Canadian auto dealer interviewed John White, CADA President and CEO and we talked about why the association commissioned their report on the future of auto retail, and some of its principal findings. This is an edited version of that interview.
Canadian auto dealer: Why did CADA commission this report?
John White: We believe that as the dealers’ national association, we have a responsibility to keep our eyes and ears open into what’s going on in the automotive business. There’s all sorts of reports and media talking about the demise of the car dealer. We wanted to really take stock of what’s going on, to take a look at the industry as a whole, and to bring it into this one repository of information that dealers could use as a guide to conduct long-term planning.
CAD: What was the mandate for the report’s author, Chuck Seguin?
White: We said to Chuck Seguin: “We want as realistic a picture as possible, in terms of what does the future hold.” We didn’t want a political document, and on the other hand, we wanted to be careful that we’re not creating a sense of alarm. We said: “Please go out there, get as broad-based information as you can from various industry stakeholders, be they dealers, be they OEMs, be they associations representing the OEMs, be they disruptors. Let’s try to make sure that we touch on all of the ecosystem that influences and affects our business.” We wanted to make sure that this was an unvarnished, unbiased view. Just give us the facts. Because, if I’m a dealer, I want to make sure that I have the facts from which I can make some business decisions. It was important for us to ensure that we had a very, very balanced view. I believe that once dealers read this report, they’ll see that we’ve accomplished that.
CAD: The report is not being made public. Who can see the report?
White: We did this for our member dealers around the country, and for the provincial dealer associations. The full report will be available on CADA’s website, on the member’s only section, in its entirety. Dealers will be able to go to the website, download it, and then be able to print it and use it as a handy reference. We have given the exclusive media rights for the release of this to our partners at Universus Media, who publish Canadian auto dealer magazine.
CAD: What are the key findings from your perspective?
White: What we’re trying to do is look ten years out. This will give us an idea of what the business is going to look like over the next decade, and how it’s going to migrate in twenty or thirty years. The first thing that this report has determined, is that there will continue to be an important role for Canadian new car dealers to play in the sale distribution and servicing of light cars and trucks. With that being said, the model is going to look different. Dealers who are willing to adapt, who are willing to be proactive, will be fine. Dealers that resist the change, they may have other decisions to make as they look into the future. But the future we believe — and the report will demonstrate — is still quite bright.
“The first thing that this report has determined, is that there will continue to be an important role for Canadian new car dealers to play in the sale distribution and servicing of light cars and trucks.” — John White, CADA President and CEO
CAD: Will the coming changes impact all dealers in the same way?
White: All dealers will be affected by change, no matter where they are in the country, no matter their size, whether they are independent dealers or from large groups. Clearly, there will be different effects and we want to make sure that no one is putting their head in the sand, thinking: I’m a small, independent dealer who is in a rural market, and nothing will happen.
CAD: So the rumours of the imminent death of the car dealer are premature?
White: Dealers are entrepreneurs. They are survivors and they are going to pull through all of this for sure. In my opinion, the rumours of their demise are greatly exaggerated and quite premature, and given the findings of this report — yes, absolutely.
