Signals Magazine, Summer Issue, 2022

A PUBLICATION FOR MEMBERS AND FRIENDS OF THE NEW CAR DEALERS ASSOCIATION OF BC

SUMMER 2022 ISSUE

Meet the New NCDA Chair

Anthony Lunelli EV

D

AY

A Q&A Interview PAGE 14

EV Day at the Legislature PAGE 8

ALSO INSIDE › Trends: Approaching Storm or Headwind? › Car Buzz: From Luxurious to Quirky › The Car is the Star in Family Wheels › Prepare Now for Federal Luxury Tax NEW CARS SOLD IN BC

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CONTENTS

INSIDE THIS ISSUE

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We’d love to hear from you!

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 with us by phone or email at our Langley office.

Signals is THE flagship publication for the NCDA, the industry association that represents over 400 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 // info@newcardealers.ca

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NCDA Staff Blair Qualey President & CEO bqualey@newcardealers.ca 604-214-9964 Ext. 228 Shakira Maqbool Manager, Finance & Administration smaqbool@newcardealers.ca Joshua Peters Manager, Member Services jpeters@newcardealers.ca

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Ofir Sapoznikov Membership and Operations Coordinator info@newcardealers.ca

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Roni Sapoznikov CleanBC Go Electric Vehicle Rebate Program Administrator goelectric@newcardealers.ca Duy Le CleanBC Go Electric Vehicle Rebate Coordinator goelectric@newcardealers.ca

Vancouver International Auto Show Eric Nicholl Executive Director enicholl@vanautoshow.ca 778-968-0440 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 jpeters@newcardealers.ca For subscriber inquiries, please contact: info@newcardealers.ca

Janet Gairdner, Associate Group Publisher 818 Broughton Street, Victoria BC V8W 1E4 jgairdner@blackpress.ca 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.

COLUMNS

FEATURED ARTICLES

4

President’s Message

12

6

New Members

7

Member Benefits

Trends: Approaching Storm or Headwind?

Grappling with fears of inflation and rising interest rates in the automotive industry

8

Government Advocacy

14

Cover Story A Q&A with Anthony Lunelli, NCDA chair

10

Industry Roundup Hydrogen Station and Record-High Car Prices

17

Family Wheels “The car is the star” in Richard Dettman’s YouTube channel

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Car Buzz From Uber Luxurious to Quirky

21

CleanBC Go Electric Program Updates EV charger rebates

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Legal Line When Trouble Comes Knocking: VSA Compliance Action

24

Secret Ballot Vote Going, going, gone

26

Special Olympics BC Auction for Athletes Celebrates Record-Breaking Result

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The New Luxury Tax Dealers should prepare now for September tax

On the Cover: The NCDA’s new chair, Anthony Lunelli, at his Subaru delearship in Kelowna.

Photo by Jacqueline Gelineau.

newcardealers.ca

3

PRESIDENT’S MESSAGE

News From the Front Seat EV Road Trip Around BC In June, I had the opportunity to hit the road in our CleanBC Go Electric program-branded EV and experience first hand how the level of investment in charging stations is developing across BC. Some of you may recall my previous trips across BC in an EV where the experience with the charging network was, well, let’s just say I wasn’t charged up about it! However, on this occasion it was evident that the strategic investments by the BC government, BC Hydro, Electrify Canada and others are clearly taking shape.

I began the trip by travelling the Coquihalla, through Kamloops and on to Prince George where I represented the NCDA at the BC Chamber of Commerce AGM, and introduced one the event’s keynote speakers, BC Minister of Finance Selina Robinson.

Along the route, I only experienced one problem, and that occurred early in the trip when I attempted to try the new Petro Canada chargers in Hope. After three failed attempts, an attendant advised that they haven’t worked for months because they were awaiting parts to arrive from California.

Seems supply-chain challenges strike again!

On balance, however, for the remainder of the trip, which also included the Okanagan, Merritt and then home to Langley, all the chargers I accessed worked perfectly.

Most required payment for the electricity, except for one site at the tourist info booth in

BLAIR QUALEY PRESIDENT & CEO, NCDA

“All these components are necessary to encourage BC consumers to make the move to electric vehicles—this is good for government, good for business and good for the environment.”

100 Mile House—free charging there offered a great incentive to encourage visitors to stop and learn about the area. Only a short walk away is a great pizza place and a lovely park to enjoy it in!

For many years (in my case over 10), many of us have been calling for governments to make strategic investments in charging infrastructure where people live, work, play and travel. The BC government has listened, and the growing network makes it possible to travel around the province without much hassle.

However, as the number of zero-emission vehicles (ZEVs) continues to expand (17 per cent of new light duty vehicle sales were ZEVs in BC in Q1), charging capacity will need to keep pace across the province.

EV display at the legislature in Victoria On June 1, the NCDA and the NCDA’s foundation held their AGMs in Victoria, along with a display of over 15 ZEVs in front of the Parliament Buildings.

Our past NCDA chair, James Carter, and current CADA chair, Peter Heppner, presented our annual Green Star Dealer Awards to local Victoria dealers for their success in selling ZEVs. I also had the pleasure of joining the Hon. Bruce Ralston, Minister of Energy, Mines and Low Carbon Innovation, who is the minister responsible for the CleanBC Go Electric Ve-

2022-2023 New Car Dealers Association of BC Board of Directors

Anthony Lunelli Chair

Ben Lovie Vice Chair

Ann Marie Clark Treasurer

James Carter Past Chair

Blair Qualey President & CEO

KELOWNA SUBARU

OPENROAD AUTO GROUP

STEVE MARSHALL FORD

CARTER GM N. SHORE

Peter Heppner Past Chair

Joey Prevost

Peter Sia

MACCARTHY MOTORS TERRACE

NORTHLAND NISSAN PRINCE GEORGE

PRESTON GM LANGLEY

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Signals Magazine Summer 2022

Justin Gebara

Mike Hacquard

NCDA

COLUMBIA CHRYSLER RICHMOND

WOLFE AUTO GROUP SURREY LANGLEY

Peter Trzewik

Jared Williams

Erik Jensen

Darren Johnson

GAIN GROUP VANCOUVER ISLAND

JACK CARTER NORTH STAR CHEV BUICK GMC

ROYAL BANK OF CANADA

FIRST CANADIAN FINANCIAL GROUP

Member at Large

Member at Large

hicle Rebate Program, and Minister of Environment and Climate Change, Hon. George Heyman for a media event celebrating the success of the Go Electric Program.

I noted in my remarks at the event that as industry continues to invest billions of dollars to develop and manufacture more and more electric vehicles, consumers are benefiting from a growing and exciting array of options, from cars and family-friendly SUVs to the ever-popular pickup trucks.

But as the ministers are aware, just having vehicles available is not enough to achieve the target for all new light-duty car and passenger truck sales to be zero-emission by 2035.

More ambitious government action is required to enhance consumer incentives, including ongoing investment in charging stations, building consumer education and creating an electric vehicle battery supply chain.

All these components are necessary to encourage BC consumers to make the move to electric vehicles—this is good for government, good for business and good for the environment.

Economic impact study released We took the opportunity, while participating in the BC Chamber of Commerce’s annual convention, to release the NCDA Economic Impact Study produced by MNP. This important document underlines how BC’s new car dealers continue to drive the economy. The study has been shared with

media and made available to government representatives across BC. You can find the report and related documents online on the NCDA website here.

Changing of the guard At our AGM in June, we welcomed new NCDA chair Anthony Lunelli, from Kelowna, vice chair Ben Lovie, from Vancouver, and treasurer Ann Marie Clark, from Vancouver Island.

Our past chair, James Carter from North Vancouver, now takes on the position of chair of the auto show committee.

Our thanks to Peter Heppner, who has now wrapped up his time on the NCDA board executive as he leads the national association this year as chair, and to our returning directors for your time and guidance. We look forward to an exciting year ahead.

BC government budget 2023 submission Every year we take the opportunity to provide testimony to the BC Legislative Committee on Finance and Government Services. We did so again in June, outlining three key issues for our members: First, the BC luxury tax threshold needs to be adjusted from $55,000 because it hasn’t been adjusted for inflation for many years and the average price of a vehicle in Canada now exceeds $54,000.

Many standard vehicles today are captured by the tax, including vans and larger SUVs and pickups. Further compounding the issue

is the introduction of a federal luxury tax on vehicles over $100,000 in September.

Second was the importance of investing in ZEV and charging station rebates by government, including consumer education.

And finally, further investment and other efforts need to continue to increase the number of skilled tradespeople coming out of BC educational institutions to meet the growing labour needed as an aging workforce retires.

I would like to close by acknowledging John Horgan who recently announced his intention to step down as BC Premier.

