Automotive News Canada - July 2019 - v2 - 3

SECOND FRONT
Legal battle
embroils
FCA's Bigland
By JOHN IRWIN
TORONTO BUREAU

FIAT CHRYSLER'S CANADIAN
boss Reid Bigland stands out as a
multitasker. In addition to being
CEO of FCA Canada, he is head
of sales for the automaker in the
United States.
His executive juggling act grew
more complex in May when he filed
a whistleblower suit to protect himself against his own company. And
this as he fights cooling markets on
both sides of the border.
Yet not much has appeared to
change at FCA Canada. How?
Some who follow the company say the same management
approach that has allowed Bigland
to carry jobs in two countries helps
steady FCA Canada amid the lawsuit: Delegation.
Since 2011, many of the dayto-day responsibilities typically reserved for an automaker's Canadian CEO have been
passed off to FCA Canada COO
David Buckingham, said Dennis
DesRosiers, president of DesRosiers
Automotive Consultants, who has
followed the industry in Canada
since 1973.
"Your strength is the team

SEE NO DIRECT INDICATION PAGE 23

As well as battling his employer
in a U.S. court, FCA Canada CEO
Reid Bigland is grappling with
softening sales in both countries.
PHOTO: BLOOMBERG

New CADA
chief faces
dynamic times

A Renewvia solar-panel
parking shelter installed at
a dealership in McKinney,
Tex., protects vehicles
parked outdoors and
generates up to 80 per
cent of the business's
electrical needs.

Hail coverage

PHOTO: RENEWVIA

Management structure
could keep FCA
Canada on course
as lawsuit plays out

Solar panel parking-shelter
solution could pay for itself
over five years, or with one
big storm, says provider

Industry veteran to steer
national dealers' group
By JOHN IRWIN
TORONTO BUREAU

Scott has considered a steel netting system that can be deployed when weather
threatens, or shelters covered in solar panels.
The latter is under consideration for
a new building at his Subaru store, a
"high performance" energy-efficient pasBy KELLY TAYLOR
sive-house design that he estimates will
WINNIPEG CORRESPONDENT
cost about $200 a year in energy.
He said the solar-panel approach would
cost $850,000 to install and would be a natuIN 2015 AT HIS THREE DEALERSHIPS
ral fit with the passive-house building stanin the heart of Alberta's Hailstorm Alley,
dard.
Garrett Scott felt Mother Nature's wrath:
Trey Jarrard is co-founder and CEO of
600 vehicles damaged with an average
Renewvia, in Atlanta, Ga., which is outfitclaim of $11,000.
ting dealerships in the United States with
"We got clobbered in '15," the Red Deer
dealer principal said. "Even with the insur- hail-protection shelters that he says pay for
themselves in five years.
ance, it still cost me money."
For one client, whose instalScott owns Kipp Scott GMC
lation was under way in early
and Scott Subaru, and in 2015 he
May, any energy savings were
also owned a Nissan store, all on
just gravy. "He told me, 'I have
the same block. He said insur$4 million in inventory, and if
ance repaired all the cars, but all
we have just one event, this has
were depreciated by the event.
paid for itself.'"
"The hard part is just the
The solar generation of such
value it knocks the vehicles
systems will depend on latidown, about $5,000. It shows up
Hail insurance
tude, he said, which affects
in the Carfax report," he said.
both the angle and duration of
"It's a bit of a double-edge sword, in some areas of
Alberta is either not sunshine. Based on testing in
because when we take in a car
available
or
costly
Colorado, every 100 parking
on trade, we devalue it when it's
to buy, said Garrett spots generate a peak 275 kilohail damaged, too.
Scott of Scott
watts of electricity, or about
Hailstorm Alley roughSubaru in Red
387,000 kilowatt-hours. He said
ly follows a 240-kilometre line
Deer, Alta.
a 500-space system would genfrom High River north through
He's considering
erate sufficient energy to cover
Calgary, Red Deer and Lacombe, a solar roof for
about 80 per cent of a dealerand 90 kilometres west to Rocky his vehicles.
ship's electrical needs.
Mountain House.
PHOTO: SCOTT SUBARU
Jarrard said in the United
HAIL COVERAGE IS SPOTTY
States, most customers use two-way metering, which allows them to sell excess elecScott said he's fortunate there are still
tricity to the utility. The net effect is using
three insurance dealers in Red Deer willthe electrical grid as a battery, effectively
ing to underwrite hail coverage, but auto
dealers in north Calgary and Airdrie aren't selling excess electricity and then buying it
back when needed.
as lucky, either denied coverage or paying
South of the border, hail damage is a US
annual premiums as high as $500,000.
$8-billion to $10-billion cost to the industry.
With weather patterns changing, more
Canadian statistics are not available, the
severe storms can be expected and dealInsurance Bureau of Canada said. Private
ers with extensive inventory that must be
insurers in Canada consider such numbers
stored outside are vulnerable. However,
proprietary, so only anecdotal information
there are new measures available to preis generally available. - ANC
vent, or at least mitigate, hail damage.

