OTTAWA - Cliff Mackay is the new President and CEO of the Railway Association of Canada, effective May 1.

Mackay has extensive experience in government and industry at a senior level, recently as President of the Air Transport Association of Canada and a board member of NAV Canada. In the past, he served as a senior executive in the aerospace industry and was in leadership positions with the federal government for more than 20 years dealing with industry and economic development.

The announcement was made today by Sean Finn, Chairman of the Board of Directors of the RAC and Senior Vice-president, Public Affairs, Chief Legal Officer and Corporate Secretary of Canadian National Railway. "Mr. Mackay is a proven leader with energy, and is very results-oriented," said Mr. Finn. Mackay said he is excited to be joining a first-class organization. He said he looks forward to working with government, the industry and other stakeholders in ensuring Canada's railways play an active role in meeting the nation's future needs and challenges in transportation, in both domestic and international markets.

Among other awards, Mackay is a recipient of the C.D. Howe Award for his contributions to industrial policy, has a B.A. (Honours) in Economics and History from the University of New Brunswick and a M.A. in Economics from McMaster University. He is a native of Winnipeg. The RAC represents the 58 freight and passenger railways operating in Canada today. They move two-thirds of the freight in Canada, and 60 million passengers annually.

New SiM innovations track everything from company cars, speeding teens and Alzheimer patients

Solutions Into Motion Limited (SiM) has burst onto Canada’s tech scene with the introduction of ingenious monitoring products using cell phones, GPS and the web.

SiM is a privately owned Canadian company which already has more than 3,500 of its GPS enabled cell-phones deployed by hundreds of Canadian companies to keep track of their work forces.
By merging GPS, cellular and web-based technology SiM has helped businesses monitor employee whereabouts and to track business assets, in the process lowering insurance rates, fuel costs and depreciation as well as providing piece of mind to workers.

Recently, new variations of SiM technology have captured the eye of consumer users. The utilization of SiM technology to help families keep tabs on their cars while on loan to teenagers is the key behind all the buzz. SiM is grabbing headlines with its ingenious, somewhat controversial product Trackem that tracks your vehicle’s location and speed, and alerts you when your car (or family member) is breaking speed limits or is in unapproved areas.

As pre-set speed metrics or boundaries are breached, Trackem send users an email or text message. Families are gravitating to the product for anti-auto-theft reasons resulting in lower insurance rates, however, more for the peace of mind it offers parents and the enhanced safety it brings to their children. Vince Poloniato, President of SiM, says, “While teenagers may at first perceive this technology to be restrictive, surprisingly our findings show the opposite to be true. We’re finding parents actually grant more freedom and mobility to the teen using Trackem.”
The public can order ‘Trackem Lite’ for their cars by visiting online at www.trackem.com
The introduction of Trackem Lite builds on the success of a Trackem GPS equipped cell phone already sold through more than 200 dealers across Canada.

Now, Poloniato is broadening applications of the technology with numerous new variations and distribution channels, including expansion into automotive, farm and heavy equipment sectors. “To keep up with demand we’re actively pursing distribution partners across North America,” says Poloniato. SiM business users have turned the Trackem enabled cell phones into business advantage in many unique ways. In one case, a transportation company was penalized with $400 of extra charges for allegedly failing to meet a crane company at an appointed drop site. The company refuted the claim, using Trackem to prove they were there.

While not without controversy, the monitoring and tracking falls well within privacy regulations. And it is effective. In one instance, children of an Alzheimer’s patient bought a Trackem cell phone and gave it to their father. When he goes for a walk, they know where he is. When he gets lost and confused, the family uses the Internet to locate him and send assistance.
Solutions Into Motion is a new spin-off company of Hamilton-based wireless distributor Primeline Connections established in 1996. Solutions Into Motion is carving a niche in the wireless industry with unique solutions that combine GPS, cellular and Internet.

In January, 7 out of 10 provinces saw improved sales results compared to December. The majority of the provinces posted either slight gains or losses during the month. However, there were three notable exceptions.

On the plus side, vehicle sales in Nova Scotia surged by 23.2% in January compared to the previous month. This was the largest sales gain since July 2003, and the third consecutive increase for the province. Prince Edward Island also had a notable 10.1% increase, although the gain came on the heels of an even larger drop in December.

Among the few provinces that did not post higher sales in January, Saskatchewan stood out with a 5.0% decrease. While sales in most provinces were weak in the autumn before recovering somewhat at the end of 2005, sales in Saskatchewan have continued to trend downwards since the end of last summer. In January, 3,005 new vehicles were sold in Saskatchewan, the third lowest monthly sales result in the past five years.

Note to readers

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.

Kitchener Road Construction and Closures

ST. THOMAS, ON, March 10 - More than 2,000 CAW Local 1001 members at the Sterling Truck assembly plant in St. Thomas, Ontario walked off the job at midnight on a legal strike.

Outstanding issues include wages, time off the job, pension and benefits.

"We weren't able to reach an agreement. There was a lot of hard work done by the bargaining committee to bring a reasonable, responsible proposal to the table but the company refused to match the needs of our members," said Richard Laverty, the chairperson of the CAW bargaining committee. "Our members have worked inordinate amounts of overtime to meet unprecedented levels of production. The company has refused to recognize their hard work."

In spite of record production levels at the St. Thomas plant, Sterling was awarded the best truck in its class by JD Power and Associates. The plant is running flat out on three shifts. In 2003, the plant produced 78 units per day - today it produces 114 units per day. The St. Thomas plant builds the Sterling HX heavy duty truck and the Acterra medium duty truck.

Sales of Sterling trucks increased by 24 per cent last year and 71 per cent during the last three years. The St. Thomas plant utilization rate is 110 per cent.

"There's absolutely no reason for this corporation to refuse to recognize the Sterling workers' demands for a decent settlement. Sales are at their highest level in history and profit is way up, in fact the commercial vehicles division was responsible for 42 per cent of DaimlerChrysler's operating profit," said Bob Chernecki, assistant to the CAW president. "The bargaining committee and the membership have worked extremely hard in a very difficult environment to improve quality and productivity."

"We face significant challenges in an increasingly competitive industry and it has always been the quality of our people that gave us the ultimate competitive advantage," said Carlos Ghosn, President and CEO of Nissan Motor Co., Ltd. "The new team will enhance the resources we have to take on those challenges and succeed," Mr. Ghosn said.

The following changes are effective July 1, 2006:

- Jed Connelly, Senior Vice President, sales and marketing, Nissan North America (NNA), has chosen to retire after a Nissan career that began in the late 1980s. Under the direction of Connelly, 60, combined Nissan and Infiniti vehicle sales increased more than 50 percent in the United States, Nissan's largest market in the world.

- Succeeding Connelly will be Brad Bradshaw, currently Vice President and General Manager, Nissan Division, NNA. In his new role, Bradshaw will direct all sales, marketing and product planning activities for Nissan and Infiniti divisions.

- Jim Morton, Senior Vice President, administration and finance, NNA, will become Vice Chairman, NNA and continue his direction of Nissan's U.S. government and community affairs activities.

- Succeeding Morton will be Dominique Thormann, currently Senior Vice President, administration and finance, Nissan Europe (NE). As SVP administration and finance at NNA, Thormann will be responsible for finance, legal, human resources, corporate planning, corporate communications, security and audit for Nissan's North American operations. In addition, Thormann also has responsibility for the NNA sales financing affiliate Nissan Motor Acceptance Corporation (NMAC).

- Doug Betts, currently Vice President, product quality, NNA is made Senior Vice President of Total Customer Satisfaction including product quality, customer satisfaction of sales and service and corporate quality assurance, NNA. This change is effective April 1st, 2006.

- Bill Bosley, currently Managing Director, Nissan Motor Great Britain, will succeed Bradshaw as Vice President, General Manager Nissan Division, and will be responsible for sales, marketing, and administration activities for NNA's Nissan Division.

- Larry Dominique, currently Director, Product Planning, NNA is made Vice President, Product Planning, NNA responsible for advanced planning and product planning for Nissan and Infiniti vehicles. Dominique replaces Jack Collins who's retiring.

Related changes in Nissan Europe

- Eric Nicolas, currently Director, corporate planning, business strategy and program management Office, NNA, will succeed Thormann as Senior Vice President, administration and finance, NE. Nicolas will be responsible for finance, legal, human resources, corporate communications, corporate planning, cost and profit management, organization development, audit and general affairs for Nissan's European operations.

- Gary Frigo, now Vice President, sales operations, Nissan Europe, will succeed Bosley as Managing Director, Nissan Motors Great Britain.

"All these responsibilities are crucial to the successful fulfillment of the Nissan Value-Up business plan and our longer term success," Mr. Ghosn said. "I would like to particularly recognize the contribution and leadership of Jed Connelly, who led the North American team through a period of unprecedented growth and profitability. I know everyone at Nissan wishes him and his family the best in the future."

After working for Sterling Motorcars and Volkswagen of America, Connelly joined Nissan in 1989 as national direct marketing manager for Infiniti, as the luxury-car division was being launched. He served as regional general manager in the Southwest and as director of remarketing before leaving Nissan in 1994 to join Predelivery Service Corp., a vehicle processor for Ford Motor Co. and Mitsubishi Motor Sales.

Connelly rejoined Nissan in 1998 as director of staff operations for Nissan Division and was promoted through the sales and marketing organization to his current position, in which he is responsible for all marketing and sales functions for Nissan and Infiniti divisions.

Domestic sales of refined petroleum products - January 2006 (Preliminary)

Sales of refined petroleum products totalled 7 795 200 cubic metres in January, down 9.7% from January 2005. Sales decreased in all of the seven major product groups, with heavy fuel oil down 225 100 cubic metres or 27.3%. Light fuel oil sales fell 175 000 cubic metres or 23.6%. Motor Gasoline sales decreased 157 900 cubic metres or 4.8%.

By grade, sales of regular non-leaded gasoline fell 3.6%, while sales of mid-grade and premium gasoline dropped 5.3% and 17.8% respectively, compared to January 2005.

Thirteen countries forged an alliance on Wednesday to adopt a levy on plane tickets to help poor countries fight AIDS and other killer diseases, despite resistance from airlines, reports Reuters.

A further 25 countries opted not to impose the tax but promised to contribute to a central pot which the core group of 13 will create from the levy to fund the purchase of generic drugs and other medicines to help the poor. Brazil, Britain, Chile, Congo, Cyprus, France, Ivory Coast, Jordan, Luxembourg, Madagascar, Mauritius, Nicaragua, and Norway have now agreed to raise or started raising a sum from air tickets to help the poor, they said in a closing statement. The 25 others included countries such as Germany, Belgium, Austria, South Africa, South Korea and Mexico.

Le Monde (France) writes that the objective of the tax is to improve access to medications while creating a decrease in their prices by negotiating grouped purchases early on, thereby acting as an incentive for drug manufacturers who would otherwise hesitate to enter this market due to the lack of financial viability. French ambassador Michel Kazatchkine in charge of the fight against HIV/AIDS estimates that the EUR300 to 400 million raised will make it possible to have an effect on the market and thus lower costs.

