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October - December 2019 / Fall Edition

100th Vancouver International Auto Show A one-on-one conversation with Honorary Chair Jim Pattison ALSO INSIDE

Navigating the Road Ahead New Disclosure Regulations UBCM Convention

SEE PAGE 26

A PUBLICATION FOR MEMBERS AND FRIENDS OF THE NEW CAR DEALERS ASSOCIATION OF BC PM40030593

www.NewCarDealers.ca

NEW CARS SOLD IN BC

JUNE: 19,730 JULY: 19,018 AUG: 19,879 YTD: 145,749


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CONTENTS

16 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 via phone, email, fax, or in person at our office in Langley, British Columbia. #380–8029 199 Street, Langley, BC V2Y 0E2 Tel: 604-214-9964 // Fax: 604-214-9965 newcardealers.ca // info@newcardealers.ca

New Car Dealers Association of British Columbia Blair Qualey President & CEO bqualey@newcardealers.ca Shakira Maqbool Manager, Finance & Administration smaqbool@newcardealers.ca

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Joshua Peters Manager, Member Services jpeters@newcardealers.ca Ofir Sapoznikov Membership and Operations Coordinator info@newcardealers.ca Roni Sapoznikov CEVforBC™ Program Administrator cev@newcardealers.ca Beatrice Francu Accounting Assistant accounting@newcardealers.ca

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Vancouver International Auto Show Jason Heard Executive Director jheard@vanautoshow.ca Direct: 604-220-2725

818 Broughton Street, Victoria BC V8W 1E4 Tel: 250-381-3484 // 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

6

New Members

12 Trends Navigating the Road Ahead

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Industry News VSA Update

15 The Dealers Women in the Driver’s Seat

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Industry News BC IMPACT Anti-Money Laundering

10 Cars and Jobs 11 Member Benefits 18 Government Advocacy 21 Legal Line 24 Special Olympics BC 26 Community Driver Awards

16 Vancouver International Auto Show The first of a two-part, one-on-one conversation with Jim Pattison, Honorary Chair of the 100th VIAS 19 UBCM Convention The NCDA attends the annual UBCM convention and meets with three levels of government 22 Canadian Dealer Academy Canadian content, customization and convenience 25 Building a Legacy of Success Two Honda dealerships are leading the accessibility movement newcardealers.ca

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PRESIDENT’S MESSAGE

News From the Front Seat BLAIR QUALEY PRESIDENT & CEO, NCDA

Welcome to our Fall 2019 issue of Signals! Saskatchewan. The concept of autumn is often conThe Western Canada Dealer Summit nected with the harvesting of crops (WCDS), held from September 21 to 23, and in many cultures, fall, like the other brought together over 300 dealers, genseasons, has been marked by rites and erous sponsors and excellent speakers, festivals revolving around the season’s at the beautiful Fairmont Banff Springs importance in food production. Animals Hotel in Alberta. Among the event highgather food in autumn in preparation lights: Google used the WCDS as its for the coming winter, and those with launch of its cross-country tour “Thinkfur often grow thicker coats. Many birds, Dealer 2019” and, as an added bonus, including Canadian Snow Birds, migrate Cox Automotive hosted an after party toward the Equator to escape the falling following the welcome reception and temperatures. registration, to introduce its new auction Here at the NCDA, we too have been service from Manheim. SiriusXM hosted busy tending to our crops as it were, to a concert featuring Platinum Blonde. We be able to harvest and prepare for the definitely woke up the neighbours that fall season. Over the summer, we connight! Please mark your calendars now tinued to plant seeds with governments, as WCDS 2020 returns to the Wynn Las tending to the develVegas on September opment and growth 25-27, during the We’re thrilled that of our strategic plans NASCAR weekend. industry icon Jim Pattison and preparing for You’ll want to race to has agreed to serve as the the challenges that get your tickets for accompany the ecothis one! Honorary Chair nomic chill and the Upon our return of the 100th Auto Show, headwinds of winter from the WCDS in and he’s already been that many say are Banff, we headed coming. straight to the Union hard at work helping with As I sit down to of BC Municipalities special invitations and compose this mesConference (UBCM) other projects sage, we have just in Vancouver. The wrapped up another UBCM was formed Western Canada Dealer Summit with to provide a common voice for local our dealer colleagues from Alberta and government and the annual conven-

