SUMMER ISSUE (July–September 2020)
Changing of the Guard Peter Heppner named NCDA chairman PAGE 7
On the Road Ahead Dealing with unprecedented change PAGE 16
In the Driver’s Seat Meet Pamela Pearson, Sentes Automotive PAGE 14
Car Buzz: Driving into the Future PAGE 13
NEW CARS SOLD IN BC
APR: 7,983 MAY: 12,088 JUN: 14,341 YEAR TO DATE: 72,528
CONTENTS We’d love to hear from you!
INSIDE THIS ISSUE
Our vision is for member dealers and the dealer franchise system to be seen by the public as the best choice to fulfill all their automotive needs. We are a small but dedicated and hardworking team of individuals serving all members of the New Car Dealers Association of BC. Should you have any questions, concerns or issues, or if you have any ideas for our organization to pursue, our staff is available to listen and help. Get in touch via phone, email, fax, or in person at our office in Langley, BC. Signals is THE flagship publication for the NCDA, the industry association that represents more than 390 new car and truck franchised auto retailers in BC. #380–8029 199 Street, Langley, BC V2Y 0E2 Tel: 604-214-9964 // Fax: 604-214-9965 newcardealers.ca // email@example.com
New Car Dealers Association of BC – Staff Team Blair Qualey President & CEO firstname.lastname@example.org
Shakira Maqbool Manager, Finance & Administration email@example.com Joshua Peters Manager, Member Services firstname.lastname@example.org Ofir Sapoznikov Membership and Operations Coordinator email@example.com Roni Sapoznikov CEVforBC™ Program Administrator firstname.lastname@example.org Duy Le CEVforBC™ Program Coordinator email@example.com
Vancouver International Auto Show Jason Heard Executive Director firstname.lastname@example.org Direct: 604-220-2725 Have a topic or story suggestion? Email us! And for article and ad submissions and rate card details, please contact: Joshua Peters | 604-214-9964 EXT 225 email@example.com For subscriber inquiries, please contact: firstname.lastname@example.org
Penny Sakamoto, Group Publisher 818 Broughton Street, Victoria BC V8W 1E4 email@example.com Published in Canada The contents of Signals, such as text, articles, opinions, views, graphics, images, and the selection and arrangement of information (the “Content”), are protected by copyright and other intellectual property laws under both Canadian and foreign laws. Unauthorized use of the Content may violate copyright, trademark, patent, and other laws. You must retain all copyright and other proprietary notices contained in the original Content on any copy you make of it. Disclaimer: Information contained within Signals is for general information purposes only and may not be entirely complete or accurate. Use of Signals’ content is done so at your own risk. Canadian Publications Mail Product Sales Agreement No. 40030593.
Government Advocacy Layoff Decision Applauded
CleanBC Go Electric Additional Funding Allocated
10 Industry News: VSA Improving Industry Partnerships 12 Legal Line by SHK Duty of Fair Dealing 13 Car Buzz Driving Into the Future
2020 AGM NCDA Goes Virtual
14 Women in the Driver’s Seat Pamela Pearson of Sentes Automotive 16 On the Road Ahead Dealing With Unprecedented Disruption 18 Constructive Dismissal by KSW Lawyers Navigating the Post-COVID World 19 Preparing Your Records for CEWs Before and After Application 25 CADA HR HR Automation Platform Provides Timely Solution for Dealers
22 Special Olympics BC Updates On the Cover: The NCDA welcomes new Chairman, Peter Heppner for the start of his term.
Changing of the Guard
News From the Front Seat BLAIR QUALEY PRESIDENT & CEO, NCDA
“... dealers are smart, resilient and hard-working. They will get through this because they know how to react to challenging business circumstances.”
When we prepared the last edition of Signals three months ago, BC was reeling from the COVID-19 pandemic and the economic impact of stay-at-home measures. Frankly, our world was turned upside down. Since then, new car dealer members around BC quickly reinvented their businesses models and adjusted operations to stay open and offer essential repair and maintenance, along with vehicle sales and leasing services, to customers—including many essential workers needing to keep their vehicles on the road, to get to and from work. The impact was unprecedented. New vehicle sales numbers cratered by over 70 per cent in April, but thankfully, slowly improved in May and again in June, as consumers took their first tentative steps back into the marketplace. Through this very challenging period, the NCDA was laser-focused on providing the most up-to-date information in the form of daily briefs to our dealer members, including information on the latest federal and BC government initiatives. Our national association, CADA, was focused on working with the federal government to ensure dealers would be eligible for the various supports available to businesses. In the meantime, we reached out to the provincial government on various
issues, including temporary layoff provisions. We consulted with WorkSafeBC and health authorities and produced the NCDA’s COVID-19 Health & Safety Protocol Toolkit, and also developed a dealer dashboard of resources on our website (www.newcardealers. ca/membership/covid-19-resources/). In the midst of this precarious situation, our team was also busy reconciling the NCDA’s signature event, the Vancouver International Auto Show, which was postponed just two weeks prior to opening the doors to our 100th anniversary event. Again, the economic impact was significant. Expenses were quickly cut across the organization by 30 per cent, including a reduction in headcount and voluntary cuts by key suppliers and others. These are the times that an association really proves its worth and it re-energizes us every day to hear from our members that what we are doing is making a difference.
COVID-19 Annual General Meeting Sees Record Attendance While COVID-19 has changed many things, the governance and oversight of our organization remains an important priority, so on June 25, we proceeded with the association’s very first virtual annual general meeting. The format had its ben-
2020 New Car Dealers Association of BC Board of Directors
Peter Heppner Chairman
James Carter Vice Chairman
Anthony Lunelli Treasurer
Jeff Hall Past Chairman
Blair Qualey President & CEO
PRESTON GM LANGLEY
CARTER GM N. SHORE
ANTHONY’S SUBARU KELOWNA
HALLMARK FORD SURREY
ROYAL BANK OF CANADA
MARV JONES HONDA MAPLE RIDGE
OPENROAD AUDI BURNABY
Signals Magazine July–September 2020
COLUMBIA CHRYSLER RICHMOND
WOLFE AUTO GROUP SURREY LANGLEY
LGM FINANCIAL SERVICES INC.
MACCARTHY MOTORS TERRACE
NORTHLAND NISSAN PRINCE GEORGE
GAIN GROUP VANCOUVER ISLAND
JACK CARTER ELK VALLEY CHEVY BUICK GMC
efits, including making it easier for members from around BC to join us without the expense and time to travel to our Langley office. This led to a record number of dealerships being represented at the meeting! Beyond reviewing and approving the NCDA’s strong financial results from 2019, the members approved two special resolutions and elected new directors to three-year terms. Outgoing Chairman Jeff Hall thanked retiring directors Mark Edmonds from Maclaren Vancouver and John Wynia from Harbourview VW in Nanaimo for their service. The association also extends its appreciation to outgoing Past Chairman Jim Inkster, from Dawson Creek, for his many years of dedicated and passionate service to BC’s New Car Dealers. At the AGM, a new bylaw enshrining the rotation of individuals through the various board executive roles was passed, and we congratulate the following on their new roles for the coming year: • Chairman Peter Heppner, Preston GM, Langley; • Vice Chairman James Carter, Carter GM Northshore, North Vancouver; • Treasurer, Anthony Lunelli, Anthony’s Subaru, Kelowna; and • Past Chairman, Jeff Hall, Hallmark Ford, Surrey.
The following director was re-elected to a three-year term: • Justin Gebara, Columbia Chrysler, Richmond. The following new directors were elected to three-year terms: • Mike Hacquard, Wolfe Auto Group, Surrey and Langley; • Joey Prevost, MacCarthy Motors, Terrace; • Peter Trzewik, Gain Group, Vancouver Island; and • Jared Williams, Jack Carter Northstar, Fernie, Cranbrook, Creston. Following our association AGM, a virtual AGM for our New Car Dealers Foundation of BC was held, where the following new directors were elected: • James Carter, Carter GM Northshore, North Vancouver; • Amanda Chrinko, Westwood Honda, Coquitlam; • Joey Prevost, MacCarthy Motors, Terrace; and • Peter Sia, Northland Nissan, Prince George. Congratulations to all the newly elected directors and to our chairman and executive committee members on your new roles. It is during these difficult times that we need all hands on deck, and we are incredibly grateful to all of the directors for their willingness to serve and set the course for the NCDA, as we work our way through this new
COVID-19 reality. And a big thank you to our hardworking and talented staff team for their efforts on behalf of our dealer and associate members as well. The 2019 Year in Review Report was presented at the AGM and we encourage our members to review it here: https://issuu. com/bcncda/docs/ncda_2019_agm_report_final.