Mr. Horgan has demonstrated an unwavering commitment to British Columbia throughout his political life. He has always kept the people of this province first and foremost in his actions. And he has demonstrated the kind of thoughtful leadership of which all citizens can be proud. There is more to life than politics, and we wish he and his family nothing but the best as they make the transition from political life.

We hope you enjoy this edition of Signals and wish you an enjoyable and safe summer.

See you down the road!

Sincerely,

Blair Qualey, President and CEO New Car Dealers Association of BC bqualey@newcardealers.ca

2022-2023 New Car Dealers Foundation of BC Board of Directors

Anthony Lunelli Chair & Treasurer

John Wynia Vice Chair

Heather Headley Past Chair

Marnie Carter Founding Chair

Blair Qualey President & CEO

James Carter

Amanda Chrinko

CARTER GM N. SHORE

KELOWNA SUBARU

HARBOURVIEW VW NANAIMO

PACIFIC HONDA N. VANCOUVER

CARTER AUTO FAMILY

NCDA

WESTWOOD HONDA COQUITLAM

Ryan Jones

David Jukes

Moray Keith

John MacDonald

MARV JONES HONDA MAPLE RIDGE

FIRST CANADIAN FINANCIAL GROUP

DUECK AUTO GROUP VANCOUVER/RICHMOND

ADESA RICHMOND

Joey Prevost

Sharon Rupal

Peter Sia

MACCARTHY MOTORS TERRACE

OPENROAD LEXUS PORT MOODY

NORTHLAND NISSAN PRINCE GEORGE

newcardealers.ca

5

NEW MEMBERS

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JD Power’s Power Information Network (PIN) is the largest source of retail transaction data. PIN has the broadest and deepest electronic point-of-sale data from dealerships describing the sale, the vehicle, the buyer and the deal. PIN leverages industry-leading sales pricing and analytics, thereby providing the timeliest source of real-time buyer behavior. Program statistics include 16,000+ participating franchises that together cover 42 per cent of US and 25 per cent of Canadian retail transactions.

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Signals Magazine Summer 2022

MEMBER BENEFITS

New Executive Welcomed at Hybrid AGM Year in Review report released and Dealer Summit returns The NCDA’s 2022 AGM was hosted in Victoria in June. Thanks to everyone for attending the NCDA’s first ever AGM in hybrid format (in person and virtual) and to CADA and Clyde & Co for making the event possible.

The NCDA welcomed its new executive for 2022-2023: • Anthony Lunelli, Chair (Kelowna Subaru); • Ben Lovie, Vice Chair (OpenRoad Auto Group); and • Ann Marie Clark, Treasurer (Family Ford).

And, of course, the NCDA extends a huge thank-you to retiring chair James Carter.

Thanks for your time and dedication in serving!

James Carter Retiring Chair

Anthony Lunelli Chair

Year in Review report released at AGM The NCDA’s 2021 Year in Review was released at the AGM, covering the association’s overview of activities and events for 2021.

We are grateful to our dealer and associate members, suppliers and partners and industry stakeholders for their ongoing support for BC’s new car dealers. For any members looking to receive a copy, contact the NCDA office at info@newcardealers.ca

Calling all NCDA members!

Western Canadian Dealer Summit returns The Alberta, BC and Saskatchewan Motor Dealers Associations are joining to host the 2022 Western Canadian Dealer Summit at the Wynn in Las Vegas on September 22-24.

We expect this event will sell out quickly and there is a limited number of delegates and hotel rooms available, so make sure to register and book your accommodations.

For event details and to register, visit: westerndealersummit.com/

Ben Lovie Vice Chair

Ann Marie Clark Treasurer

Thank You, Premier Horgan In response to the June 28 announcement by BC Premier John Horgan that he will not be seeking re-election, and will be stepping down once a new leader is found, the NCDA wishes him well and thanks him for all his public service and dedication to BC. Blair Qualey, president and CEO of the NCDA, issued the following statement: “On behalf of new car dealers from across the province, we wish to acknowledge and thank BC Premier John Horgan for the service and dedication he has always exhibited—as Premier and throughout his political life.

“Mr. Horgan has demonstrated an unwavering commitment to British Columbia. He has always kept the people of this province first and foremost in his actions. And he has demonstrated the kind of thoughtful leadership that all citizens can be proud of.

“There is more to life than politics, and we wish Mr. Horgan and his family nothing but the best as they make the transition from political life.

“Premier, we wish you many walks on the beach with Ellie.”

newcardealers.ca

7

GOVERNMENT ADVOCACY

Celebrating BC New Car Dealers Driving BC’s Economy EV Day, Economic Impact Study and pre-budget consultations This spring and summer have proven to be a very busy and productive month for BC’s new car dealers, including activities such as providing a spotlight on BC’s leadership role in the sale of zero-emission vehicles at the provincial capital, recognizing new car dealers who have excelled in the sale of clean-energy vehicles, and releasing a report that demonstrates how our sector is driving the economy.

NCDA EV Day in Victoria The month began with an event at the BC Legislature where members viewed a number of new zero-emission vehicles (ZEV) on dis-

Above, electric vehicles on display at the BC Parliament Buildings in Victoria for the NCDA’s EV Day, which engaged BC MLAs and ministers on new vehicle technology and the new need for continued purchase and charging rebates. At left: Joined by Minister of Energy, Mines and Low Carbon Innovation Bruce Ralston and Minister of Environment and Climate Change Strategy George Heyman, Green Star Dealer Awards were presented to local dealerships in Victoria recognizing top sales of clean energy vehicles in BC. Below, NCDA President and CEO Blair Qualey at BC Chamber AGM.

play at the front steps of the BC Parliament building in Victoria. The goal was to provide elected officials with a sampling of the latest models and technology. More than 14 vehicles were on display, and various MLAs and ministers attended. Thanks to all the dealers for assisting in bringing electric vehicles to the event.

It also served as an opportunity to acknowledge the successful partnership between our members and government. Despite the pandemic and supply-chain issues, more than 18,000 rebate transactions were processed in 2021—the highest in 10 years.

Today, there are more than 70,000 ZEVs travelling our highways, and in the first quarter of 2022, more than 17 per cent of new vehicle sales involved zero-emission vehicles.

This is the highest rate in North America on a per capita basis.

One of the ways that the NCDA encourages and recognizes outstanding work in the sale of clean-energy vehicles is through the annual Green Star Dealer Awards, which honour BC new car dealers selling the highest

number of clean-energy eligible vehicles annually across all brands.

Congratulations to all award recipients!

(See the recipient listing on page 20.)

portant the auto sector is to the provincial economy.

BC Chamber AGM event and release of economic study NCDA President and CEO Blair Qualey had the opportunity to drive a new model ZEV to attend the BC Chamber of Commerce AGM held in Prince George, where advance planning revealed a higher number of charging sites along the route from a few years earlier—an important consideration for those contemplating the purchase of cleanenergy vehicles.

The NCDA was a Diamond Sponsor of the BC Chamber of Commerce’s 70th annual conference in Prince George, and provided introductory remarks to BC’s Finance Minister, Selina Robinson.

It was also at the AGM that the NCDA released a new study entitled The Economic Impacts of Members of the New Car Dealers Association of BC that outlines just how im-

Key findings of the MNP LLP study include the fact that the new car dealers sector generates $15.6 billion in retail activity—$260 million of direct tax revenue and $610 million of total tax revenue for all three levels of government—along with an estimated $1.2 billion in total tax revenue to all levels of government, when factoring in the federal and provincial sales taxes paid by consumers on purchases of new cars.

On the employment front, the study finds the sector is responsible for almost 27,000 Continued on next page

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Signals Magazine Summer 2022

Continued from page 8

FTEs of total employment in BC, including 18,000 FTEs at the direct level.

In many ways, the report confirmed what we already knew. Our members contribute a great deal to the provincial economy and to the social and economic fabric in the 55 cities and towns in which they are located.

Pre-budget consultations The NCDA presented to BC MLAs on the Standing Committee for Finance in the pre-budget consultations.

The association emphasized key points, including the negative impact of the BC Luxury Tax on vehicles; a critical labour shortage facing the sector; and the need for ongoing funding to maintain BC’s leadership position in ZEV adoption.

“This government has proven to be a valuable partner,” said Qualey. “Our submission is focused on building on areas in which we have enjoyed collective success, but also ensuring we are identifying those areas that require attention because of their impact on consumers and the economy.”

The BC luxury tax on vehicles kicks in at a $55,000 purchase price, but it hasn’t been adjusted for inflation for many years.

As a result, many standard vehicles of today are captured by the tax, including vans and larger SUVs that families rely on to shuttle their children around, and pickup trucks that are required by many businesses and individuals, such as those who live and work in resource communities.

