Signals Magazine, Summer 2024 Issue

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

SUMMER 2024 ISSUE

Meet

Ann Marie Clark A Q&A with the new NCDA Chair PAGE 16

INSIDE

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EN

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› Impact of Federal Budget › Making Our Roads Safer, Together › 2024 Auction for Athletes steered to record-breaking success

The bumpy road to electrification

NEW CARS SOLD IN BC

2024

APR 17,600 JUN 18,850 MAY 18,218 YTD 105,261

IT’S YOUR JOB TO TAKE CARE OF OUR NATION’S AUTOMOTIVE NEEDS. IT’S OUR JOB TO MAKE SURE OUR NATION TAKES CARE OF YOURS. The Canadian Automobile Dealers Association is working with your regional and provincial associations to represent your interests at the highest levels.

To learn more about how CADA is working for you, visit CADA.ca

CONTENTS

14 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 Sophie Wright Events, Office and Membership Coordinator info@newcardealers.ca

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

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Duy Le CleanBC Go Electric Vehicle Rebate Coordinator goelectric@newcardealers.ca

Vancouver International Auto Show Eric Nicholl, MBA Executive Director enicholl@vanautoshow.ca 778-968-0440 Effective September 1, 2024 Josh Ferguson Sales and Sponsorship Specialist jferguson@vanautoshow.ca Have a topic or story suggestion? Email us!

And for article and ad submissions and rate card details, please contact: Blair Qualey | 604-214-9964 Ext. 228 bqualey@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

COLUMNS

FEATURED ARTICLES

4

President’s Message

12

7

Industry News

Trends The Bumpy Road to Electrification

8

Car Buzz Luxury. Power. Performance: And a dash of Italian flavour

15

Leadership and Innovation The VSA’s Archana Singh wins Business Women of the Year Award

10

Member News Challenges, Achievements, Gratitude: The NCDA holds hybrid AGMs

16

Meet Ann Marie Clark A Q&A with the new chair of the NCDA board

14

Legislature Wire EV Day at the Legislature

22

20

Legal Line Employment Contracts and Termination Provisions

Making Our Roads Safer, Together CounterAttack sees huge success in reducing impaired-driving fatalities

23

26

Special Olympics BC Fueling an Inspiring Fundraiser

How the 2024 Federal Budget Will Impact Your Dealership Tax implications could be significant

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.

On the Cover: NCDA leadership at the 2024 VIP Gala night. Photo by: Darla Furlani

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PRESIDENT’S MESSAGE

News From the Front Seat Thank you for riding along with us for the summer 2024 edition of Signals magazine. We have much to report on since our last edition.

Following the triumphant return of the Elevated 2024 Vancouver International Auto Show in March, the New Car Dealers Association (NCDA) geared up for a major changing of the guard at its annual general meeting (AGM) in May along with our annual EV Day at the BC Legislature.

NCDA sees changing of the guard as first female chair elected

BLAIR QUALEY PRESIDENT & CEO, NCDA

“Unless government adopts a flexible approach, manufacturers will be hard-pressed to meet targets, leading them to restrict the supply of all vehicles for sale in the province to avoid penalties, which, in turn, will drive up all new and used vehicle prices, as we saw during the pandemic.”

The NCDA held its hybrid Association and Foundation AGMs in Victoria, during which Ann Marie Clark was officially installed as the first female chair in the NCDA’s history, after having served in an acting capacity for most of the past year. Check out our interview with Ann Marie on page 16 in this issue.

Officially joining the board are April Gaskell, GM Financial; Bradley Warren, BMO; and dealers Dave Bare, of Harris Auto Group on Vancouver Island, and Luke McClellan, managing partner of Wheaton Chevrolet Ltd., Wheaton Buick GMC Ltd. and MercedesBenz Kamloops.

The board and staff thanked outgoing board members James Carter, Peter Heppner, Erik Jensen, Anthony Lunelli, Peter Sia and Peter Trzewik for their years of dedicated service to BC’s franchised new car dealers.

“Changes within a board structure are a natural occurrence, but it is with mixed emotions that these latest changes take place,” said chair Ann Marie Clark. “We have talented and insightful members now sitting among us—but the names of outgoing members are synonymous with our industry.

They helped lead us through one of the most challenging periods ever—and for that we are eternally grateful.”

She continued: “Over the coming months, the NCDA board will be focused on many opportunities and challenges. We remain committed to helping fuel BC’s leadership in zero-emission-vehicle (ZEV) adoption, but we also know that mandated targets amid softening demand for electric vehicles require a more flexible approach by government.

Likewise, we will be advocating for changes to the new car luxury tax threshold that now encompasses many trucks, SUVs and vans that families rely on for work, or to shuttle family members around, and which are by no means luxury items.”

Board members continuing on include Vice Chair Kai Hensler, Weissach Vancouver; Jared Williams, Jack Carter North Star Chev Buick GMC; Mike Hacquard, Wolf Auto Group; Darren Johnson, First Canadian Financial Group; and myself, president and CEO, NCDA of BC. The NCDA’s board of directors is made up of volunteer dealer members and

Meet your 2024-2025 New Car Dealers Association Board of Directors

4

Ann Marie Clark Chair

Kai Hensler Vice Chair

Jared Williams Treasurer

Blair Qualey President & CEO

STEVE MARSHALL FORD LINCOLN / FAMILY FORD VANCOUVER ISLAND

WEISSACH GROUP VANCOUVER

JACK CARTER NORTH STAR CHEV BUICK GMC

NCDA

Dave Bare

Deryl Griffith

Mike Hacquard

Luke McClellan

April Gaskell

Darren Johnson

Bradley Warren

HARRIS KIA

SIGNATURE MAZDA RICHMOND

WOLFE AUTO GROUP SURREY LANGLEY

WHEATON BUICK GMC LTD. / MERCEDES-BENZ KAMLOOPS

GM FINANCIAL

FIRST CANADIAN FINANCIAL GROUP

BMO DEALER FINANCE

Signals Magazine Summer 2024

Member at Large

Member at Large

Member at Large

members-at-large who represent every region of British Columbia. The board of directors also includes the executive committee, the NCDA’s president and CEO, and dealer principals representing various regions of BC.

NCDA ZEV day returns to BC Legislature As the Canadian auto industry continues its ongoing transition towards a greener future, the NCDA recently hosted its annual zero-emission vehicle (ZEV) day at the BC Legislature, in conjunction with the AGM. ZEV Day at the Legislature is an important event for our industry and this year we were joined by Premier David Eby; Hon. Josie Osborne, Minister of Energy, Mines, and Low Carbon Innovation; Hon. George Heyman, Minister of Environment and Climate Change Strategy; Hon. Katrine Conroy, Finance Minister and many other elected representatives and officials to celebrate the progress of ZEV adoption in British Columbia against the stunning backdrop of the BC Legislature.

On the steps of the government building, a record number of dealerships came together to showcase a diverse display of the latest advancements in ZEV technology available for all British Columbians.

Significant changes to CleanBC Go Electric new vehicle rebate program Effective June 18, the BC Government announced more changes to the Passenger Vehicle Rebate Program. The MSRP for qualifying vehicles was reduced from $55,000 to

$50,000. Additionally, SUVs and station wagons/vans were moved from the larger vehicle category (with higher MSRP threshold) to the car category with the new lowered MSRP of $50,000.

The NCDA has administered the CleanBC Go Electric Passenger Vehicle Rebate Program for 13 years, during which it has become a central component of the provincial government’s CleanBC plan to lower climate-changing emissions. It has also played a key role in BC assuming and maintaining a leadership position in ZEV adoption in Canada.

BC’s new car dealers are very concerned about changes to the program because they effectively remove 75 per cent of vehicles eligible for a provincial rebate from the program—and therefore push the purchase of a new ZEV out of reach for many British Columbians.

