Automotive News Canada - January 2021- v2 - 13

2020
THE YEAR

* J A N U A R Y 2 0 21

By KELLY TAYLOR

WINNIPEG CORRESPONDENT

No topic dominated a
year's worth of headlines
like COVID-19 did. From
shutdowns that devastated small businesses,
collapsed the automotive
industry and furloughed
thousands of workers, an
invisible enemy wreaked
more havoc across
more sectors than anything since the Second
World War. Yet, in the
chaos, the auto industry did what it does best:
It took the cards it was
dealt and it adapted. The
top story of 2020 was not
one of strife but one of
resilience as Unifor negotiations with the Detroit
Three in Canada
netted nearly $5 billion
in assembly-plant
investments.

IN REVIEW
No one had been through
a pandemic before, but the
industry survived and in
some cases, even thrived

JANUARY

The year begins with barely a
hint of the devastation about
to be unleashed by a respiratory virus originating from
Wuhan in the Hubei province
of China. For most Canadians,
the novel coronavirus is isolated in a far-away bubble.
■ ■ ■ Meanwhile, dealers for
Fiat Chrysler Automobiles
say they were being pressured to boost inventory at
the risk of losing co-op advertising dollars. ■ ■ ■ The supply base was being urged to
bolster their defences against
cyber attacks. Experts advised
to assume the worst - that
a security breach is inevitable - and to plan a strategy for " Fighting back from
the hack. " ■ ■ ■ A slight sales
dip in 2019 was offset by a
shift toward light trucks that
meant consumers were spending more. The prediction: Of
all vehicles sold, pickups and
crossovers would eventually
hit 80 per cent in 2020.

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PAGE 19
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IS THIS THE MOST BEAUTIFUL WAITING ROOM IN CANADA?/P20

R AT IO N

See pg.

By GREG LAYSON

D I G I TA L A N D M O B I L E E D I T O R

COVID'S

AUTOMOTIVE RETAILING IS
undergoing historic changes as a
result of the COVID-19 pandemic, a
transformation that
will rewrite the status quo.
Experts predict
a seismic shift that
will lead to smaller showrooms and
a permanent move
to online sales. Dealerships will also
need to enhance after-sales service
Karwel:
in this post-pandemic marketplace,
COVID-19
experts say, with such features as
is driving
universal concierge service and
the pace
at-home car maintenance.
of change
While the shift to online shopping
for online
was already under way, " COVID-19
shopping.
may compress the amount of time
FILE PHOTO
society is going to take " to change
buying habits, said Robert Karwel, senior manager
of J.D. Power's automotive practice in Canada. " This
virus situation could provide the impetus for every
demographic " to buy online.
Karwel said that dealers " build these large edifices

AS CANADIAN AUTO SUPPLIERS
continue to pivot from vehicle to medical parts in an effort to beat back the
spread of the novel coronavirus, some
companies see it as a way to diversify,
possibly for the long
term.
Suppliers big and
small have quickly changed gears to
make everything from
face shields to hospital gowns to ventilator
parts while doing their part to stock the
country's " arsenal of health. "
Volpe:
One southwestern Ontario supplier is
Medical
trying to make its own ventilator, a piece
business, at
of medical equipment that many fear will best, might
be in short supply as the virus continues
replace two
to send its victims to intensive-care units
per cent
of what
across Canada.
suppliers
As of April 12, a total of 74 members
normally
of the Automotive Parts Manufacturers'
produce for
Association (APMA) were either in the
final design stages with medical tech com- automotive.
FILE PHOTO
panies, making medical equipment and
parts on their own, or getting certification
from Health Canada to manufacture, said APMA President
Flavio Volpe.

SHADOW
CANADA'S

SEE RETAIL'S PAGE 4

AUTO
INDUSTRY
SEARCHES
FOR A PATH
FORWARD

SEE MAKING PAGE 18

Sales prediction: -80% in April, -80% in May, -60% in June
That's three months,
but Scotiabank cautions
'we could very well be
looking at a four- or
five-month scenario'
By GREG LAYSON

