Automotive News Canada - May 2018 - v2 - 21


* MAY 2018

TADA conference told that 100 per cent of auctions will be online

"A lot more dealer groups are going
to add a consistent appraisal process
that begins on your website and continues into your showroom and continues
to the disposal of that trade or unwanted inventory," he said.
Douglas said consumers can be trusted to deliver accurate information on
their vehicle trade-in thanks in large
part to advancements in technology.
Because of VIN scans, clearer photos
taken from smartphones and more,
dealers can learn much about a car
without ever having to see it in person.
Customers looking for a new vehicle already know what that vehicle will cost if they build and price
a model online. But, because online

Panelists at the Automotive
Conference and Expo at Niagara Falls
(from left): Joel Gregory, Hyundai
Canada; Jason McClenahan, EBlock;
Martin Douglas, TradeRev; and Jack
Sulymka, Manheim. P H O T O : J O H N I R W I N

appraisals are still somewhat rare,
they will not know how much money
they will receive for their old vehicle. Automakers and dealerships that
can get ahead of the curve on online
appraisals will reap the benefits,

Douglas said.
"The last unknown of a car deal is
what their car is worth."
Likewise, online vehicle auctions are
growing at a rapid rate. Through vehicle inspection reports, VIN scans and
other technologies, more dealerships
are skipping physical auctions and
instead bid for used vehicles online.
"I see the short-term physical auctions stagnating their growth while
online options will rapidly grow,"
McClenahan said.
Two of Canada's largest auction
groups, ADESA and Manheim, have
expanded their online auction offerings
in recent years as dealer demand for
such offerings has increased.
"I truly believe vehicles will be sold
100 per cent online in the near future,"

McClenahan said.
At the same time, automakers in
Canada are spending more on certified
pre-owned (CPO) programs as a way
to sell growing used-vehicle inventory.
According to Joel Gregory, remarketing
and CPO manager at Hyundai Canada,
CPO sales experienced 13 per cent yearover-year growth in 2017, though levels
still lag those in the United States.
"That speaks to the importance that
[automakers] are putting on this particular genre of selling vehicles," he said.
As automakers put more importance on CPO programs, Gregory said,
it will be imperative for them to explain
to customers the difference between a
CPO vehicle, which has been inspected
and repaired before the sale, and a standard used vehicle, which is not.- ANC

Carlisle fostered dealer relations
month and GM threatened to permanently close the factory. A deal was reached soon
2014 until April. Carlisle, 55, had been with
afterward, though without the job guarantees
GM since 1982, beginning as an engineering
Unifor wanted.
co-op student at the now-closed Oshawa Truck
Unifor President Jerry Dias said he does
Assembly Plant in Ontario. He was also presnot blame Carlisle for the strike, which largeident of GM's Southeast Asia operations in
ly stemmed from GM moving production
2007-'10, head of U.S. sales operations in 2010
of the GMC Terrain utility vehicle out of
and vice president of global product
Ingersoll and into Mexico.
planning in 2010-'14.
"I've got a lot of respect for Steve
He took over GM Canada at a
Carlisle," Dias said. "I don't hold
time when it was in a precarious
him responsible. That decision was
spot, struggling to catch up with
made in the upper echelon" of GM
Ford Motor Co. as the country's
top-selling automaker and finding
He gave Carlisle credit for getitself in the midst of a massive lawting GM to invest $500 million in
suit from former dealers who said
its Oshawa, Ont., assembly plant
their contracts with the automakin the wake of 2016 negotiations,
Under Steve
er were unfairly terminated in the
which largely focused on the factoCarlisle, GM
company's 2009 bankruptcy.
ry's future. The investment allows
GM has largely had a reversal of Canada sales
the plant to do final assembly on
were revived.
fortunes since then, reporting a 21
the Chevrolet Silverado and GMC
Today, GM is
per cent rise in new-vehicle sales
Sierra pickups.
between 2015 and 2017 and, accord- neck-and-neck
"Steve Carlisle is a Canadian,
with Ford for mar- and I think that was helpful," Dias
ing to Chipman, rebuilding the
ket leadership.
company's relationship with dealsaid. "I don't think he wanted to
ers through face-to-face conversasee Oshawa, with its rich history,
closing under his watch. Behind the scenes, I
"They came into Canada, and they fostered think he was an ally."
relationships with dealers," Chipman said
of Carlisle and the team of executives. "They
were actively visiting dealers and talking to
Dias said he hopes Carlisle's new position
will allow him to be a pro-Canada voice in
GM's North American hierarchy.
"There are a lot of U.S.-based, internationUnifor and GM bargained twice during
al corporations in Canada, where what they
Carlisle's tenure, once in 2016 for most of the
do is parachute somebody in for two years as
company's unionized plants, and again in 2017 a learning experience, and then they move
for an assembly plant in Ingersoll, Ont., that
them, so those two years are really about
is on a separate contract.
self-development. It's not about Canadian
Both negotiations were contentious, partic- workers. That's one of the problems we have.
ularly in 2017, when workers at the Ingersoll,
"I don't think Carlisle saw this as a stepOnt., plant went on strike for about one
ping stone." - ANC

A week-long strike at the Lear Corp. seating plant stopped
production at Fiat Chrysler's Brampton, Ont., assembly plant.

