Automotive News Canada - July 2019 - v2 - 18

18

By KELLY TAYLOR

WINNIPEG CORRESPONDENT

If one word could sum up
the first half of 2019, it's
fallout. Fallout from U.S.
President Donald Trump's
tariffs on steel and aluminum; fallout from the
announcement of a plant
closure in Oshawa, Ont.;
and fallout from a top
executive's decision
to participate in a U.S.
investigation into sales
practices at Fiat Chrysler
Automobiles.
AR
BUT A YE
CEMBER,
DOWN DE
SALES: A

BER /P19
TO REMEM

er
TIO N
tomak
ITA L EDI
spite au in a futurees
S AND DIG
out de
ed
cl
AKI NG NEW
FOR BRE
shing ill be need ectric vehi
EW S.C A
s are ca
ill st g and el
OM OTI VEN
er
w
AUT
|
al
1
ey
de
NO.
in
th
| VOL . 4,
Some nces that d self-driv
Y 2019
ra
an
reassuline buyers
with on

R
ALER UFETAURE
E
D
F
e
The baGtMtl OF THE
r

h as
ts, suc
protes campaign
its
more
wage r, Ont., in nt open
es to
bly pla
promis in Windso
Assem
Unifor . 11 rally
hawa
the Janp the GM Os
SON
to kee : G R E G L AY
PHO

SIX
MONTHS
IN

* JULY 2019

TO

ove wa
Osha

as the
as wellus driving
model
s,
sumer of autonomo ic vehicle
ctr
er
l
advent
and ele require few .
sses fee
al
busine he said.
which servicing
-store
e,
to Gener
for
Single vulnerabl a
"We say haven't
parts
ecially ups have
NCE
tors, you ng yet," ry
esp
SCE
ny
s,"
Mo
gro
r
OLE
thi
thi
mpa
OBS of the more
"Deale nt spin on 'if
ent Jer
IRW IN
seen any
Presid Jan. 11
The co
go,
ere
AU
One prognostiJO HN
ey
ifor
diff
URE
B
rBy
a
Un
"Th
O
ma
e
d.
d at
ONT
Ont.,
TOR
he sai inate the at
extrems came from
says itsn to
Dias sai Windsor,
E
omakyou dommatter wh a
cation study by San nk
rally in r the aut on's
OUT TH ldecisiothe
TY AB auto dea
ket, no s, you're in ia 2017 sco-based thiich
held afte ed the unithe
ir
son
RTAIN
e
happendominant pos int
close bly plant er rejectals
UNCE is a key rea selling thee
Franci hinkX, wh
to sav e at
-po
future considering se who rid a good, But, single contank Ret lerships
propos m closur r.
assem which
in
fro
tion.' s are very y are
ers are sses, but thos could be
said deabe obsolete
plant of the yea
d,
is final, Unifor
dealer with if the
busine disruption.
would seven years.
id Ahmaof
the ends has vowedof
Far
in
,
s
y
the
ned
hin
ive
ent
ent
cer
Dia millions
out
wit n Kerrigan ing
"
leave er its
all to sta
presid o-based
n to thr
presid
Eri
manag
too sm ler network.
spend
positio id Ahmad, North
ifor's
Torontr Solutions
r and
sed
to pond in what todollars on Un
Far
utions four out ofh
the dea ada's more hirough rt
foundeor of U.S.-ba ,
Deale America,
ut
ler Sol
gn. Th
ors
t effo
Can 0 new-ve
of Dea ca, said abo works wit
direct
options r a war
Advis
campai ary, tha
North
rinant
at the
anu
difa
than 3,20
Ameri lers his firm
Kerriganstarted hea
mid-J luded airing
says dom
.
lers are
dealr the tra
is so rds
inc als during
lership meet
cle dea of a debate
five dea cerns ove retail model
said shem worried
dea
has
ir
can
r.
g
rci
centre ether the
cite conautomotive o-based
of wo
groups ges better . ing fro ly last yea
comme-time sportinrofile
r wh
al
ear
ont
ing
res
pletllen
iness e
h-p
me
ove
see
tion
ers
Tor
sto
IN
cha
com
pri
2,
hig
,
bus
are
t
cgle
201
has
ada
and
"We ny cases, are
HN IRW
U
curren will surviv ngSince Solutions ship transa
than sinO T O
REA
events ws in Can
By JO
O BU
g ads
sho
in ma inesses, are
ONT
o,
model logical cha d F I L E P H
Dealer ut 150 dealer re than 600
TOR
news as runnin newswh
s
dealer g family bus es ... and
technot have upende
ed abo as well as mo
as wellroit's daily and
rs,
ure
running the headlin
onoes tha
retaile rs are being
tions, ions.
in Det
papersial
the fut
of aut
ional
EKS OFturR WE
tradit Sears. Feapredicting thep readin nk about
valuat nce the talk electrifion soc .
E 22
thi
AFTE attling, pos
"Si
s and
two
such asby studies al dealershing they
LERS PAG
media ifor
those
sabre-r heato
vehicle
SEE DEA
fueled the tradition ine shoppiwUn
mous of vehicles,r of God int
ing and
e of onl vices, gro tests in
end of
cuscation put the fea nk some
the ris
ed dis the
sed
thi
ged pro
of
-to-con
amid e-hailing ser
things dealers. I
also staor and promi s of
inning the
direct
a
sions, es
rid
beg
of
of
act
ure
the
and
fut
a lot
Winds up public
ularity
two sidg over the
said. "In
m saw
real
p
ing pop
s'
of the ," Ahmad
seen a el."
fightin al Motor embly to ste ncy.
I've
e,
end
rs,
n lev
the
ass
milita , meanwhil ling
ee yea
of Gener
concer
a, Ont.,
da
GM it was wil
last thrin people's
Oshaw e reache
d
on
hav
spike
has sai millions ms to
plant ate.
nd
ifor
gra
to spe
stalem GM and Un
rs
ning pro
ltiretrai cted workeion
But
sess mu
help affes in the reg genr war ir
both pos
n-dolla
the
find job as on "verypackmillio to finance gns
well
nce
pai
sts
as
era
che tive cam
psev
ugerous" luding lum
respec h-stakes str to
up to
ages, inc ments of rs
in a higt is expected ing
sum payand vouche
gle thate in the com
$60,000 cars.
escala s.
l
for newe really would
month GM, the goa
"W
with
For
work
vent damin
like to to focus on
nds
is to pre
bra
btely
its
glo
Unifor an absolu tion
age to rth-largest ifor,
havinglated transi Viceits fou t. For Un ve
gold-p GM Canada
preser 0
al marke
l is to
n,"
E 22
the goas of about 2,50 the pla
FOR PAG
the job members and
SEE UNI
acturunion y's manuf ada.
compantprint in Can
ing foo