D I G I TA L A N D M O B I L E E D I TO R

NEW-VEHICLE DEALERS ARE
bracing for more devastating economic fallout as the COVID-19 pandemic
threatens to wipe out the traditionally
busy spring selling season.
Even summer sales are vulnerable,

warned Rebekah Young, direcond-quarter sales " will be a bust
tor of fiscal and provincial ecoin Canada; Q2 is always the best
nomics at Scotiabank.
quarter of any given year. "
After falling an estimated
The third quarter is likely to
47 per cent in March, sales are
see some improvement, he said,
expected to plummet 80 per cent
while the fourth quarter " is
in each of the next two months
never great anyway. "
- perhaps even three, Young
All those spring sales are
said. A 60-per-cent decrease in
unlikely to simply shift into
Young:
June would be an optimistic
later months as the economy
Busy
spring
forecast, she added.
slides into a recession, said
season will
The sales decline and ongoYoung, who predicts June and
likely not be
ing pandemic have Perry
July sales will fall as much as 80
displaced to
Itzcovitch of Calgary's Hyatt
per cent and 60 per cent, respeca later time.
Group worried.
tively.
FILE PHOTO
Itzcovitch, a former chairShe now forecasts total annuman of the Canadian Automobile
al sales of around 1.5 million vehicles.
Dealers Association (CADA), said sec " I see the year down by 20 per cent,

and that's probably on the optimistic
side, based on a three-month pandemic
scenario, " Young said.
" We could very well be looking at a
four- or five-month scenario. "
If that's the case, annual sales could
fall 40 per cent, she said, adding that
trying to issue forecasts has " almost
become laughable. "
" It's become more of a guesstimate, "
she said. " Forget auto, nobody's ever
lived through a global crisis like this. "
A CADA survey conducted April 3
to 9, found that 96 per cent of dealerships have issued layoffs to their staffs,

SEE WORKAROUNDS PAGE 18

FREE. ONLINE. ESSENTIAL.
EVERY THURSDAY AT 11AM
see page 23

APRIL

The COVID-19 pandemic is in
full stride. Experts predict the
forced move to online sales
portends smaller showrooms
and a different future for dealers. Parts makers hit hard by
plant shutdowns pivot to producing personal protective
equipment, and predictions
have sales falling off a cliff:
Down 80 per cent in April, 80
per cent in May and 60 per
cent in June. One bright light
is that dealers expect a surge
in service work as pandemic
restrictions ease.

the service bay and showroom cost
time and money, and Canadian auto
executives are divided over whether those offerings might be monetized in the future as the COVID-19
pandemic subsides.
Ford Canada CEO Dean Stoneley

Is the Oakville
threat real?
Warning bells ring,
although Ford
hasn't said what
will happen once
the current Edge
ends production
By DANA FLAVELLE

THE UNION LOCAL
representing workers at Ford
of Canada's Oakville, Ont.,
assembly plant says this isn't
the first time it will go into
contract negotiations fighting
for a new product, and potentially the plant's survival.
" We've been here before, "
said Mark Sciberras, president of Unifor Local 707,
which represents nearly 4,200
hourly employees there.

If the Edge is scrapped,
the Oakville plant could
have nothing to build, says
AutoForecast Solutions.

By GREG LAYSON

D I G I TA L A N D M O B I L E E D I T O R

NEW-VEHICLE SALES IN
Canada staged a rebound
in June that has industry
analysts pointing to a faster-than-expected recovery
from the depths of the economic crater left by COVID-19.
Overall sales fell about
16 per cent in June from
a year earlier, according
to DesRosiers Automotive

SEE RETAIL PAGE 20

By STEPHANIE WALLCRAFT

SPECIAL
REPORT

P12-13

HYUNDAI CANADA PRESIDENT DON ROMANO
foresees the day when the automaker's senior management will reflect the country's diversity.
" Our executive ranks are not going to look anything
like they look today. They're going to look more like what
our customer base looks like, which isn't a bunch of old
white guys like me. "
Amid the growing calls worldwide to stamp out racism, the automaker recently enacted a series of measures,
including the use of artificial intelligence, to weed out
unintended bias in its hiring practices.
Hyundai's action plan began with a June 3 companywide email from Romano stressing the need to combat
racism in Canada.
While Hyundai has increasingly emphasized employee diversity in recent years, it would push its efforts even
further, the email said.
Currently, about 37 per cent of Hyundai's 227
employees in Canada are nonwhite. The company plans
to increase that percentage, although it won't be setting
internal targets, said Lydia Bowser, Hyundai Canada's
senior manager of human resources. Such a target, she
said, " creates wrong behaviours and bad decision-making.
We want our growth to be credible. "

BLINDED TO BIAS
Hyundai has hired the Toronto-based Canadian Centre
for Diversity and Inclusion (CCDI) - which, as a first
step, conducted employee training on unconscious bias.

