Dealers attending the 7th annual CADA Summit walked away with a sense of measured confidence at the prospects for the year ahead, and for the longer term outlook for their businesses.
Now billed as “Canada’s Automotive Summit,” this year’s version was decidedly more upbeat, with forecasters predicting another solid year for new and used car sales, and with experts encouraging dealers that they still have an important role to play in future as the worlds of mobility as a service and revenues from connected vehicles become more of a reality.
Robert Karwel, Senior Manager of Automotive Practice, J.D. Power Canada, predicted only a slight dip in new vehicle sales from 2018. “The market is declining in its totality, but it’s still a strong market,” said Karwel.
He predicted that this year the growing Canadian preference for buying trucks and SUVs would reach 80 per cent of new vehicles. “We are just on cusp of electric vehicles finally gaining some traction. It’s not just EVs, but also plug-in hybrids,” said Karwel.
CADA Economist Oumar Dicko moderated a session with Karwel and Derek Burleton, VP and Deputy Chief Economist, TD Bank Group.
Burleton explored some of the risks facing the economy, including uncertainty over the recent USMCA trade agreement. “The uncertainty over whether the trade deal will pass in its current form isn’t helpful,” said Burleton.
Cliff Banks, President, Banks Media Enterprises, and a widely followed auto industry insider, said he feels optimistic about the future of dealerships. “I don’t see a downturn in the number of dealerships. We still need the retail networks to support the customers in a number of different ways.”
“I don’t see a downturn in the number of dealerships. We still need the retail networks to support the customers in a number of different ways.” — Cliff Banks, President, Banks Media Enterprises
Banks said that some fears that the growth in ridesharing services going up would lead to a decline in vehicle sales are not well grounded. Private vehicle ownership in North America is actually going up.
Tim Ryan, CADA Vice President and Director, Industry Relations and General Counsel moderated a panel of leading Canadian dealers who openly shared their opinions and offered insights into their business strategies, and how they are bracing for the future. The participating dealers were Shahin Alizadeh, President and CEO, Downtown Automotive Group, Toronto, Jim McManes, Owner, McManes Auto Group, Calgary and John Hairabedian, President, HGrégoire Group, Montreal.
Andrew Coyne, columnist National Post and a regular fixture on CBC’s the National, explored the political landscape. He predicted that the Trudeau government would face a tough challenge in the next election, especially once the leaders of the opposition parties become more familiar to Canadians.
Coyne said it’s difficult to predict what will happen in Washington with the current administration. “We’ve never seen anything like Donald Trump,” said Coyne. “This is a government in Washington that doesn’t believe in free trade.”
Nik Nanos, Chair, Nanos Research, and a leading pollster, presented his analysis on what is inside the minds of Canadian consumers. He said Canadians are feeling anxious about what lies ahead for our economy. “A majority of Canadians are not feeling good about the Canadian economy,” he said. This is joyless prosperity.”
Nanos also told dealers that research shows millennials are keenly interested in buying cars — they just can’t really afford them yet.
“The best teams I was on had the most selfless leaders — they were the teams that had the most success” — Brendan Shanahan, President, Toronto Maple Leafs
Warren Ritchie, author of Competing in the Connecting World, asked dealers if they felt ready to compete in a connecting world.
“Do I have the capabilities to compete in this new world? Am I ready to invest in those capabilities? Is it even affordable? Can I get there from here?” Ritchie asked.
He said that tech giants, a group he called “ecosystem commanders” like Google, Apple, Microsoft and Facebook are highly skilled at gathering data and finding ways to convert it into new revenue streams. Dealers and OEMs need to work together to ensure they aren’t shut out of the opportunities in their own backyards.
Ritchie, along with John Possumato, Founder & CEO of Drive it Away, were also interviewed by moderator Niel Hiscox, publisher of Canadian auto dealer magazine, after their sessions.
For his part, Possumato said car dealers can start making money from mobility and ridesharing services right now, and they have the infrastructure and tools for success. “You can never replace the retailer because they know the market the best,” said Possumato.
The event’s final session featured an informal question and answer chat between John White and Brendan Shanahan, President of the Toronto Maple Leafs.
Shanahan told dealers about how he transitioned from a 20-year NHL career into a business leader. When he first worked at the NHL office, he recounted his first impressions of not fully understanding the world of work after a lifetime playing hockey.
“I did not know how to work. They brought me in and gave me a computer and a cubicle,” said Shanahan. When it was approaching the end of the working day, he looked at the woman in the cubicle opposite him and asked: “How do we know when it’s time to leave? Is there a horn or siren that goes off?”
Shanahan shared his views on the traits he has witnessed that are necessary ingredients for a winning team. “The best teams I was on had the most selfless leaders — they were the teams that had the most success,” he said, emphasizing the need to help others achieve success as part of that journey.
To win though, all teams have something in common: “First and foremost, you need talent. You need people who are good at their jobs. You need passion and competitiveness.”
He said for elite athletes on winning teams, competitiveness is like a drug for them. “I remember growing up hearing there was no “i” in team. But Patriots head coach Bill Belichick said there is an “I” in win,” he said. “You teach them that success around them, means success for them.”
The event also featured special CADA Laureate winner tribute video that was played during the event.
