Automotive News Canada - October 2017 - 10
* OCTOBER 2017
Dollar up, dollar down, Ford prices
cars to be competitive in Canada
CONTINUED FROM PA GE 3
pulling Canadian vehicles out of the used-vehicle market will only serve to keep used prices
higher for the foreseeable future, he said.
"It's playing into the strength of wholesale
values in Canada.
"As the dollar stabilized, that's become less
of a factor, but it's still been a factor in the
strength of the wholesale market in Canada in
recent years. But I would hasten to add that
supply shortages in general are the fundamental driver to wholesale values, not only in
Canada but just generally," Kontos said.
"My simplistic take would be that it's the
The Canadian dollar was strengthening against
the U.S. dollar in the second half of the year. A
higher value would be good news for Canadian
used-vehicle dealers, though CIBC estimates
the dollar will sit at about US 77 or 78 cents
J F M A M J J A S
( I L L U S T R AT I O N : A U T O M O T I V E N E W S C A N A D A )
The dollar has strengthened in the second half of the year, thanks in large part to
the strength of the Canadian economy and
the Bank of Canada raising interest rates.
Canadian Imperial Bank of Commerce
Senior Economist Royce Mendes said the
bank expects the Canadian dollar to average
between 77 cents and 78 cents on the U.S. dollar in 2018, below its level in late September.
"The Canadian economy is growing at levels that it likely cannot sustain," he said,
meaning it is unlikely that the dollar will
strengthen much more.
Even so, further strength might not do
too much to keep U.S. dealers away from
Canadian used cars, Kontos said. Unless the
U.S. dollar collapsed and became even with or
weaker than the Canadian dollar, it is always
going to be attractive for Americans to buy
their vehicles in Canada.
"Anything above parity is going to draw a
dealer to buy vehicles in Canada," Kontos said.
"It's a competitive market. The competition
isn't being restricted in any way. High bidder
wins, and if it's a U.S. dealer that's the high
bidder, so be it."
The Canadian dollar also has an impact on
how profitable Canadian automaker units are
compared to their U.S. counterparts.
Ford of Canada, for instance, acknowledged that a lower Canadian dollar benefits
its exports out of the country but can be a
"challenge" for its sales. Still, the company's
Canadian unit does not make short-term decisions based on where the dollar sits on a given
day, Ford spokeswoman Lauren More said.
"We take a long-term, enterprise-wide
view," More said. "We don't make significant
changes in our business decisions based on
fluctuations of the dollar. And in terms of pricing, we price for the Canadian market to maintain our competitiveness." - ANC
5,000 KILOMETRES OF STORIES
The first exclusively Cadillac dealership in Western
Canada is expected to open in Calgary in late 2018.
( I L L U S T R AT I O N : C A R T E R C A D I L L A C )
CONTINUED FROM PA GE 3
Charlesbourg Toyota. "The
entire team is spreading
the message in and around
the Quebec area because
we want to make a real difference," said Tardif. "Last
year, people donated more
than 1,000 items, allowing
young people and young
adults to participate in
sport. It is therefore a challenge to reach this figure, or
even to surpass it this year."
the public was invited to deposit sporting
goods in good condition
at Charlesbourg Toyota.
Donations are destined for
the Le Pivot Community
Centre, which will distribute the equipment throughout the community.
New corporate colours
for Carter Cadillac
CALGARY - WESTERN
Canada's first exclusive
Cadillac dealership broke
ground Sept. 28 in Calgary,
with plans to open the
doors in late 2018. Partners
Jay McKeen and Hossein
Hassani broke ground for
Carter Cadillac, at the site
near Blackfoot Trail SE and
Jack Carter's existing
dealership in Calgary has
been Western Canada's
top Cadillac dealer for the
past two years and is on
track to do it again. It's
also Cadillac's first North
American-exclusive dealership to break ground in 2017
with the brand's new corporate-image program.
The new dealership
will feature 50,000 square
feet (4,700 square metres)
of developed space over
two levels, including rapid-charging stations for
electric vehicles and a virtual-reality room, said
McKeen, managing partner.
An upper showroom offering
Cadillac's V series high-performance vehicles and a
rotation of vintage Cadillac
cars will provide Calgary
with a new experience in
luxury vehicle purchase and
The dealership will create 40 new full-time positions. - ANC
The fast, direct way
to sell more cars.
Moncton Chrysler-Jeep-Dodge sells cars as far away as
1,500-plus kilometres, even though there are 38 stores that
sell the Chrysler, Jeep and Dodge products in the delivery
area. ( P H O T O : T O Y O TA )
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Moncton store overlaps with
hundreds of Maritime dealers
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having a salesperson in the
dealership. It all comes out in
This practice puts
Moncton Chrysler-JeepDodge into direct competition
with hundreds of other dealerships in Atlantic Canada.
In fact, there are 38 Chrysler,
Jeep and Dodge sellers alone
within Carson's delivery
area. However, he said that
his dealership's business
dealings with others within
his brand have not been nega-
tively affected by the policy.
"We've got good relationships with them and still do
a lot of dealer trades," he
"At this point, I'd say
they're used to how we operate and what we'll do to sell a
Moncton Chrysler-JeepDodge has been in business
since 1953 and has been an
AutoCanada franchise since
2006. The dealership averages sales of 1,600 new units and
1,300 used units per year.