SEE A.I. REMOVES PAGE 12

Samir
Akhavan

MANAGING PARTNER

416.880.8989 samir@templetonmarsh.com WWW.TEMPLETONMARSH.COM

RETAIL PRIORITY: CURRENT CLIENTS OR INTERNET LEADS?/P11

JUNE 2020 | VOL. 4, NO. 6 | AUTOMOTIVENEWS.CA FOR BREAKING NEWS AND DIGITAL EDITION

Dealers lean in
to digital tools
during pandemic

THE SUPPLY CHAIN'S

BIGGEST
TEST

LINDA HASENFRATZ
Linamar

The challenge is connecting
with customers who are
fearful for their health
By JOHN IRWIN
and GRACE MACALUSO

AUTOMOTIVE NEWS CANADA

DON WALKER
Magna

Parts makers warn
of liquidity crunch

ANOTHER PANDEMIC-INDUCED
economic shutdown could prove lethal
to a weakened auto supply chain,
industry experts and executives warn.
" If there is a stoppage by any government ... again, you are going to
CANADIAN SUPPLIERS ARE SOUNDING
see a free-fall of liquidities, bankruptthe alarm that the road ahead will be rocky
cies [and] restructuring, " said Don
- even make or break - as vehicle producWalker, CEO of Magna International
tion slowly resumes amid the COVID-19 panInc. " Because then the banks will say,
demic.
'Well, if you stopped
Some warned of a finanagain, how would you
By JOHN IRWIN
cial crunch after months withpossibly get started?'
AUTOMOTIVE NEWS CANADA
out work, while others say their
" And they'll stop
backs have been put against the
the funding. We don't
TIM GALBRAITH
wall by automakers unwilling to bend rigid
have an option but to keep going, in
Cavalier Tool &
timelines.
my opinion, " Walker said during the
Linamar Corp., the second-largest CanadaMay 28 Daily Drive podManufacturing
based supplier by annual sales volume to autocast hosted by sibling
makers, is monitoring the health of Tier 2 and 3 compublication Automotive
panies, as well as tool-and-die makers. The coming months
News.
are " going to be the most critical " for suppliers as they
Health experts have
manage their cash flow, said CEO Linda Hasenfratz.
warned of a potential
" It's something we're keeping a very close eye on.
second wave of infecObviously, the next couple of months for a lot of suptions later in the year,
pliers are going to be very tough from a cash-flow perpossibly during flu seaspective. "
son, threatening to
Tim Galbraith, sales manager at mold maker
overwhelm health care systems.
Cavalier Tool & Manufacturing in Windsor, Ont.,
During the first round of COVIDagrees.
19, economic activity ground to a halt
" We're fortunate enough to be one of the companies
throughout much of North America,
that's doing well, but my concern is the last two quarwith the auto manufacturing sector
ters of this year, with programs in the automotive
essentially closed down for about two
industry that have been postponed and canceled.
months.
It's going to have a devastating impact on the
Linamar Corp. CEO Linda
industry, probably in the third and fourth
Hasenfratz urged governments to

COVID-19

JONATHON AZZOPARDI
Laval Tool

SEE SOME PAGE 13

RETAILERS SHIFTING TOWARD A
contactless service and sales
model are making inroads in
an economy shaped by the
rules of COVID-19.
Wendy Bulmer, general manager of Acura of
Moncton in New Brunswick,
said that in December her
dealership moved to a digBulmer:
ital sales platform. As the
COVID-19 pandemic struck, Expects
permanent
the dealership ramped up
shift to a
local advertising, touting its contactless
contactless capabilities for
sales
purchasing a vehicle.
environment.
Acura of Moncton ended P H O T O V I A
May just three vehicles shy W E N D Y B U L M E R
of its original sales target
and received 200 leads in April, compared
with 80-90 in a typical month, said Bulmer.
While some clients still " want to come in

The supply chain
scrambles to acquire
masks and visors as the
new normal takes hold
By JOHN IRWIN
TORONTO BUREAU

'It is a surprise on the
upside. But I wouldn't say
it's time to celebrate yet'
By GREG LAYSON

By ERIC FREEDMAN

LEGAL CORRESPONDENT

FORD MOTOR CO. IS SUING
participants in an alleged
civil conspiracy to improperly acquire a custom-built 2018
Ford GT supercar, resell it for a
profit and swiftly resell it again
for yet another