Various studies and opinion polls suggest a softening in the new ZEV market, and we fear these changes will also threaten the ability of manufacturers to meet the government’s aggressive mandated targets for the sale of ZEVs. Unless government adopts a flexible approach, manufacturers will be hard-pressed to meet targets, leading them to restrict the supply of all vehicles for sale in the province to avoid penalties, which, in turn, will drive up all new and used vehicle prices, as we saw during the pandemic.

At a time when affordability and climate change are major concerns for British Columbians, we should strengthen the

incentive program, not reduce access, at least until there’s more price parity between ZEVs and internal combustible vehicles.

Changes come to the business office as BCFSA tightens rules In late April, the BC Financial Services Authority (BCFSA) issued a Regulatory Statement (https://www.bcfsa.ca/media/3654/download) prohibiting auto dealers from selling products classified as automobile insurance.

According to the statement, products covering “loss or damage to automobiles, such as indemnification for loss in the event of theft, a motor vehicle accident, or damage to glass, paint or other parts of a motor vehicle due to a fortuitous event” fall under automobile insurance and can only be sold by licensed insurance agents. Consequently, dealerships offering products providing benefits for accidental glass or paint damage, or loss resulting from theft or a motor vehicle accident, would be non-compliant. Dealers are urged to consult with their finance office product providers to ensure awareness of and compliance with this regulatory statement.

The notice created much confusion and concern among our members and their suppliers of the various impacted products. The NCDA reached out to both the BCFSA and Insurance Council of British Columbia to discuss the current situation within the BC automotive sector, and offered to work collaboratively, better understand their concerns, and Continued on page 6

Meet your 2023-2024 New Car Dealers Foundation Board of Directors

John Wynia Chair

Dave Bare Vice Chair

Blair Qualey President & CEO

James Carter Treasurer

HARBOURVIEW VW VANCOUVER ISLAND

HARRIS AUTO GROUP

NCDA

CARTER GM N. SHORE

David Jukes

John MacDonald

Peter Sia

Sharon Rupal

FIRST CANADIAN FINANCIAL GROUP

ADESA RICHMOND

NORTHLAND NISSAN PRINCE GEORGE

OPENROAD LEXUS PORT MOODY

Heather Headley

Ryan Jones

PACIFIC HONDA N. VANCOUVER

MARV JONES HONDA MAPLE RIDGE

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INDUSTRY NEWS Continued from page 5

consider how we might protect consumers while continuing to offer valued products and services.

The BCFSA confirmed that this regulatory statement would apply to OEM programs, self-funded dealer programs, and loyalty or membership programs where a benefit is provided that meets the above definition of automobile insurance.

In our conversations, we explained that our over 400 dealer members, who provide some 30,000 family-supporting jobs in 55 communities around BC, sold 182,972 new vehicles in addition to their sales of used models. Tens of thousands of their customers find value in the various products they make available through their business offices. We continue to work with the regulators to determine how our members can continue to provide these valued products to their customers with ethical conduct, integrity, and competence. Stay tuned for further updates in our weekly e-newsletter.

Sincerely,

Members of the NCDA board (chair Ann Marie Clark and vice chair Kai Hensler, plus Blair Qualey, NCDA president and CEO) met with Vancouver Community College to discuss auto trades training programs and to consider how the NCDA can support their work to increase the numbers of skilled candidates for the association’s new car dealers.

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

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Signals Magazine Summer 2024

BMW M5 Touring Will Land in Canada for the First Time BMW responds to overwhelming consumer demand BMW Group Canada has announced that the BMW M5 Touring wagon will be available in Canada for the first time.

The 2025 model, part of the seventh-generation M5, will feature a hybrid powertrain inspired by the BMW M Hybrid V8 GTP race car.

The M5 Touring combines high performance with the practicality of a spacious estate car, responding to strong demand from Canadian enthusiasts. Testing of prototypes is already underway, including rigorous evaluations on the Nürburgring’s Nordschleife. Production is set to begin in late 2024.

This announcement follows a significant campaign where BMW canvassed the Canadian public, resulting in overwhelming support for the Touring variant. A remarkable 7,200 petitions were submitted, and BMW Canada saw record-high engagement on their website and social media channels, demonstrating strong consumer interest and enthusiasm.

The M5 Touring has a storied history, with previous versions gaining acclaim for their driving dynamics and practicality. The new model will continue this tradition while incorporating advanced hybrid technology, ensuring it meets modern performance and efficiency standards.

BMW M’s commitment to electrification is evident in this latest addition to their lineup, promising an exhilarating driving experience while being suitable for everyday use year-round in Canada.

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CAR BUZZ

Luxury, Power and Performance Add in some Italian flavour and these four models have it all 2024 Ford Mustang EcoBoost

2024 Mercedes GLE450e PHEV The 2024 Mercedes-Benz GLE450e is a plug-in hybrid (PHEV) that impresses with its seamless blend of luxury, space and eco-friendly technology. Equipped with a 23.3 kWh battery, it offers a substantial electric-only range of 77 kilometres, making it ideal for urban commuting with zero emissions. The GLE is also one of the few plug-in hybrids that offers DC fast charging, making it potentially quicker to charge despite its large battery pack.

Under the hood, a turbocharged 2.0L 4-cyl engine pairs with the electric motor to deliver a combined 381 hp and 470 lb-ft of torque.

While the EV powertrain is impressive in hybrid mode, the engine can sound a bit gruff under hard acceleration. Various modes are offered including hybrid, EV-only or battery-hold mode.

Inside, the GLE450e boasts a luxurious and spacious cabin featuring high-quality materials, a cutting-edge MBUX infotainment system and ample space for all passengers. Advanced driver assistance features, such as adaptive cruise control and lane-keeping assist, further enhance safety and convenience, solidifying its status as a top-tier luxury SUV.

The 2024 Ford Mustang EcoBoost coupe is a freshly redesigned model, featuring an all-new seventh-generation platform and aggressive styling.

Powered by a 2.3L turbocharged 4-cyl engine, it generates an impressive 315 hp and 350 lb-ft of torque, ensuring exhilarating acceleration and responsive handling. Zero to 100 km/hr comes in around 5.6 seconds, with the peppy EcoBoost engine having no problem keeping up with traffic.

The Mustang’s iconic design elements remain, with the signature tri-bar taillights still there but reimagined. Inside, the cabin offers new premium materials, a driver-centric layout, including the latest SYNC 4 infotainment system with multiple configurations and displays that can be set in far more ways than previously possible. The massive 13.2-inch display is easier to read and quicker to react.

Advanced safety features, such as adaptive cruise control, lane-keeping assist and pre-collision assist, provide added peace of mind. The all-new 2024 Mustang EcoBoost coupe is a compelling choice for those seeking the classic Mustang experience with enhanced fuel efficiency and cutting-edge technology.

2024 Alfa Romeo Giulia Quadrifoglio The 2024 Alfa Romeo Giulia Quadrifoglio’s production is sadly ending, closing this chapter of Alfa’s sports sedan efforts as the company transitions towards electrification.

The Giulia Quadrifoglio’s advanced chassis, near-perfect weight distribution and rear-wheel-drive layout contribute to its agile handling and dynamic driving experience, making it a standout in its class while adding some Italian flair. Delivering exhilarating performance with unmistakable Italian styling, the Quadrifoglio’s 505 hp twin-turbo V6 engine enables a 0 to 100 km/hr sprint in just 3.9 seconds.

The exterior is distinguished by aggressive lines, a signature V-shaped grille and aerodynamic enhancements, such as a carbon-fibre rear spoiler and a carbon-fibre active front splitter. Inside, the Quadrifoglio combines luxury and sportiness with a unique exposed carbon-fibre trim, well-bolstered leather seats, and a driver-focused infotainment system.

