On March 25 the federal government invoked the Quarantine Act, which requires by law individuals entering the country by sea, air or land to self-isolate for 14 days as Canada seeks to curb the spread of COVID-19.
The federal Quarantine Act is described as “An Act to prevent the introduction and spread of communicable diseases” via the government’s website, and is mandatory for all travellers — including those that do not have any symptoms of the virus.
“The number of cases of COVID-19 is increasing daily — both at home and globally,” said Canada’s Health Minister Patty Hajdu. “To protect the health and safety of returning Canadians and those who are around them, we are strengthening our measures at the border.”
The order was fully implemented at midnight on March 25, and excludes essential workers and people who regularly cross the border to ensure the continued flow of goods and services.
What this means for autos
According to CADA Economist Oumar Dicko, the Quarantine Act should not impact trade as the federal government wants to ensure the supply chain is maintained — especially between Canada and the U.S. This means commercial drivers/truckers and commercial flights that bring in goods and resources to Canada — these workers do not have to self-quarantine.
In terms of vehicles (both new and used), the flow of new and used vehicles will not be moving through the border at the same level — particularly in terms of vehicles coming from the U.S.
“Companies and certainly the whole supply chain is disrupted, and manufacturers are closing their plants in Canada and in the U.S. — and I think we will probably see, for the vehicles coming into Canada, a drop in this level in Canada,” said Dicko. “That’s what the data seems to indicate, between Canada and the U.S., anyway.”
Even before the situation in Canada and in the U.S. escalated to this level, the concern for the industry was around shortages of certain vehicle models and parts, as many of these are built in China where the virus has had a large impact. Other global supply chains like Europe have been hit hard as well.
“We have concerns that we will experience some shortages in models and parts, and now even more when plants are closing here and in the United States as well,” said Dicko.
So what can dealers do?
Now may be the time for dealers to focus on expanding their reach to consumers online through digital platforms and tools. Many suppliers in the automotive space are waiving fees, offering discounts, webinars, training tools and more to help dealers get through this difficult period.
For more information on what suppliers are doing, dealers can browse our COVID-19 resource page here.
