Automotive News Canada - June 2018 - v2 - 26


* JUNE 2018

Maven, Zipcar see Toronto growth May sales cool although
Hall said the early numbers for Maven in
Toronto have been among the company's "very
best" compared to the launch of the service in
other major cities, and there are several factors, such as "the combination of free membership and no annual fees ... and our OnStarsupported service," he said. "Secondly, the city
of Toronto has been choked by traffic ... and all
of the things that have driven people to come live in
that city [has them] looking
for additional options to get


woman Katelyn Chesley, adding that the service had been contemplating expanding prior to
Car2Go's decision to leave the GTA.
General Motors, which launched its Maven
short-term rental service in Toronto in
February, said it might increase its fleet based
on the uptick of its business.
Scott Hall, GM's Maven
region manager for Eastern
United States and Canada,
told Automotive News Canada
his company will be "very
responsive" to customers as
the demand for the service
Meanwhile, Cedric
Mathieu, director of Turo
"Since the beginning of
Canada - where vehicle
March, we've seen a tripling
owners rent to other drivin both our reservations and Toronto wants to charge a parkers - told Automotive News
our reserved hours, and we
Canada that Car2Go's deciing fee to Car2Go, so Car2Go is
already have more than 5,000 leaving the city. Competing Zipcar sion is an "unfortunate outmembers in Toronto," Hall
says it is expanding in Toronto.
said. "The response from the P H O T O : C A R 2 G O
"Car sharing [short-term
Toronto community has been
rentals] is a major trend in
tremendous, and we hope that continues so we
urban areas around the world, and cities should
can continue to grow."
do everything they can to provide access to
Car2Go exited Toronto at the end of May
car-sharing services for their population," said
because city council wanted to charge it
Mathieu. "That said, there are already hun$1,500 per car per year to park its automobiles
dreds of thousands of cars in the city of Toronto
throughout the city as opposed to designated
sitting idle 95 per cent of the time."
pickup and dropoff areas. Car2Go had 350 vehiThe fleet-based model of short-term rentals
cles in Toronto and 80,000 members.
only adds to the problem, he said. "Rather than
But Hall said Car2Go's decision will have no
flooding the streets of our cities with dedicated
bearing on Maven's expansion plans.
shared fleets, the solution lies in putting existHe would not provide details on when
ing cars to better use by allowing individual car
Maven's service might expand or if there would
owners to share them.
be any changes to the current offering of mod"Torontonians have started to take notice
els, which include the Chevy Malibu and Volt,
and that's why there are now more cars availGMC Acadia and Yukon, and the Cadillac ATS
able on Turo than on all the other car-sharing
sedan and XT5 utility vehicle.
platforms combined." - ANC

Unifor says wages will be a hot
topic during supplier negotiations

to be disgruntled without some
sort of adjustment," said Tony
Faria, an auto expert at the
University of Windsor, Ont.
"I would certainly think at
non-unionized plants, companies are probably feeling the
need to bump their workers up
a little bit. And in the unionized ones, when a new contract
comes up, that will be a clear
point of argument."

Demands for higher wages
played a role in brief strikes
this year at Lear Corp. and
ZF-TRW plants in Ontario,
though local dynamics were
also at play. Lear workers at
an Ajax, Ont., plant sought pay
equity with another company
plant, while ZF-TRW workers
looked for the company to hire
more workers and grant more
time off.
Unifor President Jerry
Dias said he sees the minimum-wage increase having
only a minimal impact on
suppliers running unionized
shops, adding that the union
was a major proponent of the
"I don't think it'll do a lot.
If you look at the automotive
supply base here in Canada,
most workers are already
making over $15 per hour," he

ers in Canada making $15 per
hour," Dias said. "I find it hypocritical to say the least. If
they want to reduce their overall cost structure in their company, take a pay cut. Go down
to $10 million per year."


I'm always fascinated
by CEOs of auto-parts
companies who are
making millions of dollars
arguing about workers in
Canada making $15 per
hour. I find it hypocritical
to say the least.

Unifor president

He said that wages are still
likely to be a major issue in
upcoming negotiations with
suppliers. Workers are fed up
with stagnant wages at a time
when many companies are as
profitable as they have been in
years, Dias said.
"I'm always fascinated by
CEOs of auto-parts companies
who are making millions of
dollars arguing about work-

Canadian supplier executives have warned the minimum-wage increase and
other provisions in a sweeping labour legislation passed
into law in 2017 hurt Ontario's
competitiveness, already
hampered by high electricity rates and trade uncertainty. Magna International CEO
Don Walker, for instance,
said Canada is becoming "too
socialist" to attract business.
Faria said the government
has a difficult balancing act to
maintain, between advocating
for its workers and making the
business environment attractive compared with Mexico
and the United States.
"I can hardly imagine how
someone in a parts operation
making $19 per hour can, if
that person is the head of a
household, pay for a mortgage,
pay for a car and clothe and
feed the kids. But it's a hard
thing to balance," Faria said.
"We've got to balance these
things better in Ontario than
we've been doing. We've let too
many of these costs get out of
hand for businesses." - ANC

the month was no slouch
Political uncertainty
might be linked to
booming demand
for electrics

