For months, organizers of the CADA Summit 2024 were urging dealers to register for the event before it sold out.
True to form, the jam-packed conference opened this morning at the Metro Toronto Convention Centre in Ontario as one of the first events to kick off a full week of events connected to the Canadian International AutoShow. Media Day at the CIAS opens tomorrow, with VIP night and other private parties being held throughout downtown Toronto.
The morning kicked off with Quick Takes interviews of OEM leaders by Jason Stein, journalist and host of the popular Cars and Culture radio program on SiriusXM. Joining Stein in the hot seat this year were David Klan, President and CEO of Mazda Canada; John Capella, President and CEO of Porsche Cars Canada; and Steve Milette, President of Nissan Canada.
Klan earned a round of applause when he reiterated Mazda Canada’s full support for the dealer franchise model, always a hit tune in front of a room full of dealers. All three OEM leaders said their companies were “all-in” on electrification, though they expressed some concerns over the federal government’s aggressive mandates to force manufacturers to sell 100 per cent zero-emissions vehicles by 2035.
In his welcoming remarks Gino Caputo, Senior Vice-President and Head of TD Auto Finance, which has been the event’s exclusive sponsor since its inception more than a decade ago, said he recognized some of the challenges the industry has overcome. “We have been faced with challenges. My team’s priority over the last year has been to remain consistent.”
Caputo also said the bank is helping dealers in areas like streamlining and speeding up processes, and tackling issues like fraud prevention. While he said there is talk about technology disruption, the bank is leveraging technology to help dealers and their customers. “I can assure you TD Auto Finance is here for the long haul,” said Caputo.
Economist and futurist Linda Nazareth discussed Economorphics, and looked at the future of work and broader workforce and economic trends that are impacting consumers and employees. Nazareth said everything they are seeing in Canada and globally is a little better than expected. She said CEOs are split on their outlook.
“The economy is absolutely changing,” said Nazareth. “There are lots of reasons to be optimistic this year. I think we are headed for a soft landing.”
“Inflation has been a major, major issue,” she added, noting that banks are starting to loosen up lending.
Nazareth went through key areas impacting the economy, like technology disruption, employment, credit, inflation, labour market forces, population growth and artificial intelligence. And she talked about the impact of each one of these points. She said employers are still struggling with getting the return to work model and remote work right. She said it will take years of experimentation to get it right, and that many people are doing more “gig” economy and side hustles. We can expect this to continue too, since people are not relying on one source of income.
“It’s absolutely a time for new plans,” said Nazareth. “It’s time to rethink your business model. You are taking your customers into the future.
Darren Slind, Co-Founder and Managing Director of Clarify Group, presented an overview that looked at the changing consumer expectations regarding the purchase journey with a focus on the need for a more facilitated selling experience for generations of new electric vehicle buyers.
Slind also presented some findings from research that Clarify Group did at last year’s Canadian International AutoShow, which surveyed thousands of attendees to determine the impact of the show on their purchase intentions and why they attended. Slind told dealers that the ICE age, with the highest global sales of internal combustion engines, is already behind us. He said China is absolutely the dominant player in the EV space, and the impact of that hasn’t yet been fully felt in Canada.
“Here’s the challenge for dealers,” said Slind. Dealers are going to need to help navigate consumers through the technology of EVs, how they drive, how they charge their vehicles and manage apps, and all the related impacts of being an EV driver.
Slind talked about the TEFF model that Clarify developed that represents a transparent, efficient, flexible and facilitated approach to dealing with consumers. He said that model will be particularly important for consumers just learning about EVs.
Michael Dunne, host of the popular Driving with Dunne podcasts and CEO of Dunne insights, and one of the world’s top experts assessing the impact of Chinese EV makers on the global marketplace delivered an information-packed session that advised dealers that Chinese EV makers are targeting and coming to Canada.
“China is a modern automotive Godzilla, the likes of which we have not seen before in our lifetimes,” said Dunne. He said the Chinese are already producing one third of the vehicles on the planet — and they are just getting started. “Not only do they produce and export more vehicles and EVs than anyone else, but they are utterly dominant when it comes to batteries,” said Dunne. “China builds more EVs than everyone else added together.”
Dunne took dealers through a brief history lesson on China and their outlook on embracing economic development and dealing with western countries. China is setting out to lead in advanced technologies like robotics, autonomous vehicles, semiconductor chips and battery technologies.
Dunne also discussed the number of Chinese car companies operating in China and described how they were evolving. “China’s top automaker by far is BYD,” said Dunne. They built 3 million cars in 2023, 34 per cent of China’s EV production.
He said the top five Chinese automakers to pay attention to are:
- BYD
- SAIC
- Geely
- Great Wall Motors
- GAC-AION
Dunne said other OEMs and countries are trying to react to this new juggernaut that has excess manufacturing capacity, and all arrows are pointed towards Europe and North America for more expansion. “Here’s the good news. Almost 100 per cent of the time the Chinese are opting for the franchise model,” said Dunne.
Dunne said he thinks most Chinese automakers coming to Canada will do the same. In terms of dealers, they need to consider whether they see Chinese automakers as a threat or opportunity. “You guys have a choice to make. Is China a panda or a Godzilla that will overwhelm us all?”
Dunne said regardless of their decision they will have to get to know the Chinese automakers better. “This is the single most important disruption in the auto industry in the next five years,” said Dunne. “Mark my words, the Chinese are tenacious competitors and they want into these markets. They will bring their game.”
“We are way behind,” said Dunne. “It’s colossal the advantage they have.”
Taking the stage later today will be futurist and retail expert Doug Stephens, who will tackle the topic of artificial intelligence (AI) and machine learning and how these emerging technologies will impact dealership operations now and in the future.
Also on the agenda today is a dealer panel made up of the 2023 CADA Laureates, political pundits David Frum from the Atlantic and Andrew Coyne from the Globe and Mail, and former Top Gear and The Grand Tour host Richard Hammond.
Three more Canadian OEM leaders will join Stein on stage for an in-depth chat, including: Bev Goodman, President and CEO, Ford Motor Company of Canada; Vito Paladino, President and CEO, Volkswagen Group Canada; and Don Romano, President and CEO, Hyundai Canada Auto Corp.
An expert panel will also assess the gaps in Canada’s charging infrastructure and the challenges ahead on the road to full electrification. Look for more coverage in our Friday enews and also in the March edition of Canadian auto dealer magazine.