ALYSIS
NEWS AN

4-15
ORIES/P1
THE TOP ST

VIEW
2018 IN RE

CTIVE/P16
RETROSPE
Y-MONTH
MONTH-B

FFEDERAL
EDERAL ZEV MANDATE: OTTAWA WON'T DICTATE TECHNOLOGY TO INDUSTRY/P16

FEBRUARY 2019 | VOL. 4, NO.2 | AUTOMOTIVENEWS.CA FOR BREAKING NEWS AND DIGITAL EDITION

JANUARY

GIVE UP, OSHAWA, IT'S
over. That's General Motors'
response to pleas from the city
to reconsider the closure of
Oshawa Assembly. (Except it
wasn't over, as readers would
discover in May.) ■ ■ ■ Higher
interest rates and fallout from
cost-cutting by GM and other
automakers are forecast to put
a dent in sales, though experts
expect a soft landing after 2018
new-vehicle sales topped two
million for the second year in
a row. ■ ■ ■ Fear of the future
is causing some dealer principals - worried that their
bricks-and-mortar establishments will be replaced by
online sales and mobile vehicle delivery and service -
to cash out. "Since the talk
of autonomous vehicles and
electrification of vehicles,
those two things put the fear
of God into a lot of dealers,"
said Farid Ahmad, president
of buy-sell company Dealer
Solutions North America.
"Single-store businesses feel
especially vulnerable."

FEBRUARY

DEAN STONELEY JOINS A
growing lineup of Canadians
getting keys to the C-suite.
The Burlington, Ont., native
replaced Mark Buzzell as CEO
of Ford of Canada, a move
hailed by many dealers.
■ ■ ■ Parts suppliers are struggling under the gravity of U.S.
metals tariffs as added costs,
delayed federal assistance
and paperwork bog down the
sector. ■ ■ ■ Canadian dealerships are pushing back against

SPECIAL
CIASSHOW

31 UNVEILINGS/
UNVEILINGS/P14-15

NEW PRESIDENT ON THE FUTURE OF AUTO SHOWS
SHOWS//P16

Delayed
rebates as
taxing as
metal tariffs
Despite federal
promises of relief,
'backlog' keeps
suppliers waiting
By ROSEANN DANESE

WINDSOR CORRESPONDENT

THE ONGOING TARIFFS ON
U.S. metal imports as well
as delays in receiving federal rebates and exemptions are
hurting parts suppliers' competitiveness and burying them
under a mountain of paperwork, industry executives
warn.
"The longer they go on, the
longer the Canadian supply
chain is going to have to factor
them into their pricing," said
Jonathon Azzopardi, president
of the Canadian Association of
Mold Makers. "When you're a
supplier and your main component is steel, and it's sometimes
70 per cent of your costs, you
have no choice, you can't afford
to have a 25-per-cent surtax on
top of that metal and still survive."
By the time Clover Tool
Manufacturing received a federal exemption from tariffs
on certain
U.S. metal
imports,
the company lost out
on new business worth
about $25 million from a
long-time
Clover Tool's
U.S.-based
George Zeni:
Tier One cusMillions in
tomer, said
business lost.
George Zeni,
FILE PHOTO
vice-president of the company, which
employs 300 people at two
Ontario plants.
"At first they said 'you've

SEE SUPPLIERS PAGE 23

Facelift
fatigue

Hanover Honda founder Larry Lantz, seated, says sons,
from left, Dave, Rob and Terrance Copeland, have a
different perspective due
to their ages.