The Italian flair is also applied to an infotainment system which can be a bit difficult to navigate when compared to other Stellantis products.

For Canadian enthusiasts, this will be the last opportunity to own a purely internal combustion Quadrifoglio model. Order books closed in April 2024, with production ending shortly thereafter in June.

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Signals Magazine Summer 2024

2024 Acura MDX Type S The 2024 Acura MDX Type S builds upon the fourth-generation MDX, appealing to those looking for more power and performance. Under the hood lies a potent 3.0L turbocharged V6 engine that produces an impressive 355 hp and 354 lb-ft of torque, ensuring a far more thrilling driving experience over the standard MDX 3.5L V6’s 290 hp.

The exterior design is bold and aggressive, with mainly the 21-inch wheels and quad exhaust tips setting the Type S apart. You’d be hard pressed to notice the unique front and rear bumpers.

Inside, the Type S offers a luxurious and spacious cabin that is better appointed than the normal MDX. This includes ventilated seats, a 12.3-inch digital instrument cluster and a premium ELS Studio 3D sound system.

Under the skin, the numerous chassis and powertrain upgrades transform the Type S into a far more dynamic SUV, although the 10-speed auto could be quicker to shift manually.

The Type S-exclusive air suspension plushes up the ride, while the fourth-generation Super Handling AWD system is now able to torque vector up to 70 per cent of the engine’s torque to the rear axle, and up to 100 per cent of that torque left or right to assist with the vehicle’s rotation.

Advanced safety features like adaptive cruise control, lane-keeping assist and collision mitigation braking enhance driver confidence.

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MEMBER NEWS

Challenges, Achievements and Gratitude The New Car Dealers Association/Foundation hold hybrid AGM

BY BLAIR QUALEY The hybrid New Car Dealers Association and New Car Dealers Foundation annual general meetings were held in May to discuss the important challenges facing the sector and to offer a platform to celebrate industry achievements in 2023.

It also provided an opportunity to express gratitude to outgoing board members James Carter, Peter Heppner, Erik Jensen, Anthony Lunelli, Peter Sia and Peter Trzewik, thanking them for their years of dedicated service to BC franchised new car dealers. Their contributions have been instrumental in shaping the direction and impact of our association, and their presence will be missed.

At the same time, we also extended a heartfelt welcome to new members April Gaskell, from GM Financial; Bradley Warren, from BMO; and dealers Dave Bare, from the Harris Auto Group on Vancouver Island, and Luke McClellan, who is managing partner of Wheaton Chevrolet Ltd., Wheaton Buick GMC Ltd., and Mercedes-Benz Kamloops.

In serving as an opportunity to discuss challenges facing our sector, the AGM considered several factors, the most notable being the zero-emission mandate, associated hard targets and penalty structure— in the face of softening demand.

A recent national survey conducted by AutoTrader has shown that in the past two years enthusiasm for purchasing electric vehicles has seen a notable decline, dropping from 68 per cent in 2022 to 56 per cent by early 2024. This downward trend is concerning, considering government mandates stipulating that 90 per cent of light-duty vehicle sales in the province must be zero-emission vehicles (ZEVs) by 2030 and 100 per cent by 2035.

It’s clear there are challenges on the horizon for the automotive sector, and we need to be adaptive and flexible to changing circumstances.

There is no doubting that our industry and government share the same desire: to create an environment that will assist BC in maintaining a leadership position in ZEV adoption. Where we differ is how to chart the most successful path. There is power in collaboration when industry and government unite in pursuit of a common goal—and that is something we hope to achieve.

The journey towards a sustainable automotive future is ongoing, but with each milestone reached and every partnership forged, we move one step closer to realizing a cleaner, greener tomorrow for our country.

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NEW BOARD MEMBERS

Dave Bare

Luke McClellan

April Gaskell

Bradley Warren

HARRIS KIA

WHEATON BUICK GMC LTD. / MERCEDES-BENZ KAMLOOPS

GM FINANCIAL

BMO DEALER FINANCE

Member at Large

Member at Large

RETIRING BOARD MEMBERS

James Carter

Peter Heppner

Peter Sia

Anthony Lunelli

Erik Jensen

Peter Trzewik

CARTER GM N. SHORE

Past Chair

NORTHLAND NISSAN PRINCE GEORGE

Past Chair

ROYAL BANK OF CANADA

GAIN GROUP VANCOUVER ISLAND

PRESTON GM LANGLEY

KELOWNA SUBARU

Member at Large

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TRENDS

The Bumpy Road to Electrification Slight decline in EV interest is likely a speed bump—not a ditch

BY BRUCE CAMERON, SIGNALS COLUMNIST In the past decade, the appeal of electric vehicles (EVs) looked like it would continue to grow every single year. However, a drop in interest measured in 2024 has called into question this line of thinking. Are we about to witness a long-term softening of consumer demand for EVs, or is the small recent downturn in EV demand simply a blip on the road to electrification?

Governments throughout North America are banking heavily on the recent drop in EV demand being a blip. Transport Canada set an aggressive target of 100 per cent zero-emission vehicles by 2035, and attractive incentives were put in place by some provinces (especially BC and Quebec) to encourage EV-curious buyers to make the switch. Now that push seems to have run into some serious headwinds.

Quebec is scaling back its incentives as demand for new EVs wanes in Canada and the US. The 2024 J.D. Power survey of consumer interest in EVs shows a decline in both

12

Signals Magazine Summer 2024

the US and Canada from 2023, down a few percentage points.

It is important to point out that interest remains high (24 per cent “very likely” to purchase in the US and 11 per cent in Canada), but the predicted upward trend did not continue. Is the pendulum about to swing away from EVs and toward what Toyota calls a “multi-pathway approach” that includes hybrids and other fuel sources such as hydrogen?

In January 2024, an article in The Daily Telegraph noted that “Akio Toyoda, chairman of the world’s biggest carmaker by sales, said that electric vehicles should not be developed to the exclusion of other technologies, such as the hybrid and hydrogen-powered cars that his company has focused on.”

Speaking to employees in a question-and-answer session, Mr. Toyoda added: “The enemy is CO2.”

If the enemy is CO2, Toyota is counting on hybrids and hydrogen to win the battle.

The recent pushback against total electrification may not last, given the momentum toward restructuring the entire transportation network. Adoption of EVs slowed in North America at the beginning of this year, but there have been many billions of dollars invested in new charging infrastructure, most original equipment manufacturers (OEMs) plan to introduce more choice of EVs into the market soon, and huge amounts of dollars have been committed to the construction of new battery plants.

The scale of investments in battery production are massive. In late 2023, the federal government announced that Maple Ridge, BC would be the site of what will be Canada’s largest producer of lithium batteries when it is fully operational by 2028.

CBT News points out this trend is well established throughout North America, with overall electric battery manufacturing capacity “set to quadruple in the next few years.” And one of the telltale indicators of

New discoveries have a way of disrupting straight line thinking, and overcoming any speed bumps along the way. the overall health of the EV market, Tesla, saw its stock price approach a yearly high in the range of $230 per share in early July 2024.

Naysayers, who see the recent drop in EV demand as a sign that the trend has run its course, point to waning demand due to range anxiety, plus the high price point of new EVs. Political opponents of electrification may use this opportunity to claim that heavy investment in electrification has been a colossal mistake. With the very real prospect of a Conservative Poilievre government in Canada by 2025 and potentially a second Trump administration in Washington, it is easy to envision the brakes being applied to the whole push for EVs as a means of addressing climate-change challenges.

That pushback is not off on the political horizon, it is here now. Take, for instance, US Ford dealers’ resistance to the company’s expensive plans to implement EV dealership status for qualifying partners. In mid-June, Ford announced that its much-hyped EVcertified program, announced in September 2022, was being scrapped. The program would have required dealers to spend up to $1 million in dealership upgrades to sell EVs. But as analyst Michael Wayland pointed out in mid-June, “EV sales for Ford and other automakers are growing but at a far slower pace than many expected. That’s led to automakers delaying or cancelling future electric vehicle investments.”