Agence France Presse notes that French officials called the conference a success in getting other countries to adopt the idea championed by President Jacques Chirac -- despite the small number of states that have joined so far and the hesitation of other big Western countries with high numbers of airline passengers. The US opposes the plan, as does the airline industry and business groups, fearing it would burden carriers already struggling with high oil prices and fierce competition. But UN Secretary General Kofi Annan, speaking at the opening of the conference on Monday, hailed the initiative, saying it contributed to the international community meeting its commitment under the Millennium Development Goals.'

Les Echos (France) writes that the approximately 60 NGOs who took part in the two day event are divided over the issue of taxation. Françoise Ndayishimiye, a representative from the Global Fund to fight AIDS, malaria and tuberculosis, wished to see the collected tax go directly into the Fund and called for a more "global vision" in administering the money. Régis Mabilais from Coordination Sud, which comprises more than 100 French NGOs, was, on the other hand, more supportive of the airline tax. He said the implementation of the tax illustrates real progress from where the world stood on this issue two years ago, when the idea could not even be discussed. However, the organization noted that it was necessary to ensure countries did not enter into these new arrangements by shifting funding from their objective to dedicate 0.7 percent of their national wealth towards development.

The Associated Press further reports that at the conference, a pilot group of 38 countries also agreed to create a structure to make it cheaper to buy medication for those in need. It was hoped that the International Drug Purchase Facility would be finalized by September 2006 at the latest. The facility, promoted by France and Brazil, would help obtain cheap anti-retroviral drugs needed by those with HIV or AIDS.

The Wall Street Journal notes that France's airline ticket tax will range from EUR1 to EUR40, or $1.19 to $47.66, depending on seating class and distance of the flight. It will be added to ticket prices starting in July.

BMW Brand: Led by strong 3 and 5 Series sales.

The BMW brand achieved record February sales of 1,135 units. This is an increase of 2.3% over February 2005 sales of BMWs in Canada. Year-to-date, BMW brand sales are up 10.1% with 2,031 vehicles retailed.

BMW Group Canada's successful sales month was led by the 3 Series and 5 Series. Voted "Best New Sports Sedan" for 2006 by the Automobile Journalists Association of Canada (AJAC), the BMW 3 Series saw an increase in sales of 19.9% over February 2005, with 608 units retailed. Year-to-date, 1,016 BMW Series have been sold in Canada, a 28.4% increase over last year.

Sales of the BMW 5 Series, of which the Touring variant was voted AJAC's "Best New Luxury Prestige Car" for 2006, were strong in the month of February with 181 vehicles retailed. This represents an increase of 69.2% over February 2005 sales. Year-to-date, 330 BMW 5 Series have been retailed in Canada, up 74.6% over the same period last year.

The ultimate premium luxury vehicle, the BMW 7 Series, also saw strong sales in the second month of 2006 with an increase of 54.5% over last year. Year-to-date, 48 BMW 7 Series have been sold in Canada, this is an increase of 20.0% over the same period in 2005.

"Canadians purchased BMW and MINIs in record numbers in February, which demonstrates the tremendous appeal of our products," said Lindsay Duffield, President and CEO, BMW Group Canada. "We have the strongest model line-up in our history. With new products like the updated BMW Z4, the new M Roadster, M Coupe, M6 Coupe and BMW Alpina B7 soon to arrive into BMW Retailer showrooms across the country, we have the momentum to make our 20th year as a BMW Sales Subsidiary in Canada the most successful year ever."

BMW Motorrad Canada retailed 21 BMW Motorcycles in February, representing an increase of 40.0% when compared with February 2005 sales of 15 units.

Year-to-date, 33 BMW Motorcycles has been retailed in Canada.

MINI Brand: MINI Canada celebrates most successful February sales

In the month of February, MINI Canada reported all-time record February sales of 172 MINIs, an increase of 5.5% when compared with February 2005 sales. Year-to-date, 313 MINIs have been delivered to Canadian customers, an increase of 4.0% when compared with the same period in 2005.

Honda Canada also reported a 19 per cent sales increase in February of the new Honda Civic with sales of 3,932, compared to 3,316 units last year. The 2006 Civic lineup includes four distinct models - sedan, coupe, hybrid and Si coupe. The Civic Sedan, built at Honda's vehicle assembly plant in Alliston, Ontario, was named Canada's "Car of the Year" this past month by AJAC (Automobile Journalists Association of Canada). Honda Civic was also named Motor Trend's "Car of the Year" and was voted the "North American Car of the Year" by a jury of leading Canadian and U.S. automotive writers.

Acura's all-new CSX luxury compact sedan had a 35 per cent increase over Acura's previous compact sedan. The CSX is designed to offer Canadians a premium package with a 155-horsepower engine and features such as Acura's satellite navigation system and available steering-wheel-mounted paddle shifters (with the automatic transmission). CSX is designed to serve as the gateway product to Acura's technology advanced performance division.

AJAX, ON - Volkswagen Canada sales totalled 1,906 new units for February 2006, compared with 1,724 units in February 2005, an increase of 10.6%. This total is comprised of: 98 New Beetles, 260 Golf/GTIs, 1,208 Jettas, 296 Passats, 43 Touaregs and 1 Phaeton.

Jetta and Passat sales continued to do well in February 2006, compared with February 2005, Jetta sales increased by 11.4%, while Passat sales climbed by 6.9%. Passat sales should continue to climb in March with the recent launch of the Passat Wagon, and GTI sales are also expected to climb, as the all-new 2007 GTI has started appearing in Canadian dealerships.

MONTREAL - VIA Rail Canada officially launched its Wireless Internet (Wi-Fi) access service on board its trains, in several stations and in Panorama lounges in the Québec City-Windsor corridor - a first in North America. The service is being offered starting today to all travellers between Montreal and Québec City and in many VIA 1 class cars between Montreal-Toronto. By the end of this year, all VIA 1 and Comfort class travellers will be able to access the Internet on all VIA intercity trains in Ontario and Quebec.

"We are excited at the prospect of offering Wireless Internet" said Paul Côté, President and Chief Executive Officer of VIA Rail. He added that "this service will be of great benefit to frequent travellers and business people who will be able to log on to work, making productive use of their time. Travellers today are seeking ways to get more done in less time. Others will simply want to chat with family and friends during their trip. Thanks to Wi-Fi, they now have an option that makes their travel time even more productive, relaxing and enjoyable."

"This is a significant milestone for VIA, not only because we are a leader in our industry with innovative technology, but because we are committed to bringing value to our customers. Our team is constantly working together to enrich the experience of travelling with VIA - people moving people, as we like to say. We strive to exceed our customers' expectations by offering them an alternative - the human way to travel," reinforced Mr. Côté.

In addition to VIA's WI-Fi service, travellers have access to online bookings and self ticketing kiosks. This will ease the process of travelling at every single step, freeing staff to spend more time serving customers. VIA will be offering three types of rate plans, adapted to travellers' needs: a single-use plan, a full-day day plan and a monthly plan. The single- access plan, valid for 15 minutes, costs $3.99 and each additional minute costs $0.30. Full-day access, valid for 24 hours, costs $8.95. Frequent travellers can subscribe to a monthly plan at a cost of $46.

The system combines satellite and cellular communications and the Wi-Fi technology which allows access to the Internet. Thus, travellers using the Wi- Fi service provided by Opti-Fi will be able to take advantage of continuous wireless access on board. Passengers whose computers are equipped with Wi-Fi technology or who use personal digital assistants will automatically have the service available when they turn on their devices.

The Wireless Internet service offered by VIA is the result of a five-year partnership with Parsons, one of the world's leading engineering and program management firms. Parsons has invested US $10 million in this partnership to implement a network focused on consumers, and offering a range of private and public applications.

In a Canadian first, TCI will unveil an epic, two-minute feature commercial that will air during this Sunday's telecast of The Academy Awards(R) on CTV (March 5 at 8 p.m. ET). The short film will run only in Canada and only once inside the Academy Awards(R) telecast. The super-sized spot, entitled "What You Want Is What You Need" will reveal to Canadians en masse, the new, restyled 2007 Toyota Camry (See "About The All-New 2007 Toyota Camry" below).

CTV confirmed the spot, produced for TCI by Toronto-based Saatchi and Saatchi Canada, will air in the first commercial break, immediately following the highly anticipated opening monologue delivered by Oscar host Jon Stewart. Following its premiere, the commercial will be re-versioned as one 60-second spot, and along with two new 30-second spots, will continue to air on CTV through May.

The upcoming debut of the Camry spot marks Week 3 of the overall 15-week, multi-media, multi-platform TCI campaign, exclusive to CTV and a selection of sister Bell Globemedia properties. Pegged with an overall value in the multi- million dollar range, it represents one of the most extensive campaigns ever executed in Canada around The Academy Awards on CTV.

"Toyota Camry is the best-selling car in North America, and for the launch of the new 2007 model, we knew that we needed to do something special," explained Stephen Beatty, Managing Director at TCI. "When we looked at audience figures, the Academy Awards(R) broadcast consistently ranks as the most-watched television program in Canada, making it the perfect program through which to reach potential Camry buyers. Since the Oscars(R) is a celebration of movies, it was only natural that we produce a short film of our own to introduce the all-new Camry."

"CTV is pleased that Toyota recognizes the Academy Awards as a powerful vehicle for both advertisers and viewers alike," said Rita Fabian, CTV's Senior Vice President of Sales and Marketing. "We've worked hard with Toyota to develop a multi-platform campaign across numerous Bell Globemedia properties to ensure maximum reach and impact."

The opening phase of the campaign started February 13 with tease spots on CTV. Following the Oscars(R), the campaign kicks into gear with a concentrated brand-sell phase leading up to March 20. For the next 10 weeks, the spots will

run in rotation on CTV, as well as on Discovery and TSN with additional

on-line elements and print components in The Globe and Mail.

As part of its unprecedented package for The Academy Awards(R) on CTV, TCI is also the sponsor of another first for Canada. CTV announced today it will provide "Enhanced TV" for the first time ever, in tandem with its Academy

Awards(R) telecast. Using technology customized for the Oscars(R), viewers can visit ctv.ca/Oscars and stay online during the telecast. With Enhanced TV powered by Toyota, viewers can make predictions as each category unfolds and answer trivia questions throughout the night. It's all customized and timed for the live broadcast. The faster you answer, the better your odds at winning a state of the art home theatre system, courtesy of Toyota and CTV, that includes a 50" Plasma HD TV, 5-Disc Home Theatre System, DVD Camcorder and Digital Camera. To take part in Enhanced TV powered by Toyota, viewers must register at ctv.ca/oscars by 8 p.m. ET Sunday, March 5th.

The year-round Car Heaven program, developed by the Clean Air Foundation and supported by partnerships with General Motors of Canada, Imperial Oil, Government of Canada, Ontario Ministry of the Environment and the Ontario Automotive Recyclers Association, is dedicated to accelerating the retirement of old, higher polluting vehicles and to promoting a shift to cleaner alternatives.