2019 New Car Dealers Association of BC Board of Directors

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Jeff Hall Chairman

Ryan Jones Vice-Chairman

James Carter Treasurer

Blair Qualey President & CEO

HALLMARK FORD

MARV JONES HONDA

CARTER GM N. SHORE

NCDA

Peter Heppner

Ben Lovie

Anthony Lunelli

PRESTON GM LANGLEY

OPENROAD AUTO GROUP

ANTHONY’S SUBARU KELOWNA

Signals Magazine October - December 2019

Jim Inskter Past Chairman

Mark Edmonds

Justin Gebara

MCLAREN VANCOUVER

COLUMBIA CHRYSLER RICHMOND

Peter Sia

John Wynia

Adam Hill

Erik Jensen

NORTHLAND HYUNDAI

HARBOURVIEW VOLKSWAGEN

LGM FINANCIAL SERVICES INC.

ROYAL BANK OF CANADA


tion continues to be the main forum for UBCM policy-making. It provides an opportunity for local governments of all sizes and from all areas of the province to come together, share their experiences and take a united position. The conference is also attended by provincial MLAs and government ministers and provides a terrific opportunity for our team to share the important role BC’s new car dealers play both in the local community and in the larger provincial economy. The NCDA has been a sponsor for several years of UBCM, which provides a trade show booth and other visibility opportunities. We are already planning for next year’s UCBM conference, which will held September 21 to 25, 2020 in Victoria. We also kicked off our Chairman’s Tour of the province in Kelowna in September and look forward to meeting our members all around the province to share updates on the work of the NCDA and, most importantly, hear from our members on their issues and concerns. Thank you to CADA 360 for sponsoring the Chairman’s Tour. At the same time, we have been finalizing the dealer wage and salary survey, which will be available to all of our dealer members free of charge as a member benefit in early November. And if that wasn’t enough to keep us busy, our Board and Staff Team has been

updating our strategic plans for the coming three years. The report commissioned by CADA on the Future of the Retail Auto Sector has provided important input for these strategic deliberations and we look forward to sharing our plans with our members in the Chairman’s Tour. Speaking about planning, back on September 25, we were just six months out from the 100th-anniversary Vancouver International Auto Show and our team has been “pedal to the metal” on preparations for this special celebration. We’re thrilled that industry icon Jim Pattison has agreed to serve as the Honorary Chair of the 100th Auto Show and he’s already been hard at work helping with special invitations and other projects that we look forward to sharing with you in the new year. A short while ago, I had the opportunity to sit down with Jim Pattison and have a conversation on a variety of topics, ranging from his love for auto shows to his thoughts on changes happening to the auto sector. You will find part of the interview in this issue of Signals and we look forward to sharing more of my conversations with him along with our special plans for the 100th Auto Show in coming issues. At the time of printing, we’ll be enjoying the privilege of voting in the federal

election — thanks to CADA for providing a dealer election toolkit with key issues to share with electoral candidates. Here are some items to check out in this issue of Signals: n New economic trends and stats section provides highlights on BC and the automotive industry; n New female leadership section: an interview with Joanna Newman, of Penticton Kia; n CEV program mid-year point, January-August, shows an increase in applications from quarter to quarter, with over 2,000 applications made in September! n Community Driver Award highlights the final three 2019 award winners: Kot Auto Group, Okanagan; AM Ford, Kootenays; and MacCarthy Motors, Terrace and Prince Rupert. As this is our last issue of Signals before the end of 2019, on behalf of our Board of Directors of the New Car Dealers Association and our Foundation, along with our staff team, we send our warmest wishes for a happy, healthy and safe holiday and Christmas season and a very Happy New Year. Best wishes for 2020! See you down the road! bqualey@newcardealers.ca

