“I talked to a lot of dealers over the last two to three years. And they all basically said, ‘there’s nothing I can do about it, so I’m just going to try to run my dealership as efficiently as I can.’ And then they went home and didn’t sleep at night,” said Dennis DesRosiers.
“My message to the dealers right now, steam ahead, keep doing what you’re doing,” said CADA’s John White. “We have a lot of things going on in our industry to worry about and to think about in terms of the future of automotive retailing. I think now we need to take this aside, let everybody work on trying to get the steel and aluminum tariffs issue behind us and keep working on expanding your businesses and making money and getting ready for the next challenge ahead. There are other challenges that we’re gonna be dealing with with government, whether it’s the fuel economy file, autonomous vehicles, and electric vehicles.”
Perhaps it shouldn’t be surprising, but some people outside of Ontario, including dealers, didn’t seem as concerned about a looming trade war, perhaps because there’s no auto manufacturing in their provinces.
“It’s wasn’t as big of a concern for us,” said Steve Chipman, President and CEO of the Birchwood Automotive Group, based in Manitoba. “We were being assured by the manufacturers — the car companies — that a deal was going to get done.”
Chipman said he had talks with three of the five OEMs who make cars in Canada, and they felt they had a framework of an agreement “they could live with” in June.
“We try to stay focused,” said Chipman. “We said, ‘let’s just go sell cars.’ We have to be a thermostat — not a thermometer — we control the things we can control.”
“We said, ‘let’s just go sell cars.’ We have to be a thermostat — not a thermometer — we control the things we can control.” — Steve Chipman, President and CEO, Birchwood Automotive Group
Chipman had praise for CADA and the lobbying efforts they do on behalf of dealers. “CADA does an excellent job,” said Chipman. “I don’t think the dealers fully appreciate what they do.”
Chipman did some of his own lobbying, sending letters to local MPs and Senators and talking to his local MP who he says didn’t fully understand the devastating impacts that could result from Canada imposing a tit-for-tat retaliatory tariff on U.S. auto imports. “The MP was adamant that you can’t let Americans put on a levy and then Canada can’t do a counter tariff. But that would grind the car business to a halt. That’s what we tried to argue.”
Blair Qualey, President of the New Car Dealers Association of B.C. said dealers were paying close attention. “There’s no question that this was a huge dark cloud over everyone. There’s no question dealers were wringing their hands, at least quietly behind the scenes,” said Qualey. “It’s fair to say that there was a collective sigh of relief by dealers all across this country.”
“We didn’t just dodge a bullet. I think we dodged a planet killer,” he said, adding that the forecasts of new car sales sliding back to 2008 levels and a recession was not welcome news for anyone trying to sell cars to the public. “Consumers watch this stuff on TV and hear all of these doom and gloom stories, so getting this one off the table, at least, is seen as a good sign, I think, for vehicle sales and consumer confidence going forward.”
Mike Trotman, CEO of Trotman Auto Group, says he and western dealers were glad that cooler heads prevailed. “We’re not as affected in the West as the industry would be, particularly in southern Ontario where you find a lot of manufacturing,” said Troman. “So we don’t see that same level of threat up here.”
“I think the dealers are relieved, at least those I’ve talked to, are relieved that they’re not confronted with tariffs. We don’t make cars in this part of the country. It is very much more of a retail perspective.” — John Sutherland, Executive Director, Nova Scotia Automobile Dealers Association
But the turmoil did impact consumer confidence. “I assess it as a confidence thing, about how people are feeling about the relationship with the U.S., how they’re feeling about the confidence that they have in our economy,” said Trotman. “We have to feel pretty good about the outcome. It should inspire confidence in our people and in the economy where people are working and buying and selling cars every day.”
John Sutherland, Executive Director of the Nova Scotia Automobile Dealers Association, said the story might not have been followed as closely in eastern Canada where there is no manufacturing, but it was still on the radar for dealers. “I think the dealers are relieved, at least those I’ve talked to, are relieved that they’re not confronted with tariffs,” said Sutherland. “We don’t make cars in this part of the country. It is very much more of a retail perspective.”
Don Romano, President and CEO of Hyundai Canada, said that the static over trade tariffs was not helpful for new vehicle sales. “If you were to look at the auto industry over the past five months, it’s been declining year-over-year and a lot of that has to do with consumer confidence waning. And the reason for that, in great part, has to do with concerns over tariffs — and not just the tariffs themselves — but the impact the tariffs will have on the economy, jobs and people’s livelihoods,” said Romano. “You don’t typically go out and buy a new car if you have concerns about your future.”
But Romano said it doesn’t mean that there are no hurdles ahead for dealers and the industry. “It isn’t in our nature to relax. We’re the car business, and we’re high-strung as it is, and excited all the time. That’s a hundred years of culture, auto culture I think, at work,” said Romano. “And my message to all of our dealers is to push forward. The future is bright. These are hiccups along the way that we have to address and deal with. But if you look at it from a long-term perspective, there’s nowhere else I’d rather be than the auto industry.”
CADA lobbying hit high gear
CADA also launched one of the most aggressive and high profile lobbying efforts in its history to help promote dealer interests.
Qualey and other dealers, had praise for CADA’s lobbying efforts. “Everybody did a tremendous job. CADA was all over this from the beginning with a full court press, and did everything they could humanly do — and beyond,” said Qualey. “They were talking to everybody in government and working hard, helping develop a coalition of folks that could all weigh in on it.”
Qualey says CADA kept the provincial associations involved and in the loop, and worked closely with dealers. “These are the kinds of things that make you proud of the associations, and the work that they do every day. Much of it is unseen.”
Trotman also has praise for CADA’s efforts and those of the provincial association. “I always feel like they over deliver their value proposition to us as members, rather than the other way around. I just can’t remember a time when I felt underwhelmed by them. So my hat’s off to John White and his leadership through this, and to Blair Qualey locally in the B.C. region, and to all the team behind the scenes that were advocating on our behalf. And I just think they did an incredible job and I also think that they had huge impact on the outcome,” said Trotman.
Canadian auto dealer would like to thank all those who participated in interviews for this important story. Thanks also to Managing Editor Carina Ockedahl, who contributed files to this story.
