Automotive News Canada - September 2020 - 11

OPINION

09.20

Dealers up their
innovation game
JEFF MELNYCHUK | EDITOR-IN-CHIEF
AUTOMOTIVE NEWS CANADA HAS HEARD TIME AND AGAIN THAT IT
doesn't matter what obstacles are thrown in front of dealers, they are
creative enough to find a way over, around or through those obstacles.
Examples are at every turn, and our ongoing series of best-practices
stories shares those triumphs and lessons on a regular basis. But in this
month's issue, two stories shine a spotlight on out-of-the-box dealer
innovation.
The first is on Page 23 and tells the tale
of two groups that threw in together to share
Retailers continue
of a new Jaguar-Land Rover store
to think outside the ownership
in Calgary as well as a new Volvo outlet.
box, no matter what While it's normal for larger groups to acquire
obstacles are thrown single-point stores or even smaller groups,
it's rare that two groups would partner in
in their path.
such a way.
Under the deal, the Saskatoon-based
Wyant Group gains a foothold in Alberta, while the Calgary-based
Valentine Group gets a major stake in a premium brand and the opportunity to develop land in an auto mall. Such an arrangement would not
only require trust, but a common goal and recognizing what the other
party brings to the table. And of course putting together a proposal that
would satisfy the brands.
"For us, this combination of two well-established groups makes total
sense for the Calgary market," said JLR Canada
President Wolfgang
Hoffmann.
The second story is on
Page 15, which spotlights
Winnipeg-based
Birchwood Automotive
Group and its centralized
reconditioning centre for
used cars, which are
Birchwood Automotive Group
becoming more importstreamlined its used-vehicle intake to
ant to the bottom line
cut the time the cars are in inventory,
during the pandemic.
which increased profit margin. The
Streamlining and
centralized reconditioning centre serves
standardizing is importall 21 of Birchwood's dealerships.
ant, yes, but Birchwood's B I R C H W O O D A U T O M O T I V E G R O U P
goal is velocity: Intake
the vehicles, assess any work that's needed and get it done, and get the
vehicles on the lot and sold as quickly as possible.
Why? Scott Greer, director of used-vehicle services for the 21-dealership group, estimated the carrying costs of a used car are as much as
$75 per day, so the less time on a lot, the better the margin. Before the
centralized reconditioning centre, cars were on the books for as long as
15 days before they were even ready for sale. That has been cut to three
to four days, on average, which also means more time for managers to
sell as opposed to dealing with intake.
Dale Pollak, executive vice-president of Cox Automotive, said
Birchwood "is very smart." Dealers must sell 50 per cent to 55 per cent
of their used vehicles within the first 30 days to remain profitable, he
said. Birchwood is selling on average 63 per cent.
"That's very, very strong."
And we think it's genius.
Dealers have faced headwinds their entire professional lives and are
still selling vehicles today because of the kind of innovation shown in
these two stories. Whether it's integrating a new digital-sales model or
navigating the onslaught of daily challenges brought on by a pandemic,
dealers will inevitably think their way over, around or through those obstacles. No question. - ANC

EST. 1925

PUBLISHED WEEKLY BY CRAIN COMMUNICATIONS, INC.
KEITH E. CRAIN, EDITOR-IN-CHIEF
KC CRAIN, GROUP PUBLISHER
JASON STEIN, PUBLISHER

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PUBLISHED MONTHLY BY CRAIN COMMUNICATIONS, INC.

NEWS DEPARTMENT

JEFF MELNYCHUK, EDITOR-IN-CHIEF, 506.854.5024, JMelnychuk@autonews.com
GRACE MACALUSO, MANAGING EDITOR, 226.787.0441, gmacaluso@crain.com

