The battle for Canada: Ford and Fiat Chrysler vie to be No. 1

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In the most human of moments, Dianne Craig will admit to enduring many sleepless nights through the fall and winter of 2014.

The race to be No. 1 in Canada for automotive sales was that tight, and Craig certainly did not want to be the first Ford Canada CEO in five years to call global headquarters in Dearborn, Mich., and admit, "We're No. 2."

Craig and Reid Bigland, CEO of Fiat Chrysler Automobiles Canada (the former Chrysler Canada), are two intensely competitive people. Craig, a former ski racer, and Bigland, a hockey player, go toe-to-toe in a terrifically raucous business. Bigland would have loved to unseat Ford; Craig was determined to avoid an ignominious fate.

Right to the the end of the year, Ford and Chrysler engaged in an epic battle, using incentives, fleet sales, various advertising and marketing tools, and their dealer bodies down to the final bell. Ford would hold on to No. 1 by the slimmest of margins – 1,891 units, according to DesRosiers Automotive Consultants. "Yeah, less than 2,000 units," says Bigland with a smile and a shake of the head. "Talk about heartbreak hotel. That's the closest we've been for the full year to be the No. 1 seller in Canada."

And now, in the what-have-you-done-for-me-lately car business, the question is, who's going to win in 2015? Through March 1, FCA had recaptured the momentum and the lead with 36,765 units sold versus Ford's 29,603, a spread of 7,162.

Ford spent much of 2014 pursuing Chrysler before reclaiming the sales lead on Oct. 1. But the last quarter had looked tough, with the best-selling F-150 in the middle of a new-model changeover – thus, limiting inventories – and a new Mustang yet to arrive at dealerships in significant numbers.

"Five years of leadership, especially with the competitors we have …" Craig says, carefully picking her words. "Last year the Chrysler team gave us a big run for our money. We knew it was going to be tight, and we had low inventories. But we've always said leadership is an outcome, not a goal."

The two car companies sold close to 600,000 vehicles in Canada, but Chrysler had the better year in terms of gains – sales up 11.5 per cent year-over-year, with market share boosted 0.7 per cent to 15.6 per cent. Ford Canada lost nearly half a point of market share on sales that increased just 3 per cent in an overall market that rose 6.1 per cent over 2013.

Down the stretch in 2014, Ford rode its biggest sellers to victory – the Escape compact SUV, Focus compact car, Fusion mid-size car and F-Series pickup. All were loaded with rich sales incentives that helped push sales to amazing highs for December – Fusion up 72.9 per cent, Focus up 36.7, F-Series up 36.7 and Escape up 10.5. Overall, Ford's December sales jumped 40.1 per cent. If one single vehicle made the difference for Ford, it would be the Escape. Sales in 2014 were up 15.6 per cent to a record 52,198. That surge combined with Chrysler's sagging Dodge Journey most likely gave the crown to Ford.

"Ford clipped us, so congratulations to them," Bigland said. "But it was our strongest sales in the 90-year history of Chrysler and we were the fastest grower. Hey, year-over-year we gained almost 30,000 units."

Neither Craig nor Bigland admit to putting No. 1 right at the top of their annual must-have lists, but the sales race matters mightily, make no mistake. It's a point of pride to them, their corporate colleagues, dealers and even some car owners. That said, both insist they can't and won't, shall we say, throw everything over the side to lighten the ship in this race.

Says Craig: "I'm a pretty competitive person and our dealers and our employees really value the leadership crown, but we have to make sure that whatever we do is with the customer in mind first. If the outcome is leadership, then that's just the cherry on top of the ice cream.

"I will have to say we were really excited when the numbers finally came in, as close as it was." And then she laughs.

Rematch scenario

Like Ford, Chrysler's business is based on a few high-volume, core models – call them the four pillars. Ram sales for December were up a whopping 51.4 per cent. Dodge Caravan minivan sales were up 12 per cent and sales of the newly-launched Jeep Cherokee surged 28.5 per cent. Dodge Journey crossover sales were down on the year, but still chipped in another 24,715 units.

As 2015 proceeds, Ford should get a lift from volume sales of its all-new F-150 pickup and Mustang, along with a new Edge crossover, the renewed Expedition SUV, a freshened Explorer, a major update of the Focus and a line of new commercial vehicles. Ford also has high hopes for its Lincoln brand, including the recently-launched MKC crossover, the reengineered Navigator and the planned freshening this year of the MKZ and redesign of the MKX.

Still, Bigland isn't conceding a thing. Like a hockey player shaking hands after losing Game 7 of the Stanley Cup final, Bigland has already put 2014 behind him. That's history.

"We started 2015 No. 1 and it's just a matter of trying to sustain that," he says, breaking into a wide grin.

FCA expects the just-launched Jeep Renegade to give it a massive boost in an emerging segment of small crossovers that by the end of this year will include the Honda HR-V and Mazda CX-3. If successful, the Renegade could account for sales of more than 20,000 this year. FCA is also looking ahead to this year's launch of the Alfa Romeo brand in Canada, spearheaded by the 4C.

The Fiat 500X wagon will also arrive in 2015 and Fiat also has plans for a roadster that will use a Mazda platform. The Grand Cherokee is expected to get a freshening, also. However, the Ram, the minivans and the Journey are not slated for major makeovers this year. They represent huge volumes, so FCA is in tough in mounting a 12-month challenge to Ford.

It's early days, in 2015. The struggle for No. 1 has only just begun. Again.