Despite the doom and gloom prompted by a small drop in EV interest, there are longer-term signs that indicate the future will be much greener than it is now. Toyota is banking on consumer demand to remain high and for hybrids to be a viable solution for range anxiety. And Toyota continues to make improvements in the efficiency of the combustion engine, which may not be dead just yet.

Coupled with the massive investments that have been made in building new charging infrastructure and new battery production, electrification of most of North America’s fleet remains achievable and even likely by the mid-2030s. The pushback and signs of consumer reluctance may yet prove to be a speed bump.

When trying to predict future behaviour based on extrapolating consumer interest data, it is crucial to remember that the impact of technological innovation is never linear. One great example comes out of the UK, where startup Nyobolt just announced it has successfully developed a prototype battery that will take up to six minutes to fully recharge, without the problematic heat involved in current recharging systems.

Considering it takes about five minutes to fill up with gasoline, the new Nyobolt batteries, if they proceed to full scale production, will alter the EV math completely by virtually eliminating range anxiety.

New discoveries have a way of disrupting straight line thinking, and overcoming any speed bumps along the way.

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LEGISLATIVE WIRE

Celebrating the Progress of EV Adoption in BC NCDA hosts EV Day at the Legislature to great success In mid-May, BC’s New Car Dealers Association hosted its annual EV Day at the Legislature to celebrate the progress of zero-emission vehicle adoption in this province.

The event is an annual coming together of industry leaders, policymakers and stakeholders to mark success and hold hybrid association and foundation annual general meetings to discuss the important challenges facing the sector.

On the front steps of the BC Legislature, new car dealers were joined by Premier David Eby, the Honourable Josie Osborne, Minister of Energy, Mines and Low Carbon Innovation, and several other elected members to celebrate the progress of zero-emission vehicle adoption in British Columbia.

A record number of dealerships came together to showcase the latest advancements in EV technology, and their collective display demonstrated the important work they do in increasing consumer awareness and adoption of electric vehicles.

Thank you to EV Day participating dealerships: » Campus Auto Group » Harris Auto Group » Jenner Chevrolet Buick GMC Ltd. » Jim Pattison Subaru Victoria » Jim Pattison Toyota Victoria » KIA Victoria » Steve Marshall Ford Lincoln Ltd. » Three Point Motors » Victoria Hyundai » Wheaton Chevrolet Buick Cadillac GMC Ltd.

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Signals Magazine Summer 2024

Leadership and Innovation: The VSA’s Archana Singh “Bringing clarity out of chaos,” Singh honoured with a BC Business Women of the Year award Recognized as a transformational leader who thrives at stepping outside her comfort zone, Archana Singh is adept at “bringing clarity out of chaos.” She is a seasoned professional with more than two decades of experience, specializing in strategic and tactical planning It’s these traits that earned Singh—the VSA’s executive vice president, Corporate Services and Risk—recognition as the runner-up in the Innovator category at last month’s BC Business Women of the Year awards. While this acknowledgment is certainly a testament to her contributions to the organization and the initiatives she has spearheaded, for those who know her, it also came as no surprise.

“It was an honour to be nominated and win an award in the Innovator category. I was amazed and humbled by the impressive accomplishments of the women nominated in each category,” Singh said, adding, “It’s inspiring to see so many talented women recognized and celebrated for their leadership in this province.”

Singh joined the VSA in 2021, and her time at the organization can be defined by her forward-thinking approach and dedication to improving the experiences of key stakeholders, such as consumers, industry members and employees.

In recent years, she has led several initiatives that have drastically improved both internal operations and public outreach.

Specifically, this includes overhauling the organization’s website (vsabc.ca), establishing a social media presence, and initiating a complete rebranding, resulting in an increased consumer awareness level.

If you ask Singh what she is most proud of, she will probably share her efforts in helping improve company culture at the VSA. When Singh joined the VSA in 2021, employee satisfaction sat at a mere 47 per cent.

Enhancements to internal communication processes, professional development opportunities for staff, and an emphasis on employee understanding of the organization’s strategic direction helped raise this metric. The

Archana Singh, the VSA’s executive vice president, Corporate Services & Risk.

VSA now boasts a 100 per cent employee recommendation rate for the second year in a row.

Passionate about empowering women in the workplace, under Singh’s and the VSA’s senior leadership team’s guidance, a significant percentage of the organization is now comprised of women. This is a reflection of a commitment to gender diversity and inclusion, and something in which Singh and the VSA take pride.

“Diversity and inclusivity create a stronger and more dynamic workplace,” Singh says.

“It gives us a broader spectrum of perspective and ideas. Problem solving becomes more complete and more effective because we look at issues from multiple vantage points and learn to appreciate and include that breadth of knowledge.”

The VSA is actively working to eliminate barriers, ensuring it is an accessible organization, and implementing a continuous growth and change model to maintain sustainable accessibility, with a particular focus on encouraging women’s growth. A 2023 study by Rosenzweig & Company found that of the

538 business leaders at Canada’s largest publicly traded companies, 57—or just 10.9 per cent—are women. This is despite the fact over half of Canada’s population identify as female.

“As a leader and mentor, I want to ensure that women understand they can achieve anything they aim for,” Singh says. “Being a role model and sharing my knowledge and experience with future leaders is a tangible way to make a positive difference for others and create a better future for all.”

While her recent recognition at the BC Business Women of the Year Awards may have been the first time you heard Archana Singh’s name, it won’t be the last. She continues to set an example of what a dedicated, innovative and inspiring leader can achieve. As Singh looks to the future, she remains committed to making a positive impact within the VSA, the automotive industry in BC, and especially in the broader business community—inspiring the next generation of women in the workforce.

To learn more, head to vsabc.ca

newcardealers.ca

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COVER STORY

Q&A

Ann Marie Clark and her team on a “Fun Friday” at work.

As Ann Marie points out, “it takes a village” to be successful.

16

Signals Magazine Summer 2024

Meet Ann Marie Clark, of Steve Marshall Ford Lincoln & Family Ford A Q&A with the NCDA’s newest board chair

“I find this to be a humbling role, but I can’t stress enough how satisfying it is to sit among such dedicated and informed board members and staff. I see my key responsibility as ensuring that we are working collaboratively and being as responsive as possible to our members.”

Signals: Thanks for taking the time to be interviewed and for your service to new car dealers across the province. You are a respected automotive leader on Vancouver Island and in the Ford world, but for those who may not know you, can you tell our readers something they may not know about you?

Ann Marie: Hmm…I can sing the words to Notre Dame’s school songs (learned from my dad); I used to barrel race around apple trees on our horse Kit to the dismay of my mom; I’ve completed NADA Academy [a program for current and future dealership leaders] twice; and I have a sparkly cowboy boot collection —just to name a few.

Work is definitely at the forefront in my life especially with our kids grown and now making their mark on the world. Although, our four dogs (and a cat) keep me busy too, as well as my amazing husband. I couldn’t do all I do without his support and love, and for that I am so very grateful.

S: What was the first car you owned?

AM: My first car, and still one of my favourites, was a light blue 1986 Tracer with a really cool single red pinstripe down the side (at least I thought it was cool!). At the time, I was in high school and spent so many hours in that Tracer, with some great memories.

S: Can you tell us about your journey in the automotive industry and what led you to become the owner of Steve Marshall Ford Lincoln & Family Ford?

AM: I actually went to university with the intention of working in the medical field.

I took a semester off for a break and realized the car business was actually about taking care of people, which really drew me in.