This presents another layer of taxation on BC residents who already face considerable cost of living challenges.

The NCDA is recommending the luxury tax threshold be raised and eliminated over time because of the present impact and the fact that the average price of a new vehicle in Canada reached $54,000 in May, only slightly below the present luxury-tax threshold.

Further compounding the issue is the pending introduction of a federal luxury tax in September that will create a double-tax for consumers, while also putting BC companies and family-supporting jobs at risk.

The BC automobile sector faces a critical labour shortage, with industry projecting the need for 20,000 workers over the next decade.

The NCDA currently works with the Industry Training Authority (soon to be SkilledTradesBC), WorkBC and other labour

Always improving for your customers, and to help you grow your business

agencies, and suggests that continued funding to support apprentice and job-training programs is critical to the industry and consumers.

The NCDA is also recommending an ongoing funding commitment to support the CleanBC Go Electric vehicle purchase rebate program along with key investments in critical charging infrastructure where people live, work and play. The NCDA is proud to administer the ZEV rebate program on behalf of the provincial government, through which BC has taken a leadership role in ZEV adoption in North America.

“Our members want to be part of the solution in keeping the economy moving in the right direction,” said Qualey. “Our recommendations will help encourage consumer spending and increase jobs by removing or adjusting tax barriers, such as luxury tax and surtaxes, incentivizing consumers through EV purchases and charging rebates and investments, and continuing ongoing investments in skills training, which is central to future success for our sector and the broader economy, but also in the lives of a new generation of young people who are exploring career opportunities.”

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INDUSTRY ROUND-UP

Hydrogen Station and Record-High Car Prices News from around the industry Vancouver Island’s first hydrogen fueling station opens in Saanich Vancouver Island’s first-ever public hydrogen fuelling station has officially opened in Saanich, near Victoria on Vancouver Island.

Located at an existing Esso gas station, the new pump is the fourth in the province and is the result of a partnership between Vancouver-based Hydrogen Technology and Energy Corporation and 7-Eleven Canada.

Provincial funding of $500,000 under the CleanBC Go Electric program was provided for the project, along with $1 million from the federal government under the Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative.

“Through CleanBC, we are working to expand our hydrogen-fuelling network to encourage more British Columbians to make the switch to a cleaner vehicle,” said Bruce Ralston, Minister of Energy, Mines and Low Carbon Innovation, in a release.

“The adoption of hydrogen fuel-cell vehicles and fuelling infrastructure will complement the build-out of our electric-vehicle

charging infrastructure and play a critical role in helping us achieve our legislated zero-emission vehicle targets and in our transition to a clean-energy future.”

In September 2020 the province announced a $10-million commitment to build an additional 10 hydrogen-fuelling stations and promote and accelerate use of hydrogen technologies throughout BC. Its hydrogen strategy, released in 2021, provides direction for hydrogen development over the next decade and beyond.

AutoTrader reports record high prices in Canadian auto market A recent report released by AutoTrader.ca, revealed that auto prices are at record highs across the country.

AutoTrader said the average price of a new vehicle in Canada reached $54,048 in May, a 17.3 per cent increase from last year, according to the report.

According to a summary of the AutoTrader report, Canadian Auto Dealer said: “Used auto prices continued to gradually increase throughout the first part of 2022, which is

‘the opposite of the pricing trends observed in previous years before the pandemic. This trend is similar for new vehicle prices, which also continued to rise.’

“Well-publicized inventory shortages due to global events, the pandemic and material scarcity have pushed the demand for new vehicles into the used vehicle market, causing upward price pressure on both segments.

Quebec’s prices are not as high as the rest of the country, but have been increasing more rapidly to catch up.

“SUVs, minivans and trucks are experiencing the strongest increases as a result of ‘growing consumer demand for larger vehicles, with minivan prices increasing at the fastest rate given shortages in the segment.’

“According to the study, the price of used North American vehicles has been stabilizing with increased levels of used inventory. AutoTrader predicts that, as vehicle production returns to capacity, it will ‘relieve pressure from car buyers switching to used, which will have a calming effect on price inflation for both new and used vehicles.”

Over 53,000 Vehicles Scrapped in BC!

Visit scrapit.ca to learn more 10

Signals Magazine Summer 2022

CAR BUZZ

PRESENTED BY COX AUTOMOTIVE

From Uber Luxurious to Quirky A peek at four 2022 vehicles 2022 Lexus NX350h Hybrid and NX450h+ Plug-in Hybrid

2022 MINI Cooper SE Hatch All-Electric

Fully redesigned for 2022, the latest Lexus NX may look similar to its predecessor but that’s where the similarities end. Available as gas-only, hybrid and plug-in hybrid configurations, Lexus has positioned the new NX to span a wider range of prices for customers. The brand-new cabin design features increased passenger space, an available 14-inch touchscreen infotainment system, and other luxuries, including a heads-up display, ambient lighting and a panoramic moonroof. The latest Lexus Safety System 3.0 suite is standard equipment.

The NX350h hybrid version offers excellent fuel economy from its much-improved Lexus Hybrid drive powertrain. A more expensive plug-in hybrid model, the NX450h+, adds up to 65 kilometres of electric-only range and quicker acceleration. The NX350h starts at $49,900 and the NX450h+ runs from $59,950.

The MINI Cooper Hatch has always been sporty, quirky and full of character. The introduction of the Cooper SE brings a full-battery electric version of the third-generation Cooper. The truth of the matter is that most people don’t need over 200 kilometres of range, and that’s essentially the premise of this electric MINI. With a range of up to 183 kilometres per full charge from its 32.5 kWh lithium ion battery, as well as the ability to DC quick charge to 80 per cent in 35 minutes, this urban runabout combines go-kart-like handling, instantaneous acceleration and emission-free mobility— all wrapped up in a hallmark design. There is even an eight-year or 160,000-kilometre battery warranty. Prices start at $48,980 before taxes and rebates.

2022 Cadillac Escalade Diesel

Buick’s execs have confirmed that by 2030, the Buick lineup will be composed only of electric SUVs that will fall under a new sub-brand called “Electra.”

While the Wildcat EV concept won’t be going into production, it is a design exercise establishing the brand’s future styling with a focus on those upcoming EVs. The Wildcat EV concept introduces a new, expressive face for Buick, distinguished by a bold, forward-leaning front-end appearance that features a low-mounted, trapezoidal grille. Sharp, high-mounted and horizontal checkmark-shaped lighting flanks the vehicle, while the outer edges of the grille house primary lighting. The lighting elements are configured to create a unique welcome choreography when the driver approaches.

It is still curious that the Wildcat is a low, wide, 2+2 coupe versus a concept SUV, but if its mission is to give the brand’s designers a clear direction which they can apply to future production vehicles, it seems to have succeeded.

Fully redesigned in 2021, the big, bold and aggressively styled Cadillac Escalade has long served as the brand’s flagship, and is the epitome of American luxury. Despite sharing the same underpinnings as its Chevy/GMC siblings, the big Caddy sets itself apart with the brand’s most luxurious features and finishes.

From its designer fabrics and satin-finished metals to its buttery-soft leather and genuine wood, the Escalade makes a good case for top billing against other large luxury SUVs from foreign and domestic competitors. Cadillac’s most advanced technology is included—like a massive wraparound OLED touchscreen infotainment system and a whole host of driver-assistance features such as Super Cruise with a true hands-free driving mode.

For the first time, buyers can choose a new fuel-sipping 3.0-litre Duramax Turbo Diesel six-cylinder with a relatively low consumption of 11.5/8.5L/100 km (city/highway). Prices start at $90,543 for the diesel Escalade.

Buick Wildcat EV Concept

Content and images courtesy of Andrew Ling.

newcardealers.ca

11

TRENDS

An Approaching Storm or Just a Headwind?

Grappling with fears of inflation and rising interest rates in the automotive sector

BY BRUCE CAMERON, BLACK PRESS COLUMNIST Surging inflation and rising interest rates have spawned dire predictions about the Canadian economy, and while many analysts in the automotive sector remain optimistic in the face of these threats, the industry may be more vulnerable than it appears.

The most optimistic automotive analysts maintain that there is no need for the industry to worry, citing the fact that consumer demand remains very high and purchasing power strong, due to accumulated savings during the pandemic.

Scotiabank economist Laura Gu noted that interest rate hikes “appear priced into the market already and likely won’t affect buying decisions.”

(The emphasis is mine to highlight the couched terms analysts are using in these jittery times.)

Consumers and businesses in British Columbia, like elsewhere in the world, are bracing for higher inflation. We are fortunate in that inflation has risen slower in Canada (up 6.8 per cent from April 2021 to April 2022) than other advanced western economies (9.2 per cent across all OECD economies). Yet fears of economic hardship are rising as fast in Canada as gas prices on a summer long weekend.