The Road Ahead–Key Priorities As we move forward following the recent AGM, our new Board of Directors will be meeting to set the key priorities for staff to achieve in the coming 12 months. No doubt, government advocacy will continue to be a primary activity with a strong focus on economic recovery, along with the ongoing challenges around the layers of taxation, including the luxury tax and high ICBC rates, among others. We have spoken to BC Finance Minister Carole James, and made a presentation to the BC Legislature’s Finance and Government Service Committee, in addition to the BC Liberal Caucus on steps to support economic recovery in the province on behalf of our members. We are pleased that government has extended the NCDA contract to administer the CleanBC Go Electric Vehicle Rebate Program through to March 31, 2021, and added half of the $20 million announced in Budget 2020 to the available program funds. Continued on page 6
2020 New Car Dealers Foundation of BC Board of Directors
CARTER GM N. SHORE
PRESIDENT & CEO, NCDA
WESTWOOD HONDA COQUITLAM
MARV JONES HONDA MAPLE RIDGE
FIRST CANADIAN FINANCIAL GROUP
MACCARTHY MOTORS TERRACE
OPENROAD LEXUS PORT MOODY
NORTHLAND NISSAN PRINCE GEORGE
Heather Headley Chair
John Wynia Past Chairman
Marnie Carter Founding Chair
James Carter Treasurer
PACIFIC HONDA N. VANCOUVER
HARBOURVIEW VW NANAIMO
CARTER AUTO FAMILY
DUECK AUTO GROUP ANTHONY’S SUBARU VANCOUVER/RICHMOND KELOWNA
NEW MEMBERS Associate Members of the New Car Dealers Association of BC provide vital products and services to Dealer Members, allowing them to do business with greater cost effectiveness, environmental responsibility and general efficiency. Welcome to our new members!
Protect Canada is pleased to work with BC’s New Car Dealers. All of its products, including N95 NIOSH, KN95 masks, hand sanitizer, gowns, face shields and gloves, are being imported following the ISO 9001 standards. Protect Canada supplies PPE to the government, long-term care facilities and other various government agencies. Visit this website created for dealers to purchase authentic PPE from a Health Canada-approved supplier. Click here: protectcanada.ca/?ambassador=Darren428 At Peak, patrons have access to a wide range of cost-effective, customizable and specialized apparel and products that will help promote their businesses, assist marketing objectives and convey messages to their clients and shareholders. Peak offers trustworthy expertise on healthcare and PPE, uniform fulfillment programs and corporate apparel and promo.
For questions, to see a product brochure or bulk orders, please contact: Darren Dobson, National Account Manager firstname.lastname@example.org
For more info, please go to PeakApparel.ca. Contact: Eric Kazenbroot email@example.com 604-445-4405
President’s Message Continued from page 5
Member engagement and communication will also continue to be a priority. Watch for dates for a virtual Chairman’s Tour town hall to connect with dealers in the key regions around the province. Other member activities will include resource bulletins, webinars and various offerings from associate members to support dealers’ businesses. Another key focus will be restructuring our business model and financial plan to make sure we have the resources to continue to meet the important needs of members when traditional revenue generators such as the auto show and Western Dealers Conference remain uncertain, at least in the near term.
NEW HR Program for Members We are pleased to share with you a new program for members from CADA 360 – HR Automation. The program is an all-in-one HR and compliance awareness solution created just for car dealers. • CADA 360 HR Automation is based on DealerPILOT’s proven HR and health and safety monitoring product. • Many dealerships have already taken advantage of DealerPILOT to streamline their routine management and monitoring activities. • HR Automation takes manual, time-consuming tasks, and simpliies and automates them, including items like onboarding, scheduling, health and safety monitoring, plus time sheet management and more. Contact us to learn more! (firstname.lastname@example.org)
Signals Magazine July–September 2020
Closing Thoughts During our recent AGM, in a report to members, I mentioned that almost a dozen years ago I was privileged to take on this role at a time when the wheels were falling off the global economy and the auto sector was taking a major hit. I was so inspired at the time by the positive, resilient attitude and smart business skills of our dealer members who adjusted their businesses and found ways to weather that storm. Today, I know that if anyone will survive the challenges to business from COVID-19 it will be BC’s New Car Dealers. As was the case back then, the NCDA was there to support our members, and we are there for them now. As Dr. Bonnie Henry says: “We are all in this together! Be kind. Be calm. Stay safe!”
Blair Qualey, President and CEO New Car Dealers Association of BC n email@example.com
NCDA Goes Virtual for 2020 AGM Newly elected directors welcomed
The NCDA is thankful to all the dealership members who joined the NCDA and Foundation’s virtual AGM on June 25. It was a a huge success. The NCDA is also extending thanks to Jeff Hall, outgoing NCDA chairman, for his years of service to the NCDA, as well as to Foundation Chair Heather Headley, for continuing to serve. Congratulations are in order to our new NCDA Board Chairman Peter Heppner. Congratulations are also due to the new directors, elected for three-year terms on the association and foundation boards. Thank you for stepping up to serve BC’s New Car Dealers! We are excited to have you on board! Welcome to the newly elected NCDA Board of Directors: • Justin Gebara, Columbia Chrysler, Richmond • Joey Prevost, MacCarthy Motors, Terrace • Jared Williams, Jack Carter Northstar, Fernie, Cranbrook, Creston • Peter Trzewik, Gain Group, Vancouver Island • Mike Hacquard, Wolfe Auto Group, Surrey & Langley
COLUMBIA CHRYSLER RICHMOND
WOLFE AUTO GROUP SURREY & LANGLEY
MACCARTHY MOTORS TERRACE
GAIN GROUP VANCOUVER ISLAND
JACK CARTER ELK VALLEY CHEVY BUICK GMC
Words from the outgoing NCDA chairman
Thanks to outgoing Chair, Jeff Hall, for his many years of service.
Outgoing chairman Jeff Hall had the following to say in comments made to the NCDA membership: “The success of the association is only possible with your active involvement, along with the support of our dealer and associate members. I encourage you to get engaged with the association, attend our virtual events, respond when we send out surveys, and step up when we ask for help. We will get through this challenging time together. The NCDA thanks you for your business and looks forward to continuing to work with you as we travel the unprecedented road ahead. Stay safe out there! If you have any questions or concerns, please don’t hesitate to reach out to us.”
Year in Review Check out the NCDA’s Year in Review document. The full report of the NCDA’s 2019 activities and main achievements can be found here:
MEMBER BENEFITS AND RESOURCES
NCDA at Work for Dealer Members WEBINARS AND OTHER RESOURCES
Webinars for Members
Thanks to KSW Lawyers, a webinar was hosted for NCDA members to review the various government programs, Canadian Emergency Wage Subsidy (CEWS) and assistance available for BC’s New Car Dealers. Thanks to everyone for participating. A recording of the presentation is available on the Member Login page at newcardealers.ca.
President & CEO NCDA
Director, OHS Consultation & Education Services
In association with WorkSafeBC’s Chris Back, Director, OHS Consultation & Education Services, and hosted by Blair Qualey, substantial updates and resources were provided to members. This included a “FAQ” session regarding the latest requirements and guidance on health and safety for operating dealerships in BC, including sharing best practices. WorkSafeBC has developed a variety of resources for industry to reference for safe work places—you can view them here https://www.worksafebc.com/en/about-us/covid-19-updates. A key point that was shared referenced a COVID-19 safety plan that must be available to employees and customers within businesses. Tips on creating the plan are located here https:// www.worksafebc.com/en/resources/health-safety/checklist/ covid-19-safety-plan?lang=en
Signals Magazine July–September 2020
Mirror Hangers— Supporting BC’s New Car Dealers
P r om ot i on a l P r od u c t s & G r a p h i c s
The NCDA has developed a health and safety resource available to NCDA dealer members to emphasize the cleanliness of vehicles sold and serviced to customers. Available for order thanks to Michael Mason, the mirror hangers indicate sanitization and cleaning has been completed in the vehicles. Custom orders enable dealerships to include their logo on the mirror hangers. The mirror hanger assists in providing further peace of mind and confidence as customers look to make purchasing and service appointments. Contact us for more details and order information: firstname.lastname@example.org. Thank you for your business. The New Car Dealers Association (NCDA) is the provincial industry association that represents more than 390 new car and truck franchised dealers providing essential service throughout British Columbia.
This vehicle has been cleaned, and sanitizer applied for your safety. By hanging this in the vehicle, the dealer certiﬁes it has been cleaned in accordance to BC Public Health and WorkSafeBC Guidelines.
The NCDA owns and operates the Vancouver International Auto Show and administers the CleanBC-Go Electric Vehicle Rebate Program (CEVforBC) on behalf of the Government of British Columbia. The NCDA is also a member of the Canadian Automobile Dealers Association (CADA). CADA is the national association representing new car and truck dealers.
BC’s New Car Dealers Drive Local Communities › Since 2005, contributed over $1.5 million to grants and scholarships for car careers. › Raised over $5 million for Special Olympics BC. › Contribute more than $2.9 billion of total GDP to BC’s economy annually.