I remember telling my dad that I didn’t need to complete my degree and that

I wanted to be in the car business…and I can still hear his laugh. He assured me I DID need to get my degree!

I then attended NADA’s dealer academy and learned a great deal. When my father purchased Meyers Holland Motors in Nanaimo in 1997 (now Steve Marshall Ford Lincoln) I went to work with him, and then purchased the business from him. In 2012, I purchased Joe Cunningham Ford (now Family Ford).

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

AM: The work that the board did during the pandemic was key. I was among many dealers who were concerned about what the future might hold, and the potential impact on staff and our guests, and the essential service vehicles we take care of (ambulances, RCMP, et cetera).

S: How do you view your role as the chairperson of the New Car Dealers Association of BC? AM: I find this to be a humbling role, but I can’t stress enough how satisfying it is to sit among such dedicated and informed board members and staff. I see my key responsibility as ensuring that we are working collaboratively and being as responsive as possible to our members.

S: Tell us one thing about the work and value of the association that most dealers aren’t aware of, especially the advocacy on behalf of members with government.

AM: It’s only through my work on the board that I have gained an appreciation for the tireless work of Blair to build relationships and advocate on behalf of the association.

It’s a motivating factor for me to do the best job possible.

S: What do you see as the most significant challenges facing the sector at this time?

AM: The recent changes to the CleanBC Go Electric Passenger Vehicle Rebate Program pose a big challenge to our sector, but more importantly, to consumers. Lowering the threshold and eliminating 75 per cent of vehicles eligible for a provincial rebate also threatens our ability to meet mandated ZEV targets. Unless government adopts a more flexible approach, this means major financial penalties for manufacturers—and in the end, consumers will end up paying more.

On top of that, at a time when the average cost of a new vehicle is in the neighbourhood of $66,000, we continue to urge government to increase the present $55,000 threshold for the new car luxury tax. We also continue to advocate for additional investments in training, and more accredited technicians.

S: What are your top priorities for the association in the next year over your term as board chair? Please share what you are hoping the NCDA can accomplish on behalf of BC’s franchised new car dealers.

AM: Our industry is just turning the corner following the pandemic, so our focus needs to be to continue that momentum.

The provincial government has presented some serious obstacles in the form of changes to the CleanBC Go Electric Passenger Vehicle Rebate Program and a rigid approach to its mandated ZEV targets.

Those two issues represent significant challenges, so we need to continue to impress upon government the cumulative impact for consumers and how both are counter to their CleanBC objectives.

At the same time, our signature event, the Vancouver International Auto Show, returned this year to record-setting attendance after

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17

a four-year hiatus. We are already starting the planning process for an even bigger and better event in 2025.

And of course, it will be accompanied by the Industry Gala to celebrate excellence in the auto sector and raise proceeds for the New Car Dealers Foundation, which supports the incredible work of Special Olympics BC. S: How do you define success as a prominent person in the car industry?

AM: It has been important for me to define what success is on a personal and professional level and the following is what I developed and read every month to keep me focused: Success to me starts with creating a work environment that is the most sought-after place to work in our community.

It is having a welcoming, trusted place for our staff and guests to come to, so much so that they rave about us to friends and family. It is having a profitable dealership so we can continue to provide for our team for many years to come.

To be recognized by Ford Motor Company and the industry as a leading dealership would be the icing on the successful cake.

S: What impression do you want to leave as you continue in the role as board chair?

AM: I believe there are always going to be challenges, but it’s how you respond to those challenges that defines you. I have the utmost respect for my colleagues on the board and all members and want to continue working to advance the interests of our sector, in a manner that is collaborative, respectful and thoughtful.

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

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Signals Magazine Summer 2024

LEGAL LINE

Employment Contracts and Termination Provisions Stability for new car dealerships

BY MATTHEW WANSINK, SENIOR COUNSEL, MEP BUSINESS COUNSEL / SHAHROUZ SHOGHIAN, ASSOCIATE, MEP BUSINESS COUNSEL In the dynamic world of business, employment contracts serve as a crucial tool for establishing clear terms and expectations between employers and employees. For new car dealers, understanding and properly utilizing termination provisions within these contracts can provide significant benefits. These provisions not only help mitigate risks associated with employee turnover, but also ensure legal compliance and protect the dealership from potential disputes.

What are employment contracts?

An employment contract is a legally binding agreement between an employer and an employee that contains the terms and conditions of employment. These contracts can be written, oral or implied, but written contracts are always preferable as they provide clear documentation of the employment terms that the dealer and its employees have agreed to. A comprehensive employment contract typically includes several key components: a detailed job description, the compensation package, working hours, the term of employment and crucially, termination provisions. Each of these components serves to clearly define the relationship between the employer and the employee, reducing the potential for misunderstandings and disputes.

The importance of termination provisions Termination provisions are a vital aspect of employment contracts, providing clarity on how and when the employment relationship can be ended. These provisions protect both employers and employees by setting out clear expectations for each party.

The primary benefit of termination provisions is ensuring compliance with legal obligations. British Columbia’s Employment Standards Act (ESA) sets out minimum requirements for notice periods and severance pay, and termination provisions help ensure that these requirements are met. By clearly stating the terms under which employment can be terminated, these provisions mitigate the risk of wrongful dismissal claims, which can be costly and time-consuming for employers and stressful for employees.

In addition to legal compliance, termination provisions provide operational stability. Knowing the terms under which an employee can be terminated allows employers to plan for potential changes in staffing and maintain continuity in operations. This is particularly important in new car dealerships, where smooth and consistent transactions are critical to maintaining customer satisfaction and operational efficiency.

Termination provisions also help manage costs associated with employee turnover. By specifying the notice period or severance pay required, these provisions provide financial predictability. Employers can plan for these costs and avoid unexpected financial burdens.

Types of termination provisions Termination provisions can take several forms: Just-cause termination: Termination for just cause occurs when an employee’s behaviour or performance breaches the terms of the

20

Signals Magazine Summer 2024

employment contract, justifying immediate dismissal without notice or severance. Examples include theft, fraud or severe misconduct.

Including a just-cause provision in the contract clarifies the types of behaviours that can lead to immediate termination.

Without-cause termination: Employers may also terminate an employee without cause, provided they adhere to the notice period or severance pay stipulated by the ESA. Carefully worded without-cause terms can also protect a dealership from the more onerous employee payout entitlements often seen at common law. Finally, by establishing the notice period or compensation in lieu of notice entitlements, a without-cause termination provision offers clarity and reduces the likelihood of end-of-employment disputes between the employer and employee.

Constructive dismissal: Constructive dismissal occurs when an employer unilaterally changes a fundamental term of the employment contract, prompting the employee to resign. A dealership’s costs, for a successful constructive dismissal claim, can be substantial. Well-drafted termination provisions can help prevent constructive dismissal claims by ensuring any changes to employment terms are made with the mutual consent of both the employer and employee, and with adequate notice.

Practical steps for new car dealers Drafting comprehensive contracts: Work with legal counsel to draft comprehensive employment contracts that include detailed termination provisions. Ensure that these contracts are tailored to the specific needs of your dealership and comply with provincial laws. A well-drafted contract not only protects the employer, but also provides clarity and security for employees.

Training and communication: Educate management and Human Resources personnel about the importance of termination provisions and how to implement them effectively. Clear communication with employees about their contracts can also help prevent misunderstandings. Regular training sessions can help ensure that all team members understand the terms of their employment and the conditions under which their employment can be terminated.

Regular reviews and updates: Regularly review and update employment contracts to reflect any changes in the law or business needs.

Employment contracts with well-defined termination provisions are essential tools for new car dealerships in British Columbia. By drafting clear contracts, and seeking legal guidance, dealership owners can protect their businesses and foster a fair and transparent workplace.

