J.D. POWER AND ASSOCIATES AND CANADIAN BLACK BOOK HOSTED ONE OF THE KEY INDUSTRY EVENTS OF THE YEAR
Dealer discussion panel, left to right Robert Varga (Walkway), Murray Clark (Oakville Volkswagen) and Ron Loveys (Whiteoak Ford-Lincoln)
We live in some very interesting times. Many within the auto industry believe we’re experiencing a shift that could represent the biggest transformation yet to the business. Whether its surveys that show interest in obtaining a driver’s licence among teenagers is dropping, the fact that more and more consumers are getting financially underwater when it comes to trade-ins and the purchasing new vehicles, or that governments and legislators continue to push for tighter fuel economy and emissions standards, plus EVs that few people seem to want to buy, there’s no question that some significant challenges lie ahead.
As a result, savvy dealers look to any sources they can to get the latest information on emerging trends and issues in the auto market, which is why events such as TalkAuto are so important. Canadian auto dealer recently attended the 2012 TalkAuto Canada event Toronto event (organized by J.D. Power and Associates, in conjunction with Canadian Black Book) and found both the main and breakout sessions very informative.
LMC Automotive’s Dave Cutting
FUTURE PREDICTIONS
We always like to think that we can somewhat see what will happen down the road and Dave Cutting, senior manager of North American forecasting for LMC Automotive, highlight some key issues affecting the market today and likely key drivers that will have an impact on sales tomorrow, such as fuel prices and changing consumer trends.
Something many dealers are currently grappling with, is their relationship with OEMs. Shaun Laubman from Lax O’Sullivan Scott Lisus LLP talked about key issues relating to disputes, such as as support from manufacturers, the National Auto Dealers Arbitration Program, franchise laws and the rights and obligations of dealers under franchise agreements, plus the impact of factory imaging programs. An interesting case study showed that a once dominant brand in the market ended up losing its lead due to complacency, despite warnings from franchisees to protect and enhance the brand. The end result was a court case in which a number of franchisees successfully sued the franchisor.
From the perspective of J.D. Power and Associates, although both initial vehicle quality and dependability have improved significantly over the last 25 years, vice president of Global Automotive Dave Sargent said that for consumers, quality is still a hugely important consideration when purchasing a vehicle. And for dealers, it’s particularly important to address issues with the vehicle as quickly as possible, since nothing else drives perception, loyalty and satisfaction of a vehicle brand to the same degree. Sargent also said that as vehicles have become more reliable and the focus of quality issues has shifted from “hard” to “soft” problems, successful dealers will be those that are able to support customers’ new quality needs, such as becoming comfortable with new vehicle technologies and providing solutions, rather than simply fixing broken cars.
David Adams, Canadian auto dealer columnist
and president of the Association of International Automobile Manufacturers of Canada
THE ROLE OF TECHNOLOGY
Canadian auto dealer columnist and AIAMC president David Adams, weighed in on new and emerging vehicle technologies and what they could mean for the future industry. Adams talked about tightening fuel economy and emissions standards and what they are likely to mean in terms of advancements in internal combustion engines, as well as hybrids, plug-in hybrids, battery electrics and fuel cells, plus consumer acceptance of these technologies. Another key topic was the proliferation in technology and safety features on new vehicles and to what extent consumers are and will likely accept or purchase them.
Fellow Canadian auto dealer columnist Chuck Seguin hosted a discussion a panel of dealers, suppliers and remarketing experts about their thoughts on current issues facing the business, including financing, leasing, legislation issues, facility upgrades and changing buyer demographics.
Jaguar Land Rover Canada chairman Lindsay Duffield talked about the strategy of both brands under new owners Tata and the growth both in retail stores and product offerings planned for the near future.
Breakout sessions in the afternoon covered topics ranging from how to drive profits on the remarketing side to the importance of the customer experience and also financing trends and how they will likely impact both dealers and consumers, such as the growth in non-prime and subprime lending and the proliferation of seemingly ever longer finance contracts.