"Through Car Heaven we can get more new, cleaner technology on the road

faster, and that's good for the environment," said David Paterson,

vice-president, corporate and environmental affairs, General Motors of Canada. "Car Heaven is one of many strategies that GM is involved with to reduce vehicle and Green House Gas emissions. Since 1970, GM has reduced smog-causing emissions from vehicles by 99.7 per cent, with the introduction of sophisticated emission control technology and GM vehicles have earned more EnerGuide fuel efficiency awards than any other manufacturer."

"Clean Air Foundation hopes that Ontarians will continue to help us take older and higher polluting vehicles off the road this year," adds Ersilia Serafini, Executive Director of the Clean Air Foundation. "Car Heaven provides a great incentive to help motorists make the shift to cleaner technology vehicles and have a positive impact on air quality."

Car Heaven donors are offered tax receipts from their choice of 15 affiliated charities - either for the $60 set value or the bid value of the vehicle, whichever is greater - and their vehicles are towed free of charge by the Ontario Automotive Recycler's Association (OARA). For Car Heaven participants whose vehicles are in running condition and 11 years or older, General Motors of Canada will continue to offer the $1,000 incentive towards the purchase or lease of any new GM vehicle in 2006.

Donor forms and program details are available in Ontario through Phase 1, Phase 2 and Phase 3 Drive Clean test and repair facilities, Ministry of Transportation, Driver and Vehicle Licensing Bureaus and GM dealerships. Ontarians interested in donating to Car Heaven can visit www.carheaven.ca or call 1-888-731-7311.

"We're thrilled with AJAC's recognition of the Solstice design, which is further evidence of the design renaissance taking place across GM's line-up," said Michael Grimaldi, President of GM of Canada. "Expressive design is drawing more and more new customers to GM showrooms and there is plenty more to come as we bring 20 new models to market this year."

Since it was first introduced, the Solstice has evoked a passionate response from consumers and automotive journalists alike. Inspired by the pure lines of classic roadsters, the 2006 Solstice delivers seductive style combined with a dynamic open air driving experience, all at a very attainable price.

"We thank the AJAC members for these awards," said Jim Miller, executive vice president of Honda Canada Inc. "Their thorough testing and evaluation processes have helped make these awards important for Canadian consumers.

"We are truly honoured that these two awards from AJAC represent an unprecedented third round of significant media wins in one year," said Miller. "Honda Civic was voted the North American Car of the Year by a group of leading Canadian and U.S. automotive media and was named Motor Trend's 2006 Car of the Year. Likewise, our Ridgeline pickup was voted the North American Truck of the Year and was also named Motor Trend's Truck of the Year.

"The awards were also celebrated by the 4,300 associates at the Honda of Canada Mfg. plant in Alliston, Ontario, where Civic Sedan and the Ridgeline pickup truck are built. The awards underscore their commitment to overall design, engineering and technology of the new Civic and Ridgeline, and excellent manufacturing quality."

The Honda Civic Sedan won the 2006 Best New Economy Car category in the annual competition by the Automobile Journalists Association of Canada (AJAC). The new Civic Sedan is significantly improved for 2006 with increased performance, stylistic exterior design, refined interior, class-leading safety features and high levels of quality designed to maintain Civic's position as Canada's best-selling car.

The Honda Ridgeline won AJAC's 2006 Best New Pickup Truck category. The Ridgeline is Honda's all-new truck entry that features true half-ton payload capability, an interior similar to a full-size truck and an exterior length of a compact truck. Built on a segment-first closed box unibody frame, Ridgeline adds refinement, handling performance, an innovative In-Bed Trunk(TM) and other packaging features previously unattainable with a traditional body-on- frame truck design.

Other AJAC awards for 2006 include the Honda Civic Si Coupe as "Best New Sports Car" and Honda Civic Hybrid as "Best New Alternative Power" vehicle.

The 197-horsepower Civic Si Coupe is designed to showcase the performance potential of Honda's new global compact platform while providing everyday practicality of a Civic with its legendary quality, refinement and durability. The Civic Hybrid features a new generation of Honda's Integrated Motor Assist

(IMA) technology, providing an estimated fuel economy rating of 4.7 L/100km

(city) and 4.3 L/100km (highway). A new feature on the Civic Hybrid is the ability to deactivate all four of its cylinders and operate using only the electric motor in certain steady-state cruising situations.

Across its entire portfolio of products, Honda Canada provides Canadians with dependable vehicles, motorcycles, power equipment and marine engines. With 124 manufacturing facilities in 28 countries worldwide, Honda now attracts nearly 20 million customers annually. Honda Canada manufactures the Honda Ridgeline, Pilot, Civic Coupe, Civic Sedan and Civic Si Coupe, and the Acura CSX and MDX at its two plants in Alliston, Ontario.

The RD-X Concept hints at the all-new Acura RDX production vehicle scheduled to go on sale this summer. The RDX, to be built on an all-new global light truck platform, will feature Acura's new Super Handling All-Wheel

Drive(TM) (SH-AWD(TM)) system. As a luxury crossover vehicle, RDX will combine

the performance of a sports sedan with a variable-flow turbocharged,

240-horsepower engine and the all-wheel drive capability and functional utility of an SUV. RDX will offer features such as satellite navigation with voice recognition, a premium DVD-Audio sound system and HandsFreeLink(TM) wireless telephone interface.

The RD-X Concept features the groundbreaking Super Handling All-Wheel

Drive(TM) system that was first introduced on the 2005 Acura RL ultra luxury sedan. The unique SH-AWD(TM) system distributes torque not only between the front and rear wheels, but also between the left and right rear wheels. The result is superior traction on all surfaces and in all weather conditions, as well as increased cornering precision for enhanced driver control.

To complement the SH-AWD(TM) system, Acura designers gave the RD-X Concept a highly-refined chassis with fully independent front and rear suspension. Large Brembo disc brakes with slotted rotors, 19-inch, 5-spoke alloy wheels and 255/50R19 tires combine for strong grip and an aggressive look.

The RD-X Concept's chiseled exterior styling provides both excellent visibility for driving in city traffic or on twisty mountain roads. It employs a compact upper body with an aggressively raked belt line, ample wheel flares and a substantial hood that flows down from the windshield to a brushed aluminum Acura signature five-sided grill. Generous side sills and fender garnish, dual integrated exhaust tips, wrap-around LED headlights and taillights, and a rear spoiler add to the strong look of the concept vehicle.

As part of Acura's commitment to Safety Through Technology, the RD-X Concept is equipped with the Advanced Compatibility Engineering(TM) (ACE(TM)) body structure. This unique new design enhances protection of occupants during a frontal collision, while at the same time reducing aggressivity to other vehicles.

Inside, the RD-X Concept seamlessly combines an ultra modern

driver-oriented cockpit with a sizeable, easily transformable cargo area. The instrument panel and door inserts are trimmed with a combination of ivory leather and ivory suede. Dual front bucket seats, trimmed in tangerine- coloured, crocodile-embossed leather with ivory-coloured wool headrests are positioned close together rally-style to facilitate easy communication between the driver and the front passenger.

Tangerine-coloured leather is also used on the steering wheel, door accents, seat backs and centre console. The entire headliner and rear cargo bay are trimmed with off-white suede material.

A unique, clear acrylic wing runs across the top of the instrument panel giving the RD-X Concept cockpit an ultra-modern, high tech look. Large, metallic gauges sit directly in front of the driver, arranged with tachometer on the left, speedometer in the middle and temperature gauge on the right.

Shift indicators showing "+" and "-" are linked to the steering

wheel-mounted paddle shifters and integrated into the tachometer and temperature gauges, allowing the driver to track shifts, up and down.

An eight-inch colour LCD screen dominates the centre of the instrument panel and displays information for the Acura Navigation System, audio system and other advanced in-car functions. Like the Acura RL sedan, a range of features such as navigation, audio and dual climate control are controlled using the Interface Dial mounted in the centre of the instrument panel. Similar to a computer mouse, the dial allows the user to easily scroll through menu options, and point and click to select.

The RD-X Concept is equipped with a satellite communication system which allows the driver to access the internet, read movie reviews, and download music. A hard-drive, integrated into the centre console, allows storage of an entire digital music library, which can be accessed at any time. Also, a

nine-speaker DVD-Audio system delivers surround sound to all seating positions.

The RD-X Concept's rosewood covered floor is low and flat, allowing for ample leg room for both rows of seats. A long, vertical moonroof stretches completely over the first and second row seating positions. The rear offers generous storage space for luggage, snowboards, and other items. Grooves in the floor are perfect for securing bicycles. Each side panel holds a subwoofer protected from cargo by tubular aluminum railings.

The RD-X Concept highlights Acura's commitment to expanding its light truck lineup. The new Acura RDX production model will be assembled at the Honda of America Manufacturing vehicle assembly plant in Marysville, Ohio.

"We're pleased to accept the Best New Technology award from AJAC," said Stuart Payne, Director for Lexus in Canada. "At Lexus, we strive to develop new technologies that maximize the performance and efficiency of our vehicles, and the injection system on the new IS 350 sport sedan which won this award is an excellent example of that."

The IS 350 is powered by a 306-horsepower 3.5-litre 24-valve dual overhead cam V6 engine that features a unique fuel injection system. This system combines direct fuel injection - delivering fuel to the combustion chamber - and port fuel injection - delivering fuel to the intake ports. Fuel distribution is controlled via the two types of injection, according to driving conditions:

- When the engine is running under low or medium loads at lower speeds,

both systems are used to create a homogeneous air-fuel mixture. This

stabilizes combustion, improves fuel efficiency, and reduces exhaust

emissions.

- When the engine is running under heavy load, the engine automatically

converts to a direct injection-only system. By controlling the timing

and duration of fuel being injected directly to the combustion

chamber, the combustion efficiency of each charge is maximized. It

also allows the engine to operate at a higher compression ratio,

thereby improving engine output and performance, by reducing the

tendency of the compressed mixture to ignite prematurely.

"Lexus is committed to developing new technologies to help improve the performance of our vehicles, and minimize their environmental impact," continued Payne. "While this award firmly establishes our technological leadership in the automotive industry, Lexus will continue to create leading- edge systems in our cars and SUVs for years to come."

The all-new rear-wheel drive 2006 Lexus IS 350, as well a rear-wheel drive and all-wheel drive version of the IS 250, went on sale in Canada in October.

After two months of gains, new motor vehicle sales were little changed in December, while sales for the year as a whole increased for the first time since 2002.

Consumers drove 135,098 vehicles off dealers' lots in December, a decrease of 0.4% or about 600 vehicles from November. December sales were slightly below those of an average month, which was around 135,900 vehicles in 2005.

An upward trend in new motor vehicle sales since the start of 2005 peaked in the summer, and fell off sharply in the autumn months, following the winding down of "employee pricing" and other incentive programs. The fourth quarter of 2005 saw sales recover to levels in line with recent historical levels. After a steep decline at the end of 2003, new motor vehicle sales partially recovered and then remained relatively stable in 2004.

