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Oil prices, international trade and millennials were hot topics during the Economic Panel at this year’s CADA Summit, held Feb. 10 at the Omni King Edward Hotel.
Panelists including Mike Moffatt, Assistant Professor, Ivey Business School and Chief Economist at the Mowat Centre, Susan Prince, Founding Partner, Harbinger Capital Markets Inc. and freelance business broadcaster and Dina Ignjatovic, Economist at TD Bank discussed some of the biggest global economic issues affecting the auto industry.
Michael Hatch, Chief Economist for the CADA, led the discussion, asking the panelists for their insights on a range of topics.
Mike Moffatt, Assistant Professor, Ivey Business School and Chief Economist at the Mowat Centre
What Moffatt is watching closely is international trade partnerships and agreements, such as the Trans-Pacific partnership and early discussion of a possible trade deal with China — though there are concerns about imports and tariffs.
“Those are some of the big glacial changes we need to be worried about,” said Moffatt.
Susan Prince, Founding Partner, Harbinger Capital Markets Inc.
Prince says that millennials, and their car buying patterns, have shifted from previous generations.
What’s significantly different about the millennial demographic typically aged 18-34 is a delay into adulthood. That’s been spurred by different life choices that would have prompted millennials to make big purchases — like vehicles.
High unemployment levels hovering around 14 per cent has also affected youth decision making. In previous generations, cars were once a symbol of freedom but it’s now the Internet that connects millennials to their friends. “The car has for the time being become a little less interesting,” said Prince.
Dina Ignjatovic, Economist at TD Bank
Ignjatovic commented on the struggles in the global oil industry. She spoke to a significant decline in investment in the oil market at around 30 per cent, which is a big drag on growth.
But Ignjatovic said manufacturing exports can potentially offset the downsides in oil — though there’s still a lot of room to grow there. During the Q&A session, she also remarked that we are still far away from primarily fossil fuel-based energy.
The 2016 CADA Summit is organized by the Canadian Automobile Dealers Association, and is supported by an exclusive sponsorship from TD Auto Finance.
