Al MacPhee: new CADA Chairman takes the helm.
Canadian auto dealer talked with Al MacPhee, the newly-elected CADA Chairman and learned about his views for the road ahead
The newly-elected Chairman of the Canadian Automobile Dealers Association (CADA) is a familiar face in a new place.
Auto dealer Al MacPhee, who is well known across Canada, was elected Chairman at the CADA annual board meeting in October. MacPhee was in the news (and on the front cover of Canadian auto dealer) earlier this year when he sold his Dartmouth, N.S. dealership to the Steele Group.
MacPhee might have sold his signature dealership in Dartmouth, but says he still has lots on the go, including maintaining a 1,750 vehicle lease fleet, operating a Ford dealership in Dartmouth, being the chairman of LAR (a national buying group), and he’s still active with charity work in his community. “I’ve had one of the busiest six months I’ve known,” says MacPhee with a chuckle. “My life is filled from 7 in the morning until 9 at night.”
MacPhee, who has been a CADA board and executive member for years, says he is up to speed with the issues the association is tackling on behalf of dealers. “It’s a great organization and it’s really well run,” says MacPhee. “Our job now will be to make certain that the dealer body knows there is a great organization like CADA that takes care of nothing but their needs.”
MacPhee says a key priority will be to work closely with the provincial associations to better coordinate the organization’s interests and activities with what is happening in the provinces. “We all have one common interest. It’s the interest of the automobile dealer,” says MacPhee.
Key action items
MacPhee says a few of the main priorities he expects to tackle during his mandate include:
- A united federation: The national dealer association will have to continue to work closely with its provincial counterparts. “We are going to have to walk hand in hand with all the provincial associations,” says MacPhee. “No dealer can do it alone. A federation of automobile dealers is able to take in all the information from all the various communities, with a great team, and represent the dealers in whatever issue they have to face,” he says. MacPhee says he has seen improved communication in the past few years between CADA and the provincial associations. “The provincial associations are closest to it, there’s no question,” he says. “But each provincial association has to know precisely what the federation of all associations is really doing for the entire industry.”
- NADAP: The National Automobile Dealer Arbitration Program (NADAP) requires more work. “We certainly want a program under NADAP that has protection in it for the dealer body,” says MacPhee. “It’s serious business for us.” He says the association is committed to improving the program that protects automobile dealers.
- Competition Act: CADA needs to continue to update dealers about the impact of changes to the federal Competition Act. CADA produced the first ever competition law handbook to help with dealer education. “The Competition Act is another game changer,” says MacPhee, adding that the federal government has put more teeth into it. “We just want to make sure we understand what it means to our business.”
- Rise in dealership groups: CADA’s recent White paper that looked at the future of the industry shed light on the rise of dealership groups. The association needs to adapt how it conducts its business to ensure the services evolve to ensure the interests of single point dealers and dealer groups are equally represented. “CADA has to become a very strong federation representing all dealers, whether you are one dealer in a group of twenty or 40 or you are one stand-alone dealer,” says MacPhee. He says provincial rules need to be aligned because some groups own franchises in different provinces and belong to different associations.
- Succession planning: There will be lots of great opportunities for people in the automotive industry, says MacPhee, but it might just look a bit differently than it has in the past. Instead of dealerships staying within families, more young people entering the industry might have even more opportunities with management positions within dealer groups.
- The Bank Act: Maintain the status quo with regards to keeping the banks from getting involved in vehicle leasing. “We respect and love the banks as partners, but as direct competitors it wouldn’t serve the Canadian public as well and it would be detrimental to the dealerships,” says MacPhee, adding that dealers appreciate and respect the decision by the federal government to keep banks out of leasing.
- Right-hand drive vehicles: CADA wants the government to keep right-hand drive vehicles out of Canada. MacPhee says Canadian insurance industry stats show that these vehicles are more likely to get involved in accidents.
MacPhee has been in the automotive industry since 1962 and has owned and operated his own dealership since 1983. “I paid my dues,” says MacPhee. “I love the industry. It’s a fun industry and it never gets boring.”