Based on preliminary figures from the auto industry, the number of new motor vehicles sold in January increased by about 1%. Both new passenger car and truck sales increased during the month.

Annual sales turn a corner after two years of declines

New motor vehicle sales turned a corner in 2005, gaining 3.5% to 1,630,316 units, and increasing for the first time in three years after hitting a record high in 2002. Before declining in 2003 and 2004, new motor vehicle sales had not decreased on an annual basis since 1995.

North American automakers continued to implement high profile incentive and rebate programs in 2005. In particular, sizeable incentives over the summer resulted in a spike in sales, followed by a subsequent drop in the latter part of the year as incentives dwindled and gasoline prices briefly surged.

Truck and car sales both accelerate in 2005

Cars and trucks both contributed to the overall advance in sales in 2005. Truck sales had slightly stronger gains in 2005, increasing by 4.0% or about 30,000 vehicles. Truck sales had decreased by 0.8% in 2004.

Car sales moved ahead 3.1%, with a sales increase of about 25,000 vehicles compared to 2004. The gain was attributable to both North American and overseas built vehicles. Passenger car sales had been much weaker in the previous two years, declining by 5.2% in 2004 and by 7.4% in 2003.

Canadians' love for trucks on the rebound

In terms of market share, truck sales represented 48.2% of new vehicles sold in 2005, matching the previous peak reached in 1998. Truck sales include minivans, sport-utility vehicles, light and heavy trucks, vans and buses. Between 1998 and 2001, truck sales lost ground before gradually returning to current levels. As recently as 1991, truck sales accounted for less than one-third of total new motor vehicle sales in Canada.

North American built vehicles regained some of their lost market share in 2005, accounting for 68.0% of passenger cars sold in Canada. Overseas built vehicles have generally been gaining a much larger market share over the last 10 years. In 1997, overseas built cars accounted for slightly less than 15% of all passenger cars sold in Canada.

Alberta leads the country for a second consecutive year

New motor vehicle sales were up across the country in 2005, with virtually every province sharing in the gains. Many of the provinces hovered around the average, although there were a few notable exceptions.

Leading the pack, new motor vehicle sales in Alberta jumped a whopping 13.4% on the back of a strong economy. The lowest unemployment rates as well as the highest average wages in the country created a favourable environment for vehicle sales in the province. Alberta, with only about 14% of the total Canadian automotive market, accounted for almost half of the total sales gain in 2005. New motor vehicle sales also increased in Alberta in 2004, one of only two provinces to realize a sales gain that year.

Newfoundland and Labrador was the only other province exceeding the national average in 2005, with a large 8.7% jump in sales. The remaining provinces saw increases which were below the national average.

Ontario posted fairly strong sales results in 2005, increasing by 2.8%. The Prairies and the region formed by British Columbia and the territories also saw stronger sales in 2005. Sales in British Columbia gained 2.7% in 2005, followed by a 2.6% increase in Manitoba and a 1.1% increase in Saskatchewan.

New Brunswick and Quebec had relatively weak sales in 2005. Sales in New Brunswick decreased by 0.8% compared to 2004, while dealers in Quebec managed to squeeze out a slight 0.7% gain on the year.

Feb. 8 (Bloomberg) -- Toyota Motor Corp., the world's second-biggest carmaker, said it will enlarge the second factory it's building in Canada to expand the production capacity by 50 percent to meet expected sales growth in North America.

Toyota will spend C$1.1 billion ($954 million) to build a factory in Woodstock, Ontario capable of making 150,000 RAV4 compact sport-utility vehicles a year by 2008. The Toyota City, Japan-based carmaker had planned a C$800 million factory for producing 100,000 RAV4s a year, according to a June announcement.

``This capacity increase gives us the flexibility to adjust to future market demand,'' Seiichi Sudo, president of Toyota Motor Manufacturing North America, said in a statement today.

The enlarged factory will give the world's largest carmaker by capitalization capacity to produce 1.88 million vehicles a year in North America by 2008. Toyota President Katsuaki Watanabe is spending a record 1.4 trillion yen this business year on research and building new factories in North America, Europe and Asia, aiming to become the world's largest carmaker.

Toyota's 2005 U.S. sales rose 10.1 percent to 2.26 million units, beating its 5 percent annual growth goal and taking more market share from General Motors Corp. and Ford Motor Co.

The Woodstock factory will employ 2,000 people, creating more jobs than the 1,300 previous announced, Toyota said. Woodstock is 137 kilometers (82 miles) southwest of Toronto, and 53 kilometers from Toyota's first Canadian plant in Cambridge, Ontario. The Cambridge factory opened in 1988 and builds Corollas, Matrix hatchbacks and Lexus RX 330 SUVs.

Shares of Toyota, which have gained 49 percent in the last 12 months, fell 1.1 percent to 6,050 yen today in Tokyo.

WOODSTOCK, ON, Feb. 7 - Toyota said today that annual production capacity will increase to 150,000 RAV4 sport utility vehicles at a plant under construction here. Total employment will reach about 2,000 and the total investment will grow to about C$1.1 billion/US$950 million.

The facility, managed by Toyota Motor Manufacturing Canada (TMMC) in Cambridge, was announced last June and construction began in October. Production begins in 2008.

"This capacity increase gives us the flexibility to adjust to future market demand," said Seiichi Sudo, president of Toyota Motor Manufacturing North America (TMMNA). "We are confident in TMMC's ability to handle this growth."

Ray Tanguay, president of TMMC, said the expansion is further evidence of the strength of the auto industry.

"This announcement is a vote of confidence by Toyota and the consumers, and demonstrates that auto manufacturing is alive and well in Canada," he said. "It is not only good news for our team members, but also for Canada and our suppliers across North America."

"We knew that Toyota's new plant in Woodstock would bring tremendous benefits to the community and to all of Ontario, and now our great expectations have quickly been exceeded," said Ontario Economic Development and Trade Minister Joe Cordiano. "Toyota's continued investment in Woodstock is a strong vote of confidence in Ontario's highly skilled workforce, and we are proud of their decision to choose this great province."
TMMC, which employs 4,300 and builds the Corolla, Matrix and Lexus RX330, has been manufacturing vehicles in Cambridge since November 1988. TMMC built more than 306,000 units in 2005.

By 2008, Toyota will have the annual capacity to build 1.88 million cars and trucks, 1.44 million engines, and 600,000 automatic transmissions in North America. The company's direct employment is 38,000, with a current investment of $16.3 billion. In addition, Toyota's annual purchasing of parts, materials, goods and services from North American suppliers totals more than US$26 billion. Toyota's North American-produced vehicles include the Avalon, Camry, Corolla, Matrix, Sienna, Solara, Sequoia, Tacoma, Tundra and the Lexus RX330. Toyota begins producing the Camry Hybrid in Kentucky later this year.

Aircraft movements were down at 20 airports in 2005 compared with 2004. Calgary International, Calgary/Springbank and Pitt Meadows showed the largest year-over-year gains in aircraft movements, each posting increases of more than 10,000 movements. Montréal/St-Hubert (-38,742) and Thunder Bay (-18,029) showed the largest year-over-year declines.

Overall, itinerant movements were up by 19,076 movements (+0.6%) in 2005, continuing the positive trend observed the previous year. The year-over-year variations ranged from an increase of 14.6% at Regina International to a decline of 20.6% at Montréal/Mirabel International. Of the 10 airports handling the most itinerant movements in 2005, 6 recorded increases compared to 2004.

Local movements were down for the fourth consecutive year, falling by 28,651 movements or by 2.3% in 2005. The year-over-year comparisons ranged from an increase of 38.9% at St-Jean, Québec to a decline of 74.3% at Vancouver Harbour. Of the 10 airports handling the most local movements, 4 recorded decreases compared to 2004.

OAKVILLE , Ontario , February 1, 2006 – Ford Fusion rang in the New Year with its best month of sales ever since its October 2005 launch. January's searing Fusion sales led the double-digit total car sales increase this month for Ford Motor Company of Canada, Limited.

The company's overall vehicle sales got off to a fast start this year with sales reaching 11,602 units, an 8.5 per cent increase compared to 10,693 units last January. Car sales soared to a 15.4 per cent increase vs. last year, as truck sales also increased in January by 5.8 per cent over January 2005.

"Ford Fusion really powered this month's great results," said Brant Noltie, director of sales operations. "It is the ideal car for the Canadian consumer – break-through styling, great performance, and excellent fuel economy, all at the right price."

Fusion was accompanied in its success this month by other Ford models:

Ford Freestyle continued its upward climb in the competitive crossover segment with a 23.3 per cent increase this month vs. last January.

Ford Escape continues to lead in the compact SUV category with another record: best January since its launch in 2000 and a 5.8 per cent increase over January 2005.
Ford Ranger had a banner month with a 94 per cent increase year over year.
Ford F-Series sales increased this month 10.2 per cent over last January.

"Our momentum continued into January with an 18.6% increase over last year. This is a good start to another exciting year for BMW Group in Canada," stated Lindsay Duffield, President and CEO, BMW Group Canada. "Particularly satisfying was a 43.7% increase in 3 Series and 81.7% increase in 5 Series sales. These award winning vehicles, with the unmatched combination of performance, optional xDrive All Wheel Drive, industry leading safety features and high resale values, continue to resonate with consumers. Also, with a record 141 MINI sales in January, more and more consumers are also enjoying our unpredictable Canadian winters by motoring around in their safe and agile MINIs".

BMW brand: BMW 3 and 5 Series lead strength in sales.

In the month of January, the BMW brand achieved record January sales of 896 units. This represents an increase of 21.7% over January 2005 sales of BMWs in Canada.

BMW Group Canada's strong BMW sales were led by the 3 Series and 5 Series. Voted "Best New Sports Sedan" for 2006 by the Automobile Journalists Association of Canada (AJAC), the BMW 3 Series saw an increase in sales of 43.7% over January 2005, with 408 units retailed. The BMW 5 Series, of which the Touring variant was voted AJAC's "Best New Luxury Prestige Car" for 2006, also saw strong sales in the first month of 2006, with 149 vehicles retailed, an increase of 81.7% over January 2005.

BMW's 6 and 7 Series also had strong sales in January, with 6 Series sales up 37.5% and 7 Series up 6.9% over January 2005 sales.

BMW Motorrad Canada retailed 12 BMW Motorcycles in January, representing a decrease of 13 units when compared with January 2005 sales.

MINI Brand: MINI Canada achieves all-time record January sales

In the month of January, MINI Canada reported best ever January sales of 141 MINIs, this represents an increase of 2.2% when compared with January 2005 sales. With the unseasonably mild winter weather in Canada, the expanding product line of the MINI Convertible realized an increase of 130% in January 2006 over the same month in 2005.

BMW Group Canada, based in Whitby, Ontario, is a wholly-owned subsidiary of BMW AG and is responsible for the distribution of BMW luxury performance automobiles, Sports Activity Vehicles, Motorcycles, and MINI. BMW Group Financial Services Canada is a division of BMW Group Canada and offers retail financing and leasing programs on new and pre-owned BMW and MINI automobiles, as well as retail financing for new and pre-owned BMW Motorcycles. A total network of 39 BMW automobile retail centres, 18 BMW motorcycle retailers, and 22 MINI retailers represents the BMW Group across the country.