Lear workers felt 'left behind'

Ingersoll, Ont.
"Working-class people are
frustrated as hell. If you analyze globalization, workers
have been left behind. They see
record profits, but wages have
barely kept up with inflation,"
Dias said.
"People today are cantankerous and ornery, and they should
The Lear strike was resolved
May 4 with a new deal that
includes a 15-per-cent rise in
wages over the life of the fouryear contract, to as high as $27
per hour, in addition to a $2,000
bonus. Unifor said the contract
also included Lear withdrawing
a notice it had given the union
on May 2 that it would close the
plant in response to the strike

and workers rejecting a previous deal.
Unifor said FCA became
involved in negotiations following Lear's notice to the union
that it would close the plant,
which is a just-in-time supplier
to the Brampton factory. Dias
credited an FCA representative
with getting Lear back to the
negotiating table.
The Lear Ajax plant closed
once before, in 2009, when
General Motors closed its
Oshawa Truck Assembly plant,
which it supplied. It re-opened
the following year with
new business from the FCA
Brampton plant, though workers returned to the job at wage
rates lower than what they had
previously been paid and below
what workers at a nearby Lear
seating plant were paid. - ANC

Toyota investment is welcome news amid NAFTA uncertainty

Agreement (NAFTA), as demands from
the United States to raise regional content requirements cast uncertainty
over Canadian manufacturing.
The Canadian auto sector depends
in large part on the integrated supply chain between Canada, the United
States and Mexico, because many
vehicle components cross international borders numerous times and
because the bulk of the vehicles produced in Canada are sold in the United
States. Industry executives such as
Magna International CEO Don Walker
have warned that attempts to alter
NAFTA's rules of origin could disrupt the chain, making investment in
Canada less likely.

At the same time, Canadian auto
manufacturing has shrunk over much
of the life of NAFTA, as automakers
have increasingly opted to build assembly plants in Mexico and the southern
United States, where labour costs are
Toyota's "commitment to [research
and development] and technically
advanced vehicle production is tremendous news for southern Ontario's longterm economic success," Trudeau said.


Toyota will invest in its plants in
Woodstock and Cambridge, Ont.,
pictured. P H O T O : T O Y O TA

The RAV4, which has been built in
Woodstock since 2008, will also soon be
built at one of Toyota's two Cambridge
plants as part of the investment. The
RAV4 will replace production of the
Toyota Corolla, which will be built at

a plant under construction in Alabama
the automaker jointly owns with
The 2019 RAV4 production in
Ontario will include a hybrid model,

Toyota announced at the New York
auto show this year. It would be the
first time hybrid RAV4s were built outside of Japan.
The RAV4 is Toyota's best-selling
vehicle in Canada. Through April,
15,963 were sold in Canada, a 7.2-percent gain from a year earlier. Including
models from both its namesake brand
and Lexus, RAV4 sales accounted for
about 23 per cent of all Toyota sales
through the first third of the year
in Canada. The company sold 50,894
RAV4s last year.
The 2019 RAV4 is expected to reach
Canadian dealerships by the end of the
year, followed shortly by the hybrid
Greg Layson contributed to this
report. - ANC


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

Automotive News Canada - May 2018 - v2 - Intro
Automotive News Canada - May 2018 - v2 - 1
Automotive News Canada - May 2018 - v2 - 2
Automotive News Canada - May 2018 - v2 - 3
Automotive News Canada - May 2018 - v2 - 4
Automotive News Canada - May 2018 - v2 - 5
Automotive News Canada - May 2018 - v2 - 6
Automotive News Canada - May 2018 - v2 - 7
Automotive News Canada - May 2018 - v2 - 8
Automotive News Canada - May 2018 - v2 - 9
Automotive News Canada - May 2018 - v2 - 10
Automotive News Canada - May 2018 - v2 - 11
Automotive News Canada - May 2018 - v2 - 12
Automotive News Canada - May 2018 - v2 - 13
Automotive News Canada - May 2018 - v2 - 14
Automotive News Canada - May 2018 - v2 - 15
Automotive News Canada - May 2018 - v2 - 16
Automotive News Canada - May 2018 - v2 - 17
Automotive News Canada - May 2018 - v2 - 18
Automotive News Canada - May 2018 - v2 - 19
Automotive News Canada - May 2018 - v2 - 20
Automotive News Canada - May 2018 - v2 - 21
Automotive News Canada - May 2018 - v2 - 22
Automotive News Canada - May 2018 - v2 - 23
Automotive News Canada - May 2018 - v2 - 24
Automotive News Canada - May 2018 - v2 - 25
Automotive News Canada - May 2018 - v2 - 26
Automotive News Canada - May 2018 - v2 - 27
Automotive News Canada - May 2018 - v2 - 28