Auto shows aren't
going away, but the
digital era demands
more than cars to
look at on the floor
By JOHN IRWIN
TORONTO BUREAU

Rare sports car resold to Hong Kong buyer within weeks of its sale
in Canada, despite two-year hold agreement, automaker alleges
profit, all within a matter of
weeks.
Ford charges the defendants with flipping a new GT
model worth $690,800 and sell-

ing it for more than double that
price within a few weeks, in
violation of the manufacturer's
24-month prohibition against
reselling the vehicle, according to a case in the Ontario
Superior Court of Justice.

The defendants are Timothy
Quocksister, president of
Silver Arrow Cars in Victoria,
B.C.; Bradley Nullmeyer, former CEO of Element Fleet
Management Corp. of Toronto;
Steven Hudson, former CEO of

CIAS

THE AUTO SHOW SEASON IS
rolling in Canada without some
key automakers, but many of those
remaining appear committed, although
their approaches and attitudes are definitely changing.
Honda, despite internal company debate over whether to stay on the
show circuit, has doubled down with
a new booth that's lighter on cars and

A SHOW OF
RELEVANCE

Element Financial Corp.; and
Engineered Automotive, a vehicle servicing firm in Concord,
Ont.
It's a complex, high-stakes
tale in which all defendants
deny wrongdoing while sometimes pointing an accusing figure at others among them. The

SEE FORD SEEKS PAGE 22

SEE CIAS PAGE 22

By JOHN IRWIN

AUTOMOTIVE NEWS CANADA

MONTREAL - CANADIAN
automaker chiefs expect a
manageable decline in new-vehicle sales this year as consumers continue to move away
from passenger cars toward
crossovers and SUVs.
" It's actually a story of seg-

Ford Canada CEO Dean
Stoneley says the automaker
is well positioned with its
light-truck lineup.
PHOTO: JOHN IRWIN

mentation more than anything, " said Ford of Canada
CEO Dean Stoneley, speaking

at the Montreal auto show in
January.
New-vehicle sales fell again
in 2019 to 1.92 million vehicles,
a 3.6-per-cent drop from 2018.
Car deliveries dropped 16 per
cent to 491,875 units, accounting for 25.6 per cent of the total
market. Light-truck sales,
accounting for crossovers,

FOR THE FIRST TIME SINCE 2011, THE head
of Fiat Chrysler Automobiles Canada will be
focused solely on the Canadian market.
Longtime FCA executive Reid Bigland, a
Kamloops, B.C., native who juggles duties as
FCA Canada CEO, Ram brand chief and head
of U.S. sales, will leave the company on April
3. His departure comes after he and FCA

SUVs and pickups, rose 1.6 per
cent on the year to 1.43 million
units, making up 74.4 per cent
of the market.
" When we talk about the
market being down last year
over three per cent, it's actually the traditional sedans that
were down. SUVs were up, "
said Stoneley.

" So, when we look at the
market as Ford, we're excited because we see this shift
in consumer preference, and
that's where we're investing. "
Auto executives who spoke
with Automotive News Canada
at the Montreal show antic-

SEE AUTO EXECS PAGE 21

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30+ Years' Experience LEWICKI M&A Advisory
www.LACLTD.CA

FEBRUARY

KEY EXECUTIVES TAKE
ON THE INDUSTRY'S
TOUGH ISSUES

P12-14

30 years' experience

www.LACLTD.ca

Ford Motor Co. flipped out
after a Ford GT was flipped:
The company filed a lawsuit
against a trio of Canadian auto
executives after a custom-built
Ford GT, valued at $690,800,
was sold within weeks for
twice that amount, which it
says violated a buyer's agreement that limits reselling.
■ ■ ■ As a growing cadre of
automakers decides to forgo
a presence on the auto show
circuit, organizers of shows
in Toronto and Montreal
scrambled to find
a way to stay relevant. ■ ■ ■
In trade news, an update
to the U.S.-MexicoCanada Agreement puts
Canada in the role of
labour watchdog for
Mexico. The U.S. conRELATED
dition for oversight is
agreed to by Mexico
because it thinks
Canadians are likely to be fairer than
Americans.
ASSUME A DATA
ATTACK IS/P10
COMING