"We are continuing the momentum from 2005 with strong sales performance of vehicles like the Dodge Dakota and the Jeep(R) Liberty," said Bernie Clement, Vice President, Sales and Service, DaimlerChrysler Canada. "With creative marketing initiatives and with highly-anticipated vehicles like the all-new 2007 Dodge Caliber coming to dealerships in the spring, we believe consumers will continue to respond."

January sales highlights

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

Brampton-built vehicles helped boost January sales with Chrysler 300/300C sales up 6.9 per cent over last year with 1,268 units, including the Chrysler 300C which set a new January sales record of 393 units, up 74.7 per cent; Dodge Magnum increased sales by 28.9 per cent over January 2005, with 585 units sold; and the Dodge Charger added sales of 457 units. Total Jeep sales are up 22.7 per cent with Jeep Liberty setting a new January sales record with 1,137 sales, up 27.2 per cent over last year; the Jeep TJ posting sales of 231 units, up 14.4 per cent; and the Jeep Commander added a total of 157 units. The Dodge Dakota posted sales of 860 units, up 83 per cent over last year's total of 470 units.

"We are pleased with our strong start to 2006 in Canada," said Marc Comeau, vice president General Motors of Canada vehicle sales service marketing. "GM Canada's small sport utility vehicles were up more than 200% with the Chevrolet Equinox up 41.8% and strong sales for the recently launched Pontiac Torrent and Chevrolet HHR. The market for these sport utility cross- over vehicles is growing and these results further demonstrate our commitment to be the leader in this segment."

"GM Canada's mid-size cars also saw double digit gains overall, with the Chevrolet Impala up 83% and the Pontiac G6 up 101%." Comeau added, "Cadillac continues to be a great success story for us in the luxury segment. Sales were up 56.2% in Canada in January and customers are eagerly anticipating the new 2007 Cadillac Escalade, which premiered last month at the Montreal Auto Show."

Comeau concluded "I am encouraged by our January numbers and the excitement around our auto show product launches. The latest editions to the Saturn family include the Sky, Aura and the Vue GreenLine, the most affordable small utility hybrid priced under $30,000."

Sales Highlights for JANUARY 2006

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

- Chevrolet Cobalt exceeded last year's combined Cavalier and Cobalt

sales.

- The Pontiac G6 and the Canadian built Chevrolet Impala continue to

gain momentum, up 101% and 83%, respectively.

- The Saab 9-3, with the recently launched 9-3 SportCombi, led the way

with Saab seeing an overall sales increase of 31%.

<<

GENERAL MOTORS OF CANADA SALES

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

MONTH OF JANUARY 2006

2006 2005 % CHG

TOTAL CARS 11,717 10,272 14.1%

TOTAL TRUCKS 11,230 10,752 4.4%

COMBINED VEHICLES 22,947 21,024 9.1%

Headquartered in Oshawa, Ontario, General Motors of Canada employs more than 20,000 people nationwide. GM of Canada manufactures a variety of vehicles, engines, transmissions and other components, and markets the full range of General Motors vehicles and related services through 765 dealerships and retailers across Canada. Vehicles sold through this network include Chevrolet, Buick, Pontiac, GMC, Saturn, Hummer, Saab and Cadillac.

"This has been another great month for Toyota, as we celebrate both record January results and the sale of over three million vehicles in Canada," said Tony Wearing, Managing Director of TCI. "Sales this month was fuelled by all-new products including the popular Yaris Hatchback, Prius hybrid, and the Canadian-built Matrix, along with our trucks, such as the RAV4 compact SUV. Our sales momentum will continue to grow as we introduce more innovative new vehicles, like the Yaris 4-door and FJ Cruiser in the coming months."

"The new Lexus IS sedan really struck a chord with buyers in January, proving that Lexus is hitting the mark with buyers who want both luxury and outstanding performance," said Stuart Payne, Director of Lexus in Canada. "For customers who are also concerned with environmental performance, we recently announced the addition of the GS 450h hybrid to the Lexus lineup, proving that drivers can have it all - environmental consciousness plus performance and luxurious refinement."

Vehicle highlights for January include:

- The all-new Yaris Hatchback which, at 1,337 units, continues to

outperform its popular Echo predecessor.

- A record January for the Canadian-made Matrix, with 1,388 units up by

23.7 per cent.

- Best January for Prius, with 254 units surpassing last January by

133.0 per cent.

- All-new RAV4 reached sales of 697 units, up by 76.5 per cent.

- Strong performance from Tacoma trucks, with total sales of 429 compact

pickups up by 43.0 per cent in January.

- Strong performance from Tundra full-sized pickups; combined sales of

189 units are up 16.7 per cent.

- Record demand for the Lexus IS performance sedan, with 157 units up

significantly over last January.

Honda Canada also reported a 26 per cent sales increase in January of the new, award-winning Honda Civic with sales of 3,334, compared to 2,641 units last year.

"Continued strong sales of our new Civic coupe and sedan underscore the popularity of Canada's best-selling car," said Jim Miller, executive vice president, Honda Canada Inc. "Most recently, the Honda Civic Hybrid was named the 'Best New Alternative Power' vehicle for 2006 by the Automobile Journalists Association of Canada."

The Honda Civic is designed for Canadians to "get more Civic" with more fuel efficiency, more performance, more interior features, and more of the fun- to-drive characteristics that have helped make Civic the best-selling car in Canada the past eight years. The 2006 Civic lineup includes four distinct models - sedan, coupe, hybrid and Si coupe.

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.

Both the Nissan Frontier and Nissan Titan had their best ever January months. The Frontier sold 136 units, while the Titan sold 164 units.

NISSAN HIGHLIGHTS

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

- Total Nissan brand sales were 3426 units

- Sentra led all Nissan models with 711 units

- X-trail sold 617 units to lead SUV sales, an improvement of 121 units

over January 2005

- Frontier sold 136 units, a January record

- Titan sold 164 units, a January record

INFINITI HIGHLIGHTS

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

- Total Infiniti brand sales were 395 units.

- M35/45 sold 98 units

- G35 led all models with 198 units sold.

NCI HIGHLIGHTS

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

- NCI sold 3,831 Nissan and Infiniti vehicles combined this month.

Jetta and Passat sales continued to do well in January 2006, compared with January 2005, Jetta sales increased dramatically by 92.4%, while Passat sales climbed by 27.3%.

Audi Canada announces January sales results

AJAX - Audi announced its January sales result of 453 new automobiles sold in the month of January 2006, a 50.5% increase over the 301 units sold in January 2005.

Sales by model line were:

Jan-06 Actual

---------------------------------------
A3 87
---------------------------------------
TT 9
---------------------------------------
A4 270
---------------------------------------
A4/S4 Cabriolet 9
---------------------------------------
A6 63
---------------------------------------
allroad quattro 2
---------------------------------------
A8 13
---------------------------------------
TOTAL 453

"In just over 40 years of doing business in Canada, we have hit an important milestone with the sale of our three millionth vehicle," said Kenji Tomikawa, President of TCI. "When we first began our operations in Canada, Toyota was an unknown brand name, with only a handful of dealerships and a limited model selection. Since then, we have grown to become Canada's number one choice for automobiles, with a network of more than 260 Toyota and Lexus dealerships from coast to coast, and a model line-up of well over 20 Toyota and Lexus cars, SUVs and trucks. Our fuel-efficient vehicles include models for every lifestyle and every budget, including gasoline-electric hybrid options in both our car AND SUV fleet. Toyota is committed to building vehicles that meet the needs and wants of Canadian consumers, and we'd like to thank them for helping us reach this historic milestone."

"In addition, Toyota has established manufacturing operations along with a research facility in the country, making us a truly Canadian company," Tomikawa added. "With a new assembly plant to come online in 2008, and several

new models on the way this year and next, we look forward to selling our

four-millionth vehicle in Canada in the coming years."

Toyota began operating in Canada in 1965. It sold its one-millionth vehicle in Canada in 1988, and its two-millionth vehicle in Canada 11 years later in 1999. In just seven years, Toyota reached its three-millionth sale.

"RDX Prototype highlights the exciting direction of the next generation of Acura's light trucks," said Jim Miller, executive vice president, Honda Canada Inc. "It features leading-edge technology and exemplifies what we call 'intelligent performance': a sporty, luxurious and functional SUV that delivers outstanding performance while providing excellent fuel efficiency. RDX will be uniquely positioned in Canada's luxury SUV segment with an 'urban adventure' character."

RDX Prototype features an all-new 2.3-liter i-VTEC(R) four-cylinder turbocharged engine that generates 240 horsepower and 260 lb.-ft. of torque. This is the first application of forced induction technology in Acura history. The revolutionary i-VTEC Turbo technology uses a variable flow turbocharger, which is exclusive to the RDX Prototype, and provides dramatic performance

benefits while maintaining excellent fuel efficiency. To complement the

all-aluminum high-performance engine, the RDX Prototype utilizes Acura's steering-wheel-mounted paddle shifters to manually operate the 5-speed sequential SportShift(TM) automatic transmission.

Acura's Super Handling-AWD system is tuned specifically for the RDX Prototype platform. Like the RL, sophisticated electronic controls automatically distribute torque fore and aft, as well as splitting the rear torque left to right. The result is dramatically enhanced handling, traction and stability during sporty driving as well as in inclement weather. A sophisticated chassis with fully independent front and rear suspension complement the SH-AWD system. Vehicle Stability Assist (VSA(R)) combines with large disc brakes and ABS to enhance vehicle control.

The RDX Prototype is built on an all-new global light truck platform. Reflecting Acura's commitment to safety through innovation, RDX Prototype is equipped with the Advanced Compatibility Engineering(TM) (ACE(TM)) body structure and additional state-of-the-art safety features. ACE uses an innovative unit body structure that helps to disperse collision forces over a larger frontal area and direct them away from the passenger compartment for enhanced occupant protection. Front, side and side curtain airbags, in addition to rollover sensors, add an extra measure of safety.

The chiseled exterior styling combines with a generous interior to provide excellent visibility for driving in a variety of conditions, such as city traffic or on tight, twisty roads. RDX Prototype features a compact upper body with an aggressively raked belt line, sporty wheel flares and a substantial hood that flows down from the windshield to an aggressive Acura signature five-sided grill. Custom 19-inch alloy wheels give the RDX Prototype an aggressive stance. Dual exhaust tips, HID headlights, and a rear spoiler add to the sporty appearance of the vehicle.

Inside, the RDX Prototype combines richly appointed materials with a sporty, driver-oriented cockpit. The centre console features an innovative storage system that allows for hidden and lockable storage of a briefcase or laptop computer. The prototype's interior has an assortment of leading-edge technologies, such as the Acura Navigation System with Voice Recognition(TM) and HandsFreeLink(TM) wireless telephone interface. A premium Acura/ELS(TM) DVD-Audio system is tuned to deliver rich surround sound to the cabin.

