Our thoughts on Canadian Sales for the first half of 2011.

1. By Strada July 2011 Canadian SalesFirst Half 2011

2. Trend Of The Second QuarterApril: + 7%May: - 4%June: + 7 %YTD 2011: + 2% Not surprising it’s the same strategy and tactics being repeated every quarter. Strong start, then a break in the middle month to see how much momentum will sustain. A strong finish to conclude the quarter. Is it Déjà Vu or Vuja De or a combination? What do you think?

3. The Game By now the consumers all know, and expect the various plays in the game. The manufacturers actively playing the game are gaining a distinct advantage. Over the manufacturers that prefer to watch, or play intermittently.

4. NewProduct Product remains a strong differentiator. Compelling new product provides a market advantage. Especially in the CUV/SUV segment which is lifestyle, novelty oriented.

5. CertifiedPre Owned While some manufacturers struggle with new vehicles. Others are gaining even more customers with Certified Pre Owned. Some are having record years with New and CPO. What do you think?

6. As we say “If you are behind the 8 Ball at the end of the first quarter….you are behind for the remainder of the year” Who kept on losing when the music stopped at the end of June. Acura: - 20% Honda: - 10% Infiniti: - 17% Lexus: - 12% Mazda: - 15% Suzuki: - 34% Toyota: - 16% Not surprising it’s the same folks from the first quarter.

7. Compact Mid Size Sedans Honda Civic……...26,371 Hyundai Elantra.…24,283 Toyota Corolla…....18,853 Chevrolet Cruze.…18,769 Mazda 3…………..18,446 VW Jetta………….14,068 Civic remains in the lead. Elantra and Cruze are disrupting the segment. Corolla is elbowing in, Mazda 3 continues to recede. Jetta, is a serious contender this year. Sales results from: Automotive News Ford Fusion……....10,154 Hyundai Sonata……9,269 Nissan Altima……….7,838 Chevy Malibu….……5,932 Toyota Camry………4,842 Honda Accord..........4,260 Fusion regained the lead! Sonata is making it presence felt. Camry and Accord are trailing. Some NumbersFirst Half 2011

8. CUV/SUV Pick Ups Ford Escape…………23,183 Chrysler Journey…….16,069 Hyundai Santa Fe……12,883 Honda CR-V…….……12,426 Chevy Equinox….……12,175 Toyota RAV4……….…11,373 Escape in the lead as usual, while the Journey capitalizes on its momentum. A very active segment, with close competition. Ford F Series……………46,825 Ram………………………30,459 GMC Sierra………..….…22,225 Chevy Silverado…………19,233 With the exception of Ram, sales are reaching a ceiling. How many pick ups can anyone sell in Canada? What do you think? Some Numbers – 1First Half 2011

9. Entry Luxury Luxury CUV/SUV BMW 3 Series…………5,972 M-B C Class…….....…4,621 Audi A4……………..…3,012 Cadillac CTS…….……1,764 Infiniti G…………..……1,758 Buick LaCrosse….……1,498 Acura TL………….……1,293 Lexus IS…………..……1,048 Volvo S60……….………..749 MerBimAu is ahead, did you expect anything else? The G is faltering. Lexus RX………………..3,350 M-B GLK…………..……2,694 Acura MDX…………..…2,404 Audi Q5…………....……2,395 BMW X3……….……..…2,264 Lincoln MKX…..………..2,054 BMW X5……….………..1,899 Buick Enclave….…..…..1,756 M-B M Class……..….….1,633 Cadillac SRX……...……1,622 Acura RDX……...…..….1,229 Competitive segment with a saturating market. Some Numbers – 2First Half 2011

10. Pony Cars Did You Know? Mustang…………….2,818 Camaro……………..2,274 Challenger………….1,596 Is the novelty wearing off? YTD 11 = 6,688 YTD 10 = 7,332 What do you think? SLS AMG……………….74 Lamborghini……………..35 Maserati………..………..82 Ferrari…………..………108 Panamera……….….…..206 GT-R…………….…….…18 R8……………………..….73 Bentley……………..…….53 Equus……………….…….60 Cinquecento…….…….2,560 Grand Cherokee……...5,024 Explorer……………..…4,686 Some Numbers – 3First Half 2011

11. Our Thoughts We anticipated a conservative year, with at best a modest increase. At the mid point the YTD increase is modest. The Japanese with the exception of Nissan, have continued their inexorable decline, reinforcing that the Koreans are doing to the Japanese…. The Detroit 3, and especially Chrysler are making further gains…. Increasingly the Canadian consumer waits towards the end of the month for the best deals…its the 10/40 month for the consumer. By now “playing the game” is an intrinsic part of selling vehicles in Canada. Transcending winter with a lifestyle vehicle trumps the price of gas. An effective CPO program solidifies, and entrenches the position of a manufacturer. We anticipate the second half of 2011 to be more interesting. Thank You