A parting word In the last edition of Signals, we discussed Canada’s new Fighting Against Forced Labour and Child Labour in Supply Chains Act, and the test applied in determining whether or not dealers have to submit the report contemplated under the new legislation. “The May 31, 2024 reporting deadline has now passed. Given the potential for significant penalties for those that do not submit a report, if required to do so, dealers are encouraged to consult with their professional advisors to determine what steps they need to take.

For further assistance with any of your legal matters, please contact Matthew Wansink (mwansink@meplaw.ca), or one of the business lawyers at MEP Business Counsel (meplaw.ca).

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SPONSORED CONTENT

Making Our Roads Safer, Together CounterAttack sees huge success in reducing impaired-driving fatalities In 1977, a pivotal moment marked the beginning of significant changes in road safety in British Columbia. It was the year when ICBC, in collaboration with the provincial government and law enforcement, introduced CounterAttack, the first major initiative against impaired driving in Canada.

The objective was clear: to deter and remove drug- and alcohol-impaired drivers from BC roads through strategic road checks.

Before CounterAttack, BC grappled with the highest number of impaired driving-related crashes in Canada, with over 300 fatalities recorded in 1976 alone. Fast forward to 1987, 11 years after the program’s inception, and the impact was profound—impaired driving-related fatalities had decreased by approximately 50 per cent. Today, that number has further decreased by 80 per cent from 1977, averaging 61 fatalities per year.

While considerable strides have been made toward reducing impaired-driving fatalities, the battle against this preventable behaviour is far from over. Impaired driving remains one of the top three leading causes of fatal crashes in BC, and young drivers aged 16 to 25 account for the highest number of all impaired-driving crashes. Furthermore, every summer sees a surge in impaired driving-related crashes resulting in injuries or fatalities compared to other times of year.

Louisa Mendonςa (centre), Road Safety & Community Coordinator with the ICBC Road Safety Delivery team.

Continued on next page

Nice and safe!

Just how we like it.

ICBC is working together with everyone to help make our roads safer in B.C. Thanks for doing your part.

Safety takes everyone

Safer roads together

22

Signals Magazine Summer 2024

SPONSORED CONTENT

How the 2024 Federal Budget Will Impact Your Dealership Tax implications could be significant The 2024 federal budget (Budget 2024) was delivered by the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, on April 16, 2024.

This article will comment on three measures from Budget 2024 that will impact dealerships, including:

» increase in the capital gains inclusion rate from 50 per cent to 66.67 per cent;

» increase to the Lifetime Capital Gains Exemption (LCGE); and

» further changes to the Alternative Minimum Tax (AMT).

Information contained in this article is current to June 7, 2024. Note that no draft legislation has been released to date on the capital gains inclusion rate measures mentioned above. The government was clear with the capital gains inclusion rate change that additional design details are forthcoming and that other consequential amendments would also be made to reflect the new inclusion rate.

Any planning undertaken in respect of these measures should take into consideration the pending changes to other tax measures, including AMT and the General Anti-Avoidance Rule.

Capital gains inclusion rate The capital gains inclusion rate for capital gains realized on or after June 25, 2024 will

increase from 50 per cent to 66.67 per cent for trusts and corporations.

The capital gains inclusion rate for capital gains realized on or after June 25, 2024 will also increase from one-half to two-thirds for individuals on the portion of capital gains realized in the year exceeding a $250,000 threshold.

The $250,000 threshold would effectively apply to capital gains realized by an individual (not a corporation), either directly or indirectly via a partnership or trust, net of any:

» current-year capital losses;

The LCGE is available only to individuals who sell shares of a qualified small business corporation (QSBC). In addition to the enhanced exemption of $1.25 million, an individual can also benefit from the $250,000 capital gains inclusion rate threshold.

In most provinces, before considering AMT, the increased exemption (fully utilized) will translate into approximately $423,500 of tax savings when compared to paying taxes at the highest marginal rates, assuming the $250,000 threshold applies.

» capital losses of other years applied to

Alternative Minimum Tax

reduce current-year capital gains; and » capital gains in respect of the LCGE, the proposed Canadian Entrepreneurs’ Incentive exemption or the proposed EOT exemption.

The 2023 federal budget introduced amendments to significantly change the AMT calculation. AMT is calculated in parallel with an individual’s regular income tax liability, but it allows for fewer tax credits, deductions and exemptions when compared to the ordinary personal income tax rules. Taxpayers pay the higher of the ordinary tax or the AMT liability.

Budget 2024 proposes several technical amendments to the AMT legislative proposals from 2023. Details are forthcoming, but it appears that the capital gains inclusion rate increase may negate application of the AMT liability as forecasted by the government in 2023.

The capital gains inclusion rate change is significant for a dealership as it may result in more income tax being paid when capital gains are realized. Capital gains typically accrue on marketable securities portfolios, real property and private company shares.

Lifetime capital gains exemption Budget 2024 proposes to increase the LCGE to $1.25 million (from $1.016 million) of eligible capital gains. This measure would apply to dispositions that occur on or after June 25, 2024.

For more information about Federal Budget 2024, contact MNP’s BC Dealership leader, Ryan Calder, CPA, CA, at Ryan.Calder@mnp.ca.

Continued from previous page

To combat this persistent issue, ICBC runs two major campaigns annually, during summer and in December. These campaigns, supported by law enforcement, include CounterAttack road checks and extensive education and awareness programs across BC communities and social media platforms.

At the forefront of these efforts are the ICBC Road Safety & Community Coordinators—a team of 16 individuals living and working throughout BC. These coordinators play a vital role in implementing road safety campaigns and educational events. Their efforts are instrumental in spreading awareness and fostering responsible driving behavior.

The Road Safety & Community Coordinators organize various initiatives aimed at reducing impaired driving incidents. They support

CounterAttack road checks with police, hold educational presentations and organize mock crash events, such as the recent event led by Road Safety & Community Coordinator Louisa Mendonςa, in May, and in collaboration with North Vancouver RCMP, rescue services, Vancouver Coastal Health and Lions Gate Hospital.

ICBC also collaborates closely with organizations like Mothers Against Drunk Driving (MADD) and Operation Red Nose (ORN) to reinforce responsible driving behavior and provide safe alternatives for getting home.

These collective efforts underscore the dedicated teamwork across various departments at ICBC, all working towards the common goal of ensuring the safety of everyone on BC roads.

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SPONSORED CONTENT

The Rise of Cyberthreats and Ransomware A hot topic for dealerships in 2024 You’ve most likely seen the headlines about notable companies falling victim to data breaches and ransom demands. This alarming trend has now reached the dealership space.

Cyberattacks and data breaches have become significant threats in 2024, causing substantial financial and reputational damage.

Hackers are increasingly targeting the wealth of personal and financial information stored in dealership systems. Ransomware attacks, where cybercriminals encrypt data and demand payment for its release, are particularly damaging. These incidents disrupt operations, lead to massive data losses and expose sensitive customer information, severely undermining consumer trust. The financial impact is staggering, with businesses facing hefty ransom payments, recovery costs, lost income and potential legal liabilities.

As a leading insurance brokerage, we emphasize the necessity of robust cybersecurity measures to protect your dealership’s operations and reputation.

The impact The fallout from a cyberattack extends beyond the immediate ransom payment.

Dealerships face operational downtime, costly system restoration, customer notification requirements and potential legal liabilities.

The reputational damage from a breach can have long-term consequences, diminishing customer confidence in the dealership’s ability to safeguard their information.

The financial impact is staggering, with businesses facing hefty ransom payments, recovery costs, lost income and potential legal liabilities.

» HR departments receiving emails from employees to change banking information for payroll.

Other protective measures Employee training: Educate employees to recognize phishing attempts and other cyber threats. Regularly update training to cover new tactics used by cybercriminals.

strategies, including cyber insurance coverage. Ensuring confidence in your protection against cyberattacks is essential. With cyber insurance, you’ll have the coverage, policies and breach-response experts you need to guide you through every step of the process.