The

Newonkids
the

As dealers make preparing
for digital future a top priority,
some view mandated store
renovations as just a facade
By JOHN IRWIN
TORONTO BUREAU

lot

Looking at the future of
dealerships through the
fresh eyes of two families

By PERRY LEFKO

TORONTO CORRESPONDENT

HANOVER, ONT. - DAVE LANTZ
and his two brothers are pumping
young blood into an aging dealership
body facing uncertainty in the age of
high-tech disruption.
"I can't speak for [the next] 50
years, but I think we're really far
away from ordering [cars] online
and picking them up at a kiosk," said
Lantz, sales manager at Hanover
Honda in this town about 360 kilometres northwest of Toronto. "I don't
know how there could be another
facet to do the things we do."
Lantz, 35; brother Rob, 36; and their
32-year-old stepbrother, Terrance
Copeland, all work for their father,
Larry Lantz, who took over ownership
of the dealership in 2007 when it was
called Town & Country Honda.
All see a long-term future in the
family business, despite predictions
that online shopping, the growing

5 KEY

 

 

prevalence of ride-hailing services and
the advent of autonomous and electric
vehicles could render the current dealership model obsolete within the next
decade.
"There's such a human connection to the vehicles - to the whole
process - that will never go away,"
said Copeland, vehicle and leasing
specialist at Hanover Honda. "It's a
very emotional time for purchasing
a vehicle. It's a human interaction,
and that's basically why I got into this
business."

FAMILY MATTERS
Decisions to stick with the dealership business, such as those made by
the Lantz family, are becoming tougher in an already turbulent time.
Farid Ahmad, CEO of Dealer
Solutions Mergers and Acquisitions
in Markham, Ont., said the number of
dealers 65 and older is at an all-time
high in Canada. The demographic

SEE NEXT-GENERATION PAGE 10
 

 

 

 

  

AUTOMAKERS
are not easing up on
mandated dealership image programs
even as dealers grow
increasingly opposed
to costly renovations
that they say are out
of step with the rapidly changing technology that threatens
to disrupt traditional
business models.
"With all of the
question marks
around where the
industry is going
longer term, we
think that [automaker] requirements
would be more reasonable," said John
White, president
of the Canadian
Automobile Dealers
Association, which
represents about
3,200 new-vehicle
retailers.
Store renovations, which can run
into the millions of
dollars, have long
been a source of friction between dealers
and automakers. As
car shopping moves
online, land prices

rise and sales soften,
retailers are becoming more vocal, arguing that technology,
not bricks and mortar, should be the
focus of investment
dollars.
"I have to question whether [renovation programs are]
going to be that relevant 10 or 15 years
from now," said
Ross Ulmer, co-owner of Ulmer Auto
Group, which operates dealerships in

SEE DEALERS PAGE 24

2019 is half
over, and so far
it has been a
roller-coaster
ride of sales
and tariff
tensions, and
concern about
a shrinking
manufacturing
footprint in
Canada

Ross Ulmer:
"Onerous" image
programs were a
factor in selling his
Nissan and Hyundai
dealerships.
PHOTO CONTRIBUTED
BY ROSS ULMER

P17             Buy Sell Dealership Expertise  
     Boutique‐professional style   LEWICKI CONSULTING
not                                                   
TECH TERMS                         
                 High‐volume hype               
TO KNOW FOR 2019             

30 years' experience

www.LACLTD.ca

       

CANADIAN AI COMPANY RESHAPING THE SUPPLY CHAIN/P6

aggressive image-program
requirements imposed by
automakers, saying the costly refits are out of step with
changing consumer demand.
"With all the question marks
around where the industry is
going longer term, we think
that [automaker] requirements
would be more reasonable,"
said John White, president
of the Canadian Automobile
Dealers Association (CADA).
 

MARCH

                  

INDUSTRY EXECUTIVES,
describing a "death by a million cuts," call on the Ontario
government to slash electricity rates, saying that
would improve the province's competitiveness more
than a $40-million provincial aid package. "At some
point, somebody says it's better to do this in Michigan ...
or Tennessee ... or Mexico,"
said Rob Wildeboer, chairman
of parts supplier Martinrea
International. ■ ■ ■ In Red Deer,
Alta., Garrett Scott is set to
open the first certified passive-house dealership in the

MARCH 2019 | VOL. 4, NO.3 | AUTOMOTIVENEWS.CA FOR BREAKING NEWS AND DIGITAL EDITION

FCA eyes AWD Pacifica to regain sales traction
By JOHN IRWIN
and GRACE MACALUSO
AUTOMOTIVE NEWS CANADA

FIAT CHRYSLER AUTOMOBILES
appears poised to add an all-wheel-drive
powertrain to the Chrysler Pacifica
minivan as well as replace its market-leading Dodge Grand Caravan
with an entry-level variant bearing the

Entry-level Voyager
to replace top-selling
Grand Caravan: Analyst

a decision. Unifor represents about 6,000 hourly workers at FCA's
Windsor Assembly plant
in Ontario, which builds
the two minivans as
well as a Pacifica plug-in
hybrid.
Chiodo
"All-wheel drive is
obviously a very popular question right
now," Chiodo said. "FCA has not pro-

Voyager name, as the automaker tries
to retain its dominance in a segment
that has lost sales to utility vehicles.
Dino Chiodo, national auto director at Unifor, said FCA is examining
the AWD option but has yet to make

vided us with any intel with regards
to future product, but they are looking
at the viability and being able to bring
that to market."
In addition, two sources who did not
want to be identified said they have
been told the move is in the works.
They include a supplier employee working on a part designed to accommo-

