitschwerdt,

remarked: "Further to several consecutive months of strong growth and record sales, it is now quite apparent that our customer-focused approach is a testimony to these significant accomplishments. The combination of our serious focus on quality as a fundamental Mercedes-Benz core value, competitive offers and a dedicated dealer network are most certainly key to the success we have been experiencing."

The all-new Honda Fit 5-door premium hatchback had continued strong sales in its second month on the market with 1,287 units. Honda also reported continued strong sales of the new Civic with 6,369 units - up 14 per cent over last year. The Ridgeline pickup truck had record sales of 412, up 5 per cent. Sales of the Honda CR-V compact SUV were up 29 per cent (1,695 units), and Accord sales were up 3 per cent (2,118 units) over a similar period last year. The Canadian-built Acura CSX luxury compact sedan posted a 19 per cent increase over May of last year.

Honda is the world's preeminent maker of engines for automobiles, motorcycles and power equipment. With 124 manufacturing facilities in 28 countries worldwide, Honda now attracts nearly 20 million customers annually. Honda Canada manufactures the Honda Ridgeline, Civic and Pilot, and the Acura CSX and MDX at its two plants in Alliston, Ontario. A new, third plant in Alliston, with capacity to produce up to 200,000 engines annually, is scheduled to open in 2008.

Marc Comeau, GM of Canada's vice-president of sales, service, and marketing said "As GM's turnaround continues we are staying on strategy to reduce our past dependence on certain less profitable daily rentals and continue focusing our pricing on an overall value approach for GM customers. While some May sales reductions were planned, the key is our new vehicles are taking hold and creating momentum in the Canadian marketplace. Pontiac sales led with an 8.4 % gain, Saab was up 4.6% and the Saturn product renaissance helped increase sales by 4.9%. GM Canada's small cars made huge sales gains in May led by Chevrolet Cobalt with a positive increase of 78%."

Sales Highlights for May 2006
-----------------------------

- Chevrolet Cobalt increased sales 78.5% achieving their best sales
month ever
- The new G6 and G5 Pursuit took Pontiac to the lead of the GM lineup
this month
- Pontiac small cars saw huge sales gains with G5 Pursuit up over 200%
and G6 over 300%
- GM small utilities which include the Saturn Vue, Pontiac Torrent,
Chevrolet Equinox and Chevrolet HHR increased sales in May by 82%
- Hummer H3 also continues to hit the sweet spot in the market with
sales increasing over 200%
- Cadillac trucks enjoyed a strong month. Sales were up 20.8% with the
all new Escalade posting strong increases
- Chevrolet Colorado and GMC Canyon are up a combined 34.2%

"We are pleased to have achieved the fourth monthly increase this year," said Steven Landry, President and CEO, DaimlerChrysler Canada. "So far this year, we see increases in a cross-section of our lineup, including small cars, fueled by the new Dodge Caliber; minivans led by Dodge Caravan; both Dodge pickup trucks and our full line of SUVs, pushed up by the Jeep(R) brand."

May sales highlights

--------------------

DaimlerChrysler Canada's total car sales were up 36.1 percent for the month driven by continued popularity of new Dodge car models. Dodge Caliber sales reached 2,863, more than double the 2005 May sales of the Dodge SX 2.0. Dodge Charger sales increased to 514 units, compared to 178 in 2005.

DaimlerChrysler Canada's total truck sales were up 16 percent, driven by 7.4 percent increase in Dodge Ram pickup trucks and 33.6 percent growth in the Dodge Caravan minivan sales. The Jeep brand added to the growth in trucks with an overall increase of 26.8 percent, led by Jeep Commander, Jeep Liberty and Jeep Grand Cherokee.

Year-to-date sales highlights
-----------------------------

Year-to-date, DaimlerChrysler Canada sales increased a total of 9.4 percent, with growth in both car (+21.8) and truck (+5.1) lineups. Supporting this growth is the popularity of the three vehicles produced in Brampton, Ontario. Year-to-date, sales of the Chrysler 300/300C, Dodge Charger and Dodge Magnum improved in total 23 percent to reach 11,778 units. On the car side, year-to-date growth is coming from a 58 percent increase in compact car sales (Dodge Caliber and Dodge SX 2.0).

The Jeep lineup, fueled by added sales of Jeep Commander, Jeep Grand Cherokee and Jeep Liberty, is up 11.3 percent for the year. In 2006, the Jeep brand will continue to expand with the addition of new Jeep Wrangler, Jeep Compass and Jeep Patriot models. In pickup truck sales, both Dodge Dakota and Dodge Ram pickups are up for the year, 3.4 and 9.8 percent respectively.