Toyota reported 44-per-cent
higher sales of hybrid models,
including 795 hybrid versions
of the RAV4.
While the growth of electrified-vehicle sales is a longterm trend, one analyst sugBy JEREMY SINEK
gested a possible explanation
for the especially sharp spike
in May: the Ontario provinMAY AUTO SALES EDGED
cial election.
a little closer to proving the
It could be "consumers
analysts right: Full-year sales
worried about disappearing
in 2018 will be less than the
incentives if there is a change
2017 record.
in government policy," said
A 0.6-per cent downtick in
Eric Schmidt, digital-marketMay - traditionally the biging manager for FleetCarma,
gest-selling month of the year
an information and technolo- cut the year-so-far lead to
gy company that specializes in
just 0.2 per cent above the
the transition to electric vehiyear-ago pericles.
od. After gains
In the
in January
market as
and February,
a whole, litMay was the
tle changed
third straight
in the
down month.
over-archAnd although
ing trends:
the dip was
GM, Ford
Soaring sales of the Nissan
minimal, this
and FCA
Leaf led a wave of strong
May's count
Canada sales
electric-drive sales.
was also based P H O T O : N I S S A N
fell four per
on one selling
cent while
day more than May of 2017.
the global automakers' sales
Still, this May's 215,942-unit rose two per cent. Car sales
total was nine-per-cent better
were down eight per cent,
than the next-best May ever,
while truck sales were up four
and about 20 per cent highper cent.
er than the previous-10-year
"Given the current ecoaverage.
nomic and political uncertainMay records were set
ty, these sales levels remain
by Subaru, Honda, Nissan,
pretty impressive," said David
Toyota trucks, Land Rover,
Adams, president of Global
the Ford F-series and the
Automakers of Canada.
Honda CR-V, while Mitsubishi
GM Canada continued its
Canada had its best month
2018 rebound, growing its May
sales 5.4 per cent and keepElectrified vehicles were
ing its year-to-date leadership
sizzling in May as Nissan sold
of the market - even though
902 copies of the redesigned
Ford of Canada, down 3.3 per
Leaf electric car - a staggercent, led sales for the month.
ing 643-per-cent increase -
The GMC brand claimed its
and Mitsubishi's Outlander
best year-to-date sales ever.
PHEV again outsold its gasFCA's 15-per-cent slide was
oline-engine counterpart
arguably exaggerated by Ram
(590 to 525). As well, the
pickup sales declining 17 per
Toyota Prius, Hyundai Ioniq,
cent off an all-time-record
Chevrolet Bolt, Kia Soul EV,
year-ago month, though sales
BMW i-Series and electrified
of another volume seller, the
versions of the Ford Fusion
Dodge Caravan, also fell 37 per
more than doubled their sales. cent. Even so, the Ram outChevrolet Volt sales grew 81
sold its GM Sierra/Silverado
per cent and Kia Niro sales
rivals, which doesn't happen
were up 80 per cent.
often. Meanwhile the marToyota Canada reported
ket-dominating Ford F series
that most of the Prius sales
set a May record.
were of the new Prime (plugThe Jeep Wrangler's
in hybrid) version; overall,
new-model sales bonanza
cooled in May to 25 per cent
(compared with gains almost
200 per cent in the first quarter) and it slipped out of the
top-10-best-sellers list. Big
Compared with the
gains for the Jeep Compass
same month a year ago
and Cherokee were offNissan Leaf: +643%
set by sharply lower Grand
Lincoln MKT: +457%
Cherokee sales, which shook
Chevrolet Spark: 395%
down to a net gain of eight per
Infiniti QX70: +345%
cent for the Jeep brand.
Chevrolet Traverse: +184%
Among the global automakKia Rondo: -74%
Infiniti QX30: -73%
ers, Nissan touted record sales
Volvo S90: -72%
of its Qashqai, while posting
Genesis G90: -63%
its first sales (six) of the new
Audi A8: -61%
Kicks model. Yet despite the
Mercedes SL: -61%
potential in-house competiJaguar XF: -81%
tion, the Rogue compact CUV
is essentially holding its own
- down just 0.6 per cent. The
Lexus LS: +540%
Kicks was the only new nameFiat 500: +700%
plate making its debut in May.




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
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Automotive News Canada - June 2018 - v2 - 11
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Automotive News Canada - June 2018 - v2 - 14
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Automotive News Canada - June 2018 - v2 - 32