The Angus Reid Institute recently measured that fear, and it is palpable. Almost half of Canadians now think they are worse off than they were a year ago (45 per cent), three times the number who feel better off (17 per cent).

Fear is a huge factor driving our economy and our political choices, sometimes in wildly unpredictable ways, so the BC automotive industry may yet face a perfect storm.

First, there was the overnight drop in demand prompted by the COVID-19 pandemic and lockdowns in 2020, followed by a series of supply-chain disruptions (especially microchips) in 2021. Now, just as inventory is expected to slowly recover over the next year or two, larger dynamics are at play, and it is possible that just as inventory is restored in 2023, consumer demand and preferences will shift again due to a recession.

There are other headwinds facing the industry too, not the least of which is the proposed luxury tax on vehicles over $100,000. The industry has loudly opposed the measure that could be implemented

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Signals Magazine Summer 2022

in 2026, but it recently received a boost from an unlikely source: the Parliamentary Budget Office.

The PBO examined the proposed measure and concluded that while it would add $572 million to government coffers, it would also reduce sales by almost the same amount, $566 million.

The most powerful storm on the horizon is “stagflation,” a term last popularized over 50 years ago. The Washington Post writer Adam Taylor elegantly explains the threat of stagflation: “When it last occurred in the 1970s, stagflation flummoxed economists and policymakers. You could fix inflation by raising interest rates, but that risked causing a recession. And if you increase spending to stimulate the economy, you risk raising prices.”

So, what can the British Columbia auto industry expect in the months ahead? Uncertainty and fear will cause wide variations in pricing across many sectors of the economy, and existing automotive supply-chain disruptions that have suppressed inventory may continue. Automotive News Canada’s managing editor, Grace Macaluso, raised the question of whether the current lack of inventory is masking a deeper threat.

Perhaps.

As Scotiabank Economics notes, “We expect limited inventory to persist and continue masking fundamental demand, while underpinning price pressures on new and used vehicles.”

In writing about the disproportionately harsh impact of stagflation on poorer countries, The Washington Post’s Adam Taylor points out the vexing challenge ahead: “Stagflation occurs when consumers and businesses think that inflation is a long-term problem that won’t change and adjust their behaviour in the light of it—a vicious cycle that in turn creates more inflation and slows growth.” So does this translate into an approaching storm? Or just a headwind? Dealers can hope for the best but consider that there may be yet another storm brewing.

Bruce Cameron has been a pollster and strategist for over 35 years, working initially for Gallup Polls, Decima Research and the Angus Reid Group before founding his own consultancy, Return On Insight.

In addition to writing for Signals magazine, he writes a syndicated political affairs column for Black Press Media.

Street Sense Is Here Making roads safer for all British Columbians

BY ICBC On April 5, 2022, ICBC, in partnership with the provincial government, TELUS and Project Whitecard Inc., launched Street Sense, a state-ofthe-art hazard perception training application.

Street Sense is an interactive application designed to help predrivers, inexperienced drivers and drivers new to BC, learn and gain experience in recognizing and avoiding potential hazards on the road in a safe online environment.

Street Sense immerses users in driving scenarios that mimic real driving conditions in BC. You can practice skills like turning left at a busy intersection, sharing the road with cyclists and staying out of large vehicles’ blind spots. You’ll also learn why hazard perception is important and develop real-world skills to recognize and avoid driving hazards before they happen.

How to use Street Sense The application is very easy to use. Open or download Street Sense in your preferred format and create a profile. From there, you can challenge yourself by navigating various driving scenarios and sharpen the skills that will help you drive safely and avoid common hazards on

BC roads. Your stats and achievements are logged in your dashboard, so you can keep track of your completed challenges and the hazards you safely avoided.​

Who can try it?

Anyone! Maybe you just passed your knowledge test or you’re new to BC and want to familiarize yourself with potential hazards on the road.

Maybe you’re a more experienced driver looking to refresh your skills.

Designed with BC drivers in mind, Street Sense lets you navigate real-world scenarios and improve your skills whether you’re a new driver or have been driving for decades.​ Street Sense is now available on multiple devices, including: mobile app, web, computer download and virtual reality headsets.

Street Sense is one of the many ways we’re preventing crashes and making roads safer for all British Columbians. More information on Street Sense, including download links, is available at icbc.com.

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COVER STORY

Meet the NCDA’s Newest Board Chair

Q&A With Anthony Lunelli

On behalf of Signals, the NCDA had some time this summer, while visiting Kelowna Subaru, to sit down with the NCDA’s new board chair, Anthony Lunelli. Anthony became the new chair at the NCDA’s AGM in June, and is currently the dealer principal at Kelowna Subaru, as well as Subaru of Penticton.

SIGNALS: Anthony, you are well known within BC’s auto sector, especially in the Okanagan area. But could you please tell our readers elsewhere something they may not know about you?

Anthony Lunelli: When it’s a sunny Sunday in the Okanagan, you’ll find me surfing behind a boat on our beautiful lake.

SIGNALS: What was the first car you owned?

AL: A 1992 Eagle Talon Turbo AWD. It was red with a black roof—a hot car with an upgraded turbo, it went like stink!

SIGNALS: What drew you to the auto industry?

AL: My father started the business and dragged me kicking and screaming into this industry in an effort to do something productive with my time. I couldn’t be happier looking back.

SIGNALS: What motivated you to serve on the NCDA board and become the chair?

AL: Our NCDA president Blair Qualey, and I were having a lively discussion and he invited me to serve on the board. I saw it as an opportunity to serve the industry I love.

SIGNALS: Tell us one thing about the work and value of the association that most dealers aren’t aware of.

AL: The member advocacy and relationships with the current sitting government are so important to maintain to ensure that our partnership is one that continues to provide the kind of results we all want to

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see in order to serve consumers in the best way possible. Also, with respect to clean-energy vehicles, it’s important that we ensure that investments and policy decisions will benefit consumers, the sector, government and, of course, the environment.

The association puts a significant amount of work and time into this and it’s such an important aspect of ensuring that industry and government are approaching challenges and opportunities in a manner that is thoughtful and productive.

Through its advocacy efforts, the NCDA also ensures that various levels of government understand the significant contribution dealers make to the BC and local economies; this is especially important when government is creating tax policy and regulations.

SIGNALS: The past two years have been a challenge for our sector, first dealing with the uncertainty related to the pandemic and its initial economic impact, and then dealing with the ongoing supply-chain issues. What do you see as the most significant challenges facing the sector at this time?

AL: The shortage of vehicles due to supply-chain issues has been a significant issue for dealers. As much as this situation has been frustrating for consumers, it has been every bit as frustrating for dealers.

Attracting and maintaining employees is also a significant issue; it’s going to require thoughtful planning and collaboration between our industry and government to create skills-training opportunities that will attract the next generation of young people into our sector.

Continued on next page

Continued from page 14

“The member advocacy and relationships with the current sitting government are so important to maintain to ensure that our partnership is one that continues to provide the kind of results we all want to see.”

Anthony Lunelli

SIGNALS: What are your top priorities for the association in the next year over your term as board chair? Share what you are hoping to accomplish at the NCDA on behalf of BC’s new car dealers.

AL: Ensuring that all the various planning that is required for the return of the Vancouver International Auto Show comes together—and then, of course, attending an auto show in person. It’s been too long!

In addition, I would like to build on all of the great things the association has been working on over the last few challenging years— for example, the success of the CleanBC Go Electric vehicle purchase

rebate program, and continuing to influence policy decisions that will ensure a robust charging network across this province. And then there’s the tremendous work that takes place in support of Special Olympics BC. SIGNALS: Any other work of note that you could comment on?

AL: The New Car Dealers Foundation that gives back to students to help promote future people in our industry is integral to creating the industry’s leaders of tomorrow. Many young people do not know the great opportunities our industry has to offer, but over the next decade there will be wonderful opportunities across the industry, whether that involves hiring skilled technicians, or people in marketing or sales. So the need to educate the current generation about the kind of careers they can build in our sector is of critical importance.

SIGNALS: What are you most optimistic about in the auto industry?

AL: Over the next decade, we are going to be experiencing an amazing transition as more and more British Columbians adopt zeroemission vehicles. BC has already assumed a leadership position in North America with respect to sales of these vehicles, and as we see the offerings increase, I expect there will be something for everyone and at different price points. I am very excited about the changes we have coming.

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15

SPONSORED CONTENT

HUB Care Concierge: A Fully Integrated Digital Health Care System Improving employee health, wellbeing and performance.

Pre-pandemic, half a million Canadians missed work each week due to mental health issues.