NO W

16 for mo

re info

FILE PHOTO

NEW-VEHICLE SALES ARE TRACKING
better than the dire predictions made in
April, but analysts warn against popping
the recovery champagne any time soon.
May sales plunged an estimated 44 per
cent, compared with Scotiabank's initial
forecast of 80 per cent. The bank's now
looking at a 25-per-cent drop for June,

SEE SALES PAGE 14

MARCH

DASHCAM)

Dealers advised to turn them
off in the service bay because
customers who intentionally
record are breaking the law
By DOUG FIRBY

CALGARY CORRESPONDENT

Brenda McPhail of
the Canadian Civil
Liberties Association:
" Dealerships would
not let customers
stand in a shop and
watch as someone
works on their car.
Why would we allow
it virtually? "
PHOTO VIA
BRENDA MCPHAIL

THE DEBATE OVER PRIVACY IN A HIGH-TECH
world is entering the service bay amid moves by
the Alberta dealers' association to address concerns
about vehicle dashcams recording auto technicians
on the job.
Last fall, the Motor Dealers Association of
Alberta (MDA) issued an advisory urging its members to unplug or switch off dashcams in vehicles to
prevent customers from spying on technicians servicing their cars.
" If a customer uses a camera in a vehicle, and
they don't advise the technician, they are in contravention of the law, " said Denis Ducharme, president of the Motor Dealers Association of Alberta.
The MDA is the first dealers' association in North
America to take such action, Ducharme said, adding that he has been contacted by other associations in Canada and the United States seeking
information on his organization's experience.
Brenda McPhail, an expert in privacy legislation, applauded the MDA's response to an issue
that needs to be addressed by businesses. " This is
relatively uncharted ground. It points to a need for
businesses to develop their own policies. "
The MDA began looking into the issue last fall
after it was contacted by an Edmonton dealership

SEE DEALERS OUTLAW PAGE 20

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30+ Years' Experience LEWICKI M&A Advisory
www.LACLTD.CA

30+ Years Experience

30 years' experience

www.LACLTD.ca

Canadian David Buckingham
will become CEO of Fiat
Chrysler Automobiles Canada
when fellow Canadian Reid
Bigland steps down in early
April. Bigland reached a resolution with FCA after filing
a 2019 whistleblower lawsuit
claiming the company retaliated against him for cooperating
in an American investigation
into sales practices. ■ ■ ■ The
looming COVID-19 pandemic earns a front-page story as
shutdowns of assembly plants
in China foreshadow events
to come in North America.
Analysts say it's too early to
predict the ultimate impact of
the virus on the industry in
North America. By presstime
in mid-March, many provinces are on the cusp of government-mandated business closures and restrictions. ■ ■ ■
Dealers in Alberta are being
warned to turn off customers' dash cams when servicing cars, saying customers
who use the technology to spy

JULY

JUNE

AUGUST

REBOOT
SEE SOS PAGE 14

On the cusp of 'billions'
in vehicle incentives

The employees at all FCA North American locations
are required to have their temperature taken daily and
answer a self-screening questionnaire. P H O T O : F C A C A N A D A

The new cost of
manufacturing

Plants are reorganizing all aspects of
their operations to keep employees
safe, but building vehicles will be
slower and more expensive
By JOHN IRWIN
and GREG LAYSON

AUTOMOTIVE NEWS CANADA

THE RAMP-UP OF AUTO
production will resemble a
slow-moving steam engine
as companies adjust to tepid
consumer demand and new
health and safety protocols
that could make plants less
efficient and require costly,
structural renovations.

With most automakers and suppliers in North
America returning to production by mid-May, new
health procedures are likely
to affect productivity, said
Honda Canada CEO Jean
Marc Leclerc.
" If you do this in a production environment,
there's going to be efficien-

SEE SLOW PAGE 14

Kia Canada is first out of the
gate with 'aggressive' offers
By GREG LAYSON and JOHN IRWIN
AUTOMOTIVE NEWS CANADA

IT WILL TAKE PLENTY OF PATIENCE AND A
small fortune to increase new-vehicle purchases as the COVID-19 pandemic drags on, analysts
say.
As the novel coronavirus wreaked havoc
on the Canadian economy during April, sales
plunged an estimated 75
SALES ANALYSIS per cent and into " uncharted territory, " according to
DesRosiers Automotive Consultants.
While most automakers have ceased reporting monthly sales, DesRosiers estimated the
industry sold 45,833 new vehicles in April, compared with 180,616 during the same month last
year.
Things aren't expected to get any better in
May or June, said analyst Dennis DesRosiers.
" We're not going to see some sense of normality until the fall. "

I think most of the
automakers right now
are saying, 'Most stores
are closed. Why put
money on the hood?'
At some point they're
going to push the
button.

