Automotive News Canada - March 2018 - v2 - 6

* MARCH 2018

HondaCivic
How one small car has been such a big deal
in Canada for the past 20 years
TORONTO CORRESPONDENT

ANALYSIS

SMALL, BUT MIGHTY
Annual Civic sales peaked in
2008 and fell sharply after the
Great Recession, but have
been edging back up. Sales
in 2017 were the highest
since 2008.
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000*

69,030
64,552
64,950
66,057
64,063
64,962
55,090
57,501
62,654
72,463
70,838
70,028
68,520
62,125
65,169
69,973
66,299
60,407

TOTAL

1,174,681

+6.9%
-0.6%
-1.7%
+3.1%
-1.4%
+17.9%
-4.2%
-8.2%
-13.5%
+2.3%
+1.2%
+2.2%
+10.3%
-4.7%
-6.9%
+5.5%
+9.8%

* Honda began providing monthly
sales releases that included by-model
sales in Canada, in 2000.
Source: Automotive News Data Center

automotivenews.ca

ONGOING WEB COVERAGE

By JEREMY SINEK

AFTER TWO DECADES, IT
might seem as though the Honda
Civic's sales crown has never
been worn by another brand.
Not quite.
Before it,
the thoroughly
AUTOMOTIVE NEWS CANADA
mediocre
Chevrolet
Cavalier had a good run as
Number One. Before that, the
tepid Ford Tempo.
How has this little Honda
stayed on top in Canada for so
long?
Worldwide, the Civic is
at least respected, if not
revered. Yet its utter
domination of any
market is unique
to Canada. In the
United States, it typically runs fourth,
although for 2017 it
reached a careerbest second place. In
the United Kingdom,
where the popular-in-Europe hatchback
is exclusively built, the
Civic isn't even in the top 10. In
Japan, Honda doesn't even sell
the Civic any more.
Civic achieved its Canadian
breakout in 1998, midway
through its sixth-generation
design (1995-1998). It had come
close to dethroning the Cavalier
in 1997, but in 1998 the Civic was

TRENDING
STORIES

1995-2000

NAFTA
NEGOTIATIONS
ONE ROUND OF TALKS REMAINS BEFORE MEXICANS HEAD
TO THE POLLS JULY 1 TO VOTE FOR A NEW PRESIDENT.

2001-2005
2006-2011
2012-2015

CHANGES
IN
OSHAWA
GENERAL MOTORS CANADA HAS IDLED CAR OUTPUT

AT ITS OSHAWA ASSEMBLY PLANT UNTIL MAY 28, BUT
IT'S RAMPING TRUCK PRODUCTION AND PROMISES
NO ONE WILL LOSE THEIR JOBS.

ONTARIO WANTS $1.26B FROM FEDS
TO OFFSET AUTO LOSSES UNDER TPP

THE PROVINCE'S PREMIER, KATHLEEN WYNNE, THINKS
the newly agreed-to replacement for the Trans-Pacific
Partnership (TPP) is so bad for the Ontario auto industry that she
wants the federal government to give the sector $1.26 billion over
the next 10 years to offset any losses.
Wynne said the former federal Conservative government calculated the TPP would reduce auto investment by two per cent.
"That was the plan in 2015, and it needs to still be the plan in
2018," Wynne said of the transitional assistance.
"Based on the federal government's previous commitments
and the implications of U.S. withdrawal from the deal, this works
out to at least $1.26 billion for Ontario's auto sector," Wynne said.

2016-present
on top by a healthy margin.
Still, some qualification is
required. Twenty years ago, GM
fielded the Chevrolet Cavalier
its twin-under-the-skin Pontiac
Sunfire; for several years, combined sales of Cavalier/Sunfire
still exceeded those of the Civic,
making GM arguably the smallcar sales leader.
But once the slower-selling
Cobalt-based replacements were
on the market, the Civic stood
indisputably at the top.