Before the pandemic, half a million Canadians missed work each week due to mental health issues. Now, with employees heading back into the office, there’s the added anxiety of returning to the workplace.

These conditions have major implications for employers, who will see greater turnover if employees lack physical and mental health supports. There’s an urgent need for benefits and delivery methods to help improve employees’ physical and mental wellness.

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4.6 million Canadians don’t have a regular health care provider.

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Many employees don’t know where to start when navigating their benefits and often quit in frustration. With HUB’s integrated platform, a personal care coordinator helps employees find the resources they need. The platform also provides:

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Signals Magazine Summer 2022

Improved access to care. Unable to see a physician in person, workers may have let their health care slide or not taken advantage of virtual visits. Employees are far more likely to use telemedicine if it is part of a platform that makes it easy to schedule visits and see doctors.

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Family Wheels “The Car is the Star”

Family focus on Richard Dettman’s YouTube channel

BY JOHN ATKINSON When Richard Dettman retired from a career in broadcasting in 2020, he wasn’t necessarily looking for a new project. But a chance to assume the reins of a car review YouTube channel, Family Wheels, presented itself and Dettman hasn’t looked back.

His version is the fourth incarnation of the channel, which has a special focus on the “form, function and fun” of family-friendly vehicles.

It was started in 2015 by a fellow journalist, Paul Karchut, who got the idea at a pre-natal class when he asked “Who is looking for a family-oriented car?” and many arms shot up.

Two more broadcasters took turns running it, before Dettman was offered the chance to take charge. He launched his version in early 2021, after retiring from his position of business editor at radio station NEWS1130 (now CityNews Vancouver).

“I’d been on radio and TV doing business reports for many years.

But there’s a big difference between standing in front of a camera and talking into a microphone—and doing everything in a video production.

This includes arranging access to the cars and driving them, to doing the video segments and voiceover. It’s been a learning experience.

Challenging, but really enjoyable.”

Dettman, recently awarded a lifetime achievement award by broad-

casting industry association RTDNA Canada, has been posting videos once a week, but is moving to twice a month. And his unique spin?

“In every vehicle reviewed we put in the things a typical family would have. So there’s a child seat. Does it fit? How much room is there?

And then we do a cargo test, trying to fit in three bags of groceries, a backpack and a stroller.”

Family Wheels has a loyal following, with more than 200,000 hits for some videos, although Dettman insists “the car is the star”—with trending themes helping too.

“Right now we have tremendous interest in electric vehicles and the most popular video I’ve done this year is of the electric Hyundai Ioniq 5,” he says. “Sometimes I’ll take a break from family matters and talk about choices for a second car. Or we’ll feature vehicles people dream about, like Porsche 911s or Ford Mustangs. Sometimes it’s fun to imagine driving a Ford Bronco Badlands off-roader.”

Family Wheels is an avocation for Dettman—he’s enjoying his retirement—but his goal is to run it as a successful business and have fun doing it.

“The overall channel style mirrors the real world of owning, leasing and driving a motor vehicle,” Dettman added. “There’s no 0 to 60 miles per hour rating or drag-race-style testing. It’s about what it feels like for a real person in the real world. Is it fun? Can you take it off-road? And can you fit a lot of stuff in?”

To check out Family Wheels visit: youtube.com/c/FamilyWheels

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17

LEGAL LINE

Matthew Wansink

Ramanjeet (RJ) Sohal

When Trouble Comes Knocking: VSA compliance actions

BY RAMANJEET (RJ) SOHAL, ARTICLED STUDENT, AND MATTHEW WANSINK, SENIOR COUNSEL, CLYDE & CO

A customer contacts the Motor Vehicle Sales Authority (VSA) to complain about their experience at a dealership, concerning eithera vehicle they had planned to buy, or one they have already bought. Now, the dealership has received a letter from the VSA concerning an investigation, called a compliance action, which is about to commence. What happens next?

Dispute resolution Prior to commencing a compliance action, the VSA will create opportunities for consumers and dealers to resolve problems among themselves. An informal resolution can take place as an initial step or at any time during the complaint and investigation process. This usually involves the parties simply coming up with a mutually agreeable solution.

During the informal process, it is important to keep written records of everything, such as notes of conversations, the names of people spoken with, and the dates and times of meetings or conversations.

Alternatively, either the dealership or customer may request a more formal dispute resolution process, or the Registrar of Motor Dealers (the Registrar) may require the parties to engage in a formalized dispute resolution. The Registrar will advise the parties whether the process will be led by a VSA staff member or another person and, where necessary, establish rules of how the dispute resolution is to be conducted.

Dealers should note that despite a successful dispute resolution, the VSA still retains the authority to initiate or continue its review of the business practices which led to the complaint.

Registrar’s hearing If dispute resolution is unsuccessful, there may be a hearing, where the Registrar acts as a one-person administrative tribunal. The Registrar has the authority to make quasi-judicial decisions (the “Registrar’s Decision”). This process is similar to a court proceeding—the Registrar receives and weighs evidence to determine whether or not a dealer complied with the law.

The Registrar prefers written hearings to save time and costs associated with oral hearings. However, oral hearings are held in cases where the Registrar considers it necessary to question the person (and the person’s presence enhances the quality of the evidence provided) or if the evidence is complex and technical.

If a dealer (or salesperson) is found to be non-compliant with their obligations, and where the law permits, the Registrar may order a number of remedies to address a consumer’s loss.

Reconsideration In the event of an undesired outcome, a dealer has the option of

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Signals Magazine Summer 2022

applying for reconsideration of a Registrar’s Decision. A reconsideration request may be rejected or granted at the Registrar’s discretion. If a reconsideration request is granted, another hearing will be held and will typically follow the normal hearing process. Dealers should note that the time limit for applying for reconsideration is 30 days after the Registrar’s decision.

Judicial review In the event that a reconsideration request is rejected or it results in another undesired outcome, a Registrar’s Decision may be reviewed by the BC Supreme Court. A judicial review is not the same as an appeal and the Court will not re-hear or re-try the case. On judicial review, the Court makes only a determination as to whether the Registrar followed the legislation and complied with the common law principles of procedural fairness and natural justice when conducting a hearing or making a decision. The Court may also review the investigation process.

If the Court finds an error, the Court may “quash” (cancel) the Registrar’s Decision and order that the matter be re-heard by the Registrar.

The Court may also provide appropriate directions to the Registrar.

Compliance undertaking At any point during an investigation by the VSA, a dealer can explore quickly settling the matter by way of a compliance undertaking, which is a voluntary acknowledgment by a dealership or a salesperson that they have violated the Motor Dealer Act and/or Business Practices and Consumer Protection Act. Upon accepting an undertaking from a dealer, the VSA may terminate the compliance action. An undertaking may include a promise to: stop a particular type of conduct; repay a consumer for any proven losses; pay for investigation costs; pay an administrative penalty; and/or abide by the law.

A compliance undertaking has the benefit of saving time, effort and costs associated with an investigation and hearing. A timely compliance undertaking can also resolve a consumer complaint with minimal negative publicity.

However, dealers should consider the potential long-term consequences of compliance undertakings. Since compliance undertakings are documents readily available to the public, this “admission of guilt” may negatively affect a dealer’s reputation. They may also result in a requirement to pay an administrative penalty. When an administrative penalty is assessed, previous compliance undertakings may be considered, and this may result in a higher penalty.

Key takeaways When there are concerns of a compliance action by the VSA against a dealer, a dealer has the options of resolving the dispute formally or informally, having the matter heard by the Registrar, or voluntarily acknowledging the violation(s). Choosing the best option depends on a number of factors.

For more information on VSA compliance actions, or if you have been found in violation of the VSA, please contact Clyde & Co. clydeco.com/ en/locations/americas/vancouver

SPONSORED CONTENT

TD Auto Finance: Digital Enhancements Offer Support Dealers remain top priority At TD Auto Finance, we know the importance of investing in the tools and technology to improve the automotive financing experience for our customers, without disrupting the status quo of our dealer and OEM partners. COVID-19 forced companies to shift how they operated and heightened the need for digital solutions. Although we were well underway on our digital journey, the pandemic accelerated the pace at which we implemented these solutions.

As we navigated this new world together, we knew the importance of keeping dealers connected with their customers digitally. In addition to offering consistent and competitive pricing and programs throughout the pandemic, we were proud to introduce eSignatures as a foundational step toward remote signing. We also enhanced how dealers received payouts and payout quotes, and we offered training sessions on key topics to dealerships, including fraud awareness and nonprime financing.

We also increased our focus on making enhancements to our firstto-market TD Wheels app that would help streamline the customer car-buying journey. The TD Wheels app makes it easier for customers to connect directly with their dealership of choice. It allows users to search for their preferred vehicles, understand the financing options that may be available to them through a customized video, and apply to pre-qualify for financing.