The RDX Prototype offers comfortable seating for five adults and a versatile rear cargo hatch allows for easy load-in and storage. The second row seats split and fold flat into the floor, providing ample cargo space for an active, on-the-go lifestyle.

The Acura RDX will be assembled at Honda of America Manufacturing in Marysville, Ohio, and is scheduled to go on sale in Canada this summer. Pricing has not yet been determined.

The award-winning dealers (from East to West) are as follows:

Mr. Paul O'Regan O'Regan Mercedes-Benz Halifax, NS
Mr. Jeff Mierins Star Motors Ottawa, ON
Mr. Tom Hiscox Mercedes-Benz Markham Thornhill, ON
Mr. Peter Fuller Mercedes-Benz Mississauga Mississauga, ON
Mr. Mike Alkier Victoria Star Motors Kitchener, ON
Mr. Arnold Smith Lone Star Motors Calgary, AB
Mr. Rick Sentes Kelowna Auto Gallery Kelowna, BC
Mr. Stuart Goodman Mercedes-Benz Broadway Vancouver, BC
Mr. George Taubenfligel Silver Star Auto M-B Surrey, BC

The "Star Dealer" designation is presented to dealers who meet or surpass their new and pre-owned sales targets, earn high CSI marks and exceed an exhaustive list of qualifying factors which affect the dealership's overall performance throughout the year.

Mercedes-Benz Canada encourages Star Dealers to promote their celebrated and coveted title in their local marketing and promotional activities in 2006 as a means of distinguishing themselves as recognized achievers within the Mercedes-Benz Canada dealer group.

President and CEO of Mercedes-Benz Canada, Marcus Breitschwerdt, said,"My sincere congratulations and heartfelt thanks go to this group of nine Star Dealers for their outstanding accomplishments in 2005, our best year ever with record-breaking sales. Together, they have played an extremely important role in Mercedes-Benz Canada's success this year. Not only did they meet all of the extensive criteria to earn the Star Dealers standing, they also exemplify the stringent benchmark we have set for our overall dealer network."

He adds, "An automotive brand can only be as strong as its dealer organization and each and every customer's experience is invariably fuelled by our dealers' dedication and passion to serve them. I wish to take this opportunity to personally thank our entire dealer organization for their on- going commitment and support of the Mercedes-Benz Canada Dealer Development Program and for their short and long-term efforts and contributions to upgrading the Mercedes-Benz dealer network across the country."

Hugh Cope, Chief Information Officer at Atlas Cold Storage: â Atlas recognizes that this is an important emerging technology that many of our customers are going to need to supply products to many of the largest retailers in North America. Applying RFID technology in a harsh environment such as our frozen warehouses has its challenges and we are pleased that we can now offer this critical value added service to our customers.â

Sam Falsafi, Director of Business Development & RFID Strategy at Ship2Save adds: "Bringing RFID into the cold storage environment was a challenging task. Extreme temperature variations, humidity, condensation, and an abundance of other factors provided for daunting tasks. But we' re pleased to say that the cooperative work between the team at Atlas [Cold Storage] and our engineers has lead to an extremely successful RFID project."

The first implementation at Atlasâ Sikeston, Missouri facility was driven by a request from one of Atlasâ largest ice cream customers to service Wal-Mart's Texas D.C.'s. Atlas is currently working with another customer on a second RFID implementation in the Midwest and has more planned for the future as demand develops.

" It is interesting to see the ripple effect of the mass-merchandiser mandates and how it has enabled innovative companies such as Atlas to provide RFID services. It is also interesting to see how this ripple is enabling more and more manufacturers to adopt RFID." says Falsafi.

The continued implementation of RFID Systems across the supply-chain is facilitating the use of more open-looped systems. These systems allow cooperation and data sharing amongst trading partners providing supply-chain visibility and improvements in supply-chain processes. The commitment to this technology by 3PL companies such as Atlas Cold Storage will encourage further RFID adoption amongst their customer base, and in turn pave the way for more open-looped RFID systems.

In 2004, railway operating revenues increased at their fastest pace in five years as carriers profited from the favourable economic climate, and especially from gains in exports and imports.

In total, freight and passenger carriers recorded operating revenues of nearly $8.9 billion, up 6.9% from 2003. This was more than five times the rate of growth in revenues the year before.

Freight transportation accounted for the lion's share of total revenues, around 89%. Freight revenues hit nearly $7.9 billion, a 7.3% gain, which was nearly six times the pace of growth in the previous year.

The rail industry's operating expenses rose 4.3% to almost $7 billion, primarily the result of higher costs for rail operations.

The market share of the various railways, based on operating revenues, remained practically unchanged from 2003. CN had the largest share, about 48%, followed by CP with nearly 37%. VIA Rail accounted for nearly 5% of revenues, while regional and short-line railways shared the remaining 10%.

A key factor for the railways was the rebound in the economy in 2004. Economic output increased 2.8%, compared with 1.7% the year before, while exports went up 5% despite the rising value of the loonie, and imports surged 6%. During the year, the economy created nearly 285,000 full-time jobs.

Average annual employment with the railways fell 1.6% to 35,694 in 2004, the lowest level in the past 100 years. The decline was due mainly to reorganization and staff reductions for the three mainline companies. Regional and short-haul railways recorded a slight 1.0% gain in their work force. The average annual salary in 2004 was almost $66,000.

CN accounted for 42% of all employees in the railway transport industry, the largest share. VIA Rail had just under 9%.

Top 10 commodities account for just over half of total freight

On an origin and destination basis, railways carried 269.8 million tonnes of freight in 2004, up 8.0% from the previous year. The 10 main commodities accounted for about 58% of the total. More complete reporting, especially for Western Canada, had some impact on the measured growth of total freight.

Coal was still the main commodity, with railways carrying more than 30.7 million tonnes, up 7.5% from the previous year. High international demand for coal partly explained the gain.

The biggest increase occurred in wheat shipments, which rose 23.4% in 2004 to nearly 19.8 million tonnes. The absence of a major drought in 2004 compared to those suffered in certain regions of the country in 2002 and 2003 has surely influenced this result. Potash shipments rose 12.7% to 16.6 million tonnes, resulting partially from higher demand from Brazil and East Asia. Lumber shipments were up 19.3% to 13.7 million tonnes, a result of continuous demand for lumber.

The only commodity in the top 10 to record a decline in shipments was iron ore and concentrates, which plunged 19.0% to about 15.8 million tonnes.

Traffic in the regions: A snapshot

Railways shipped 26.8 million tonnes in commodities from the Atlantic region to all destinations in 2004, down 12.0% from the previous year. Strikes and work stoppages in the mining sector explain this decline.

Iron ore and concentrates was still the main commodity transported from the Atlantic region to ports in Quebec.

Traffic from Quebec to the United States and Mexico accounted for 45% of all traffic originating from Quebec. Among the three main commodities transported from Quebec to these destinations were lumber (with 1.8 million tonnes) and newsprint (1.5 million tonnes). Lumber shipments were up 7.4%, while newsprint tonnage fell by 5.5%.

The United States and Mexico accounted for 42% of all of Ontario's markets. The main commodity transported from Ontario to these destinations was wood pulp, which rose 11.1% to 1.4 million tonnes.

The main commodity transported from Alberta to British Columbia remained sulphur at 5.3 million tonnes.

On the West Coast, coal accounted for nearly 69% of all commodities with both their origin and destination inside British Columbia. Wood chips and wood pulp were far behind, representing only 10% and 8% of all commodities leaving or entering British Columbia.

Passenger traffic up

More than 4 million passengers travelled by rail in 2004, a 2.3% gain over 2003. Between 2000 and 2004, the number of passengers fell 2.7%, although passenger revenues were up 7.2% during the same time.

The average journey per ticket fell from 360 km in 2003 to 349 km.

Passenger revenues hit $265.2 million in 2004, up 3.7% from 2003. VIA Rail accounted for 91% of all revenue from rail passenger transportation. The remainder was shared by CN, CP and the regional and short-haul carriers.

VIA Rail also received 58% of total government payments that went to the rail industry.

German and global automotive rivals DaimlerChrysler AG and Volkswagen AG will launch their first major joint venture by collaborating to develop a North American minivan that could be built at Daimler's assembly plant in Windsor, Ont.

The Volkswagen minivan will go into production in 2008 at one of Daimler's two minivan plants, either the Windsor operation or in St. Louis. In the VW product range, we are missing a van for families which meets the necessary requirements of our American customers, Wolfgang Bernhard, chairman of the VW Brand board of management, said in a statement. With this new vehicle, we are going to enter another important market segment with our own product.

Mr. Bernhard is familiar with the plants and the Chrysler product lineup because he was chief operating officer of the Chrysler group for most of this decade before jumping to Volkswagen in 2004.

The minivan could be built at either plant, but no decision has been made yet, he told reporters at the Los Angeles Auto Show yesterday.

We'll announce our manufacturing plans closer to the launch of the vehicle, Stuart Schorr, a spokesman for DaimlerChrysler Canada Inc., said yesterday.

The announcement is good news for Windsor whether the Volkswagen minivan gets built in that plant or in St. Louis, said Ken Lewenza, president of local 444 of the Canadian Auto Workers union, which represents about 5,600 employees at the Windsor Assembly Plant.

Windsor has been operating on three shifts for more than a decade, while St. Louis operated as a two-shift operation.

Any vehicle that increases production at St. Louis eliminates the threat of a shift in Windsor being eliminated, Mr. Lewenza said yesterday. It's good news. The pressure on the Windsor plant is off now, he said.

The most probable scenario, industry sources and other union officials said, is Daimler shifting production of the Pacifica sport utility vehicle to St. Louis from Windsor and adding the Volkswagen minivan to the St. Louis operation.

Adding a Volkswagen minivan would also likely be good news for Canadian auto parts giant Magna International Inc., which makes the seats for all the minivans Daimler makes in North America. Magna also assembles minivans in Europe under contract from Daimler.

The CAW won a commitment from DaimlerChrysler Canada during bargaining on a new labour agreement last fall that it would be the lead plant for the next generation of the auto maker's minivans, code-named RT.

The company also agreed to keep Windsor operating on three shifts until 2008 when the labour deal expires.

The lack of a minivan has been a major problem for Volkswagen and contributed to the battering the company has received in recent years in North America, where memories of the hippie-driven flower-power Volkswagen vans of the 1960s have faded.

Minivan sales were flat in the U.S. market last year, but it's one of the most competitive with the Detroit-based companies and three Japan-based auto makers all building minivans in North America.

Total minivan sales fell a fraction last year, to 1.105 million vehicles in the United States, but Chrysler maintained the lead it has in the segment since the 1980s with a 6-per-cent gain in sales.

The microbus concept revisited

Powerplant: 230 horsepower V6 engine. 5-speed automatic transmission with Tiptronic clutchless shifting.

Seating: all leather. Two second-row bucket seats that swivel 180 degrees and two contoured third-row bench seats. Second and third rows can slide on a set of rails.