New Car Dealers Association of BC #380–8029 199th Street, Langley, BC V2Y 0E2 Tel: 604-214-9964 // Toll Free: 1-844-423-8422 newcardealers.ca // email@example.com
THE NCDA IS A PROUD MEMBER OF
BC LEGISLATURE WIRE
Government Layoff Decision Applauded Through its involvement with the BC Chamber network, the NCDA is encouraged and supports the BC Government’s extension of the 16-week period for temporary layoffs in some cases. BC business spoke with one voice and the provincial government listened on the temporary layoff provision! Our thanks to Premier Horgan and the BC government for acting on the request of BC business associations and BC Chamber to further extend the temporary layoff provision in the Employment Standards Act to August 30. Local chambers shared with the BC
Chamber that the temporary layoff provision was top of mind for their members and we made sure the provincial government knew that. Thank you to all members who brought their voice to this urgent conversation—and for your stellar leadership. By extending this time frame again, the provincial government is giving businesses more time to get back on their feet and open their doors again. By providing this breathing room, the provincial government is helping to get more British Columbians back to work.
Additional Funding Added to the CleanBC Go Electric Program for 2020 NEW ELIGIBLE VEHICLE MODELS ADDED The Province of British Columbia has added additional funding of $10 million to the CleanBC Go Electric Vehicle Rebate Program (re-branded by the government from Clean Energy Vehicle Point-of-Sale Purchase Incentive Program [CEVforBC™ Program]) during June 2020, the first half of the $20 million in funding that was announced in the provincial budget on February 18, 2020.
New vehicle models added since the last Signals issue:
2021 Ford Mustang Mach-e Select (BEV)
2021 Hyundai Kona EV (BEV)
2021 BMW 330e (PHEV)
2021 Kia Soul EV (BEV)
Program Updates: • Updated program forms (Dealer Application Checklist, Letter of Received Rebate, etc.)—check the cevforbc.ca website for the latest forms. • During this unprecedented and extraordinary time, and due to the rapidly evolving situation on COVID-19, the program team is working from home, so it will not be taking any meetings in person. However, do not hesitate to reach out by phone or email. Reimbursement payments will be issued with slightly longer intervals. • Due to the COVID-19 crisis, the team will look at each application submission on its own merits, and if need be, make exceptions on a case-by-case basis to the required 15-day submission window. • The cevforbc.ca website will continue to function as per normal, so please submit applications online through the Dealer Portal.
Top Tips for Dealers • If the price of vehicle, as appears on the Bill of Sale or Lease Agreement, is greater than $55,000, please provide the OEM invoice to confirm that the MSRP of the vehicle is equal or less than $55,000. • As stated in the program policies, the limit for individuals is one (1) rebate per the lifetime of the program. Therefore, if there is a trade-in ZEV vehicle involved as part of a deal of purchasing/leasing new eligible vehicle, ensure that the customer is still eligible for a CleanBC rebate before providing them with the rebate. • Ensure timely submission (within 15 days from date of sale/delivery) of all claims. If not all documents are ready, dealerships should still submit the application to avoid late submission. Upon submission, dealerships have 90 days to provide all required supporting documents. newcardealers.ca
Improving Industry Partnerships MARK BAKKEN, CHAIR, VEHICLE SALES AUTHORITY BOARD OF DIRECTORS
Over the past two years, the Vehicle Sales Authority has focused on improving how we partner with industry. Through consultations with industry and by learning from the regulatory practices of agencies around the world, the VSA is better able to understand the opportunities to improve its relationship with those it regulates. These insights helped to form a vision of how the VSA can evolve its practices to create a new way of meeting the regulatory mandate of the organization. In 2019, this work, together with a survey of the operations of the VSA, was brought together by the leadership team to create a new strategic plan for the organization. Beginning in late 2019 and continuing through 2020, the VSA has been focused on advancing four strategic objectives, all of which are of equal importance: • Consumer Awareness: educating consumers to understand their role and rights when purchasing a vehicle. • Regulatory Excellence: evolving VSA policies and practices to support a new approach focused on the concept of “right touch” regulation (from Malcom K. Sparrow’s The Regulatory Craft). • Our People: ensuring the skills and knowledge of our team remain relevant and support evolving organizational priorities. • Digital Transformation: creating simple, digitally enabled processes to better serve our customers. To ensure the success of the VSA in these efforts, the board of directors continued to evolve our governance and oversight in conjunction with this work. In 2018, the board created a task force to support the review of regulatory practices and added risk management oversight to the board’s purview. Last year, 2019, saw the VSA make significant technology investments, and the board has been overseeing that work through the IT task force. These task forces helped support the VSA in specific areas as the leadership team advanced these priorities. As the execution of the 2019/2020 strategy continues, we are now bringing the previously disparate task forces together under one standing committee —Enterprise Risk Management and Strategy. This committee will oversee the development and execution of the VSA Business Strategy, which includes the critical elements of regulatory model improvements, technology strategy and enterprise risk. This focus will create continuity for the organization and ensure that these areas have critical oversight that is often lost in any board’s oversight model.
Signals Magazine July–September 2020
As we close out a challenging 2020, the VSA board will continue to review and evolve our model to meet the challenges and opportunities that present themselves. The board welcomes feedback from NCDA members on these initiatives and other topics related to the regulation of industry. You can find our contact information on the VSA website at VehicleSalesAuthority.com.
New Board Members Announcement The Vehicle Sales Authority of BC is pleased to announce our two newest board members (for a full list of our board members, please visit our website at VehicleSalesAuthority.com). Mike Hacquard, New Car Dealers Association of BC With over 40 years of experience as a lifetime auto industry insider, Mike continues to play an active role within the industry as both a Dealer Principal at Wolfe Auto Group and a board member of the New Car Dealers Association of BC. Mike is taking over from Moray Keith, who has served on the board since 2011.
Guangbin Yan, Government Appointee Guangbin is an experienced senior business manager with over 10 years of government experience. She is an Appointed Bencher with the Law Society of BC since 2018 and a member of the Finance and Audit Committee. Guangbin has been serving on boards for non-profit organizations since 2009.
We are excited for Mike and Guangbin to apply their wealth of knowledge and experience to help shape VSA’s vision moving forward. Thank you to Moray for your dedication and commitment to the VSA and we wish you all the best in your future endeavours.
VehicleSalesAuthority.com Tel: 604.574.5050 #280 – 8029 199th Street, Langley, BC V2Y 0E2
With the economy picking up speed, we remain dedicated to ensuring our dealer’s success.”
KAR Global is committed to protecting the health and wellbeing of our customers, employees and communities in all we do during the COVID-19 pandemic. We continue to closely monitor public health and government directives to ensure we’re operating safely. As we emerge from the pandemic and with the economy picking up speed, we remain dedicated to ensuring our dealers’ success. We continue to hold Simulcast auctions via ADESA.ca and the ADESA Marketplace app. Our other digital channels — including private label sites and upstream open (non-auction) vehicles on ADESA.ca and TradeRev also remain open and active to keep your business moving forward. That’s why KAR Global is extending and initiating relief programs and temporary price reductions as well as resuming services to give dealers the confidence to buy and sell anytime, anywhere and emerge stronger than ever: • Waived Simulcast Fees: No Simulcast success fees for buyers through July 31, 2020. • Buyer Vehicle Previews: Most ADESA locations are now offering in-person visits to preview and assess inventory. Contact your local ADESA auction to learn more. • Post Sale Inspections: All locations are now offering PSIs. Contact your local ADESA auction to learn more.
For additional information and all of the latest updates, visit ADESA.ca and TradeRev.
Duty of Fair Dealing in Dealership Agreements
KEREM TIRMANDI AND MATTHEW WANSINK, SHK ASSOCIATES
BC’s Franchises Act imposes a Duty of Fair Dealing upon parties to a franchise agreement. From a practical standpoint, this requires that franchisors and franchisees engage fairly and honestly with each other when exercising their rights and performing their obligations under the franchise agreement. While this sounds straightforward, courts in Canada have carved out some significant distinctions in how these obligations apply to the franchisor-franchisee relationship. For automotive dealers, understanding these distinctions is essential to understanding your rights under the dealership agreement, which is a form of franchise agreement.
Does the Duty of Fair Dealing apply to my agreement? The Duty of Fair Dealing under the BC Franchises Act applies to all franchise agreements, renewals and extensions for franchisee businesses operating wholly or partly in British Columbia. Since automotive dealerships are considered franchisees in British Columbia, they are entitled to the benefits offered by the Act. Importantly, the Duty of Fair Dealings represents a minimum legal standard and cannot be expressly contracted out of by the parties, no matter the written terms or purported jurisdiction of the agreement. It is also important to note that the duty can extend beyond an agreement’s signatories to the franchisor’s parent company. For example, in Addison Chevrolet Buick GMC Limited v. General Motors of Canada Limited, 2016, a group of Greater Toronto Area GM dealerships asserted that GM United States, though not a signatory to their dealership agreements, had breached its Duty of Fair Dealing to the Canadian GM dealerships by prioritizing its profits ahead of theirs, and putting the interests of US dealerships ahead of Canadian GM dealerships. The Ontario Court of Appeal held that GM US, while not a signatory to the Canadian franchise agreements, was a “franchisor’s associate” under Ontario’s franchising act, and owed a Duty of Fair Dealing to the Canadian dealerships. As BC’s Act includes a similar definition of “franchisor’s associate,” it is likely that courts here would arrive at a similar conclusion.