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and financing information with their dealer of choice before even entering the dealership. Dealers benefit from receiving these free highquality leads and having the information they need to have a productive conversation with their customers from the get-go, including what a customer is looking for and can afford. TD Wheels helps facilitate financing discussions with customers to allow dealers to focus on selling your products.

We know that the pandemic has caused a number of challenges for our industry, but throughout it all our clients remained our top priority. We continue to work hard to ensure we’ve supported dealers throughout changing circumstances and we truly believe the real measure of a business partner is how they respond to the hard times— not just the easy ones.

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Plug in to your savings today!* Learn more about purchase rebates for eligible vehicles at NewCarDealersGoElectric.ca *Administered by the New Car Dealers Association of BC, on behalf of the Province of British Columbia. Rebate program available until funds expire.

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CLEANBC GO ELECTRIC

British Columbians Can Access More in EV Charger Rebates Higher rebates offered for a limited time The province of BC and Natural Resources Canada (NRCan) are making it more affordable for people to install electric vehicle (EV) charging stations in their homes, businesses and communities.

For a limited time, BC residents, businesses and municipalities can receive higher rebates for EV charging stations through the CleanBC Go Electric EV Charger Rebate and Fleets programs. Funding will cover as much as 75 per cent of eligible purchase and installation costs for EV charging stations—an increase from the previous 50 per cent coverage.

“With electric vehicles representing 13 per cent of all new light-duty vehicles sold in BC last year, our province has the strongest adoption rate of electric vehicles in Canada. We’re positioning ourselves to become leaders in the EV industry,” said Bruce Ralston, BC Minister of Energy, Mines and Low Carbon Innovation.

“We’re working with our federal partners to increase rebates for home, workplace and fleet charging, and making it easier and more affordable for people to make the switch to electric vehicles.”

With a $2-million investment through NRCan’s Zero-Emission Vehicle Infrastructure Program (ZEVIP) to top up the province’s EV

Charger Rebate program, workplaces, condominiums and apartments can get a rebate for a Level 2 charging station for as much as 75 per cent of purchase and installation costs to a maximum of $5,000. As many as 360 EV chargers will be installed through the program.

“We’re making electric vehicles more affordable and charging more accessible where Canadians live, work and play,” said Jonathan Wilkinson, federal Minister of Natural Resources. “Investing in more EV chargers will put more Canadians in the driver’s seat on the road to a net-zero future and help achieve our climate goals.”

Through the CleanBC Go Electric Fleets program and in support of BC businesses that own and operate fleet vehicles, NRCan has invested $1.54 million through ZEVIP to top up rebates. Fleet operators can get combined rebates from NRCan and the province for a Level 2 charging station for as much as 75 per cent to a maximum of $5,000 of purchase and installation costs, and 75 per cent to a maximum of $75,000 for a direct-current, fast-charging station. As many as 450 EV chargers will be installed through this program.

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SPONSORED CONTENT

SECRET BALLOT VOTE It’s going, going, gone

BY MICHAEL WEILER, KSW LAWYERS (MWEILER@KSW.BC.CA) In the past few months, the BC Government has made major changes to the Labour Code.

Bill 10 Labour Relations Code Amendment Act was introduced on April 6 and on June 2, it received Royal Assent and is now law.

Bill 10 eliminates secret ballot votes in most union certification applications by reintroducing a card-check system—and it represents a fundamental change to the code. Non-union and partially unionized businesses need to take these changes seriously and understand the impacts.

Chris Drinovz and I partnered with the NCDA and presented a webinar to NCDA members on this topic on June 28. If you missed it and are interested in the materials, please contact the NCDA office.

What does Bill 10 do?

Bill 10 accomplishes three major things: It eliminates the secret ballot vote that was required before a union can become the exclusive bargaining agent of employees in cases where the union can show card sign up or membership of at least 55 per cent of the employees in an appropriate unit. A vote will still be held if union support is between 45 and 55 per cent.

It allows construction unions to replace an incumbent union by way of a raid application every year, not as per the previous legislation that only allowed such disruptive applications every three years.

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Signals Magazine Summer 2022

It allows unions to get a sneak preview of their support and the employers’ business by allowing a pre-certification vote before the Board determines the appropriate bargaining unit, thus allowing the union to define the bargaining unit based on its support.

These amendments follow on the heels of significant amendments introduced in 2019 by the NDP on recommendations from the NDP’s Expert Panel. Some further background and history of this event is included in this article here.

It is interesting to note that a secret ballot vote will continue to be required if employees decide to decertify. This shows, in my view, that the changes are intended to respond to the wishes of unions and not the wishes of employees.

Déjà vu all over again In my over 40 years of practicing labour law, I have been amazed but not surprised by the constant pendulum swing in labour legislation since the Code was introduced in 1972.

The most significant swing was in 1992 when the NDP took power and introduced major changes. That included significant limitations on employer free speech, and it eliminated the secret ballot vote in precisely the way that Bill 10 does. When the Liberals took power in 2001, they reversed many of these changes, including broadening employer free speech and reintroducing the secret ballot vote. The pendulum has now swung back to 1992.

What should business owners do?

If you are a non-union business or partially union/non-union, I recommend you familiarize yourself with the certification procedures and be prepared should a union come knocking on your door. While the secret ballot vote may have been eliminated, there are other objections that can be made to a union application for certification.

In the absence of a secret ballot vote, employers should keep their ears to the ground and respond if they learn that a union is organizing the workplace.

Educating employees before a union starts an organizing drive may be critical. Caution still prevails as employers do not want to commit unfair labour practices, but you still have the opportunity to communicate with your employees. This includes updating and reviewing employee policies and handbooks.

If you have any questions on these developments or are looking for resources for your business, give us a call.

Mike Weiler’s contact: kswlawyers.ca/ our-lawyers/michael-j-weiler Chris Drinovz‘s contact: kswlawyers.ca/ our-lawyers/chris-d-drinovz

Note to Readers: This is not legal advice. If you are looking for legal advice in relation to a particular matter please contact us. We communicate all these updates to our clients and readers on our Employer Resources Portal and through monthly newsletters.

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To learn more about Retail Anywhere visit reyrey.ca/retailanywhere ©2022 The Reynolds and Reynolds Company. All rights reserved. 06/22

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SPECIAL OLYMPICS BC SNAPSHOT

Auction for Athletes Celebrates Record-Breaking Result Money raised benefits Special Olympics The 2022 Auction for Athletes had its most successful year yet, raising $245,000 for Special Olympics BC (SOBC) and the New Car Dealers Foundation of BC. Running from March 31 to April 5, the online auction was steered to success by new car dealers and supporters, who donated 290 auction prizes, made cash pledges, solicited donations and bid on items.

“The 2022 Auction for Athletes was a tremendous success and shows yet again that even during challenging times, our industry comes together to make an important difference—raising a record amount,” said Blair Qualey, president and CEO, New Car Dealers Association of BC. “This support will make such a huge difference for Special Olympics athletes—thanks to all our amazing sponsors and everyone who placed bids. BC’s new car dealers are making a difference to help rebuild SOBC’s year-round and in-person sport programs for these amazing athletes, while also providing important grants and scholarships for students wanting to improve their skills through car-careers grants.”

Now in its 35th year, the auction has raised more than $5.6 million to support the life-changing work of SOBC and the New Car Dealers Foundation of BC. “Special Olympics is important because it keeps people fit and active. It has benefitted me to be in a group more, and be more valued,” said SOBC-Smithers athlete Torben Schuffert.

This year’s Auction for Athletes mattered more than ever. The pan-

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Signals Magazine Summer 2022

Daniel Thomas competed in powerlifting at the 2018 Special Olympics Canada Summer Games.

demic has had a long-lasting, far-reaching impact on athletes with intellectual disabilities, who were already far too familiar with the pain of isolation.

Funds raised will help reopen SOBC’s sport programs that create empowering connections, open hearts and minds to inclusion and break down barriers.

For SOBC-Kimberley/Cranbrook athlete Kendall Salanski, getting back into in-person programs gave her “great confidence of getting back into shape.”

“I felt very excited inside to see the group of athletes again!” she said.

“During the pandemic … it was very, very tough. Some of those months were very, very bleak,” said SOBC-Vancouver athlete Daniel Thomas. “But when programs came back, being able to do that meant the world to me, and meant very much, very similar to fellow athletes I know, because Special O is such an intrinsic part of our lives that when we don’t have it, it really deeply affects us. So every day that I’m able to go to the gym or I’m able to go to the curling rink, I’m so thankful that I’m able to do that.”