SEE CHRYSLER PAGE 4

$200/yr. to heat (and cool)?
A new groundbreaking Alberta Subaru store will waste almost nothing
and has walls nearly two feet thick. The owners expect to recover the
extra building costs in seven years, while an industry expert thinks
the design will align with the values of buyers who connect
with environmental initiatives
By DOUG FIRBY

CALGARY CORRESPONDENT

RED DEER, ALTA. - WHEN SCOTT
Subaru officially opens in this mid-sized
city in May, it's not going to look much
different than any other dealership. But
under the surface, it is revolutionary.
Customers will first notice the suction-like resistance on the tightly sealed
front door, and then walk past walls that
are nearly two feet thick. Inside, they'll
find an even temperature, without cold
spots, even in mid-winter, and breathe in
purified air.
This will be the first certified pas-

The exterior is keeping with the Subaru
corporate theme. "They've been onboard
from the beginning," said Scott.

sive-house auto dealership in the world,
according to owner Garrett Scott.
The passive-house design was the brainchild of Scott, whose family has been in the
auto retail business in the city of 100,000
residents since 1968. The Scotts own a GM
dealership, plus another in Cranbrook,
B.C., and recently sold a Nissan outlet.
When Garrett decided it was time for a new
building for the Subaru brand, he wanted
to break the mold.
"We wanted a unique piece," said
Scott, who was inspired by a visit to
Subaru's plant in Indiana, which has a
zero-waste strategy. He discovered that
two dealerships were already at the LEED
(Leadership in Energy and Environmental
Design) platinum level of efficiency, and
that there was only one level higher to go:
Passive house.
"As we put the modeling together, we
realized that the savings are going to be
tremendous," said Scott. He calculated that
the $1.2-million premium he paid to make
the $6-million structure (before equipment)
as efficient as possible would be recovered
within seven years.
It is so energy efficient, heating and

Garrett Scott, owner of
Scott Subaru, says he
doesn't consider himself an
environmentalist.
"We shouldn't be wasting
energy if we don't have to."
PHOTO: DOUG FIRBY

SEE DEALER PAGE 4

I L L U S T R AT I O N S U P P L I E D B Y S C O T T S U B A R U

AUTOMOTIVE NEWS CANADA

CONGRESS
 

 

 

 

 

 

  

 
DECISION MAKERS
          Buy Sell Dealership Expertise  
TAKE ON THE ISSUES       Boutique‐professional style  
  LEWICKI CONSULTING
FACING THE INDUSTRY                         not                                                    
30 years' experience 

PAGES16-18

                 High‐volume hype               
             
       
 

www.LACLTD.ca 

 
 
 
 
 
 

world. Scott Subaru, built with
60-centimetre-thick walls and
highly sealed doors, is predicted to cost $200 a year to heat
and cool. ■ ■ ■ Making the front
page of the March edition: A
potential updated two-minivan
strategy by FCA. Joe McCabe,
CEO of the U.S.-based global forecasting and consulting company AutoForecast
Solutions, says indications are
that the Voyager name will be
affixed to a new Pacifica-based
entry-level minivan to replace
the aging Grand Caravan.
                   

The strategy, along with
reports that FCA will tool up
an all-wheel-drive version of
the Pacifica, is neither confirmed nor denied by the company.

BEST PRACTICES: STORING 1,400 SETS OF TIRES UPSTAIRS/P7

MAY 2019 | VOL. 4, NO.5 | AUTOMOTIVENEWS.CA FOR BREAKING NEWS AND DIGITAL EDITION

Canada uncompetitive? Toyota shrugs
By JOHN IRWIN

governments and a talented
labour pool that drives innovative thinking.
"Over time, we built a
FOR YEARS, CANADA HAS
reputation at
been known as a
[Toyota Motor
tough place to make
MANUFACTURING
Manufacturing
money building
Canada Inc.] that
cars.
we're a good place to
Toyota sees things differently, crediting support from
the federal and provincial
SEE TOYOTA PAGE 4
TORONTO BUREAU

Linda Hasenfratz
of Linamar

By JOHN IRWIN
TORONTO BUREAU

Car sales continue dive: Could the bottom be zero?
TORONTO - THE NEW-PASSENGERcar market will collapse over the next
two years as consumers continue to
gravitate toward utility vehicles, say
industry experts.
Robert Karwel, senior manager of
J.D. Power's Canadian automotive
practice, said he expected cars to make

Low payments push
Canadians into utility
vehicles, but a real death
shot could come from
U.S. President Trump

up 25 per cent of the new-vehicle market by the middle of 2019, and 20 per
cent in 2020.
"It's not a coincidence at all that