What rights does the Duty of Fair Dealing instill? At its simplest, the Duty of Fair Dealing requires that franchisors and franchisees act honestly by not lying or knowingly misleading each other in the exercise of their rights and performance of their obligations. Courts in Canada have said this includes:
Signals Magazine July–September 2020
• a requirement to act in accordance with the spirit and intent of the franchise agreement; • a requirement to disclose important and material facts that relate to the ongoing performance of the franchise agreement; and • for franchisors specifically, a requirement to exercise its powers under the franchise agreement with due regard to the interests of the franchisee. The 2009 Ontario Superior Court Decision in 1323257 Ontario Ltd. (c.o.b. Hyundai of Thornhill) v. Hyundai Auto Canada Corp. (“Hyundai of Thornhill”), offers a good example of how these principles can affect dealerships. In Hyundai of Thornhill, the plaintiff dealer and Hyundai had, after arbitration, entered into a temporary extension of the dealership agreement to grant the plaintiff more time to relocate to a premises acceptable to Hyundai. After two months, Hyundai deemed that the plaintiff had failed to find a suitable location, terminated the dealership agreement and then entered into a new dealer agreement with another dealer, and approved a dealership location that Hyundai had, during the course of its negotiations with the plaintiff, previously deemed as unsuitable. At trial, the dealer successfully brought an injunction prohibiting Hyundai from implementing its notice of termination on the grounds that Hyundai had induced the plaintiff to enter into the temporary extension by actively representing that the site, which the plaintiff had suggested for relocation, was not suitable. The Court found that, because Hyundai later approved the same site for the replacement dealer, it had not engaged fairly with the plaintiff, and irreparable harm would result if the injunction were not granted.
Practical considerations The Duty of Fair Dealing offers significant rights and protections that can assist BC dealerships in levelling the playing field when negotiating, renewing or resolving disputes relating to a dealership agreement. While the courts will not invoke the duty to override express written obligations under a dealership agreement, even where the obligation could result in a loss, the duty may afford protection where: • contractual rights are invoked to prevent the renewal of an agreement; • there is a misrepresentation of facts or withholding of information; • there is an unreasonable refusal to renew an agreement; or • one party unreasonably refuses to approve the sale of the franchise. As always, navigating the line between fair and unfair dealing in the context of your dealership agreement can be a complicated matter of legal interpretation. Where a dealer feels that the Duty to Fair Dealing has not been followed by their OEM manufacturer, we recommend that you obtain professional legal assistance before seeking to enforce your rights. For more information on how best to proceed, please contact one of our lawyers at SHK Law Corporation.
Driving into the Future New car releases heavy on innovation The economy may have been locked down for much of the spring, but innovations and improvements by automakers continued, with Subaru, Honda, Acura, Toyota and GMC all introducing new vehicles that generated a buzz in the industry. And DesRosiers Automotive Consultants point out that prices for new light vehicles keep rising, from just under $35,000 in 2015 to almost $41,000 on average by the end of 2019, due to “the growing preference for light trucks.” New 2021 Subaru Crosstrek Subaru Canada, Inc. (SCI) introduced the newly refreshed 2021 Crosstrek. With its innovative design, efficiency and impressive levels of safety, the Crosstrek is versatile enough to shine in any driving scenario and suitable for any style of driver. The Crosstrek Outdoor is equipped with a 2.5-litre, direct-injection Subaru BOXER engine for increased power and enhanced capability. Providing 182 horsepower and 176 lb.-ft. of torque and coupled with dual-function X-MODE, this new powertrain will further strengthen Crosstrek’s reputation for excitement.
2021 Civic Type R Limited Edition Honda will be bringing an even lighter, faster version of its Civic Type R to Canada later in 2020, but allocations will be limited to 100 units, each with a numbered plaque. That’s because the 2021 Type R Limited Edition is no ordinary Civic. Paying homage to past Type R Limited Edition models, the 2021 Civic Type R Limited Edition will include special lightweight forged wheels made by BBS, and it will come in one model-exclusive colour: Phoenix Yellow.
All-New 2021 Acura TLX Acura has revealed what it refers to as “the quickest, best-handling and most well-appointed sedan in the brand’s 35-year history”—the all-new 2021 Acura TLX. With a model-exclusive body structure and chassis architecture, all turbo engine lineup and an athletic stance with bold proportions, the new TLX delivers dramatic gains in both style and dynamic performance. With a standard 2.0-litre Turbo, TLX offers top-ofclass power with 66 more horsepower and nearly 100 lbs.-ft. more torque than the outgoing entry engine. And arriving in spring of 2021, the TLX Type S debuts Acura’s new 3.0-litre V6 Turbo engine and a first-for-Type S, Super Handling All-Wheel Drive™.
2021 Toyota Sienna In its fourth generation, Toyota Sienna re-imagines the minivan to support a wider array of life stages and activities. With a standard hybrid powertrain across all trims, and an array of new tech and amenities, the 2021 Toyota Sienna raises the bar for style, safety, comfort, versatility and fuel efficiency in its segment. Designed, engineered and assembled in North America, the all-hybrid 2021 Sienna hosts many premium features like: kick-open and -close sliding side doors and rear gate; four-zone climate control system; heated second-row, super-long slide captain’s chairs with ottomans; onboard vacuum and refrigerator; a segment-first power tilt and telescoping steering column with heated steering wheel; a digital rearview mirror; 10-inch colour head-up display; and 12-speaker JBL® Premium Audio system.
GMC Hummer EV SUT Concept Vehicle A reincarnated Hummer is poised to make a comeback for 2022 as an all-electric sub-brand of GMC. Rumours have it that it could offer 1,000 horsepower and may blast from zero to 60 mph in just 3.0 seconds. Pickup trucks are a new frontier for electric vehicles so look for other entries into this field by 2022, including from Ford, Tesla, Bollinger and Rivian.
DEALER LEADERSHIP - SPOTLIGHT
Women in the Driver’s Seat: Pamela Pearson, Director of Internal Operations, Sentes Automotive DARCY NYBO, SIGNALS CONTRIBUTOR
In 2002, Pamela Pearson moved to the Okanagan from the Kootenays so she could attend UBCO to become a teacher. After graduating, she taught for a year, but something wasn’t quite right. In 2008 she realized that as much as teaching had been her dream, it wasn’t something she wanted to do for the rest of her life. “My family suggested I try working in the automotive industry,” she said. “I was in my early 20s and applied at Kelowna Mercedes-Benz to be a finance manager. They said they couldn’t hire me for that position as I had no experience, but they were willing to interview me for a sales position, and if I proved myself, I could move into training for finance. After several interviews I was hired as the very first female sales consultant ever hired at the dealership.” Pamela worked in sales for a short time, and although she did well—selling 12 cars in six weeks—she discovered that sales was also not what she wanted to do long term. That’s when she took matters into her own hands. “I had a conversation with my boss, Adam Rich, and told him I felt wasn’t suited for this position….Sentes had recently acquired three new dealerships in the Okanagan (Penticton Honda, Penticton Hyundai and Vernon Nissan), so he asked me to work with him to help bring the dealerships together. I agreed,” she said. “I did anything that anyone needed and learned a lot about the business and the company. Over time, my position evolved into what it is today, which is Director of Internal Operations. Basically, I do what I can to keep our dealerships across the Okanagan working as one organization—one team.” Sentes Automotive consists of dealerships in six different locations, including three in Kelowna (Kelowna Mercedes-Benz, Lexus
Signals Magazine July–September 2020
of Kelowna, and Kelowna Infiniti Nissan). Pamela’s job includes community involvement and sponsorship. “Among many other initiatives we’re involved with, the BC Cancer Foundation’s Discovery Luncheon is something we’ve been doing for nine years now,” she said. “Several years ago, Margot Sentes was diagnosed with breast cancer. And since we knew that cancer affected every one of our employees in one way or another, we made this our signature sponsorship initiative.”