If automakers
are going to get
there, they will
have to spend big
on incentives.
" Initially, you're
going to see a
flood of incentive
money come into
the marketplace, "
DesRosiers said.
" It's not there right
DENNIS
now to the degree
DESROSIERS
that it will be. "
Per-vehicle
DesRosiers
incentives fell
Automotive Consultants
in April, even as
sales collapsed, according to J.D. Power data:
Spending was down an average of about $750
in the first half of the month, to an average of
$4,900.
" Manufacturers here are not spending
more, " said Robert Karwel, senior manager of
automotive practice in Canada for J.D. Power.

SEE SPECTACULAR PAGE 16

Samir
Akhavan

MANAGING PARTNER

416.880.8989 samir@templetonmarsh.com WWW.TEMPLETONMARSH.COM

MAY

Parts suppliers are warning
that a second COVID-19 lockdown by government could
be fatal to many in the industry, saying banks might shut
off credit to shuttered plants.
In a related story, suppliers
are feeling a liquidity crunch
even without a second shutdown as the months without
work hamper finances even

&
M
EVO

*
*

Buying clo
Groups te
Will techn
single poi

SPECIAL

In
sc

'If you d
you're g

By KELLY T

The Canadian economy chugs
back to life as governments
relax pandemic restrictions,
but automotive assembly
plants and parts suppliers face
a different reality as physical
distancing and near-constant
sanitization become the new
normal. ■ ■ ■ Analysts predict
billions of dollars of incentives
from automakers desperate
to restart the sales machine.
DesRosiers Automotive
Consultants estimates vehicle
sales fell to fewer than 46,000 in
April from more than 180,000
a year earlier. ■ ■ ■ One significant problem yet realized is
an inventory shortage due to
plant shutdowns.

The Canadian
industry begins to
chug back to life,
adapting to a costly
COVID-19 reality

(

FOURTH ANNUAL

CANADA
CONGRESS

Canadian David
Buckingham
becomes CEO
of FCA Canada.

30+ Years Experience

SEE BIGLAND PAGE 26

THE CANADIAN AUTO INDUSTRY IS
awakening to an unprecedented challenge in securing steady sources of personal protective equipment (PPE) amid
skyrocketing global demand. And auto-

EYE
SPY
WITH A

" Longer term, I believe
the coronavirus event coupled with the trade disputes
we have seen may cause all
of us to review our supply
chains, " Rob Wildeboer, executive chair and co-founder of
Martinrea International Inc.,
said
on a quarterly conferBy DANA FLAVELLE
TORONTO CORRESPONDENT
ence call with investors on
March 5.
" For example, I
THE CORONAVIRUS
think this will add
outbreak has put
to a trend to local
Canadian automakers
insourcing or restorand their suppliers on
ing to North America,
high alert as factory
which frankly could
shutdowns in China
be very good for us. "
threaten to disrupt the
Both Martinrea
global supply chain.
and Magna
So far, the domesInternational have
Rob
tic industry appears
limited internationWildeboer:
to be functioning
al travel in response
Reviewing
virtually normalto the virus that first
supply
ly, although experts
emerged in Wuhan,
chains going
said it's only a matChina - a city of
forward.
ter of time before the
11 million - in late
FILE PHOTO
impact of the factoDecember and has
ry shutdowns is felt beyond
since spread to more than 100
China, prompting some manu- countries, including Canada.
facturers to consider sourcing
production closer to home.
SEE COVID-19 PAGE 22

reached a resolution to his 2019 whistleblower
lawsuit against the company.
David Buckingham, COO of FCA Canada
since 2011 and an Alberta native, will become
CEO of the unit, while two other executives
will take over Bigland's other duties. That
means FCA Canada's top executive will be
able to give the domestic sales and manufacturing operations his full attention for the
first time since Bigland, who has been head of

The full impact will
not likely be known
for months as
companies focus
on workarounds

Auto execs search for silver lining in predicted 2020 sales decline
Ford, for one,
sees the continuing
shift to utility
vehicles as playing
to its strength