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Customer service for high-tech
Taycan is surprisingly low-tech
PORSCHE CARS CANADA CEO MARC OUAYOUN
After speaking with Taycan owners, Ouayoun
and his executive team have spent part of the
gained insight into how they view the vehicle and
pandemic reaching out directly to owners of the
its technology. "They love the car and how it
Taycan electric car.
drives, and they were surprised by the range, 400
Ouayoun came up with the
to 430 kilometres with one
idea of calling customers of the
charge."
luxury brand's first EV during a
But, he also concluded that
MANAGING EDITOR
brainstorming session seeking
Porsche had to do a better job of
GRACE
ways to boost customer service.
explaining how to maximize the
"We had conversations about
benefits of EV ownership.
MACALUSO
driving, charging experiences,
"This [Taycan] is completely
customer care and the fact that
new. It's more complicated than
customers are our brand ambasdelivering a 911. There is a lot to
COMMENT
sadors," he said, "and some are
know about charging and infranew to the brand."
structure."
There was talk of distributing a customer surThe automaker, Ouayoun said, is looking to
vey. "But I said, 'Why don't we just call and get
provide follow-up videos - possibly using plattheir feedback.'
forms such as Zoom - designed to ensure cus"They are the pioneers, the early adopters to
tomers "understand the whole
buy the car that rep[EV] journey."
a completely new
The pandemic, he said, disPorsche's Marc resents
era for us."
rupted the Taycan's launch.
Ouayoun thinks
Porsche's effort comes
"We had some very nice custhe pandemic accelertomer events in February with
luxury buyers in as
online auto retailing
close to 5,000 people," Ouayoun
particular value ates
and fuels growing quessaid. "Two weeks later, there was
tions over the future of the
a complete shutdown of most of Ouayoun:
the traditional
"Our
in-person relationship
our dealerships and the factory
dealership bond. between customer and
customers
closure. That postponed the
want to have
sales staff. But Ouayoun
momentum."
a one-to-one
thinks that car buyers, especially those of luxury
But interest is picking up,
brands, value the traditional dealership bond.
vehicles are being delivered and relationship
with our
"We are a small brand, we are a luxury brand,
the automaker's assembly plant dealer
and our customers want to have a one-to-one
in Germany is at full capacity, he principals."
relationship with our dealer principals," he said.
said.
FILE PHOTO
"We [regularly] discuss initiatives to keep the relaAnd despite a crisis that shut
tionship at the best possible levels with our cusdown the global auto industry, Ouayoun and his
tomers and meet their expectations. It's a culture
team used a low-tech tool to preserve the one-onI want to have at Porsche Canada."
one relationship with their customers. - ANC

Heed the call for transparency
UNIFOR HAS HEARD DEMANDS
for more transparency for years.
The former Conservative government under then-Prime
Minister Stephen Harper
demanded the union open its
books and show exactly how
much money it spent on political campaigns.
And while the Conservatives
in 2015 passed a bill that
would have forced unions to
disclose political
spending, the
Unifor
Liberals
promptly
members are
repealed the
law when they entitled to
formed the
full details
government in of tentative
2016.
deals before
But now
calls for more
casting a
transparency
ballot.
are coming
from Unifor's
rank and file. About 1,540
members have signed a petition
demanding that the union post
full details of tentative agreements online before a ratification vote is held.
"Members must have the
right to look at, digest and formulate questions on the document that will determine their
wages, benefits and working
conditions for the next three or
four years. This cannot be done
in any meaningful way in the

DIGITAL AND
MOBILE EDITOR
AUTOMOTIVE
NEWS CANADA

GREG
LAYSON

COMMENT
current ratification process,"
said Rebecca Keetch, a laid-off
worker at General Motors'
Oshawa, Ont., plant.
In the United States, the
United Auto Workers posts its
"white book," which details in
full changes to the contract and
agreements between the union
and automaker, in the days
leading up to a ratification vote.
Unifor hands out a leaflet of
highlights - not all changes
within the contract - to members just prior to a vote. It
doesn't always note concessions or modified contract language deep within the tentative
agreement.
Keetch called the Unifor leaflets "extremely important."
"But how can you know what
questions you need to ask when
you're handed a sheet just
before you go in?" she asked.
She's right. It would be like
casting a ballot for your MP
without knowing their respective
party's entire platform. It's why

political parties post them
online. For free. So voters can
fully educate themselves,
should they want to, before they
make an important decision.
But Unifor President Jerry
Dias has dismissed the proposal
and petition, even though he
said on the Sept. 4 edition of
the Automotive News Canada
Conversations podcast the
union could easily post the
entire tentative contract online
for all to see. But it won't.
"I'm not going to let a handful of people steer the ship,"
Dias said. "People know if it's a
good deal or bad deal. I don't
have to send it home in full
document."
When I asked Dias if there's
any harm in posting the deal
online prior to the vote he said,
"There isn't any."
So why not do it?
Answer the call. - ANC

Jerry Dias won't let
"a handful of people steer
the ship." P H O T O : B L O O M B E R G

Automotive News Canada - September 2020

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