The first year they donated $10,000, she recalls, adding that the fall lunch gala had a patient and doctor as the main speakers. This informational luncheon gave people a lot of exposure to the great work being done at BC Cancer–Kelowna. “In our second year, they asked for someone to be part of the committee,” Pamela said. “I volunteered and we’ve continued to
donate $10,000-plus each year since then and have over 20 employees from across the group who attend each year.” A couple of years later, Pamela was asked to chair the committee. “In 2019 we had a record number of participants at the event. Over 600 people attended and we raised over $370,000. That was then matched by the federal government. That adds up to almost three-quarters of a million dollars in one day!” Since the advent of the COVID-19 crisis, Pamela and her committee have been trying to figure out how to host the event for 2020, settling on what will likely be a virtual event. “The safety of our guests and the community is our top priority, so we’re exploring our options that fall within approved health protocols. Either way we’ll bring people together and make a big impact.” Each year the event has a specific fundraising focus. In “Sentes continues to work 2019, it focused on genomics: towards a culture where the sequencing of genomes to staff are part of the family, advance the next generation of personalized treatments. are just as involved “Thanks to research, BC Cancer in the community as is world-leading with its gethe company is, and I nomics program,” Pamela said. can honestly say I look “Genomics allows scientists and clinicians to explore treatment forward to going to work options at the cellular level, findeach day.” ing the best possible solutions for – PAMELA PEARSON each individual. It’s an incredibly exciting development for donors in our community to contribute to.” Like many people, Pamela has been touched by cancer. “I am thrilled to say that my grandmother, who was diagnosed with lung cancer, has gone through treatment and is now cancer free. She is a testament to the fact that what is being done at BC Cancer–Kelowna is working. She is a success story and we’re happy to have more time with her.” The power of genomic research is evident in many cases, she adds. “There was a man who was showcasing symptoms of prostate cancer. After genomic analysis, it was discovered he carried breast cancer genes in his prostate region. This is what is truly exciting about the future of cancer care in BC and donors can keep the momentum.” Thinking back on the path her life has taken, Pamela is grateful to work for Sentes. “I love the leadership of the company and I enjoy being part of something bigger than myself. This company is progressive and isn’t stuck doing things the way things have always been done. They like to hear new ideas and perspectives, and how to do things more efficiently. Throughout the pandemic, we’ve learned how to adapt quickly and do what is best for our staff and our customers.” When asked what she loved most about working there, she had this to say: “Sentes continues to work towards a culture where staff are part of the family, are just as involved in the community as the company is, and I can honestly say I look forward to going to work each day.”
Although the BC Cancer Foundation is the Sentes Group’s signature charity, below are a few of the other causes it has supported over the past year. It’s not surprising that the Sentes Group was recently awarded a Community Driver Award by the New Car Dealers Association of BC. . • Kelowna’s Gospel Mission • Penticton Secondary School Dry Grad • Okanagan Dream Rally • Penticton Snowflake Ball • BC Children’s Hospital • Balance School of Performing Arts • Starbright Children’s Development Centre • Local families through Boys & Girls Club • Mamas for Mamas • Penticton Excel – Centre for Exceptional Learning • Mackenzie Schwinghamer for 2022/2026 Olympics • South Okanagan Crime Stoppers • Girl Guides – fundraiser for trip to Europe • Kelowna Kidney Transplant Clinic • Penticton Pikes Swim Club • Osoyoos Ladies Amateur 2019 Open Tournament • Ride2Survive • 2019 Fundraising Golf Classic for Special Olympics • JoeAnna’s House
ON THE ROAD AHEAD
Dealing with Unprecedented Disruption in Automotive Sales: From high touch to high tech
BRUCE CAMERON, BLACK PRESS COLUMNIST
The COVID-19 crisis has changed our lives in unimaginable ways, from creating new social norms (such as elbow bumps instead of handshakes), to disrupting the normal buying patterns for thousands of products, including vehicles. As British Columbia cautiously reopened segments of the economy in June, I examined what the coronavirus crisis has changed in terms of automotive sales, and considered what changes are likely to remain even after the crisis subsides. In the immediate future, opportunities for short-term leases may emerge, as city dwellers that once relied on public transit look for healthier alternatives. A recent University of Toronto survey of over 2,700 public transit users in Toronto indicated that two in three people surveyed have stopped using the service in March 2020, and one in four said they will not return until there is a vaccine developed. Assuming that at least a portion of those transit users has the means to lease a vehicle, once the economy slowly starts to resume, they will be seeking transportation. Mike Jackson, chairman and CEO of Auto Nation, the largest auto retailer in the United States, spoke about the impact of COVID-19 on the automotive industry on May 21, 2020, saying, “This whole disruptive period with the coronavirus is an inflection point from which there is no turning back.” He went on to explain to the CNBC interviewer that from now on, dealers will be forced to offer more flexible options for test drives, appraisal of tradeins, pre-qualifying for financing and even
delivery of vehicles. Despite the huge social, cultural and economic upheaval prompted by the COVID-19 lockdown, there is a school of thought which suggests that rather than initiating wholesale changes, this crisis has simply (albeit dramatically) accelerated the current trajectory of economic and societal trends. Take digital sales and marketing, for instance: for the past 20 years, most sectors of the economy have moved to digitize services and sales, yet the purchasing of high-cost goods and services, such as a new vehicle, have remained steadfastly high-touch experiences.
“This whole disruptive period with the coronavirus is an inflection point from which there is no turning back.” While home delivery of new vehicles tripled in the US this past spring (from just under 5 per cent to 20 per cent and rising), online-generated sales accounted for only 7.3 per cent of total sales activity, up from 2.5 per cent pre-COVID, according to Group 1 Automotive. So while important, digitally generated sales remain a fraction of the overall sales funnel in May 2020. Yet new business models like Tesla and Carvana certainly stand to benefit from increased demand for home delivery. And the role of online product features is definitely increasing, at a rate thought impossible prior to the COVID-19 crisis.
Even before the crisis changed our world in March 2020, consumers were expressing dissatisfaction with the current dealership model and its heavy reliance on salespeople. In Automotive News in January 2020, Sarah Kominek pointed out that consumers were seeking more of a ‘“brand experience centre,” and “six in 10 want help from dealership staff that were not salespeople.” Michelle Krebs, an executive analyst with Autotrader, emphasized that these consumer trends have been emerging for some time: “None of these are all-new kinds of ideas. The process that they want is much more focused on the product than on the deal. They want more of that process online.” Social-distancing polices limiting personal contact have also presented dealerships with significant human resource challenges. The new CADA HR Automation platform described elsewhere in Signals is the latest example of moving some human resource functions online. In addition, the threat of the pandemic has suppressed consumer willingness to visit a showroom or book a test drive, prompting brands and automotive dealerships to prioritize their investments in virtual shopping experiences. Although many things are changing due to the COVID crisis, some things remain the same. Most people need to feel and smell and see their potential new vehicle in person before making a final purchase decision. But if the original goal of digital advertising (to drive consumers into Continued on next page
Signals Magazine July–September 2020
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the showroom) has changed to include choosing options and arranging delivery, where does that leave the showroom and salespeople? The history of Saturn, with its all-new vehicle and sales models, ended badly in 2010, but perhaps the “no haggle” price policies it pioneered (the precursor to the Best Buy no-salespeople approach) were not to blame; a host of manufacturing and economic factors contributed to the demise of the GM experiment. Looking ahead to 2021, the prospect of social distancing and fear of the coronavirus will likely play a major role in suppressing normal automotive sales processes. But some of the trends that have been emerging for years will continue to accelerate in importance. These include an increasing reliance on a digital-sales funnel to empower buyers to narrow down the vehicle they are considering, arranging test drives and delivery to customer homes, and a deliberate de-emphasis on the sales process in favour of highlighting the product experience. Buckle up. Change is going to come— and a whole lot faster than we thought a few months ago.
Virtual Vehicle Delivery Made Easy Developing and implementing social distancing policies and procedures while still maintaining a business is difficult, but First Canadian has introduced an innovative way to assist dealerships. Interacting remotely with customers presents unique challenges, from ensuring that communications take place seamlessly on multiple platforms (smartphone, tablet, computer) to presenting and finalizing finance agreements without an in-person meeting. That is where First Canadian’s new Virtual Vehicle Delivery Plan comes in, enabling dealerships to present financing options to customers on multiple platforms, empowering finance departments to make financing and leasing changes in real time, and ensuring the safety of employees and customers. Darren Johnson, regional manager in BC for First Canadian Financial Group, explains that the system—created to assist dealerships in these challenging times—builds upon a proven industry training and development program called FC Drive. “We can show you how to successfully
install and execute virtual deliveries on a daily basis in your stores. We [can] train and coach your staff to be experts in this new way of doing business.” The Virtual Vehicle Delivery Plan integrates the needs of customers to receive and understand different financing options, and the internal requirements for finance departments to close deals easily and ultimately maintain or increase profitability. And given the increased costs of making business adjustments to comply with social distancing polices, the good news about the First Canadian virtual offering is that it comes at no additional cost for partners. Moving to a virtual platform for closing financing deals and delivering vehicles need not be complicated or expensive. First Canadian has the employee training experience and the virtual platform to make this essential transition easier. For more information or to arrange a demonstration of First Canadian’s remote virtual delivery solution, call or email Darren Johnson at 250-217-5955 or djohnson@ firstcanadian.ca.
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TRAINING & DEVELOPMENT Offering the most current and comprehensive program to support your F&I goals
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Constructive Dismissal After COVID-19 CHRIS DRINOVZ The impact of COVID-19 on the workplace has been enormous. Employers have had to make significant changes to their operations to survive. This may necessarily have included modifying working conditions of returning employees to fit the new reality. While often practical for the bottom line, such changes may result in claims of constructive dismissal. This article describes what that is and best practices for avoiding such claims.
It is unclear whether the test will change for cases decided in the post-COVID world but in our view, courts may be far more sympathetic to employers when changes were necessitated in order to continue in business.