Advanced security solutions: Invest in robust cybersecurity software with intrusion detection, firewalls and encryption. Regularly update these systems to defend against emerging threats.

Key coverages include:

Implement regular data backups and develop a disaster recovery plan to quickly restore operations without paying a ransom.

» liability for data leaks; » event management following a breach; » business interruption coverage for significant operational disruptions; and » ransomware/extortion protection, including expert negotiation on your behalf.

Social engineering threats Social engineering, where hackers trick employees into transferring money to the wrong people, is a growing issue. These scams have become sophisticated. Common scenarios include:

» hackers posing as vendors on an existing

email trail, requesting payments to different accounts; Proactive measures » hackers targeting employees with urgent To counter these threats, dealerships requests from fake CFO emails to purmust adopt comprehensive cybersecurity PNF_NCDA_7.25x2_ENG.qxp_Layout 1 2024-02-08chase 9:48gift PMcards Pageor1 transfer money; and

Data backup and recovery

Vendor risk management Ensure technology vendors adhere to high security standards and assess their cybersecurity practices to prevent vulnerabilities from third-party services.

Cybersecurity is critical for car dealerships to protect their business and maintain customer trust. By adopting proactive measures and staying informed about cyber threats, dealerships can mitigate risks and ensure secure operations. At HUB, we are committed to supporting you with tailored insurance solutions and expert advice to navigate the complexities of cybersecurity.

Stay vigilant, stay protected.

To learn more, contact Wayne LeGear, 604.269.1944 / wayne.legear@ hubinternational.com / hubinternational.com

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24

Signals Magazine Summer 2024

CLEANBC GO ELECTRIC

BC Still Leading the Way BC continues its leadership position in Canada ZEV British Columbia continues to demonstrate strong adoption rates, even though it saw a minor decline from 26.48% in Q3 2023 to 21.89% in Q1 2024.

Nevertheless, BC maintains 21.1% of the national ZEV market, indicating sustained interest in eco-friendly vehicles among its population.

During January–June 2024, the number of units paid out for vehicle applications was 15,884 vehicles, after considering rebate returns and other adjustments. For the first half of 2024, there were 13,467 new reimbursement submissions.

Vehicle classification and MSRP cap changes

2024 (Jan-May) Top 10 Vehicles-Paid Out Claims

Mustang 520

Q4 E-Tron 463

BOLT 427

IONIQ 5 411

bZ4X 610 MODEL Y 5351

RAV4 641 ID.4 644

On June 18, 2024, the Ministry of Energy, Mines, and Low Carbon Innovation modified the CleanBC Go Electric Passenger Vehicle Rebate Program’s vehicle eligibility requirements.

OUTLANDER 739

MODEL 3 929

Program changes are: 1| Lowering the MSRP cap of the Cars category from $55,000 to $50,000, and 2| Moving SUVs and Station Wagons from the Larger Vehicles category to the Cars category

MODEL Y bZ4X

MODEL 3 Mustang

Outlander Q4 E-Tron

ID.4 Bolt

RAV4 IONIQ 5

For more information on the changes, visit newcardealersgoelectric.ca.

newcardealers.ca

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SPONSORED CONTENT

A SPECIAL OLYMPICS BC SNAPSHOT

Fueling an Inspiring Fundraiser 2024 Auction for Athletes steered to record-breaking success The 2024 Auction for Athletes drove inspiring support for Special Olympics BC and the New Car Dealers Foundation of BC, raising over $255,000, our biggest fundraising total yet!

From April 15 to 18, the 2024 auction was filled with over 200 luxurious items in categories such as sport, recreation, travel and many others. We are so grateful to the new car dealers, auction item donors, bidders and supporters for helping fuel two impactful charities!

“I am so proud to be part of an industry that is committed to making a significant and lasting impact on the people and communities across this province,” says Blair Qualey, president and CEO of the New Car Dealers Association of BC. “But it’s also important to acknowledge and thank our sponsors and those placing generous bids because they too play a pivotal role in supporting SOBC’s year-round sports programs and NCDA grants and scholarships for those pursuing a career in the industry.”

For over 35 years, the auction has raised more than $5.65 million to support the life-changing work of Special Olympics BC and the New Car Dealers Foundation of BC. On behalf of athletes like Tony Wilkinson, Special Olympics BC thanks all the Auction for Athletes supporters who are committed to changing lives and creating opportunities for athletes with intellectual disabilities to thrive.

“Special Olympics has changed my life as it taught me to eat healthy food and the importance of working out,” says Wilkinson. “[I like] making new friends, learning new sports and having a supportive community that welcomes everyone.”

For SOBC–Creston athlete Claire Lemaire, Special Olympics is a place where she can build belonging and create lasting friendships and memories.

“With Special Olympics I am more confident, and I enjoy travelling, making new friends and trying new things,” Lemaire says. “With Special Olympics my life is fuller. I feel happy when I know I can do different sports every day, thanks to all the volunteer coaches and all the local community members.”

Tony Wilkinson celebrating his medal achievements at the 2023 Special Olympics BC Winter Games presented by Prospera Credit Union.

Claire (centre, front row) enjoys the empowering friendship and camaraderie of the SOBC community.

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:

» Raj Autar, First Canadian Financial Group » Manse Binkley, Harmony Honda » David Jukes, First Canadian Financial Group » Pam Keith, Dueck Auto Group » Brad Osterman, Kia Victoria » Blair Qualey, New Car Dealers Association

At Special Olympics BC, athletes with intellectual disabilities find inclusion and empowerment through sport.

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Signals Magazine Summer 2024

Special Olympics BC and the New Car Dealers Foundation of BC extend sincere thanks to everyone who supported the 2024 auction and look forward to another exciting event in 2025. To get involved, please contact Heather Maciver at hmaciver@specialolympics.bc.ca.

Thank you to our valued auction supporters!

Vehicle Donors

» Honda » Pacific Toyota Dealers » Silent Auction Sponsor » First Canadian Financial Group

$20,000 Sponsor

» Kia Victoria $15,000 Sponsor

» Chevrolet Buick GMC Dealers of BC

$10,000 Sponsor

» Subaru Canada Inc. $5,000+ Sponsors

» Bannister Automotive Group » Dueck Auto Group

» Harmony Honda » The Jim Pattison Auto Group » W.P.J. McCarthy and Company

$2,000 to $3,000 Sponsors

» Harmony Acura $1,000+ Sponsors

» Brian McLean Chevrolet Buick GMC Hummer Ltd

» CDK Global » Color Compass » Go Auto North Surrey » Greg Gardner Motors » Jenner Chevrolet Buick GMC » Mazda Canada Inc. » MCL McGill Carriers » Parkshore BMW » Richmond Auto Mall

$1,000+ Item Donors

» Applewood Auto Group » AutoTrader.ca » BC Honda Dealers » Bell Media » Big White Ski Resort » Black Press Media » Canada First Nation Radio » CARFAX Canada » Carter Auto Group » Castanet Media » Dueck Auto Group » Expand Furniture » Fairmont Chateau Whistler » Harris Auto Group » Honda Power Equipment Canada

» HUB International Insurance Brokers

» Lordco Auto Parts » OPENLANE » Pacific Coastal Airlines » Pacific Toyota Dealers » Pattison Media » SAXX Underwear Co. » SilverStar Mountain Resort » Steve Marshall Ford Lincoln » The Daily Courier » The Province » Vail Resorts EpicPromise » Vancouver Sun » Vista Radio Ltd. » Waypoint Insurance » Wheaton Precious Metals Media Sponsors

» The Province » The Vancouver Sun

» Hyatt Regency Vancouver

newcardealers.ca

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SPONSORED CONTENT

Get Closer to Your Customers Through Sound

culture, entertainment, the latest video game or movie release. This is where they are focused. In a recent research study by SiriusXM, Gen Zers and Millennials are looking for access to exclusive and insider experiences, which set them apart.