Heartfelt thanks to the dedicated members of the auction organizing committee. Every year they give countless hours of thoughtful and compassionate work to make this event a success. Thanks to: Manse Binkley, Harmony Honda and Harmony Acura; Marnie Carter, Carter Auto Family; David Jukes, First Canadian Financial Group; Pamela Keith, Dueck Auto Group; Bill Mitchell, Carter Auto Family; Brad Ostermann, Kia Victoria; Blair Qualey, New Car Dealers Association.

SOBC and the New Car Dealers Foundation of BC extend sincere thanks to everyone who supported the 2022 auction and look forward to another exciting event in 2023. To get involved, please contact Marta Jarosinski, Fund Development Coordinator (Events), at mjarosinski@ specialolympics.bc.ca Brian McLean Chevrolet Laird Wheaton GM CapriCMW Insurance Murray GM Downtown Tyee Chevrolet Buick Wheaton GM Jenner Chevrolet PHD Canada

A Big Thanks

to everyone who supported the Auction for Athletes—you are helping reuniting friends on the fields of play!

Silent Auction Sponsor

First Canadian Financial Group

Vehicle Donors

BC Honda Dealers Association BC Toyota Dealers

$10,000 Sponsors

BC Subaru DAA Chevrolet Buick GMC Dealers of BC Mazda Canada Inc.

Media Sponsors The Province Vancouver Sun

$5,000+ Sponsors

$2,000 - $3,000 Sponsors

Auto West Group CDK Global Color Compass Corporation Dueck Auto Group Harmony Acura W.P.J. McCarthy and Company

$1,000 Sponsors

Doak Shirreff Lawyers LLP Go North Surrey Greg Gardner Motors MCL McGill Carriers Pacific Honda Precision Carriers Richmond Auto Mall

Bannister Automotive Group Harmony Honda Jim Pattison Group Park Shore BMW

What’s keeping your dealership compliant?

$1,000+ Item Donors

4Less Disposal ADESA Canada Alaska Highway News Allwest Insurance Services Ltd. Applewood Auto Group Bell Media Big White Ski Resort Bradley Smoker CARFAX Canada Carter Auto Family Downtown Marina Kelowna Dueck Auto Group GAIN Group

$500 Sponsors

Baker Tilly WM LLP Barnes Wheaton GM South Surrey Brian McLean Chevrolet CapriCMW Insurance Downtown Tyee Chevrolet Buick

Glacier Media Group Harris Group Honda Canada Inc. HUB International Insurance Brokers Burnaby Jim Pattison Broadcast Group Michael Mason & Co. Ltd. Michelin North America (Canada) Inc. Sparkling Hill Resort TerraMotus Solutions Inc. Times Colonist Vancouver Whitecaps FC

Jenner Chevrolet Laird Wheaton GM Murray GM Wheaton GM PHD Canada

Your system, if you have CADA 360 HR Automation.

CADA 360 HR Automation automates manual, repetitive tasks such as onboarding, health and safety training, and time and attendance management. It also reduces paperwork and human error, and saves time.

CADA 360 also funds CADA advocacy. No other products provide this protection for your business.

Call 1-800-463-5289, or visit cada.ca.

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SPONSORED CONTENT

Dealers: Prepare Now for New Luxury Tax New fees set for implementation in September

BY CHRIS SCHAUFELE, MNP NATIONAL DEALERSHIPS LEADER As part of the Canadian 2021 federal budget, the government’s proposed introduction of a tax on the sale of certain new luxury cars, aircraft and boats. Legislation for the Select Luxury Items Tax (“Luxury Tax”) went through Parliamentary approval as part of Bill C-19 and received Royal Assent on June 23, 2022.

The Luxury Tax rules will come into effect on September 1, 2022, and apply to deliveries and imports into Canada on or after that date.

Exceptions will apply to deliveries or imports arranged under a bona fide agreement prior to 2022.

The information in this article is considered accurate as of writing, but could change.

The proposed Luxury Tax will apply to certain vehicles exceeding established price thresholds of $100,000 before GST/HST. The rules will apply whether the vehicle is delivered in Canada by way of sale or similar

arrangement, certain lease arrangements, or by importation. The tax will be the lesser of 10 per cent of the total price and 20 per cent of the amount exceeding the price threshold.

All improvements (excluding accessibility modifications), additions, taxes, duties, charges, fees and amounts paid in respect of the delivery or importation will be included in the total price. The resulting tax is then added to the cost of the vehicle for the purposes of calculating the GST/HST. This results in GST/HST being calculated on the Luxury Tax. Vehicles subject to Luxury Tax include vehicles manufactured after 2018 that accommodate 10 or fewer passengers and have a gross vehicle weight rating of 3,856 kilograms or less.

Exceptions apply for certain vehicles (hearses and some recreational vehicles, for example) as well as vehicles equipped for police, military or other emergency services activities.

Unlike existing GST/HST and provincial sales tax (PST), which are generally due and

payable on periodic lease payments, the full amount of Luxury Tax is due and payable by the dealer upfront at registration. This leaves the dealer with a timing mismatch and a decision to recoup the full cost from the customer upfront or recover over the life of the lease by increased monthly payments.

Amounts levied under BC’s additional PST on luxury cars currently appear to be included in the Luxury Tax base and therefore subject to Luxury Tax. Both the additional PST and Luxury Tax will then be subject to the GST/ HST. This will result in purchasers paying significantly more for a luxury vehicle in BC. Uncertainty remains as to how the Luxury Tax rules will be technically and practically applied. Dealers should be aware of their obligations under the Luxury Tax rules and start thinking about changes to businesses processes that may be needed once the rules come into effect.

To learn more, contact Chris Schaufele at Chris.Schaufele@mnp.ca

Unlock your auto dealership’s full potential You deserve maximum performance from your business. For more than 20 years, MNP has been helping auto dealerships of all sizes provide for the present and plan for the future. The right advisor can help you navigate the challenges of a competitive industry and drive consistent results.

Chris Schaufele, CPA, CA National Dealership Services Leader 604.536.7614 | chris.schaufele@mnp.ca MNP.ca

SPONSORED CONTENT

Introducing Service Lane Plus SiriusXM is offering free listening to all service customers!

Do you want to reward your service customers and build brand loyalty?

As an extension of SiriusXM’s Service Lane program comes the introduction of Service Lane Plus! This new program allows you to offer all your service customers (including those with non-equipped vehicles) a free three-month Platinum or Streaming Platinum trial at no cost.

With over 425 channels on the SXM app, including ad-free music, artist-dedicated channels, SiriusXM podcasts, videos and more, your non-equipped service customers can also enjoy a complimentary three-month trial.

Plus, eligible service customers with SiriusXM-equipped vehicles will continue to receive a three-month trial in their vehicle.

Since this program benefits customers with non-equipped vehicles, you will be able to market and highlight this reward to all your customers the next time they are in-store servicing their vehicle. To make it easy, SiriusXM will provide you with everything you need to display this complimentary offering. For customer loyalty, nothing beats a good tune-up. Amplify their drive with three months free.

What are the benefits?

• Ability to offer free three-month trials to all your service customers; • Non-equipped service customers can now receive a free three-

month Platinum Streaming trial on the SXM app; • Ability to market in your dealership (materials provided); • Build customer loyalty; • 425-plus channels of expertly curated music, live play-by-play sports, news, exclusive talk, and comedy; • No cost to your dealership or customer; and • No credit card required.

How does it work?

It’s simple! You will receive marketing materials for your store to help highlight this incredible customer offer. The signage provided will include a QR code, which customers can scan to enter their VIN or Radio ID and activate the offer. If a customer does not have a SiriusXM-equipped vehicle, they will receive a free three-month Streaming Platinum trial on the SXM app. If a customer does have a SiriusXM-equipped vehicle and is eligible, they will receive a free threemonth Platinum trial.

How do I sign up?

You must be enrolled in the Service Lane program to take advantage of this offer. Email dealer.support@siriusxm.ca and a SiriusXM representative will be in touch.

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WITH SPECIAL THANKS The New Car Dealers Association of BC would like to acknowledge these fine companies for their support of the association’s activities.

OFFICIAL SUPPLIERS

Premier Partners

GOLD LEVEL

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. CADA also supports the development of automotive leadership through its partnership with the Automotive Business School of Canada.

Learn more at cada.ca/web/cada/insurance/cada

CARFAX Canada, a unit of IHS Markit, is Canada’s definitive source of automotive information, delivering vehicle history, appraisal and valua-tion. Drawing on billions of data records from thousands of unique sources, its products enable used vehicle buyers and sellers to make in-formed decisions. Formerly known as CARPROOF Corporation, CAR-FAX Canada is dedicated to transparency, and is trusted to provide im-partial and comprehensive information to dealerships, vehicle manufac-turers, consumers, major auctions, governments, insurance providers and police agencies.