Best practices The following considerations may reduce the risk of a constructive dismissal claim: • Provide advance notice of any significant changes; where possible, the amount of notice should be equivalent to the amount of reasonable notice the employee would receive for termination without cause; • If notice cannot be provided, offer the employee something of value in exchange for the changes; for example, a small bonus upon returning to normal operations;
What is constructive dismissal? Constructive dismissal arises when an employer makes a change to the employee’s working conditions so fundamental that it amounts to a rejection of the original employment contract. In such cases, the employee may choose to end the relationship and claim pay in lieu as if they had been terminated without cause in the traditional sense. To meet the test for constructive dismissal, the change in working conditions must be both unilateral (without employee consent) and material (minor changes are generally permitted to meet the needs of the business and adapt to market conditions). While each case turns on its own unique facts, examples of constructive dismissal can include: reduction in pay or benefits, demotion, relocation, change in job title or responsibilities, change in working hours, or toxic workplace caused by discrimination and/or harassment.
What is a material change in pay? The courts have said generally that a salary reduction of up to 10 per cent would not be a fundamental breach; a reduction of 14-17 per cent may be one if combined with another substantial change, and any reduction beyond 20 per cent is a fundamental breach on its own. In the recent case of Wiltse v. Seastar Chemicals ULC, 2020 BCSC 658, the employer attempted to modify the employee’s annual bonus structure to cap it at 10 per cent of base salary, where in the past the bonus had been as high as 35 per cent. The court found this was a constructive dismissal and awarded 16 months’ severance pay in addition to substantial legal costs.
Signals Magazine July–September 2020
• Obtain the employee’s written consent to the proposed change. In the absence of express consent, the employee’s agreement may be implied if they continue to work under the altered terms without complaint. For changes in position or duties, consider offering a new employment contract. • If the employee refuses to accept the proposed change, continue to offer that position as the employee may be bound to accept the new pay structure in mitigation of their damages. Chris Drinovz is the head of the Employment & Labour Group at Kane Shannon Weiler LLP. Should you have any questions about constructive dismissal, please contact firstname.lastname@example.org. Disclaimer: This is not legal advice. Please contact your legal professional for advice on your particular circumstances.
DRIVING INSIGHTS | Customers Pick Their Cars, It’s Time to Let Them Pick Salespeople DREW HARDEN, MANAGER, RESEARCH & INSIGHTS AT CARFAX CANADA The process of finding a vehicle has evolved over the years but one part that hasn’t changed is how potential buyers meets their salespeople. For two out of three car buyers, they meet the person who sells them their car by chance—whichever salesperson speaks to the customer first is now their rep. Turns out people are tired of playing this salesperson roulette; 74 per cent of used-car buyers would like to choose their sales rep next time they buy a vehicle.
What’s in it for you? Selling more cars Allowing potential customers the opportunity to pick their own salesperson is going to get them into the dealership faster and it will make them more likely to listen to that rep. Of those who are interested in picking their sales partner beforehand, 72 per cent would feel more comfortable visiting the dealership, 76 per cent would be more open to listening to the salesperson’s recommendations and 49 per cent would spend less time researching other vehicles online.
Start getting more leads and appointments The option for your customer to choose who they will deal with needs to happen online. Once the customer chooses a sales rep, you should have them book an appointment, creating a new source of leads for your dealership. The preferred methods are: interactive tools that ask potential customers a few questions about their needs, and then providing one or several recommended
sales people; or, if that isn’t possible, allowing customers to choose a salesperson based on their biographies is still a viable option. When it comes to the information that matters to potential customers, those who would like to choose their salesperson were universally interested in their rep being knowledgeable about the vehicle they’re interested in. After that, their needs do vary. If you’re investing in giving your customers the choice, it would be important to ask your customers what matters to them. One customer may want someone who speaks their native language, another may want someone with a lot of experience and a third could want someone who knows what it’s like to have a big family. Ensuring potential customers know you have salespeople who are knowledgeable about the vehicle they want, and then allowing them to pick a salesperson, will make customers feel comfortable when visiting your dealership—factors that should sell more cars and create more satisfied customers.
Driving Insights is an information series designed to help used car dealers better understand the motives and behaviours of Canadian used-car buyers. The research, designed by CARFAX Canada and executed by Dynata, is obtained through a national survey of 1,000 Canadians. If there’s a question you’d like us to address, email email@example.com. Get more insights at carfax.ca/insights.
Preparing Your Records Before and After ApplyingUnlock for the Your CEWS Auto Dealership’s Full Potential
JACQUELINE FEHR, JD, LLM, PARTNER WITH MNP’S TAX SERVICES TEAM IN VANCOUVER The federal government recently announced the extension of ant and should be kept handy for when employers are asked to the Canada EmergencyToday’s Wage auto Subsidy (CEWS). the reconcile how they arrived at these amounts. dealers continueDescribed to face theirby share of challenges, from narrow margins and(CADA) management withexample, the CRA may ask employers to reconcile their Canadian Automobile Dealers Association as astruggles “criticalto dealingFor manufacturers’ expectations and a constantly shifting marketplace. lifeline for dealerships and employees,” the CEWS program has calculation of eligible remuneration. In that case, employers will been extended to August 29, 2020 (withto possibility of extension As business advisors more than 140 auto dealerships need in B.C.,to clearly and quickly communicate how they arrived at the to December, announced byunderstands the federalthe government andand finance amount MNP specific demands opportunities of the they claimed as eligible remuneration from their calculaminister at the time of writing). tion the of gross remuneration, including commissions. automotive industry — and is uniquely positioned to address of dealer is principals, whether you’re a single-store operator or employers should retain any calculations prepared which In order to ensure theneeds application processed efficiently, dealSimilarly, a multi-store dealer. erships applying for the CEWS should have robust supporting demonstrate the decline in qualifying revenue between the compared documentation readily available if requested the Canada Reve- - drive periods. This allows employers to clearly explain their assumptions in To learn how we can helpbyyou deliver performance results nue Agency (CRA). and more success, contact Chris Schaufele today at the future, even if institutional knowledge has been lost. Retain any source documents and underlying working papers.
firstname.lastname@example.org or 604.536.7614
What records must dealerships keep? Employers applying for the CEWS must keep records demonstrating the reduction in their qualifying andCA the remuneraChrisrevenue Schaufele, CPA, Partner,does Automotive & tion paid to their employees. But what this mean? Assurance Services To apply for the CEWS, employers must calculate both the reMNP Surrey duction in qualifying revenue in the claim period when compared to a prior reference period, and the eligible remuneration paid to employees. As a result, working papers will be particularly import-
Copies of any elections made in respect of those calculations are key to the calculation of qualifying revenue. Regarding theCAreduction in revenue, employers also base Dan Lock, CPA, Ryan Gorder,may CPA, CA Automotive Partner, Automotive theirPartner, calculations on&primary source documents, such as&financial Assurance Services Assurance Services statements, invoices, general ledger details, contracts and bank MNP Port Moody MNP Port Moody records from the periods they are comparing. Similarly, employers might support the calculation of remuneration paid to employees with cancelled cheques and payroll records like employment conMNP.ca Continued on next page
Unlock Your Auto Dealership’s Full Potential Today’s auto dealers continue to face their share of challenges, from narrow margins and management struggles to dealing with manufacturers’ expectations and a constantly shifting marketplace. As business advisors to more than 140 auto dealerships in B.C., MNP understands the specific demands and opportunities of the automotive industry — and is uniquely positioned to address the needs of dealer principals, whether you’re a single-store operator or a multi-store dealer. To learn how we can help you deliver performance - drive results and more success, contact Chris Schaufele today at email@example.com or 604.536.7614
Chris Schaufele, CPA, CA Partner, Automotive & Assurance Services MNP Surrey
Dan Lock, CPA, CA Partner, Automotive & Assurance Services MNP Port Moody
Ryan Gorder, CPA, CA Partner, Automotive & Assurance Services MNP Port Moody
Continued from previous page
tracts, information about the hours worked by each employee and amounts withheld, commission calculations and related support, any information slips issued and copies of other required forms. Any primary source document relied on in a CEWS application should also be kept along with the working papers. Finally, it will be important for employers to make sure that their internal CEWS file also includes a copy of the signed attestation made on form RC661.
MNPâ€™s recommendation on best practices If an employerâ€™s CEWS claim is reviewed, it is the responsibility of the employer to prove that they met the requirements. Organizing files contemporaneously with the application process, ensuring appropriate referencing and detail, will save time and effort later in responding to any CRA queries.
The Income Tax Act has requirements which relate to the length of time documents must be kept. You should make sure that any record-destruction policies in place for your business do not accidentally destroy records from the prior reference period too early. We recommend that employers keep all relevant records (CEWS calculations, primary source documents, elections and attestations) together in an easily accessible and safe place. Any of the records subject to solicitor-client privilege should be clearly marked. If you have any detailed questions about the CEWS or record-keeping for your dealership during these uncertain times, please reach out to an MNP advisor for more details.
Jacqueline Fehr is experienced in tax dispute resolution and controversy. Contact Jacqueline at firstname.lastname@example.org or 778.309.4740.