Consider these four cultural trends

3| Personalization for the win.

BY MIKE MAZGAY, VP AUTOMOTIVE, SIRIUSXM CANADA Over the past few years, the auto industry has seen unprecedented change. Inventory shortages. Economic pressures. Tech and AI accelerating not only product advancements, but how we engage with customers and potential buyers.

Now, more than ever, it’s crucial that automotive retailers understand what matters to people, and how to connect and build meaningful relationships to ultimately drive sales. At SiriusXM we’re seeing four main cultural trends really impacting our business.

1| The importance of sound.

We all live in a world of visual stimuli, as we stare at screens all day, scrolling into the evening and taking in video content at a pace never seen before. A break from this? Audio entertainment. People are increasingly giving their eyes a rest and sinking into an escape with a podcast, audiobook, or a favourite music genre.

2| You are what you know.

In a highly competitive world young people are finding it hard to stand out. How are they trying to do this? By focusing on what they know. Pop

People want to feel special, heard and important, and an easy way to do this is by personalizing their buying experience. Listen to what they say, learn about their interests and look at their current vehicle. Are there golf clubs or hockey bags in the truck? Do they have a car seat? Are they a country music fan? Equipped with this knowledge you can preset SiriusXM’s PGA Tour Radio or SiriusXM NHL Network Radio, KidzBop, The Highway or Y2Kountry, so they are set for their vehicle delivery.

4| Remember, we’re all human.

We’re surrounded by talk of AI and its impact on our future, and now, more than ever, we crave human connection. Gen Zers, who grew up with devices in their hands, prefer to buy cars in person rather than online, valuing the role of the local car dealer in the last stages of buying a vehicle. Give them an experience they will remember and share with their network.

As you look for ways to connect with individual car buyers, SiriusXM is there to help personalize the journey to demonstrate you care. It’s as simple as turning on their favourite channel or introducing them to SiriusXM with 360L. Check out our new dealer training program at dealer.siriusxm.ca/training to learn more.

GET YOUR CUSTOMERS CLOSER TO WHAT THEY LOVE. Introduce your customers to SiriusXM with 360L and help them personalize their listening experience as soon as they hit the road.

Learn more at SiriusXM.ca/360L.

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Signals Magazine Summer 2024

SPONSORED CONTENT

We're here to support all your auto financing needs

Thank you for rankingTD Auto Finance #1 in Dealer Satisfaction among Non-Captive Non-Prime Lenders with Retail Credit 7 years in a row!

We pride ourselves on being consistent and reliable auto financier for you and will continue to strive to exceed expectations. Regardless of circumstance, TD Auto Finance is there when you need it the most and we're thrilled our dealers recognize that.

With your continued support, we were also recognized as #1 in Dealer Satisfaction among Non-Captive Prime Lenders with Retail Credit in the J.D. Power 2024 Canada Dealer Financing Satisfaction Study!

® The TD logo and other trade-marks are the property of The Toronto-Dominion Bank. For J.D. Power 2024 award information, visit jdpower.com/awards.

newcardealers.ca

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WITH SPECIAL THANKS

OFFICIAL SUPPLIERS AND PARTNERS

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

Premier Partners

OFFICIAL SUPPLIERS

SILVER 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 industryleading 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. cada.ca

OPENLANE The best of ADESA Canada and TradeRev in an all-new combined OPENLANE Canada marketplace. openlane.ca

CARFAX Canada, a unit of IHS Markit, is Canada’s definitive source of automotive information, delivering vehicle history, appraisal and valuation. 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. carfax.ca

BRONZE LEVEL 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. 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. michaelmason.ca

Kijiji Autos has over 6 million 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. kijijiautos.ca

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. 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 2024

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

Canadian Western Bank

Dealer Solutions Mergers & Acquisitions

MNP LLP Accounting

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

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

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

CIBC Commercial Banking

OFFICIAL NCDA BILL OF SALE PROVIDER

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

AUCTION SERVICES

Michael Mason & Co.

First Canadian Financial Group

ADESA Auctions Canada

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

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

General Bank of Canada

EBlock

PAYMENT PROCESSING, MERCHANT SERVICES

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

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

Moneris

iA Auto Finance

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

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

AUTOMOTIVE SCHOOLS

PRINT AND DESIGN SOLUTIONS

iA Dealer Services

BCIT - School of Transportation Mubasher Faruki // 604-454-2234 // bcit.ca/transportation

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

Georgian College (Automotive Business School of Canada)

LGM Financial

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

Harv Craven Design Harv Craven // 604-308-2812 // harvcravendesign.com

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

PROPERTY SECURITY

National Bank

CO-OPS

Radius Security

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

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

Leader Auto Resources LAR Inc. Bob Grewal // 778-773-1727 // larnet.com

MDA Auto Solution Mike Reid // 780-468-9552 // wdcoauto.com

DMS PLATFORMS Tekion Connor McCardle // 1-833-935-4662

CDK Global

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

RBC Automotive Finance Group Eric Jensen // 604-656-2963 // rbc.com/canada.html

RESEARCH AND SHOPPING WEBSITES

Scotiabank Western Dealer Finance Centre

CARFAX Canada ULC

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

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

Scotia Dealer Advantage

Kijiji Autos

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

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

TD Auto Finance

Trader Corporation

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

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

INSURANCE SERVICES

TOOL SUPPLIER Snap-on

Waypoint Insurance Services

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

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

Renee Nielly // 604-733-7383 // allwestins.com

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

Acera Benefits Consulting

VEHICLE ALIGNMENT SYSTEMS

Mike Sanderson // (250) 869-3921 // capricmw.ca

Raxxos Technology Inc.

HUB International Insurance Brokers

Angela Lee // (604) 260-6869 // raxxos.com

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

Reynolds & Reynolds Canada Ltd.

Insurance Insight

John Caulfield // (905) 606-2818 // reyrey.ca

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

Optiom

ENTERTAINMENT SOLUTIONS

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

KSW Lawyers

Matthew Watkiss // 604-340-6244 // flo.com

Dwain Samuels // 416-817-8444 // canadianblackbook.com

Kory Suppes // (913) 649-7830 // ncmassociates.com

LEGAL SERVICES

FLO

Canadian Black Book

NCM Associates Inc.

Steve MacIsaac // (905) 889-5390 // sym-tech.ca

EV CHARGING SERVICES

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

Kim Normandin // 514-394-1955 x508 // solutionsmedias360.com

Sym-Tech Dealer Services

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

Hunter Engineering

Consultant Auto 360

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

Sirius XM Canada

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

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

Foreseeon Julien Gagnon // 1-866-233-0247 // foreseeson-evse.com

FINANCIAL SERVICES

MEP Business Counsel Matthew Wansink // (604) 891-1153 // meplaw.ca

MERGERS AND ACQUISITIONS

BMO - Bank of Montreal

Baker Tilly Dealer Acquisitions

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

Peter Heasty // 416-368-7990 // bakertilly.com

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

New Car Dealers Association of BC

NCDA_BC VanAutoShow

NewCarDealersAssoc VIAS

NCDA_BC VanAutoShow

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CADA 360 IS DESIGNED TO HELP DEALERS IN EVERY WAY. CADA 360 products not only help with real dealer needs – proceeds from these products are used to fund lobbying and advocacy for our entire industry at both the provincial and federal level. When you buy CADA 360 it’s good for all of us.

CADA 360 Products include: • Employee Benefits • HR Automation • Garage Insurance • Group Home and Auto Insurance • Retirement Savings To find out more call 1-800-463-5289 or visit CADA.ca