By JOHN IRWIN
TORONTO BUREAU

Canadian industry
insulated, but not
immune to virus

and more engaging. "
Honda Canada CEO Dave Gardner
challenged marketing staff to justify
spending resources on auto shows as
the automaker invests large amounts
into electrification, he said.
" I think it's a very positive sign
that we will be [staying at auto
shows], but it was put in question, "
Leclerc said. " I think our challenge
from our president was to say,
'Give me a reason to stay the
course on auto shows.' "
Honda also debuted a new
stand at the Los Angeles
Auto Show featuring bright
lights, trees and plants alongside its vehicles and displays highlighting the
company's safety

heavier on interactive displays highlighting its history, manufacturing
footprint and plans to reduce greenhouse gases. The booth first appeared
at the Montreal auto show in January
and a similar setup is planned for the
Canadian International AutoShow
(CIAS) in Toronto, Feb. 14-23.
" There's still a lot of people that
come to auto shows, " said Jean Marc
Leclerc, Honda Canada's senior
vice-president of sales and marketing.
" I think that what we want to do is
make it more entertaining for them,
addressing their need for entertainment and doing something different

Single focus for new FCA Canada chief

Bigland
leaving:
He 'brought
calm' during
turbulent
times

running late? "
Global demand
for PPE has surged
across virtually every
sector during the
COVID-19 pandemic, which forced the
closures of Canadian
assembly plants in
Sweeney:
mid-March. That
The industry
urgent
need for PPE,
is vulnerable
particularly for frontto shortages
line health care workof PPE.
ers, prompted many
FILE PHOTO
automakers and suppliers in North America, including
Canada, to manufacture masks and
other equipment while auto produc-

SEPTEMBER

D I G I TA L A N D M O B I L E E D I T O R

Automotive News Canada
breaks the story that Ford
has no product plans for its
Oakville Assembly plant once
the Edge utility vehicle ends
in 2022. The bad news looms
over the Unifor-Detroit Three
bargaining, set to start in the
summer. The union characterizes the situation as fighting for the facility's life. To
find a solution, behind-thescenes discussions begin
between Ford, Unifor and the
federal and Ontario governments, although this won't be
known to the public for several
months. ■ ■ ■ Dealers and automakers are wondering
how much longer they can
absorb the costs of COVID-19
safety precautions - such as
vehicle pickup and delivery,
and sanitization - before passing them on to customers. It's
a question at this point with
few in the industry willing to
make the leap. ■ ■ ■ After falling into a deep freeze at the
height of the pandemic, the
buy-and-sell market begins to
thaw with dealers choosing to
bolster their portfolios with
new dealership acquisitions
closer to home.

MARCH 2020 | VOL. 4, NO.3 | AUTOMOTIVENEWS.CA FOR BREAKING NEWS AND DIGITAL EDITION

Ford GT 'flip' tests automaker's supercar resale limits

makers, suppliers and dealers are all
sounding the alarm.
" It's almost like we're going to have
to have a new element of the automotive supply chain operating in lockstep, just like seating plants operate
in lockstep with the assembly plants, "
said Brendan Sweeney, managing
director for the Trillium Network for
Advanced Manufacturing.
" Just like if there's a bottleneck or a
disruption at a seating plant, will a bottleneck or a disruption at a plant making face masks or face shields or sanitizer, will that shut an assembly plant
down for two hours if a shipment is

lim
flee
can
Can
Au
one
hav
bly
New
list
Wa
ins
vid
the
wit
on

SEE CONTACTLESS PAGE 17

Sales forecast
improves but it
still calls for pain

416.880.8989 samir@templetonmarsh.com WWW.TEMPLETONMARSH.COM

The pressure for PPE

ORGANIZER
Canadian Inte
(CIAS) have u
decide whethe
est consumer
ceed as a live
demic or mov

TORONTO CORRESPONDENT

as automakers start to call for
parts. ■ ■ ■ The first signs of a
resurgence in retail car sales
begin to appear. The May numbers dropped far less than forecasters predicted: 44 per cent
instead of 80 per cent.