EV REPORT CARD

ONLY TWO PROVINCES EARN PASSING GRADES/P16-17

For job gains,
look beyond
auto plants
Hiring is on the
rise as dealerships,
suppliers, the
aftermarket
sector and even
manufacturing
show growth

from the 2008-09 economic collapse.
The rise in employment
comes amid uncertainty over
the future of Canadian auto
production, which has fallen 25 per cent, according to
Ontario government data.
Jobs at dealerships, for
instance, rose 20 per cent
since 2010 to 159,045, while
aftermarket jobs jumped 17
By JOHN IRWIN
TORONTO BUREAU
per cent to 407,253.
"The politics in any country tend to - from an autoTOTAL AUTOMOTIVEmotive perspective, anyrelated employment
way - only look
has grown by 17 per
at manufacturcent since the start
ing," said Dennis
of the decade, drivDesRosiers, presien in large part by
Automotive jobs
dent of DesRosiers
have been increassurging sales, lonAutomotive
ing
since
the
ger-lasting vehicles
Consultants. "And
Great Recession,
and Canadian vehithe theory behind
a result of higher
cle ownership reach- vehicle sales and
that is that manufacownership rates.
ing record levels.
turing is mobile and
Total employment:
According to
when you lose it, it's
*
2010:
703,451
data supplied
gone. Whereas the
by DesRosiers
* 2011: 715,513
nonmanufacturing
Automotive
* 2012: 733,136
side, if a dealer on
Consultants Inc.,
one side of Toronto
* 2013: 745,660
823,052 Canadians
closes, another one
* 2014: 766,516
were employed in
opens up across the
* 2015: 782,592
auto-related jobs in
street. It's technical* 2016: 790,243
2018, ranging from
ly net-neutral in the
* 2017: 803,584
dealerships and
country.
* 2018: 823,052
aftermarket com"So I understand
Source: DesRosiers
Automotive Consultants
panies, to assembly
the politics of it. It's
plants and suppliers.
bad to lose manufacThat compares with 703,451 in turing because it has a
2010, when the industry and
the economy as a whole were
just beginning to emerge
SEE MANUFACTURING PAGE 24

MORE JOBS

Karwel: Longer
loans make
more expensive
utility vehicles
affordable.
FILE PHOTO

It's a slowing
market,
and dealers
are taking
long-term risks
in the struggle
to earn automaker
incentives

the rise in popularity of utilities
has also meant that
the average loan
term in Canada has
increased and that
our dominant loan
term is 84 months,"
Karwel said. "That's
the only way customers are spending
on average $13,000 or

MOST OF LINAMAR CORP.'S SALES
growth in 2018 came from its nonautomotive
business, a sign that the global parts supplier's diversification strategy could be paying
off.
"Diversification is really to give us additional avenues in which to grow our business by [leveraging] off of our strengths in
manufacturing, purchasing, lean manufacturing [and] metal," Linamar CEO
Linda Hasenfratz told Automotive News
Canada.
"It wasn't born out of a desire to

$14,000 more to get a utility body style
vehicle and still make it affordable."
Cars accounted for 29.7 per cent of
all 2018 new-vehicle sales in Canada,
according to the Automotive News
Data Center in Detroit. Despite sales of
more than two million vehicles for the
second time in history, total car sales
finished below 600,000 units. Compare
that with 2009, when automakers sold

Is India the
next Mexico?

SEE U.S. TARIFFS PAGE 26

STAIR-STEP
PROGRAMS

PAGES 16-17

It's a first for the
automaker, which
will cater to the
aftermarket and
other suppliers

By JOHN IRWIN
TORONTO BUREAU

AS NEW-VEHICLE SALES DECLINE,
a growing number of Canadian auto dealers
are balking at stair-step incentive programs, blaming them
for damaging long-term profitability.
"You may get the money
that month or that quarter,
but it costs you in the long
run. It costs you at year-end.
It's not a fun game to play,"
Michael
said Michael Wyant, COO of
Wyant of
the western Canada-based
the Wyant
Wyant Group, which has Fiat
Group says
Chrysler, Ford, Hyundai,
stair-step
Mercedes-Benz and Audi
programs
stores.
eventually
The programs automakers
catch up with
employ to incentivize dealers
dealers.
to be aggressive on new-vehiFILE PHOTO
cle sales vary from brand to
brand. Those structured as stair-step plans
generally offer lucrative bonuses to dealers for
hitting increasingly higher sales targets.

falling

By PERRY LEFKO

TORONTO CORRESPONDENT

CANADA'S AUTO DEALERS HAVE
plenty of reasons to be wary of a new
federal Incentives for Zero-Emission
Vehicles (iZEV) program designed to
energize sales of electric vehicles.
But those interviewed by Automotive
News Canada said a simple mix of
speed and efficiency could go a long

While the Canadian new-vehicle market
soared to new heights earlier this decade, targets were attainable for many retailers. Some
became dependent on those bonuses for much
of their revenue, said dealers interviewed by
Automotive News Canada.
But as sales begin to decline, many dealers
are finding it harder to hit those targets, causing some stores to either miss out on crucial
revenue or consider undertaking questionable
tactics to reach them. And dealers often order
extra vehicles and boost marketing spending
to hit them, making it costly to fall short of targets.

SEE AS LINAMAR PAGE 18

Mike Hicks
of mold
maker DMS

Tim Galbraith
of Cavalier Tool

"We are now so much
more than a vehicle manufacturing facility," GM Canada
President Travis Hester said
during a May 8 news conference held with Unifor
President Jerry Dias.
"We are integrated into
the future of our business,
the future of our development
and into an entire business
model for parts manufacturing and accessory, aftermarket parts and component sets
that will sustain us for at least
10 years."
Building parts for other
companies represents a major
shift in the way GM does business, especially since it spun
off its parts division to
create Delphi Corp., more
than 20 years ago. Automotive
consultant Ron Harbour said

SEE OSHAWA PAGE 23

RELATED
STORY/P23

The new autonomous-vehicle
test track for the Oshawa
Assembly site is viewed
as a feather in Canada's
technology hat.