2019 New Car Dealers Foundation of BC Board of Directors

Heather Headley Chair

John Wynia Vice-Chairman

Marnie Carter Founding Chair

John Chesman Treasurer

Ryan Jones

Moray Keith

Anthony Lunelli

MARV JONES HONDA

DUECK AUTO GROUP

PACIFIC HONDA

HARBOURVIEW VW

CARTER AUTO FAMILY

MCL MOTOR CARS

ANTHONY’S SUBARU KELOWNA

John MacDonald

Blair Qualey

Larry Ranger

Sharon Rupal

Zack Spencer

ADESA

PRESIDENT & CEO, NCDA

MSA FORD SALES TD.

OPENROAD AUTO GROUP

JOURNALIST

newcardealers.ca

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NEW MEMBERS Associate Members of the New Car Dealers Association of BC provide vital products and services to Dealer Members, allowing them to do business with greater cost effectiveness, environmental responsibility and general efficiency. Welcome to our new member! Harv Craven Design specializes in graphic design for businesses both large and small, with vast experience in logo development, corporate branding, marketing communications, web design, project coordination and post-design production. Based in Maple Ridge, British Columbia, and with more than 25 years of relevant experience, HCD is positioned as a full-service graphic design studio. Contact HCD: Harv Craven, Creative Director / Tel: 604-476-0435 / Email: creative@harvcravendesign.com harvcravendesign.com PandaPay Through education, world-class service and support, PandaPay helps its partners put more of their hard-earned dollars back where they should be — in their pockets. PandaPay’s honest, simple and straightforward program empowers business owners with understanding and knowledge by bringing transparency to a very convoluted but necessary part of their business. Its strategy of working only with merchant types that have a “low risk” categorization, has afforded it the opportunity to maintain the best solution guarantee.

PandPay provides: n Fully customized pricing structure n Guaranteed lowest rates n Revenue generating tools n Cutting-edge technology n Simple and seamless process n End-to-end service and support n Local representation Contact PandaPay: Michael Laliberté, Corporate Solutions Advisor Cell: 416-828-1799 / www.pandapay.ca Email: mlaliberte@pandapay.ca

Unlock Your Auto Dealership’s Full Potential Today’s auto dealers continue to face their share of challenges, from narrow margins and management struggles to dealing with manufacturers’ expectations and a constantly shifting marketplace. As business advisors to more than 140 auto dealerships in B.C., MNP understands the specific demands and opportunities of the automotive industry — and is uniquely positioned to address the needs of dealer principals, whether you’re a single-store operator or a multi-store dealer. To learn how we can help you unlock your opportunities and drive more success, contact MNP today.

Chris Schaufele, CPA, CA Partner, Automotive & Assurance Services T: 604.536.7614 E: chris.schaufele@mnp.ca

Dan Lock, CPA, CA Partner, Automotive & Assurance Services T: 604.949.2088 E: dan.lock@mnp.ca

MNP.ca

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Signals Magazine October - December 2019

Ryan Gorder, CPA, CA Partner, Automotive & Assurance Services T. 604.949.2088 E. ryan.gorder@mnp.ca


Partnering To Serve You Better Last issue, we shared about the two new director roles recently filled at the VSA and their priorities. You were introduced to Loraine Lee, our new Director of Compliance and Consumer Services, and today we are pleased to share some exciting changes that Loraine is making to her team to better support our industry.   

Background Provincial and federal legislation form the basis of the regulatory framework enforced by the VSA; however, we are influenced by many factors while executing our mandate. There are emerging trends in the environment in which we operate, requiring us to be adaptive and meet the changing needs of consumers and the industry. Some of the most significant factors are economic and technology-driven. BC’s economy is experiencing a growing used vehicle market, along with more competition and changes in technology. This means an increasing number of manufacturers are incorporating online business models. These trends, along with others, contribute to a complex legal environment, where the VSA is responding to the challenge of change.   To ensure that the VSA is responsive to these trends, we have made some exciting changes to our Compliance team to better serve industry and consumers.   