Floor: Aluminum covered by semitransparent rubber mat removable for cleaning.

Entertainment system: Multiplex theatre with a seven-inch screen in the centre console plus four eight-inch screens in the backs of the first and second-row seats.

Doors: Instead of opening out (old microbus), the concept vehicle has powered sliding doors operated by handles that retract by remote control.

"Despite relatively high gas prices and generous incentive programs from their competitors, most AIAMC members continued to attract Canadian consumers to their vehicles, largely on their reputations for quality and fuel efficiency," noted David Adams, President of the AIAMC. "Six of our thirteen member companies had record sales in 2005 and our members captured 60% of all passenger car sales and 26% of all light duty truck sales last year," added Adams.

Over 51% of the vehicles AIAMC members sold in Canada were produced in North America. "That's an important point," said Adams. "It goes a long way towards dispelling the myth that international manufacturers only sell into the Canadian and North American markets and don't make an economic contribution here. If anything, the percentage of vehicles built in North America will only go up as international manufacturers continue to add capacity here."

The Association of International Automobile Manufacturers of Canada is the national industry association representing the interests of thirteen member companies engaged in the manufacture, importation, distribution and servicing of light duty vehicles in Canada. AIAMC membership includes BMW Canada Inc., Honda Canada Inc., Hyundai Auto Canada, Kia Canada Inc., Mazda Canada Inc., Mercedes-Benz Canada Inc., Mitsubishi Motor Sales of Canada, Inc., Nissan Canada Inc., Porsche Cars Canada Ltd., Subaru Canada, Inc., Suzuki Canada Inc., Toyota Canada Inc., and Volkswagen Canada Inc. The AIAMC was established in 1979 as a sub-group within the Canadian Importers Association and was incorporated as a separate legal entity in 1999.

DaimlerChrysler Canada outpaced rival Ford Motor Co. of Canada in 2005 to take second place in annual vehicle sales for the first time, behind General Motors of Canada .

Sales figures released on Wednesday showed DaimlerChrysler's December sales rose 4.2 percent to 14,695 cars and light trucks from 14,101 in the year-before period. Car sales fell 7.4 percent to 2,665 for the month, while truck sales jumped 7.2 percent, to 12,030, the automaker said.

With 216,857 units sold in 2005, DaimlerChrysler zipped past Ford to become No. 2 in Canada.

Ford said it sold 16,589 cars and trucks in December, up 2 percent from December 2004. The company said it sold 211,986 units in 2005, down 0.8 per cent from 2004.

GM Canada remained the biggest of the Big Three, as December sales rose 1.5 percent to 36,395 from 35,855 in the same month of 2004.

In 2005, General Motors delivered 456,557 units, a 2.6 percent increase from 444,879 the year before.

Honda Canada Inc. (7267.T: Quote) passed rival Japanese automaker Toyota Canada Inc. (7203.T: Quote) in December with a 7 percent jump in monthly sales to 13,050 vehicles.

For the year, Honda Canada reported combined sales of 154,587 units, a 7 percent increase over 2004.

Toyota Canada, which has steadily been gaining ground on the Big Three North American manufacturers, said its sales lost steam in December, retreating 1.9 percent, to 10,928 vehicles.

Toyota's luxury brand Lexus helped the automaker limit the drop, with sales of 933 units, up 56 per cent over last December.

Despite the slower month, Toyota closed the year with record sales of 175,787 units, up 3.3 percent from 2004.

A new monthly record was also established in December with deliveries of 1,578 units, for a gain of 2.1% over the 1,549 units retailed in December 2004.

In 2005, Mercedes-Benz continued its exciting product offensive with the launch of four new models, from the spectacular CLS-Class four-door coupe in January, to the technologically advanced M-Class SUV in April, to the B-Class Compact Sports Tourer in September and the R-Class Grand Sports Tourer in

October. Three of these model series - CLS, B and R - are new to the

Mercedes-Benz product line and will open new market segments for the company, while the M-Class has reclaimed its position at the forefront of the luxury SUV segment. M-Class sales grew by 23.5% in 2005, and the model has been awarded the distinction of Best New Sport Utility Vehicle for 2006 by the Automobile Journalists Association of Canada.

The renowned 4Matic system, standard in the M- and R-Class and optional

in the C-, E- and S-Class, has reinforced the leadership position of

Mercedes-Benz in the important all-wheel-drive segment.

A broader selection of more powerful engines was also introduced in the C, E, CLK and M-Classes. The 4 cylinder 2.3 litre engine was replaced by the 6 cylinder 2.5 litre engine in the C-Class and a 228hp 6 cylinder 3.0 litre engine is now found in the C280 and the SLK280. The 6 cylinder 3.2 litre powerplant was replaced across the model line-up with the more fuel-efficient and powerful 268 hp 3.5 litre engine.

The E320 CDI and the smart fortwo cdi coupes and cabriolets, equipped with state-of-the-art common rail diesel technology, were in high demand as fuel prices soared through the second half of 2005.

Following its guiding principle of "customer first", Mercedes-Benz Canada continued the development of its dealer network as planned through 2005. The company celebrated the opening of newly built dealer facilities in Halifax, Granby, Regina, Saint John and Quebec City, facilities whose architectural and corporate identity concepts are solely focused on customer convenience. Numerous further dealer facilities are currently being rebuilt and will be completed over the course of 2006.

Marcus Breitschwerdt, President and CEO of Mercedes-Benz Canada, said: "In a highly competitive environment, we successfully achieved a new sales record in 2005. Our most ambitious product offensive of four new launches in 2005 certainly contributed to this unsurpassed accomplishment, but it is important to note that established model lines like the C-Class, the E-Class, and the SLK-Class sustained their momentum through the year. As well, the success of the smart brand in Canada has been exhilarating; smart fortwo coupes and cabriolets are now very visible on Canada's roads, and they still turn heads and get thumbs up."

He added, "Our entire organization works hard to provide the best automotive experience to our customers, and I am very grateful indeed to our employees and our dealers for their singular commitment and dedication to live up to our customers' expectations. Our new record could not have been achieved without tremendous effort, enthusiasm and perseverance."

"General Motors of Canada continued to see gains in what can be characterized as a very competitive year" said Marc Comeau, vice-president of sales, service and marketing. "Cadillac and Saab set sales records. We are extremely pleased with the performance from a number of our Chevrolet products like the Impala, Malibu, Equinox and the recently launched HHR. The Pontiac G6 is doing extremely well in Canada and our entire Saturn line-up had a strong year. We are also very encouraged by the momentum we have gained with factory- installed XM Satellite radio."

Comeau continued that "Going forward, we will be kicking off the 2006 Auto Show season with some eagerly anticipated product launches, including the Saturn Hybrid VUE , Sky and Aura as well as the new v-series Cadillac XLR and GM's new line-up of fuel efficient full-size trucks."

GM Vehicle Sales Highlights for December

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

- Cadillac was up 62.7% in December, marking the highest total vehicle sales since December 1979. The CTS led the way, almost tripling sales for the month.

- Saturn saw its second best December ever.

- The all-new Canadian built Chevrolet Impala has been very well received with sales up 61.7% over last December.

- Overall large pick-up sales saw a 10.8% increase, led by the Oshawa-built 1500 Series Crew Cab.

GM Vehicle Sales Highlights for the 2005 Calendar Year

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

- Cadillac finished the year strong, up 28% overall, representing the highest calendar year total since 1987.

- Saab set a record in Canada, gaining 17.9% in 2005. Every vehicle in the line-up made a solid contribution to this performance, including the introduction of Saab's first SUV, the 9-7x.

- Saturn was up 17.2% over 2004, driven by double digit gains for the Ion, the Vue holding strong up 5.8% and the first full year of Relay sales.

- The Chevrolet Equinox and Pontiac Torrent continue to gain momentum with the Equinox up an incredible 137% and Torrent seeing double digit gains since its launch in the fall.

- The Oshawa built Buick Allure performed well with sales up 42.3% over the Century and Regal models that it replaced.

- Hummer had a very strong year, led by the introduction of the smaller, more fuel efficient H3.

GENERAL MOTORS OF CANADA SALES

MONTH OF DECEMBER 2005

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

2005 2004 % CHG

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

TOTAL CARS 17,404 17,034 2.2%

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

TOTAL TRUCKS 18,991 18,821 0.09%

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

COMBINED VEHICLES 36,395 35,855 1.5%

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

CALENDAR YEAR-TO-DATE: DECEMBER 31, 2005

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

2005 2004 % CHG

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

TOTAL CARS 227,113 222,816 1.9%

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

TOTAL TRUCKS 229,444 222,063 3.3%

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

COMBINED VEHICLES 456,557 444,879 2.6%

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

- 2005 highlights include a 9 percent increase in car sales and a 1 percent increase in truck sales

WINDSOR, ON, Jan. 4 /CNW/ - DaimlerChrysler Canada today reported a total of 216,857 units sold in 2005, including 52,371 cars and 164,486 trucks. Compared to 210,866 units in 2004, sales for the year have increased 2.8 percent.

For the year, the Brampton, Ontario-built Chrysler 300/300C, with sales up 44.6 percent, and the Dodge Magnum, with sales up 139.3 percent, enjoyed continued consumer acceptance. The Dodge Charger sold a total of 2,919 units since its market introduction in May. Sales of the Windsor, Ontario-built Dodge Caravan increased 2.3 percent, and Jeep(R) Grand Cherokee and Jeep TJ enjoyed 23.0 percent and 18.9 percent gains respectively in 2005.

"DaimlerChrysler Canada's hot products and innovative marketing initiatives have led the way to the company's solid sales performance in 2005," said Steven Landry, President and CEO, DaimlerChrysler Canada. "Congratulations to our 12,000 employees and our 469 dealers on achieving the number two position in both sales and manufacturing this year."

For the month of December, DaimlerChrysler Canada reported a total of 14,695 Chrysler, Jeep and Dodge vehicles sold, including sales of 2,665 cars and 12,030 trucks. Compared to 14,101 units last year, sales for the month are up 4.2 percent.

Monthly highlights include Chrysler PT Cruiser Convertible sales up 123.7 percent, and Dodge Magnum sales up 42.3 percent from last December. Dodge Ram and Dodge Dakota have increased sales of 33.8 percent and 12.2 percent respectively. All Jeep brand vehicle offerings are up for the month, with Jeep Grand Cherokee up 3.2 percent, Jeep Liberty up 13.2 percent, and Jeep TJ up 6.1 percent. The Jeep Commander, introduced in September, added a total of 174 units sold in December.

In 2005, DaimlerChrysler Canada introduced marketing campaigns that proved effective in breaking through the clutter. The You Could Be a Millionaire promotion implemented during the fourth quarter of 2005 was successful in sustaining showroom excitement through the end of the year. To be announced later this month, a recent Chrysler, Jeep or Dodge buyer will become $1 million richer.

DaimlerChrysler Canada's momentum will continue in 2006 with the introduction of ten new vehicles, including the Dodge Caliber, Dodge Nitro, Jeep Compass and Jeep Patriot.