Spotty information, little
lead time for the May 1
rollout, and dealers are
fearful that Ottawa will
also be slow to reimburse

way in avoiding the pitfalls of similar
provincial EV rebate plans.
Oumar Dicko, an economist at

Oumar Dicko:
Concerned
whether the federal
government can
handle the rebate
volume

I L L U S T R AT I O N : G M C A N A D A

FILE PHOTO

the Canadian Automobile Dealers
Association (CADA), hoped that the
process would be seamless for consumers and retailers.
"I can only assume there will be a

lot of claims processed at the same time
across the country, so I hope the government system that is in place is efficient and works well enough so that we
can expedite the process," Dicko said.
"That's my concern at the moment
because I can expect there will be a lot
of claims processed when dealers can
actually submit them."

SEE REPAYMENT PAGE 6

remuneration in retaliation.
To help kickstart electric-vehicle sales across the
country Ottawa implements
its $300-million iZEV program,
offering rebates of up to $5,000
for certain vehicles, although
not initially including the
Chrysler Pacifica Hybrid
because it was priced above
the maximum allowed. Amid
protest, the Pacifica is later
allowed.

■■■

SQUEEZING PROFITS
"They just fundamentally don't work
in a difficult marketplace," said Dennis
DesRosiers, president of DesRosiers
Automotive Consultants Inc. "When the market is growing, they work, and they work very
well. They really do get dealers to become very
aggressive. The amount of money at stake can
be huge, and so it really motivates dealers to
go after it. Unfortunately, they only were able

SEE THE STAIR-STEP PAGE 24

FINAL MONTH
DEALERS: TO REGISTER

TORONTO - GENERAL
Motors' $170-million plan to
turn its Oshawa, Ont., assembly plant into a parts operation signals a new business
model for the automaker and
gives the factory a renewed
lease on life.
"Getting that kind of
money is more than a stay of
execution and does allow them
to live to fight another day,"
said Kristin Dziczek, vice-president of industry, labour and
economics at the Center for
Automotive Research in Ann
Arbor, Mich. "That's better
than closing."
GM plans to convert
Oshawa Assembly into a
plant producing parts for
vehicles such as the GMC
Acadia, Chevrolet Traverse
and Equinox crossovers. The
plant also will do stamping
for GM's CAMI Assembly
plant in Ingersoll, Ont., and
the automaker is in talks to
perform similar work for
suppliers including Magna
International Inc. and
Martinrea International Inc.
The Oshawa site will also
become home to a test track

whittle down the automotive. I'd love to see
all of them grow. And if one of them starts to
grow faster than the other, OK, let's do that."
In March, the Guelph, Ont.-based manufacturer reported that its industrial division, which includes agricultural equipment
and aerial work platforms, more than doubled operating earnings to $346.2 million
while sales surged 70 per cent to $1.89 billion. Linamar attributed the increases to the
2017 acquisition of harvesting-equipment
supplier MacDon and "strong market share
gains for scissors [lifts]."

Jonathon Azzopardi
of the Canadian
Association
of Mold Makers

for vehicles with autonomous
and other advanced technologies.

MORE THAN MANUFACTURER

By JOHN IRWIN
TORONTO BUREAU

New federal EV rebates: High-stakes trial by fire

THE DANGER
OF

down

EXCLUSIVE
LEAD SPONSOR

GM to become
a parts supplier

Responding to U.S. trade uncertainty,
Canadian companies explore new countries
and venture into nonautomotive territory

APRIL 2019 | VOL. 4, NO.4 | AUTOMOTIVENEWS.CA FOR BREAKING NEWS AND DIGITAL EDITION

By JOHN IRWIN

Auto executives berate
Canada's power costs,
corporate taxes and
uncompetitive incentives
for new investment. Toyota
has a different take, adding
Lexus NX production
alongside the related
Toyota RAV4. P H O T O : T O Y O TA

Suppliers
diversify

CARBON TAX IN EFFECT: WHAT IT MEANS TO AUTO/P3

TORONTO BUREAU

$170-MILLION PLANT LIFELINE

Oshawa 2.0:

As other automakers idle assembly lines,
Toyota touts Lexus NX production for 2022

E 31
PAG
SEE

APRIL

OF ALL THE NEW
vehicles sold in 2018, just 29.7
per cent were cars, and the
prediction is for that number to fall: Robert Karwel,
senior manager of J.D.
Power's Canadian automotive practice, said he expected cars to make up 25 per
cent of the new-vehicle market by the middle of 2019,
and 20 per cent in 2020. And
there appears to be no bottom in sight. ■ ■ ■ Aggressive
spending by FCA on its U.S.
plants fuels concerns about
the future of the Brampton,
Ont., facility, which builds
the Dodge Challenger and
Charger and the Chrysler 300.
Still, says Flavio Volpe, president of the Automotive Parts
Manufacturers' Association,
FCA's US $4.5 billion investment in new and existing
assembly plants in Michigan
will be worth billions in business for parts suppliers in
Canada. ■ ■ ■ Although new-vehicle manufacturing is a continuing dark cloud hanging
over the industry in Canada
- punctuated by the cutting of
the third shift at FCA's minivan plant in Windsor - optimism over the future of the
auto sector shifts to peripheral
industries, as jobs numbers at
suppliers, dealerships and the
aftermarket employment grow
to 823,052 in 2018 from 703,451
in 2010.