Our New Direction and Structure Currently, the VSA operates with a Compliance team that requires compliance officers to fulfill multiple roles, including conducting investigations, negotiating disputes between consumers and dealers, and performing dealer inspections. The requirements of the role mean that our compliance officers are limited in their ability to build relationships with the industry, as well as provide pro-active advice to dealers. As a result, we have created an Industry Standards team and an Investigations team to support our new direction. We will be moving the members of the current Compliance team into new roles within one of the new teams, based on their skills and strengths. The Industry Standards team, led by Chris Coleman, will focus on working with industry to build relationships to help support their needs. The team will primarily be inspecting premises and using the results of the inspections to help educate dealers and salespeople on how to be compliant with the regulations we enforce. In addition, this team will provide support on questions and information requests that come from industry.   The Investigations team, led by Norm Felix, will conduct fair and unbiased investigations of consumer complaints and investigate compliance issues of a serious or persistent nature. This direction will enable us to create consistency in industry standards and better protect consumers.     What’s next?  The remainder of the year will be focused on transitioning our staff into their new roles and continuing to share with our partners and stakeholders the progress towards this new structure. We expect the transition will take until early January to complete and we will continue to share updates with you along the way.   

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newcardealers.ca

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Key Preventative Efforts – Securing Your Dealership No one likes being the victim of a crime. For dealerships, there are several things to keep in mind about car-related criminal activity. In 2018, not surprisingly, 69 per cent of reported crimes related to theft of vehicle(s), 26 per cent related to break and enter, and 5 per cent related to fraud. To date, 2019 is looking pretty much the same: 72 per cent theft of vehicle(s); 22 per cent break and enter; and, 6 per cent fraud. When we look into the files, there a few things we can learn. While surveillance cameras do deter crime, more often they’re used after the fact to try to identify a suspect or suspects. Some dealerships have cameras installed outside but not inside. In some cases, the video quality is quite poor, making suspect identification a challenge. Where possible, consider good-quality cameras inside and out. Police love catching criminals, so the more evidence you can provide, the better chance there is that the criminal is identified, caught, charged and convicted. In some break and enter situations, the criminals took keys from a key box inside the dealership. We’ve also seen keys left in a vehicle, desk or other areas, unsecured. If you haven’t done so already, please consider secure storage for keys so that any criminals entering your premises cannot easily access them. In another twist, criminals are also fishing keys out of “key drops,” provided by some dealers to customers who drop their vehicles off after hours. You may want to look at your set-up to make it extremely difficult, if not impossible, to get keys out of those drop boxes. We’ve also seen files where vehicles weren’t returned after a test

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Signals Magazine October - December 2019

drive. Identification and a phone number were typically provided prior to the test drive but no copies were made. While the ID provided may be false, something as simple as checking the photo to make sure it’s a true likeness of the person, and then making a copy, could later help in identification. This is also where good-quality video footage might help. Lastly, in cases where a criminal has attempted to steal a vehicle but was unsuccessful, please preserve what evidence you can so it can be examined by police. We do see cases where there is an attempted theft of vehicle, but an employee has then touched and driven or moved the vehicle, making it much more difficult to obtain or preserve fingerprints and/or other evidence. Same goes for the rest of your business — where you know a criminal has touched something, please preserve that area for police examination. Stay safe!

IMPACT is BC’s Auto Crime Police. Contact Insp. Rob Vermeulen, Officer in Charge, at rob.vermeulen@rcmp-grc.gc.ca 208-14200 Green Timbers Way, Surrey, BC V3T 6P3


ANTI-MONEY LAUNDERING

Keeping An Eye on Regulations: Anti-Money Laundering BY ALAN COSGRAVE, CPA, FCPA (IRL), CFSA, CRICP, CPSCP British Columbia is known for its picturesque mountain views, hiking trails, mild winters — and now, in the news, the recent issue of money laundering. Historically, lawmakers have focused on stopping money laundering within the financial services sector, casinos and money transfer businesses. But regulators are now turning their attention to the automotive industry.