ATTRACTING YOUNG BUYERS
What put the Civic on top in
1998? In part, the more-mature
sixth-generation Civic had broader appeal than earlier designs
that were edgier and - in that
era of the sport-compact craze -
attracted youthful buyers.
As well, recalls Honda Canada
senior product planner Hayato
Mori, a mid-cycle freshening in
1998 introduced a new emphasis
on value. The Civic was so well
rounded - not a superstar at any
one thing, said Mori, but at least
good at everything - it kept gaining customers.
Solid reliability, which built
owner loyalty and resale value,
added further to a snowball effect
that kept the Civic on top, despite
periodic challenges from rivals
such as the Toyota Corolla, the
Mazda3 and the Hyundai Elantra.
Brian Murphy, vice-president editorial and research at
Canadian Black Book, said Civic
usually ranks high in CBB's rankings for retained values.
"Many Canadians recognize it
as a safe bet when it comes to a
good reliable used car."
John Bardwell, automotive product strategist for Bond

Brand Loyalty, said that higher
sales generate a self-perpetuating
momentum that "drives greater
awareness, greater penetration of
the used market and, consequently, higher residual values. Those
higher residual values . . . allow
a manufacturer to more easily
afford to offer attractive enticements such as a 60-month zeroper-cent lease."

UPS AND DOWNS
For all that, the Civic hasn't
always been a paragon of product perfection. The staid 2001-2005
model, with a retrograde suspension that gave up the four-wheel
double-wishbone design, showed
disinterest in the Civic's onetime
enthusiast base (and there was no
hatchback version).
The 2006-2011 Civic restored
driver appeal and adventurous
styling, but perhaps too much so
for mainstream tastes. Then, in
the wake of the Great Recession
came the 2012-2015 design that
dialed back the fun-to-drive factor but also, less forgivably, had
lower perceived quality.
As if embarrassed by its previous vacillations, Honda began
with a clean sheet for the current generation, benchmarking
not only direct rivals, but also
European premium compacts.
The result has terrific driver
appeal and also draws left-brain
customers with fuel economy and
one of the category's roomiest,
most comfortable cabins.
And like generations before
it, the current Civic is still
built in Canada. That, says
Robert Karwel, senior manager of J.D. Power Canada's Power
Information Network, "adds a
tangible benefit to the province
and country every time a Civic
is sold, which I think could help
it with a leg up over some other
competitors." - ANC

A TRUCK THAT CANADA CAN CALL ITS OWN
RAM IS GIVING CANADA ITS OWN PICKUP - THE 2019
Ram 1500 Sport, available only
north of the border.
On the outside, the truck will
have a monochromatic exterior,
eliminating most of the chrome
or black trim, and will come
in a choice of nine colours. It
will have a black-bar grille with
RAM lettering. The hood badg- ( P H O T O : F C A )
ing and side window surrounds are also blacked-out.
Ram unveiled the truck at the Canadian International
AutoShow in Toronto in February.

ONTARIO TOPS IN CANADA FOR EV SALES

THE PROVINCE WITH THE LARGEST POPULATION ALSO
sold the most electric vehicles last year, after spending tens of millions of dollars in subsidies.
According to data compiled by FleetCarma, 7,477 battery and
plug-in hybrid electric vehicles were sold in Ontario. That compared with 7,194 sold in Quebec, followed by 3,270 in British
Columbia.
Ontario's sales jumped 120 per cent from 2016 when
increased rebates were implemented. Quebec's sales were up
44 per cent.
There were nearly 48,000 electric vehicles on Canada's roads
last year, up from 29,000 in 2016.

PRICE CUT, STYLING UPDATE FOR ENVISION

BUICK IS DROPPING THE STARTING PRICE OF ITS MILDLY
refreshed 2019 midsize utility vehicle
by more than $2,000. The idea is to
increase sales and also give owners
of the entry-level Encore an easier
climb to the larger Envision.
The 2019 model will start at
$39,995, including destination
charges and $100 air-conditioning
tax, when it arrives later this spring.
That's $2,195 less than the outgoing 2018 base model, which starts at ( P H O T O : G M )
$42,190 (including destination).
The refresh includes an updated grille with a winged emblem,
and new available LED headlights. It also has a redesigned hatch
and taillights, and rectangular dual exhausts.

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XT

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Table of Contents for the Digital Edition of Automotive News Canada - March 2018 - v2