JUNE

U.S. TARIFFS ON STEEL
and aluminum are finally
over, but the yearlong dispute deals a crippling blow to
Canada's auto sector. "There's
some business which may
never come back," said APMA
President Flavio Volpe. The
25-per-cent tariffs were applied
in June 2018 and ended in
May. The volatile pricing of
metals even delayed some
dealership construction.
■ ■ ■ May new-vehicle sales dip
5.8 per cent, which is the 15th
consecutive monthly drop
with most of the blame resting on FCA's shoulders. The
slowdown comes as automakers curb incentives, focusing
on boosting profitability over
market share. ■ ■ ■ Two significant features within the pages
of the June edition: Interviews
with female executives making headway in a still-predominantly male-dominated industry; and the rise of Canadians
to the top positions of Ford,
Mazda, Volvo and Nissan.
Does being Canadian help?
Dealers say the executives
will have a built-in knowledge,
but they also say competency
trumps citizenship. - ANC

MAY

GENERAL MOTORS
throws Oshawa Assembly
a $170-million lifeline as it
decides to convert the plant
into a parts supplier, but the
move is expected to save only
300 of the 2,600 jobs at the
plant. The union representing the workers - Unifor -
expects that to grow to 500
within three years.
■ ■ ■ Late in the month, FCA
Canada CEO Reid Bigland,
who also heads U.S. sales,
launches a whistleblower
lawsuit against his employer, alleging the carmaker is punishing him for
participating in a U.S.
Securities and Exchange
Commission investigation into inflated
sales figures at FCA.
Bigland accuses
FCA of withholding
bonuses and other

JU NE

MITSUB
ISHI TA
RGETS
EAST
20 19 |
VO L.

Linge
pain afring
metals ter
tariffs

4, NO
.6 | AU
TO

Finan
cuts cial dam
from a wide swage
to deaparts su ath,
const lership ppliers
ructio s with
n on
By DA
hold
WIN
VE HA
DSO

MO TIV

EN EW

S. CA

FO R BR
EA KI

COAST
FOR RE
TAIL EX
PANSIO
N/P6

NG NE
WS AN
D DI GI
TA

L ED ITI
ON

WOM
EN

New
Canadia
leaders n

LL
R C
ORR
ESP
OND
THE
ENT
over YEAR-L
steel cross-borONG FI
has enand alum der tarifGHT
spre ded, bu inum pr fs on
er-exad harm t it infli oducts
perin pansion , cripplincted wide
parts g new buplans an g deal- m
sines d ham
s for
Pr akers.
some
steel olonged
prom and alumuncerta
Cana pted man inum printy over
find dian pa y custo ices
Statesalternat rts suppliemers of
iv
iden , said Fl es in th rs to
t
e
av
of
the Au io Vo Unite
Man
d
(APMufacture tomotivlpe, pres
A). As rs' As
e Pa
a resu sociatio rts
n
lt,
some"There's
which busines
neve may s
r
back come
," he
said.
Du
Volp
the di ring
e: Ta
are ov
riffs
which spute
stab er, bu
in m ended
MA
indu ility in tht
th id-May
VOLVONAGING DIRE
take stry will e go e Canadi ,
CAR OF CTOR
ve
an
time. some
colle rnment
CANADA,
FIL
E P
than cted mor
HOT
O
acco
lion $1.27 bil- e
for thrding to
iatoryin retalmen e federala spokes tariffs,
t.
pe
finan
rs
It'
ce de on
parttuallys revenu
affec be used e that wi
alum ted Cana to reim ll evenparts inum co dian ste burse
el
mpa
su
nies and
As pplie
and
has be of May rs.
to Ca en waiv14, $223.1
impa nadian ed or re million
ing tocted by parts suppfunded
depa the fed the tarif liers
fs,
eral
rtm
finan accord
The ent.
ce
amou U.S. ta
rif
nted
CEO, MA
to 25 fs, which
per ce
CANAZDA
nt on

ONELEY

PRES
FORD IDENT,
CANADA

Fou
brin r top exe
to Fog nationacutives
and Vrd, Mazd l knowle
a, Nis dge
olvo
san
M
ATT GI
RGIS