Vancouver is the Luxury Car Capital of Canada Money laundering is basically hiding illegal gains through legal activities, and while federal regulations have tightened around real estate transactions and electronic fund transfers, laundering money by buying an expensive car remains a viable option for criminals. Currently, the federal Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) doesn’t track cash purchases for luxury items such as expensive vehicles under the Proceeds of Crime and Terrorist Financing Act. In addition to being Canada’s real estate hot spot, Vancouver is seen as the country’s luxury car capital. A number of instances have been reported in the media where luxury vehicles worth $150,000 or more have been bought with cash. There is no scheduled date for automotive dealerships to be added as reporting entities to FINTRAC, but that could be changing. If reporting entities are updated to include the automotive industry, businesses will need to put in place the following components of a five-pillar, anti-money laundering (AML) program: creation of a designated Chief Compliance Officer who implements and maintains the program; a compliance regime supported by policies and procedures; a risk assessment methodology for business activities and customers; a training program to help employees perform AML activities; and an effectiveness review program that occurs every two years. Dealerships also will have to know the source of funds used to buy vehicles and submit a Suspicious Transaction Report if uncertain.

Stiff Fines and Jail Time If FINTRAC is expanded to include the automotive sector, keep in mind it will have legislative authority to issue administrative monetary penalties (AMP) to reporting entities that are not compliant with the Act. FINTRAC can also disclose non-compliance to law enforcement. Criminal penalties may include: n Failure to report suspicious transactions: up to $2 million in fines and/or five years’ imprisonment; n Failure to report a large cash transaction or an electronic funds transfer: up to $500,000 in fines for the first offence, $1 million for subsequent offences; n Failure to meet record-keeping requirements: up to $500,000 in fines and/or five years’ imprisonment; n Failure to help or provide information during compliance examination: up to $500,000 in fines and/or five years’ imprisonment. n Disclosure of a suspicious transaction report being made, or disclosure of the contents of such a report, to prejudice a criminal investigation: up to two years’ imprisonment.

Prepare for Increased Regulation and Reporting While it’s uncertain if and when regulations will come into effect, the following steps can be taken to ensure your business is as prepared as possible to deal with these new reporting requirements: n Develop and implement the five-pillar AML program; n Educate and prepare employees for upcoming changes; n Engage with customers to explain upcoming changes to processes and supporting paperwork. For more information, contact: Jacklyn Davies, B.C. Leader, Investigative and Forensic Services T: 604.685.8408 E : jacklyn.davies@mnp.ca or Alan Cosgrave, Partner, Enterprise Risk Services T : 604.637.1521 E : alan.cosgrave@mnp.ca

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Car Careers The Cars and Jobs program in Canada is continuing to chart a new course for finding and hiring the next generation of automotive career specialists. In one of the program’s recent initiatives, Abacus Data was commissioned to survey a key demographic group — millennials (ages 18 to 39) — all across Canada to find out what they are seeking in an employer. The Canadian Automobile Dealers AsInforming sociation recently published the online millennials about survey — and the results are revealing. Millennials have grown up in a sociopportunities at ety where technology is integrated into dealerships across every aspect of their lives, so it is not surBC is made prising that they want to find a career at easier... through the forefront of technological advanceCarsAndJobs.com ment. Over six in 10 millennials (61 per cent) said they want a career working in job postings a technologically advanced sector where they can help improve people’s daily lives. The continuing technological improvements in automobile production, distribution and sales offer just such an opportunity. Millennials also want careers with diverse opportunities for advancement (68 per cent) in a sector that is projected to continue growing (63 per cent).