TRANS-CANADA NEWS
Designer M-B store will have
22 EV charging stations
ETOBICOKE, ONT. - MERCEDESBenz Canada will open a new corporate storefront on the southeast corner of The Queensway and The East
Mall in Toronto West.
The dealership, slated to open in
the fourth quarter of 2020, will have
a 96,000-square-foot (8,900-square-metre) building footprint. Dedicated
showrooms free of office furniture
such as desks and computers will be
integrated for Mercedes-Benz and
Mercedes-Benz Vans products, as
will a standalone Mercedes-AMG

5,000 KILOMETRES OF STORIES

Experience Centre.
Infrastructure will include 37 service bays, three car washes, eight
prep bays, and two 480-volt Level 3
electric-vehicle charging stations

along with 20 240-volt Level 2 stations.
The design features a partial
green roof to retain water and reduce
heat load on the structure.
- Stephanie Wallcraft

'Personally important' JLR
store 46 years in the making

Rooftop water collection aids cooling
in new Mercedes-Benz corporate
store in Etobicoke, Ont.
PHOTO: MERCEDES-BENZ CANADA

BRAMPTON, ONT. - ZANCHIN
Automotive Group grew its dealership base June 11, breaking ground
for its first Jaguar Land Rover (JLR)
store and fulfilling a dream first
imagined by company patriarch Joe
Zanchin 46 years ago.
Zanchin said it was "personally

03

07.19

TORONTO - FORMER
Mercedes-Benz Canada CEO Tim
Reuss will take over as the CEO of
the Canadian Automobile Dealers
Association on Sept. 3, leading the
organization
amid numerous technological changes
that threaten
the traditional dealership
model.
Reuss
will replace
CADA CEO
Tim Reuss had a
John White,
lengthy career with
Daimler before
who will
being recruited as
leave after
CEO of the CADA .
about three
PHOTO: CADA
years on the
job.
Among the long-term challenges
is the growth of online retail and the
rise of ride-hailing services.
Reuss led Mercedes in Canada
from 2011-15 after a 24-year career
with Daimler in a variety of roles,
including CEO of DaimlerChrysler
Vans and head of the Mercedes-Benz
corporate retail division in Rome.
According to the Automotive
News Data Center in Detroit, annu-

SEE WHITE INTENDS PAGE 22

CORRECTION

A photo caption on Page 8 of the
June issue incorrectly quoted Scott
Killen, general manager of Audi
Moncton, as saying the dealership
would save $560 for front-plate
brackets for each car it sells. The
caption should have stated that the
dealership had to spend $560 to
install front plate brackets on Audi
vehicles it took on trade from other
jurisdictions that didn't require front
plates. As well, the photo should
have been credited to Dale Preston.

important" to align with Jaguar.
He said he bought 13.7 hectares (34
acres) in Brampton with the intent to
accommodate 10-12 dealers in a mall,
one of which had to include JLR, he
said, calling the brand "to me, the
epitome of the car industry ... the
best that the automotive [world] can
offer."
The 55,000-square-foot
(5,100-square-metre) facility will have
a showroom for 19 vehicles, a large
customer lounge and 19 service bays.
The dealership is due to open in
the summer of 2020.
Combined with a Lexus store that
is being built in Vaughn, Zanchin will
own 33 dealerships, the most in the
Greater Toronto Area. - Perry Lefko
- ANC



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
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Automotive News Canada - July 2019 - v2 - 26
Automotive News Canada - July 2019 - v2 - 27
Automotive News Canada - July 2019 - v2 - 28
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