A second
shutdown is
not an option

By STEPHAN

TORONTO COR

Ongoing racial tension in the United
States has naturally put a spotlight
on Canada, including business

SEE PREVIOUS PAGE 17

Consultants (DAC) estimates. That followed estimated declines
of 44 per cent
in May and
75 per cent in
April, the first
full month of
the crisis.
" It's a
good-newsYoung:
bad-news
There's still
story, " said
pent-up
Rebekah
demand.
Young,
FILE PHOTO
Scotiabank's
director of fiscal and provincial economics. While second-quarter sales dropped 45

SEE DEALERS PAGE 20

Virtua

DIVERSITY

In late 2006, the Freestar
minivan, a rebranded version of the popular Windstar,
was coming to an end, but the
plant would benefit from a $1
billion investment to produce
the new Edge, Sciberras told
Automotive News Canada.
The Edge would go on to
be a big seller in the growing
market for crossover utility
vehicles, securing the plant's
future for another 15 years.

A retail-sales revival
amid a pandemic
Faltering fleets
largely to blame
for a 45-per-cent
drop in Q2

said the automaker is " acutely aware " of the increased cost of
doing business during the pandemic. Ford, he said, will " look at the
business model " of deliveries and
other programs in the future.
" Right now, we're offering [deliv-

ery and pickup] as a free service
to the consumer, " Stoneley said in
a May 27 video interview with the
Oakville Chamber of Commerce in
Ontario. " But going forward, that
doesn't necessarily need to be a
free service. These are the kinds of
things we need to talk through.
" Time is money, and people will
pay for convenience. So, this could

THE
DRIVE
FOR

PHOTO: FORD

TORONTO CORRESPONDENT

SEE HASENFRATZ PAGE 13

COVID-19 HAMPERS CANADIAN GROUPS WITH U.S. STORES/P4

INSTEAD OF AUTO SHOWS MERCEDES-BENZ IS DOING THIS/P4

FEBRUARY 2020 | VOL. 4, NO.2 | AUTOMOTIVENEWS.CA FOR BREAKING NEWS AND DIGITAL EDITION

CH FO R
E SE AR
!
JO IN TH
'S BE ST
CA NA DA
OP EN

RE GI ST

By DOUG FIRBY

CALGARY CORRESPONDENT

TO PROVIDE THEIR CUSTOMERS
peace of mind and security during
the health crisis, Canadian dealerships have provided free services
such as vehicle pickup, delivery
and sanitization. But should stores
bear those costs indefinitely?
Health and safety protocols in

MAY 2020 | VOL. 4, NO. 5 | AUTOMOTIVENEWS.CA FOR BREAKING NEWS AND DIGITAL EDITION

since 2005 sales by
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s have been
Canadian passenng
abandoni light trucks
for
ger cars . Per cent of

The auto-industry shutdown reveals
the fragile nature of the supply chain,
but a rapid changeover to medical
equipment also shows the possibilities

Dealers have been footing the bill for services
related to COVID-19, but will that continue?

Samir
Akhavan

CKS
RUNAWAY TRU

2020

Crisis challenges
Canadian parts
makers to be nimble

The forced move to online sales
occurred virtually overnight,
and once stores fully adapt
there will likely be no going back

By JOHN IRWIN
TORONTO BUREAU

FILE PHOTO

APRIL 2020 | VOL. 4, NO. 4 | AUTOMOTIVENEWS.CA FOR BREAKING NEWS AND DIGITAL EDITION

AUGUST 2020

JULY 2020 | VOL. 4, NO. 7 | AUTOMOTIVENEWS.CA FOR BREAKING NEWS AND DIGITAL EDITION

Conversation begins about passing pandemic costs to customers
Stoneley:
" Acutely
aware " of
extra costs

Dealer BEST PRACTICES to cope with COVID-19/P14-P15

Dealers' emergency
measures could be
the new normal,
post-pandemic

THE USMCA JUST WENT LIVE: WHAT'S NEXT?/P16

MANAGING PARTNER

3
DUSTRY/P12-1
CANADIAN IN
SHAPED THE
AT
TH
ES
LIN
THE 2019 HEAD
| AUTO MOT IVEN
| VOL. 4, NO.1
JANU ARY 2020

on technicians are breaking
the law - Section 184 of the
Criminal Code - and violating
dealer employee privacy.

Car buyers flood back into the
market, nearly erasing the
projected downturn in sales
for July and causing analysts
to revise their 2020 sales forecasts upward, but still down
on the order of 20 per cent
from 2019. Scotiabank called
the 4.9-per-cent drop in July
sales from the same month in
2019, " remarkable given pre-

WINNIPEG C

DEALERS A
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Automotive News Canada - January 2021- v2

Table of Contents for the Digital Edition of Automotive News Canada - January 2021- v2