Cars and Jobs is an important resource to help position a career in the automotive sector, and it’s targeted at millennials, the key generation that will propel growth into the future. Informing millennials about opportunities at dealerships across BC is made easier and more cost-effective through CarsAndJobs.com job postings, which are only $25 each and include a free boost to the online jobs platform Indeed. The partnership with Indeed is a key part of CarsAndJobs.com’s successful strategy of engaging the next generation of potential employees. Online job posting platforms are the ideal vehicle to reach millennials, as shown by the top sources they turn to when seeking employment opportunities: Job websites (59 per cent place them in the top three sources); Facebook (42 per cent); n LinkedIn (32 per cent); n Word of mouth (36 per cent). n n

As technology continues to evolve in the automotive dealership sector, it becomes essential to promote new career opportunities. We now know what these prospective millennial employees are looking for (technological advancement, growth and advancement) and where they are looking (primarily at online job posting sites like CarsAndJobs.com). Now it’s up to employers to reach them!

Future Proof Careers

WE NEED PEOPLE WITH HEART For now and well into the future.

Future Proof Careers available at CarsAndJobs.com carsandjobs_CA 10

Signals Magazine October - December 2019

CarsandJobsCA


NCDA Member Salary & Compensation Study Your membership in the NCDA allows our national organization, the Canadian Automobile Dealers Association (CADA), to do the important work on trade, tariffs and other key national and international issues, and it allows your local BC association to work with the BC provincial and municipal governments around the layering of taxes, environment and EV policies. The NCDA also provides guidance in wage and compensation levels for retention and hiring purposes across the industry and province. In order to provide our valued members with quality salary and compensation information, the NCDA hired a professional

consulting firm, Western Compensation & Benefits Consultants (WCBC), to conduct a comprehensive compensation survey of a cross-section of our members. The survey covers positions in the sales, service and parts departments, as well as administrative positions in accounting, human resources, information technology and marketing. Being able to make informed compensation decisions is key to the attraction and retention of qualified and committed individuals. The purpose of the Salary & Compensation Study is to assist organizations in BC’s retail auto sector make informed decisions on how much

to pay their employees and thereby stay competitive in the marketplace. All members will receive a complimentary report with a wide range of statistical measurements for salaries and variable pay, including commissions and bonuses. Wages and salaries have been segmented by: geographic location; new car volume; and luxury versus other autos. Along with salary and variable pay information, receive comprehensive, up-to-date summaries on: perks and allowances; group benefits; retirements/savings benefits; and paid time-off policies. Dealer members should keep an eye on their mailboxes for the survey results.

Canada’s Biggest Auto Dealership Group Makes Biggest Ever Library Donation A $5 million donation to the Vancouver Public Library by The Dilawri Foundation is the largest donation ever made to a public library in Canada, and will “allow the library to achieve even greater significance as a hub of learning” in Vancouver. The Dilawri Foundation is the philanthropic arm of Dilawri Group of Companies, the country’s largest automotive group with 68 dealerships representing 30 brands and over 3,500 employees across Canada. “We are so happy for this opportunity to touch the lives of thousands of families in our community,” said Ajay Dilawri, one of three founders of The Dilawri Foundation along with his brothers Kap and Tony.

“We are so happy for this opportunity to touch the lives of thousands of families in our community.” To honour the Dilawri family, which established The Dilawri Foundation in 2002, the outdoor public plazas surrounding VPL’s Central Library building were officially named Dilawri Square. Vancouver Mayor Kennedy Stewart, who presided over the ceremony along

with Christina de Castell, Chief Librarian of Vancouver Public Library, said, “I am proud today of the official naming of Dilawri Square. The extraordinary donation by The Dilawri Foundation will allow our library to achieve even greater significance as a hub of learning and community for the people of Vancouver.” “The naming of this space as Dilawri Square is the culmination of an amazing relationship between The Dilawri Foundation and VPL,” said de Castell, adding, That this “will have a positive impact on VPL and our community for years to come.” Dilawri Square encompasses VPL’s former North and South Plazas. The highly visible area is used for various non-profit promotions, filming, performances, art installations, public rallies and other community events. The Central Library is a landmark building in downtown Vancouver and its street corner plazas are among the city’s most popular public spaces. For more than two decades, the Dilawri family has shown a deep commitment to supporting communities across Canada. In 2002, founders Ajay, Kap and Tony

Dilawri established The Dilawri Foundation to oversee the family’s philanthropic activities.