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SPECIAL OLYMPICS BC SNAPSHOT
Staying Active and Healthy at Home The 2020 New Car Dealers Foundation / Special Olympics BC Auction will run from September 18 to 24 In light of the guidance from provincial and national public health officials, and in order to limit any possible risk to members of the community, Special Olympics BC paused all its programs and face-to-face activities, starting in mid-March and running into the summer. At the time of this writing, careful work was underway to develop the first steps in Special Olympics BC’s safety-focused, return-to-sport plan, to make sure everything will proceed in line with provincial health recommendations and the needs of the community. During the pause of in-person activ-
ities, Special Olympics BC athletes have strongly expressed how much they miss their SOBC sports and friends. Individuals with intellectual disabilities are forgotten and left behind far too often in our society. During these unique times, they have been
facing many challenges, including significant isolation without their in-person access to their Special Olympics friends and supporters, and healthy activities. So Special Olympics BC staff and volunteers have worked hard to create ways to keep athletes feeling connected, supported, active and healthy at home. They were able to do so because of the decades of generous support from BC’s New Car Dealers and provincial partners. This support has been critical, now more so than ever. This spring, Special Olympics BC launched new virtual training tools to help athletes stay healthy at home, including a new calendar every week with daily athome workouts and mental and physical wellness activities. SOBC also built online and offline tools to maintain the social connections among its community, on which so many athletes rely. Special Olympics BC – Trail athlete Jake Miller has completed every single daily workout and wellness challenge in Continued on next page
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However, recent consultation with dealers and supporters around the province has shown there is a desire to continue helping the Special Olympics athletes and programs. With the province beginning to restart, they have said the time is right to relaunch the 2020 auction. the SOBC calendars, as well as at-home golf training to keep his skills in shape for when programs return. His mother (and SOBC coach) Rhonda Chandler told the Trail Daily Times that Miller has thrived with SOBC’s at-home training tools and connection opportunities. “He was really disappointed at first (with the pandemic) and not being able to see his friends,” Chandler said. “But this has been really amazing, and he has turned
my living room into a gymnasium. He just works hard every day and loves it.” In the coming months, Special Olympics BC will be working hard to safely restart all in-person sports and activities, as the provincial health circumstances allow. While athletes have been doing their best to stay active at home, they badly want to get back out there. And the support of our friends in the New Car Dealers community will continue to play a vital part in making that possible. SOBC knows these times have been challenging for so many people. It made the difficult decision to pause the spring 2020 New Car Dealers Foundation / Special Olympics BC Auction in order to reduce the pressures on its supporters who are so very appreciated. However, recent consultation with dealers and supporters around the province has shown there is a desire to continue helping the Special Olympics athletes and programs. With the province beginning to restart, they have said the time is right to
relaunch the 2020 auction. The 2020 New Car Dealers Foundation / Special Olympics BC Auction will run from September 18 to 24. While this will be a smaller-scale event than in past years, given the current context, the support will be pivotal at a much-needed time. The generosity of the New Car Dealers makes a huge difference to the Special Olympics BC community.
DONATE TO THE AUCTION To donate to the auction, or for more information on how you can get involved, please contact Christina Hadley, SOBC Vice President, Fund Development & Communications, by email at email@example.com or on cell at 604-616-1343.
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Set the Future and Get Connected with SiriusXM Wouldn’t it be amazing to live in a world where we could pick our favourite SiriusXM channels on our phones and have them waiting for us? To listen the shows we love wherever we go, on whatever device available to us? Well, the world is changing at a quick pace, and technology is moving along with it. When SiriusXM first put satellites in space, it was with the desire to move into the future. That aim hasn’t changed, and with SiriusXM Streaming and connected devices, it is ensuring it continues to blaze new trails and chart new territories. It broke ground before, and it’s not stopping now. Before streaming became a reality, SiriusXM had already defined the in-vehicle experience with radios and connectivity. Now, it’s perfecting the mobile app experience for its subscribers with SiriusXM Streaming. In the easy-to-use app, customers can: • get access to 300-plus channels, including exclusive online-only channels; • set up their favourite channels for instant listening; • get channel and show recommendations based on what the listener loves; • discover 5000-plus hours of On Demand content; • download their favourite shows to their mobile device; • watch video footage integrated into the app; and • make personalized stations powered by Pandora.
Along with the SiriusXM Apps (available for iOS, Android and Windows 10), SiriusXM has moved from the vehicle to in-home connected devices. Whether customers have a Sonos, Google, Amazon, Sony, Apple TV or Roku, they’ll have access to unparalleled entertainment, shows On Demand and personalization to maximize the SiriusXM listening experience. From the car to mobile devices to a connected home, this means that your customers can take SiriusXM with them wherever they go, so they’ll never have to miss a moment of their favourite music and channels. Love SiriusXM anywhere you are.
GIVE YOUR CUSTOMERS THE BEST IN AUDIO ENTERTAINMENT. With over 140 channels of unparalleled entertainment, the SiriusXM All Access trial* has something for everyone. Your customers will receive coast-to-coast coverage. PLUS they can listen online, on the App, or on their Smart TV. SiriusXM has a sound for every moment that will amplify life in the car and beyond. For more information, visit sxmdealer.ca
*On eligible vehicles. © 2020 Sirius XM Canada Inc. “SiriusXM”, “SiriusXM Satellite Radio”, “XM”, “Sirius”, the SiriusXM logo, channel names and logos are trademarks of Sirius XM Radio Inc. and are used under license. All rights reserved. The Beatles logo is a registered trademark of © Apple Corps 2020 and is used under license. © NHL 2020. All rights reserved.
NEW MEMBER BENEFIT
HR Automation Platform Provides Timely Solution for Dealers The CADA 360 program that has been used extensively for years by dealerships all across the country has added another feature to its impressive suite of services. In addition to CADA 360 Employee Benefits and CADA 360 Garage Insurance, CADA has introduced a new integrated online human resources tool called CADA 360 HR Automation. The current business environment calls for vigilance in terms of protecting employees and complying with stringent social distancing and hygiene policies, and CADA 360 HR Automation makes it easier with an online platform that centralizes human resource and health and safety activities in one place. Developed in partnership with DealerPILOT, the advanced HR Automation platform provides a one-stop solution to accomplish numerous tasks that have un-
til now required extensive paperwork. As CADA notes in press material, “Many of our dealers have asked us to help them streamline and simplify their HR needs, and we believe we’ve found the ideal allin-one solution.” The CADA HR Automation system provides an easy-to-implement platform to carry out a variety of tasks, such as: • onboarding new employees; • engaging employees, including online updates, alerts and confirmations; • monitoring compliance and health and safety activities; and • managing routine human resource activities. CADA is working with DealerPILOT, pursuing opportunities to integrate this new offering with CADA 360 Employee Benefits and CADA 360 Garage Insurance.
The goal is to give dealers participating in these programs even more advantages, all in one convenient package. Dealers who already subscribe to DealerPILOT HR solutions will automatically receive the new CADA 360 integration enhancements in future software updates when available, at no additional cost. Michael Stassen, the general manager of DealerPILOT, adds that “CADA 360 HR Automation has all the tools you need to increase employee engagement, eliminate paperwork, improve HR processes and reduce risk for health and safety programs.” At a time when demands on employers have increased dramatically, and when employees need to feel reassured that all safety steps are being taken, the CADA 360 HR Automation platform fills a vital role.
Manual. Automatic. Manual. Manual. Automatic. Automatic.