DAVID
KLAN

SEE TA
RIFFS
PAGE

DA

11

HO
THEW FAR

ANDY'VE C
IN TH
E CA
ROA THE
D AH
NAD
P
E
IAN
AUT 16-18
O IN
D
UST
DEAN
ST

STEV
MILETE
TE

PRES
NISSANIDENT,
CANADA

Le
ca
on t
hood

The
slow marke
curb ing, so
ince
nt

By DA
NA

TOR

ONT
FL AV
O C
E
ORR
ESP
O
AUTO
pulli MAKER
cle inng back S ARE
as sa centive on vehiIN
inste les slow, program
EAU
ad to
choo
m
sin
conc
aint
CANA
ity ra aining entrate g
Ford DIANS
profita o
markether than
bi
as ne , Mazda, HAVE
resear t share, chasin lical w-vehicleNissan TAKEN
indu g
ch in
stry
di
In
retailchange th sales coand Volv THE RE
INS
man Canada cates.
o in
reaten ntin
m
De odels
s to up ue to slutheir ho AT
per veufacture , the aver
hope alers in .
rs' in
me co
en
m
hi
p
cle
d
M
te
cent age
an
tradi
un
ay
wa
will that lea rviewe
tiona d techno try
mea
ders
May , down fro s $5,200 ive
d by
l auto
lo
Au
"W n a sm fam
Powe 2018, acco m $6,40 in
motivgCana hen yo ooth trailiar withtomotive
r data
rdin 0 in
e
g to J.D
.
"I
learn da's youru come in nsition the do News Ca
mestic nada
gy frot's a shift
.
Birc ing curv first as [from anin disrup
m go
in str
la
hwoo
ke
nd
e," sa signm
tiv
ing
othe
t sh
at
d Au
id
r co e tim scape
"E
en
Karw are," sa for mar eCana ffectively tomotivSteve Ch t, you've untry] es.
J.D. el, seniorid RobertB.C., da and ca , a pers e dealer ipman, got a bi and
prac Power's manag
Queb there's n see fivon who ship grouCEO of thg
tice in auto
motiver of
Ca
"T
feren ec and ththe prairie e differecomes fro p in W e
e
sayinghe auto nada.
t."
m Eu innipe
nt co
e Atla
s, th
un
g.
er
Fr
ro
ntic
goin , 'We knmakers ar
prov e's Onta tries. Th pe sees
assu om Febr
ince
so letg to sell lesow we're e
hom med the uary th
s, an rio, there'sere's
e coun top jo roug
tain 's ensure s this ye
d they
h
good
b at
're al
try:
prof we mai ar,
auto early Ju
W
l difmak
ne, fo
coun hile that itability.'ners'
oper ur Cana
fallingterintuiti might se "
ations dian
ers ex marke ve - in em
in th s
most
eir
coun pect to ts, consum
see m
SEE DE
mak ts, not few
ore ALER PA
prod ers are ch er - au disGE 22
dem uction to oosing toto
and,
Karwmatch lo cut
wer
el sa
id.

By JO
HN

TOR

ONT

IR W

O B
UR

S AV

SEE FA
LLING
PAGE

OCT E T H E D A
T
OBE
R 23 E
* 201
9
P OW

ERE

D B
Y:

22



Automotive News Canada - July 2019 - v2

Table of Contents for the Digital Edition of Automotive News Canada - July 2019 - v2

Automotive News Canada - July 2019 - v2 - Intro
Automotive News Canada - July 2019 - v2 - 1
Automotive News Canada - July 2019 - v2 - 2
Automotive News Canada - July 2019 - v2 - 3
Automotive News Canada - July 2019 - v2 - 4
Automotive News Canada - July 2019 - v2 - 5
Automotive News Canada - July 2019 - v2 - 6
Automotive News Canada - July 2019 - v2 - 7
Automotive News Canada - July 2019 - v2 - 8
Automotive News Canada - July 2019 - v2 - 9
Automotive News Canada - July 2019 - v2 - 10
Automotive News Canada - July 2019 - v2 - 11
Automotive News Canada - July 2019 - v2 - 12
Automotive News Canada - July 2019 - v2 - 13
Automotive News Canada - July 2019 - v2 - 14
Automotive News Canada - July 2019 - v2 - 15
Automotive News Canada - July 2019 - v2 - 16
Automotive News Canada - July 2019 - v2 - 17
Automotive News Canada - July 2019 - v2 - 18
Automotive News Canada - July 2019 - v2 - 19
Automotive News Canada - July 2019 - v2 - 20
Automotive News Canada - July 2019 - v2 - 21
Automotive News Canada - July 2019 - v2 - 22
Automotive News Canada - July 2019 - v2 - 23
Automotive News Canada - July 2019 - v2 - 24
Automotive News Canada - July 2019 - v2 - 25
Automotive News Canada - July 2019 - v2 - 26
Automotive News Canada - July 2019 - v2 - 27
Automotive News Canada - July 2019 - v2 - 28
https://www.nxtbook.com/nxtbooks/crain/canada_202402_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202401_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202312_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202311_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202310_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202309_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202308_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202307_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202306_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202305_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202304_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202303_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202302_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202301_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202212_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202211_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202210_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202209_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202208_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202207_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202206_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202205_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202204_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202203_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202202_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202201_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202112_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202111_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202110_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202109_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202108_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202107_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202106_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202105_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202104_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202103_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202102_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202101_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202012_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202011_ifm
https://www.nxtbook.com/nxtbooks/crain/canada_202011_acg
https://www.nxtbook.com/nxtbooks/crain/canada_202011_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202010_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202009_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202008_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202007_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202006_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202005_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202004_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202003_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202001_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201912_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201911_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201910_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201909_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201907_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201906_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201904_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201903_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201902_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201901_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201812_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201811_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201810_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201809_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201808_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201807_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201806_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201805_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201804_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201803_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201802_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201801_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201712_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201710_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201709_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201708_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201707_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201706_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201705_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201704_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201701_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201612_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201611_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201610_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201609_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201608_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201607_v2
https://www.nxtbookmedia.com