The Vancouver Public Library is dedicated to meeting the lifelong learning, reading and information needs of Vancouver residents. For more than 100 years the VPL has worked to realize its vision of an informed, engaged and connected city. In 2018, VPL had more than 6.4 million visits, lending out almost 9.5 million books, ebooks, movies, music and magazines. Across 21 locations, VPL is the most-visited major urban library per capita in Canada. See: vpl.ca

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Navigating The Road Ahead: Consumer Demand And The Future of Retailing in BC By Bruce Cameron, contributing columnist, Black Press

Humourist Mark Twain once said, “Prophecy is a good line of business, but it is full of risks.” Trying to predict future trends by following the gyrations of financial markets is an imprecise undertaking. Yet as market uncertainty rises, so too does the demand for forecasting and predictions. Which brings us to the BC economy and the road ahead for automotive dealerships. Fortunately for its members, the Canadian Automobile Dealer Association (CADA) has taken the risk and completed some of the legwork, commissioning an extensive report for automotive dealerships called Driving the Road Ahead: A View Into the Future of Canadian Automotive Retailing. In this informative report published in the spring of 2019, author Chuck Seguin, founder of Seguin Advisory Services, points to a number of key developments that will affect dealerships for years to come. Here are two: ICE to ZEV. Seguin notes that “a shift away from internal combustion engines (ICE) is underway and the velocity of that shift will accelerate as we get closer to 2030.” More than most markets, BC has been leading the way to a zero-emissions vehicle future, posting the biggest annual increases in sales of CEVs in 2017 and 2018. Dealerships in other parts of the country may increasingly look to BC in 2020 (as the US auto industry looked to California for innovations in past decades) as the shift to CEVs rapidly transforms dealerships. Dealing with Data. Seguin also notes that “our world will get more and more connected as the consumer-appealing aspects of customer-enabling technologies provide enormous amounts of data.” The implication for BC dealerships is clear: hiring tech-savvy personnel will be crucial for success; fortunately, BC has one of the highest and fastest-growing segments of high-tech workers in the country.

Now let’s dive into the data within BC to see what dealerships can expect over the next year on a few key fronts like consumer demand and the future of retailing. Consumer Demand. The automotive sales figures in BC have been mixed in the past year, with declines in sales slightly below the national average. That trend lines up with the overall performance of BC’s economy, which has been stronger in 2018-2019 than most other provinces. While auto sales are not increasing the way they did in 2016-2017, other retail sales signs in the provincial economy show more promise. Based on sales per square foot, BC shopping malls punch above their weight nationally, as Business In Vancouver writer Alberta Van Antvoort points out: “Despite having only 13 per cent of the country’s population, British Columbia has 30 per cent of the top 20 highest-grossing malls.” And despite political parties trying to showcase cost-of-living increases and

the potential for an economic downturn during the recent federal election, a majority of British Columbians feel the economy here is in decent shape. Year-over-year increases in average weekly wages in BC (up by 1 per cent since 2018), as well as increased employment (up in BC by almost 94,000 jobs in one year), have led to sustained optimism among many consumers. Yet a closer examination of the numbers reveals some interesting disparities. Although overall job numbers have in-

Cars for everyday, but not everyday cars.

Cluno, a new car subscription service introduced in Munich, Germany, may be the first of many such new business ventures making purchasing easy and flexible.

