Automotive News Canada - June 2018 - v2 - 1

CLOUD OVER OSHAWA: IS THERE LIFE AFTER CARS?/P18,19

JUNE 2018 | VOL. 3, NO. 6 | AUTOMOTIVENEWS.CA FOR BREAKING NEWS AND DIGITAL EDITION

DEATH OF
THE 'GREASE MONKEY'/P4

ONTARIO ELECTION

FOCUS ON TECH
TO ATTRACT
NEW TALENT

Industry
NEW DEALERSHIP MODEL
welcomes
LESS LAND Ford victory

Sky-high land prices in some
cities, online shopping make
dealers eager for an alternative
to large lots and inventories
By JOHN IRWIN
TORONTO BUREAU

TORONTO - AUTOMAKERS RELY MORE
than ever on just-in-time parts delivery to build
their vehicles.
It's a philosophy that could spill over to dealerships as some dealers say they foresee a future
with drastically reduced lot size and inventory.
Dealerships on large plots of land surrounded
by massive parking lots could become a thing of
the past. That would be welcome news for some,
especially those dealerships near downtown
cores in Toronto and Vancouver, where high

land costs make storing vehicles expensive.
"That was the old model, where a dealer
would sell 100 cars per month and they'd have
200 or 300 available in the back lot," said Shahin
Alizadeh, CEO of Downtown Automotive Group
in Toronto. "But most transactions now are primarily initiated online. And once you look at the
cost of inventory, in terms of storage, they have
become absolutely prohibitive. We are at a bit of
a crossroads."
Shifting buying habits could necessitate justin-time vehicle delivery, he said. As more buyers
start the shopping process online, the need for
keeping numerous models in several trims on
a lot could disappear because dealers and automakers might know in advance which specific
models and trims customers want.

TOO COSTLY TO STORE
But more than anything, the cost of land
in most major cities in Canada could make it
increasingly difficult for dealers to store several weeks' worth of vehicles. Alizadeh said storing a single vehicle at one of his stores near
downtown Toronto costs between $100 and $150
a month.

SEE DEALERS PAGE 23

Traditional big dealerships, stuffed with vehicles, might be outdated, particularly in larger
cities where they spend a fortune on what
amounts to parking lots. P H O T O : J O H N I R W I N

But leaders warn of 'wholesale
carnage' if Ontario conservatives
abandon investment in the auto sector

By JOHN IRWIN
TORONTO BUREAU

TORONTO - DOUG
Ford's victory in the
Ontario election came as
a relief to auto-industry
officials, who viewed the
Progressive Conservative
firebrand's pledges to
lower corporate taxes and
relax labour regulations
as superior to proposals by
the New Democratic and
Liberal parties.
But Ford, who was set
to become premier after
his party won a majority of seats June 7, raised
eyebrows as he pledged to
cut "corporate welfare"
and eliminate government
funds automakers and suppliers have used to pay for
investments in Canada.
"Big auto investments
are a little bit like bidding
for a sports franchise,"
said Flavio Volpe, president of the Automotive
Parts Manufacturers'
Association. "You can
say that you want a hockey team in your town.
But if you're not willing
to spend the money on
the infrastructure to sup-

Ontario Progressive
Conservative Leader
Doug Ford won a majority
government in the June 7
election, an outcome
generally lauded by
the auto industry.

PHOTO: BLOOMBERG

port it, maybe you'll sell
a few T-shirts, but you're
not going to get the team.
Unfortunately, every jurisdiction in the world participates in that investment,
and Ontario needs to continue with those programs
in that regard."

TARGETS WASTE
Ford ran a campaign
largely focused on cutting
"government waste" and
reversing much of what
previous Liberal governments passed into law,

SEE INDUSTRY PAGE 23

FCA's Canadian plants are safe if Chrysler, Dodge die, labour leader says
By JOHN IRWIN
TORONTO BUREAU

UNIFOR PRESIDENT JERRY DIAS
said he is confident Fiat Chrysler's
Canadian assembly plants will survive
even though the Chrysler and Dodge
brands were left out of the company's
2018-'22 business plan.
FCA unveiled its five-year plan

Absence of the two brands in FCA's five-year plan
causes rampant speculation, but the company has
said Chrysler and Dodge would not be eliminated

in Italy in June, which focused most
of its attention on Jeep, Ram, Alfa
Romeo and Maserati. The absence of
Chrysler, Dodge and Fiat led to speculation that those brands could be on

NEW SALES TOOL

SKYPE LIKE
SKYPE-LIKE
VEHICLE TOURS/P20

the chopping block, though the company maintained that the brands would
not be eliminated.
Their omission raised questions
about the future of FCA's Ontario

operations. FCA's Brampton plant
builds the Dodge Charger, Dodge
Challenger and Chrysler 300, while the
Windsor plant assembles the Chrysler
Pacifica and Dodge Grand Caravan
minivans. The company employs
about 9,600 hourly workers at the two
facilities.

SEE DIAS PAGE 23

Dealership













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

Automotive News Canada - June 2018 - v2 - Intro
Automotive News Canada - June 2018 - v2 - 1
Automotive News Canada - June 2018 - v2 - 2
Automotive News Canada - June 2018 - v2 - 3
Automotive News Canada - June 2018 - v2 - 4
Automotive News Canada - June 2018 - v2 - 5
Automotive News Canada - June 2018 - v2 - 6
Automotive News Canada - June 2018 - v2 - 7
Automotive News Canada - June 2018 - v2 - 8
Automotive News Canada - June 2018 - v2 - 9
Automotive News Canada - June 2018 - v2 - 10
Automotive News Canada - June 2018 - v2 - 11
Automotive News Canada - June 2018 - v2 - 12
Automotive News Canada - June 2018 - v2 - 13
Automotive News Canada - June 2018 - v2 - 14
Automotive News Canada - June 2018 - v2 - 15
Automotive News Canada - June 2018 - v2 - 16
Automotive News Canada - June 2018 - v2 - 17
Automotive News Canada - June 2018 - v2 - 18
Automotive News Canada - June 2018 - v2 - 19
Automotive News Canada - June 2018 - v2 - 20
Automotive News Canada - June 2018 - v2 - 21
Automotive News Canada - June 2018 - v2 - 22
Automotive News Canada - June 2018 - v2 - 23
Automotive News Canada - June 2018 - v2 - 24
Automotive News Canada - June 2018 - v2 - 25
Automotive News Canada - June 2018 - v2 - 26
Automotive News Canada - June 2018 - v2 - 27
Automotive News Canada - June 2018 - v2 - 28
Automotive News Canada - June 2018 - v2 - 29
Automotive News Canada - June 2018 - v2 - 30
Automotive News Canada - June 2018 - v2 - 31
Automotive News Canada - June 2018 - v2 - 32
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