Learn more at carfax.ca Cox Automotive is transforming the way the world buys, sells and owns and uses 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 SCRAP-IT is a not-for-profit society, operating in both BC and Alberta.

With a goal of improving the quality of the environment by creating clean places to live, it has successfully delivered provincial, federal and privately funded incentive/rebate programs for over 20 years.

Learn more at scrapit.ca

First Canadian Financial Group is a national, privately chartered life insurance company that offers life and disability insurance coverage on consumer loans through automotive dealership financial service offices. Since September 1988, the First Canadian Financial Group 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

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

SILVER LEVEL 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 Kijiji Autos has over 6M Unique visitors to its platform each month, making it Canada’s most visited online automotive marketplace. Our strategy of putting the consumer first has resulted in us building a robust and purposeful destination where Canadian’s feel safe to interact. Kijiji Autos makes sure your inventory is being noticed. No matter the size of your dealership, there is a package to help unlock its full potential.

Learn more at kijijiautos.ca

BRONZE LEVEL 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

The New Car Dealers Association of BC is a proud member of the Canadian Automobile Dealers Association (CADA). The CADA is the national association representing new car and truck dealers. Acting as the voice of the dealers at the national level, CADA serves as an advocate to government, industry and the public.

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Signals Magazine Summer 2022

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. Welcome to our new members!

ACCOUNTING

Canadian Western Bank

PRINT AND DESIGN SOLUTIONS

Baker Tilly WM LLP

Gus Masi // 403-570-3200 // cwbank.com

One Persuasion

Masato Oki // 604-684-6212 // bakertilly.ca

CIBC Commercial Banking

Hamish Marshall // 778-835-3715 // onepersuades.com

MNP LLP Accounting

Phil Lehn // 604-665-1318 // cibc.com

Harv Craven Design

Chris Schaufele // 604-542-6768 // mnp.ca

First Canadian Financial Group

AUCTION SERVICES

Darren Johnson // 250-217-5955 // firstcanadian.ca

PROPERTY SECURITY

General Bank of Canada

Radius Security

John Macdonald // 604-232-4403 // adesa.com

Marley Begg // 780-974-2829 // generalbank.ca

Mike Baxter // 604-232-2405 // radiussecurity.ca

EBlock

iA Auto Finance

Nicole Sergio // 416-853-5626 // edealer.ca

Denise Buott // 905-815-9510 // iaautofinance.ca

Manheim Auto Auction Company (Cox Automotive Canada)

iA Dealer Services

ADESA Auctions Canada

Jack Sulymka // 905-875-3522 x5441 // manheim.com

Harv Craven // 604-476-0435 // harvcravendesign.com

RESEARCH AND SHOPPING WEBSITES Canadian Western Bank Gus Masi // 403-570-3200 // cwbank.com

Vicki Yan // 604-882-8220 // iasal.ca

CARFAX Canada ULC

LGM Financial

Shawn Vording // 866-835-8612 x2966 // carfax.ca

Amanda Tracey // 604-806-5300 // lgm.ca

CarGurus

Mubasher Faruki // 604-454-2234 // bcit.ca/transportation

National Bank

Marissa Battista // 617-315-1137 // cargurus.ca

Georgian College (Automotive Business School of Canada)

Darren Kiley // 604-209-8957 // nbc.ca

Joe Lauzon // 705-728-1968 x1234 // georgiancollege.ca

RBC Automotive Finance Group

AUTOMOTIVE SCHOOLS BCIT - School of Transportation

Kijiji Autos Kristin Macintosh // 647-962-1510 // Kijiji.ca

Aaron Young // 604-656-2965 // rbc.com/canada.html

CO-OPS

Scotiabank Western Dealer Finance Centre

Consolidated Dealers Co-Op Janette Tooley Andrade // 905-264-7022 // consolidateddealers.com

Leader Auto Resources LAR Inc.

Trader Corporation Randy Shepherd // 403-999-8854 // autotrader.ca

Bramin Karsanji // 604-644-1782 // scotiabank.com

TELECOM

Scotia Dealer Advantage

Bell Mobility

Bob Grewal // 778-773-1727 // larnet.com

John Hiscock // 416-288-7800 // scotiabank.com/scotiadealeradvantage

Cameron Gerrie // 289-442-3701 // Bell.ca/EPP

Western Dealers Co-Auto

TD Auto Finance

TOOL SUPPLIER

Mike Reid // 780-468-9552 // wdcoauto.com

Richard (Rick) Bessex // 778-628-7458 // TDFS.com

DEALER 20 GROUPS

HEALTH BENEFITS

NCM

ZLC Financial

VEHICLE ALIGNMENT SYSTEMS

Kory Suppes // 913-401-2311 // ncmassociates.com

Fab Biagini // 604-688-7208 // zlc.net

Hunter Engineering

DMS PLATFORMS

INSURANCE SERVICES

CDK Global Greg Wallin // 778-838-0639 // cdkglobal.com

Reynolds and Reynolds

Ray Lavender // 416-662-9951 // snapon.com

Dan Martin // 780-340-3456 // hunter.com

AllWest Insurance Services Renee Nielly // 604-733-7383 // allwestins.com

HUB International Insurance Brokers

John Caulfield // 519-319-2264 // reyrey.com

Wayne LeGear // 604-269-1944 // hubinternational.com

Serti Information Solutions

Snap-on

Canadian Black Book Dwain Samuels // 416-817-8444 // canadianblackbook.com

Consultant Auto 360 Kim Normandin // 514-394-1955 x508 // solutionsmedias360.com

Pascal Lafleche // 514-493-1909 // serti.com

Insurance Insight

Cox Automotive Canada

Neal O’Donoghue // 866-603-8666 // insuranceinsight.ca

Shannon Newman // 905-290-6414 // coxautoinc.ca

ENTERTAINMENT SOLUTIONS

Optiom

DealerTrack

Sirius XM Canada

Michelle Wong // 800-613-3705 // optiombc.com

Jack Sulymka // 905-875-3522 // us.dealertrack.com

LEGAL SERVICES

Rick Kingdon // 778-245-1041 // dealersolutionsna.com

Mario DeGrace // 403-629-2953 // sxmdealer.ca

ENVIRONMENTAL PROGRAMS SCRAP-IT Nicki Lewis // 604-273-8552 // scrapit.ca

EV CHARGING SERVICES

Clyde & Co Canada LLP

NextGear Capital (Cox Automotive Canada)

Matthew Wansink // 604-408-2022 // clydeco.ca

Jack Sulymka // 905-875-3522 // nextgearcapital.ca

KSW Lawyers

Passtime GPS Canada

Michael J. Weiler // 604-336-7423 // ksw.bc.ca

FLO

OFFICIAL NCDA BILL OF SALE PROVIDER

Matthew Watkiss // 604-340-6244

Steve Batchelor // 250-384-7304 // michaelmason.ca

BMO - Bank of Montreal

Sophie Callander // 604-437-3023 x234 // passtimegps.com

Smart Program Inc. Jerrod Lucas // 780-975-3412 // thesmartprogram.ca

VAuto (Cox Automotive Canada)

Michael Mason & Co.

FINANCIAL SERVICES

Dealer Solutions North America

Jack Sulymka // 905-875-3522 // vauto.com

VinSolutions (Cox Automotive Canada)

Bradley Warren // 604-417-0229 // bmo.com

PAYMENT PROCESSING, MERCHANT SERVICES

Calla Financial Services

Moneris

Xtime (Cox Automotive Canada)

Nick Calla // 604-921-4048 // callafinancial.ca

Brittney Page // 1-866-836-3375 // moneris.com

Jack Sulymka // 905-875-3522 // xtime.ca

New Car Dealers Association of BC

NCDA_BC

NewCarDealersAssoc

Jack Sulymka // 905-875-3522 // vinsolutions.com

NCDA_BC

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Do your service providers protect your best interests?

The answer is yes, if you’re with CADA 360.

CADA 360 products were created to protect your best interests. Each is a leader in its field, because the dealer committee members make sure it addresses dealer needs: • • • • •

Employee Benefits Garage Insurance Group Home and Auto Insurance Retirement Savings HR Automation

Most importantly, CADA 360 products fund CADA advocacy. Recent CADA advocacy includes COVID -19 support and protection, fighting auto tariffs,

improving recall legislation, and protecting dealers from tax on insurance commissions.

CADA’s legal action committee supports members on precedent-setting issues.

CADA research and reports help dealers make better decisions.

CADA 360 has been helping Canadian dealers succeed for more than 70 years. And when you buy CADA 360, you fund CADA advocacy.

No other products provide this protection for your business.