DaimlerChrysler Canada Inc.

2005 and December Sales - Chrysler, Jeep, Dodge Vehicles

January through December 2005 Sales Highlights

Current Year Prior Year Difference

Chrysler PT Cruiser Convertible 1,878 1,235 52.1%

Chrysler 300/300C 14,563 10,073 44.6%

Dodge Magnum 5,114 2,137 139.3%

Dodge Caravan 65,002 63,559 2.3%

Jeep Grand Cherokee 9,166 7,454 23.0%

2005 and December Sales

Current Year Prior Year Difference

Passenger Cars

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

Month 2,665 2,878 -7.4%

Calendar 52,371 47,985 9.1%

Trucks

------

Month 12,030 11,223 7.2%

Calendar 164,486 162,881 1.0%

Cars & Trucks

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

Month 14,695 14,101 4.2%

Calendar 216,857 210,866 2.8%

Among the models which performed well in 2005 was the all new Infiniti M45 which surpassed expectations and shattered its previous model's sales number with 1,111 units sold. For Nissan, X-TRAIL, Titan and Frontier all broke records for their model.

The record sales total is encouraging news heading into a busy 2006 for NCI in which several all new models will be introduced including the Nissan Versa, new Nissan Sentra and new Nissan Altima.

NISSAN HIGHLIGHTS

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

- Total Nissan sales were 4312 units

- Sentra led all Nissan models with 899 units

- Altima sold 776 units

- X-trail sold 805 units to lead SUV sales and bring its record

total to 10,518

- Pathfinder had a solid month with 436 units sold, a 48 unit

increase over November.

- Frontier sold 199 units to bring its record total to 2,304

INFINITI HIGHLIGHTS

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

- Total Infiniti sales were 391 units.

- M35/45 sold 74 units bringing its calendar year total to 1,111.

- G35 led all models with 245 units sold.

NCI HIGHLIGHTS

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

- NCI sold 4,703 Nissan and Infiniti vehicles combined this month.

Honda Canada reported combined sales of 154,587 units for calendar year 2005, an increase of 7% over 2004 sales, representing the third best calendar year in its 35-year tenure in Canada.

"The new Civic offers Canadians 'more Civic' with more fuel efficiency, more safety, more interior features, and more of the fun-to-drive performance," said Jim Miller, executive vice president, Honda Canada Inc. "Our recent AJAC and Motor Trend Best In Category awards for Civic validate that customers are getting more with Civic."

Honda truck sales were up significantly in December over the same month last year, led by a 179% increase in Pilot sales, along with a 27% increase for Element and 24% increase for CR-V. For calendar year 2005, Honda trucks sales increased 44%. The Honda Pilot sport-utility vehicle set an all-time record for both December and calendar year sales. The redesigned, Canadian- built Pilot now includes vehicle stability assist and side curtain airbags to provide owners with a full complement of standard safety features.

"The Pilot is the most fuel-efficient 8-passenger SUV and part of a lineup of solid trucks built on Honda's unibody frame that offers better overall performance," said Miller. "We continue to see positive sales results of our all-new Ridgeline pickup truck that recently was voted 'Best New Pickup Truck' by the Automobile Journalists Association of Canada and 'Truck of The Year' by Motor Trend magazine."

Acura sales were also bolstered by strong sales performance in December of the all-new, Canadian-exclusive Acura CSX luxury compact sedan. Sales of Acura's TL luxury-performance sedan were up 56%, and sales of the MDX luxury sport-utility vehicle were up 26%. Both the Acura TL and TSX sports luxury sedan reported record December sales, and the TSX also posted record calender year sales results.

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 record for Toyota brand, with 165,679 units -- an increase of 2.3 per cent over the previous year. December sales for Toyota were 10,928, down marginally by 1.9 per cent over last December.

- A new record for Toyota cars, with total annual sales of 128,331 beating 2004 by 5.6 per cent.

- Toyota sold 37,348 trucks, a decline of 7.4 per cent for the year.

- Record annual sales for Lexus brand, with a total of 10,108 luxury cars and trucks, 21.5 per cent higher than the 2004 record. Lexus also achieved a record December with sales of 933 units, up 55.5 per cent over last December.

- Record annual sales of 4,511 Lexus cars, an impressive 41.5 per cent increase over 2004.

- Record sales of 5,597 Lexus trucks, 9.1 per cent better than the previous year.

"Toyota Canada's record sales in 2005 represent a tremendous vote of consumer confidence in our products," said Tony Wearing, Managing Director of TCI. "Building on the momentum of 2005, we are adding even more excitement to our showrooms with the launch of several important new vehicles in the early part of the New Year, including the all-new much anticipated Yaris Sedan."

"This is truly a banner year for Lexus, as we surpass the 10,000 unit mark for the first time in Canada," said Stuart Payne, Director of Lexus in Canada. "Exceptional vehicles like the IS luxury performance sedans and the sporty GS lineup have had an enormous impact, enhancing the Lexus reputation for luxury, performance, and unbeatable quality."

Vehicle highlights for 2005 include:

- The all-new Yaris Hatchback, which outperformed the launch of its popular Echo predecessor, reaching 6,177 units in just over two months of sales.

- A record year for the Canadian-built Matrix, as 24,048 units surpassed last year's record by 20.1 per cent.

- A strong year for Corolla, with 46,533 units up by 4.4 per cent.

- Strong performance from Tacoma pickup trucks, with total sales of 6,388 units up by 125.2 for the year.

- A strong year for the Lexus IS, with sales of 861 units, up 92.2 per cent.

- A new record for the GS sedans, with total sales of 824, up significantly over 2004.

- A record year for the RX lineup, with combined sales of 4,857 units, up 12.8 per cent.

- Enthusiasm from environmentally conscious drivers for the diverse range of Toyota and Lexus hybrid vehicles, which totaled 3,375 vehicles in 2005 (see breakdown below).

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

TCI Hybrid Model December 2005 2005 Year-To-Date

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

Toyota Prius 179 1,956

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

Toyota Highlander Hybrid 67 609 (launched June 16)

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

Lexus RX 400h 78 810 (launched May 4)

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

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

TCI Sales History Units Sold

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

1995 67,956

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

1996 73,548

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

1997 106,297

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

1998 128,375

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

1999 129,865

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

2000 123,596

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

2001 127,754

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

2002 152,766

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

2003 165,024

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

2004 170,216

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

2005 175,787

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

>>

"2005 was the 15th consecutive year of increasing sales for BMW Group in Canada," said Mr. Lindsay Duffield, President and CEO. "Our strong finish in December was highlighted by the new 2006 7 Series which is the best selling prestige car in its class. We also had increasing sales and momentum with our xDrive all-wheel drive equipped models which accounted for over half of BMW sales in December."

"The MINI brand's fourth straight year of sales growth since its introduction was spurred on by the new MINI Convertible and BMW Motorrad achieved an all-time record as a result of its new product offensive of performance motorcycles including the K1200S and K1200R," said Mr. Duffield. "In all, it was a successful year, thanks to strong consumer demand for our products and outstanding retailer support. Looking forward, we continue to be optimistic about the opportunity to deliver the Ultimate Customer Experience to even more customers in 2006."

BMW Brand: Sales of BMW brand automobiles up 9.4% in 2005.

The BMW brand recorded 18,150 units sold in 2005, an increase of 9.4% over 2004. The BMW 3 Series, 5 Series and X3 Sports Activity Vehicle (SAV) achieved best ever sales results for the year resulting in 8,800 3 Series sales, 2,541 5 Series units retailed and 2,930 X3 SAVs sold in 2005. The BMW 3 Series, voted "Best New Sports Sedan" for 2006 by the Automobile Journalists Association of Canada (AJAC), saw an increase in sales of 13.9% over 2004. The BMW 5 Series, of which the Touring variant was voted AJAC's "Best New Luxury Prestige Car" for 2006, also saw an increase in sales, up 26.9% over 2004. And the BMW X3 SAV continued to dominate Canadian roads with a sales increase of 27.2% over last year.

In the month of December, 1,480 BMWs were sold, a 10.0% decline over December 2004 BMW sales. Of note, the new 2006 BMW 7 Series saw 80 units retailed, representing a 77.8% increase over December 2004 sales.

BMW Motorrad Canada also finished the year with record-breaking sales and celebrated its best sales year in history. 1,151 BMW Motorcycles were retailed in 2005, an increase of 1.3% over 2004 sales. In December, 41 BMW motorcycles were retailed in the Canadian market.

MINI Brand: 2005 sales up 21.5% over 2004.

MINI Canada sold a record breaking 3,401 MINIs in 2005, an increase of 21.5% over 2004. The record sales for the MINI brand continues the upward trend of the brand in Canada since its launch into the Canadian market in 2002. In September, MINI Canada celebrated the sale of the 10,000th MINI in Canada.

In the month of December, 147 new owners took delivery of their MINIs. December sales were down by 8.1% compared to December 2004 sales of 160 MINIs.

Passenger car sales increased by 11.7% to 67,523 sales from 60,449 sales recorded last year, fuelled primarily by consumer demand for the Mazda3 compact sedan and hatchback. Mazda sales in this segment jumped 18.8% year- over-year to 50,713 units in 2005, making the Mazda3 the second best selling passenger car in Canada.

Other nameplates contributing to Mazda Canada's sales record are the Mazda6 sedan, hatchback and station wagon with a year-over-year increase of 14.9% percent to 11,738 sales. The 6-seat, compact Mazda5, introduced in the summer of 2005 and recently named the "Best New Multi-Purpose Family Vehicle" by the Automobile Journalists Association of Canada, recorded sales of 2,552 for the year.

Based upon its sales performance in 2005, Mazda continues to be the third best selling import brand in Canada.

AJAX - Audi today announced its December sales result of 505 new automobiles sold in the month of December, a 19.1% increase over the 424 units sold in December 2004.

Sales by model line were:

<<
---------------------
Dec-05 Actual
---------------------
A3 100
---------------------
TT 20
---------------------
A4 262
---------------------
A4/S4 Cabriolet 22
---------------------
A6 70
---------------------
allroad quattro 21
---------------------
A8 10
---------------------
TOTAL 505
---------------------

With this result, Audi Canada's total sales for the year were 7,209.

The New Jetta and Passat were the two strongest selling models in Canada during 2005. Sales of the newest generation Jetta increased by 3,300 units or 26.4% compared with the 2004 total of 12,497. Volkswagen Canada also sold 1,216 more Passat models in 2005, an increase of 26.2% compared with 2004.

In December 2005, sales were 2,555 units, compared with 1,903 units in December 2004, an increase of 652 units, or 34.3%.

In analyzing the year, John White, newly appointed Executive Vice-President of Volkswagen Canada Inc, said "Despite a highly competitive Canadian automotive market in 2005, we are pleased with the relatively strong sales results achieved with our new Jetta and Passat models. We are looking forward to maintaining our sales momentum with even more new models expected in 2006, including the new Golf, the Passat Wagon, the pocket rocket GTI, Jetta GLI, and Eos -- the exciting new Volkswagen convertible coupe."