NEW CADA 360 HR Automation – turn manual and NEW CADA 360 HR360 Automation – turn manual and and complicated automatic simple. NEWinto CADA HRand Automation – turn manual complicated into automatic and simple. complicated into automatic For more information or a compliance awarenessand simple. For more information or a compliance awareness check-up, call more toll-free 1-866-806-7315 today!awareness For information or a compliance check-up, call toll-free 1-866-806-7315 today! check-up, call toll-free 1-866-806-7315 today! HR Automation administered by DealerPILOT® HR Automation administered by DealerPILOT® HR Automation administered by DealerPILOT®
WITH SPECIAL THANKS
The New Car Dealers Association of BC would like to acknowledge these fine companies for their support of your association’s activities. OFFICIAL SUPPLIERS
First Canadian Insurance Corporation is a national, privately chartered life insurance company that has been offering life and disability insurance coverage on consumer loans through automotive dealership financial service offices since September 1998. Since that time, the First Canadian Group of Companies has been marketing its insurance, mechanical breakdown protection and protection product programs through automotive, RV and marine dealers across Canada with tremendous success. Learn more at firstcanadian.ca
CADA 360 programs are unique. Each program is designed under the guidance of a dealer committee, and participating dealers become stakeholders in the programs. “It all comes back to you” is more than a tag line: it’s a guarantee to association members. The end result is a powerful combination of industry-leading business solutions for health and wellness benefits and exceptional dealer representation. Learn more at cada.ca/web/cada/insurance/cada https://www.shk.ca/
Michael Mason & Co. has been manufacturing and supplying for the automotive industry since 1967. It has products for every department within your dealership. Michael Mason & Co. fabricate products at factories in British Columbia, Canada. Learn more at michaelmason.ca
Signals Magazine July–September 2020
CARFAX Canada is the definitive source of automotive information, delivering vehicle history, appraisal and evaluation. Drawing on billions of data records from thousands of unique sources, its products enable used vehicle buyers and sellers to make informed decisions. Including CARFAX Canada reports with your used vehicle inventory could be that edge over the competition that you’ve been looking for. Let CARFAX Canada show you the difference, and help you sell more cars and make more money! Learn more at carfax.ca
Cox Automotive is transforming the way the world buys, sells and owns cars with industry-leading marketing, software, financial, wholesale and e-commerce solutions for consumers, dealers, manufacturers and the overall automotive ecosystem worldwide. The global company has 34,000 team members in more than 220 locations and is a partner to more than 50,000 auto dealers as well as most automobile manufacturers. Learn more at coxautoinc.ca
ADESA Vancouver’s auctions provide registered dealers, brokers, automobile manufacturers and rental agencies as well as corporate and government fleets with a complete vehicle marketing solution in British Columbia. Learn more at adesa.ca/vancouver
SiriusXM is the country’s leading entertainment company. SiriusXM creates and offers commercial-free music, premier sports talk and live events, comedy, news and exclusive talk and entertainment. SiriusXM is available in vehicles from every major car company, smart phones and other connected devices as well as online. Learn more at siriusxm.ca
ASSOCIATE MEMBER DIRECTORY
Associate Members of the New Car Dealers Association of BC provide vital products and services to Dealer Members, allowing them to do business with greater cost effectiveness, environmental responsibility, and general efficiency. ACCOUNTING Baker Tilly WM LLP Masato Oki // 604-684-6212 // bakertilly.ca
MNP LLP Accounting Darrell Endresen // 604-949-2088 // mnp.ca
AUCTION SERVICES ADESA Auctions Canada
Harv Craven Design
First Canadian Insurance Corporation Darren Johnson // 250.217.5955 // firstcanadian.ca
Harv Craven // 604-476-0435 // harvcravendesign.com
General Bank of Canada
Marley Begg // 780-974-2829 // generalbank.ca
Hamish Marshall // 778-835-3715 // onepersuades.com
iA Auto Finance
Denise Buott // 905-815-9510 // iaautofinance.ca
Ryan Bentham // 604-319-0104 // westkeygraphics.com
Industrial Alliance Insurance and Financial Services Inc.
John Macdonald // 604-232-4403 // adesa.com
John Eadie // 604-882-8220 // salgroup.com
Nicole Sergio // 416-853-5626 // edealer.ca
Stephanie Day // 604-806-5300 // lgm.ca
Mike Baxter // 604-232-2405 // radiussecurity.ca
Manheim Auto Auction Company (Cox Automotive Canada)
My Auto Lenders
Jack Sulymka // 905-875-3522 x5441 // manheim.com
AUTOMOTIVE SCHOOLS BCIT - School of Transportation Mubasher Faruki // 604-454-2234 // bcit.ca/transportation
Georgian College (Automotive Business School of Canada) Joe Lauzon // 705-728-1968 x1234 // georgiancollege.ca
BUILDING DEVELOPMENT SERVICES Spire Development Corporation Lawrence Green // 604-432-6650 // spiredevelopment.ca
CO-OPS Consolidated Dealers Co-Op Janette Tooley Andrade // 905-264-7022
Leader Auto Resources LAR Inc. Bob Grewal // 778-773-1727 // larnet.com
Western Dealers Co-Auto
Teresa Bromley // 877-279-0607 // myautolenders.com
RESEARCH AND SHOPPING WEBSITES
CARFAX Canada ULC
Catalina Baciu // 778-231-8383 // nbc.ca
Shawn Vording // 866-835-8612 x2966 // carfax.ca
RBC Automotive Finance Group
Aaron Young // 604-656-2965 // rbc.com/canada.html
Scotiabank Western Dealer Finance Centre Karen Stetz // 800-268-0762 // scotiabank.com John Hiscock // 416-288-7800 // scotiabank.com/scotiadealeradvantage
TD Auto Finance Richard (Rick) Bessex // 778-628-7458 // TDFS.com
Serti Information Solutions Nadine Harvey // 514-493-1909 // serti.com
E-CHAT AND ONLINE TEXT SERVICES eBunch Paul Lehal // 604-653-6000 // ebunch.ca
Kimoby Alex Wojcik // 877-248-0204 // kimoby.com
Canadian Linen & Uniform Service Craig Sherlock // 778-331-6243 // canadianlinen.com
Fab Biagini // 604-688-7208 // zlc.net
Unisync Group Limited Barry Good // 800-668-3243 x505 // unisyncgroup.com
Renee Nielly // 604-733-7383 // allwestins.com
Canadian Black Book
HUB International Insurance Brokers
Richard Phillips // 905-413-7601 // canadianblackbook.com
Wayne LeGear // 604-269-1944 // hubinternational.com
Commander Warehouse Equipment
Insurance Insight Neal Oâ€™Donoghue // 866-603-8666 // insuranceinsight.ca
Shannon Newman // 905-290-6414 // coxautoinc.ca
Michael J. Weiler // 604.336.7423 // ksw.bc.ca
Jack Sulymka // 905-875-3522 // us.dealertrack.com
SHK Law Corporation
Dealer Solutions North America
Roderick McCloy // 604-684-0727 // shk.ca
Peak Apparel Eric Kazenbroot // firstname.lastname@example.org // 604-445-4405
Mike Mazgay // 416-408-6875 // sxmdealer.ca
OFFICIAL NCDA BILL OF SALE PROVIDER
Michael Mason & Co.
Bradley Warren // 604-417-0229 // bmo.com
BDO Kristen Mundy // 403-205-5760 // bdo.ca
Consultant Auto 360 Cox Automotive Canada
OCCUPATIONAL HEALTH AND SAFETY
BMO - Bank of Montreal
Brad Daws // 604-574-5797 // commander.ca Kim Normandin // 514-394-1955 x508 // solutionsmedias360.com
Michelle Wong // 800-613-3705 // optiombc.com
Megan Lepp // 250.859.6562 // liveperson.com
Sirius XM Canada
Brett Spector // 407-274-8390 // ironmountain.com
AllWest Insurance Services
George Schaeffer // 519-317-3400 // reyrey.com
Shawn Perryman // 604-788-8971 // vantageadvisory.ca
DMS PLATFORMS Reynolds and Reynolds
Greg Wallin // 778-838-0639 // cdkglobal.com
Trader Corporation Randy Shepherd / 403-999-8854 // autotrader.ca
Scotia Dealer Advantage
Mike Reid // 780-468-9552 // wdcoauto.com
Lexi Lipton // 617-315-1137 // ca.cargurus.com
Steve Batchelor // 250-384-7304 // michaelmason.ca
Rick Kingdon // 778-245-1041 // dealersolutionsna.com
NextGear Capital (Cox Automotive Canada) Jack Sulymka // 905-875-3522 // canada.nextgearcapital.com
RSR Global Karey Davidson // 905-631-5865 // rsr-global.com
Titan Certified Canada (TOA) Dale Finch // 604-341-4933 // titancertified.com
PAYMENT PROCESSING, MERCHANT SERVICES
VAuto (Cox Automotive Canada)
Jack Sulymka // 905-875-3522 // vauto.com
Michael Laliberte // 1-514-446-1838 // pandapay.ca
VinSolutions (Cox Automotive Canada)
Leanne MacKinnon // 604-921-4048 x122 // callafinancial.ca
PRINT AND DESIGN SOLUTIONS
Jack Sulymka // 905-875-3522 // vinsolutions.com
CIBC Commercial Banking
Drive Marketing Group
Xtime (Cox Automotive Canada)
Phil Lehn // 604-665-1318 // cibc.com
Josh Chow // 604-837-3536 secondary // drivemarketinggroup.ca
Jack Sulymka // 905-875-3522 // xtime.ca
Calla Financial Services
New Car Dealers Association of BC
NCDA_BC VanAutoShow CEVforBC
NewCarDealersAssoc VIAS CEVforBC
NCDA_BC VanAutoShow CEVforBC
E W O D T A WH R U O N I D NEE EMPLOYEE ? S T I F E N E B Great service
Afford able, predict able
Lon g-t stab erm ility
Solid advisors, support
Retiree plans - dealers es - employe
Know our business
ns, o i t Op ility b i x fle
Risk t emen g a n ma
EP: Call Ka ren at CADA 1 800463-52 89 ext. 23 6
When you look closely, there really is only one option for your dealership â€“ CADA 360 Employee Benefits Only CADA 360 Employee Benefits has been created by dealers for dealers, to help you and your people prosper. And only CADA 360 includes dealer and employee retiree options. Most importantly, only CADA 360 programs support CADA and provincial association advocacy. No other benefits plan supports this protection for your business.
For more information on CADA 360 Employee Benefits and CADA and provincial association advocacy, visit cada.ca.