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Signals Magazine October - December 2019


Wheaton Family Recognized by Fraser Institute creased in BC year over year, there have been losses in manufacturing and resource sector jobs (particularly forestry), offset by gains in construction and agriculture. These sectoral shifts may disproportionately impact certain regions like Northern BC (negatively) and the agricultural areas in the Fraser Valley (positively). The Future of Retailing. The CADA report Driving the Road Ahead focuses on numerous challenges facing automotive dealerships, but none is more costly or impactful than changes to automotive retailing. Part of the force behind those changes is a big modification in consumer habits, including a steep rise in on-demand online sales and the advent of personalization and on-demand shopping. Other financial considerations likely to hasten a shift in auto retailing include the spiralling cost of land in hot real estate markets. The perfect storm of new technology adaptation among BC consumers and rising land costs caused by the push for housing developments may see forecasted changes to automotive retailing in Canada hit BC first. One such anticipated development is the introduction of so-called Satellite Stores, places where consumers can visit to showcase, learn, customize and test-drive a vehicle, which would then be shipped direct from a distant warehouse. The amount of physical space needed for such an experiential retail showcase option is much less than a traditional automotive dealership. Going many steps further, there are fascinating alternative retailing systems being developed and deployed by traditional and non-traditional automotive companies. These range from an actual automotive vending machine approach, introduced recently by Alibaba in partnership with Ford in Guangzho China, to cluno.com, based in Munich, Germany, which sells subscriptions to cars that can be upgraded every six months. The world of automotive retailing is about to experience a revolution propelled by shifting consumer demand and new technology.

On September 26, the Fraser Institute presented the Wheaton family with its highest honour — the Fraser Institute Founders’ Award. The award is presented annually to individuals in recognition of their exceptional entrepreneurial achievements, generous philanthropic endeavours and dedication to competitive markets. Over 600 individuals attended the gala evening to honour the Wheaton family in Edmonton. The Fraser Institute Founders’ Award is named after founders T. Patrick Boyle and Michael A. Walker. Award recipients are seen as role models for the next generation of entrepreneurs and leaders.

MC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND ROVER LEXUS LINCOLN LOTUS MASERATI MA WAGEN VOLVO ACURA ALFA-ROMEO FA-ROMEO AST ASTON-MARTIN TON MA TO ART AR R RT TIIN N A AU AUDI UD DII BE B BENTLEY EN NTL NT TL TLEY LEY Y B BM BMW MW BUG BUGATTI UGATTI BUICK CADILLAC CHEVROLET CH UG ORGHINI LAND-ROVER LEXUS XUS LINCOLN L LOTUS OT TU US M MAS MA MASERATI A AS SERA ER ER RA ATI TI M MA MAZDA A AZDA ZD ZDA Z D DA A M MCLAREN CLA CLA CL LAR RE EN N M MERCEDES ERCEDES MI MINI MITSUBISHI NISSAN PO UDI BENTLEY BMW BUGATTI TTI BUICK CADIL CADILLAC LL L LA CH LAC CHEV CHEVROLET EVR ROLE ET CHR C CH CHRYSLER YSLER YS ER DO DODGE OD DGE DG G FERRARI FIA FIAT FORD FREIGHTLINER G ATI MAZDA MCLAREN MERCEDES RCEDES MINI MITS MITSUBISHI TS T SU UBIISHI N NISSAN ISS SS SA AN N P PO PORSCHE OR RSC RS S HE R RAM AM ROLLS-ROYCE SMART SUBARU TESLA TO OLET CHRYSLER DODGE FERRARI ERRARI FIAT FORD D FR F FREIGHTLINER REIG GHT HTL TL T LIN INE INE INER N ER G GEN GE GENESIS ENESIIS GM EN ENE GM GMC HONDA HY HYUNDAI INFINITI JAGUAR JE SAN PORSCHE RAM ROLLS-ROYCE S-ROYCE SMART SU SUBARU UBARU BA B BAR A RU T TE TES TESLA ESL ES LA A T TO TOYOTA OY YO YOT OTA V OT VOL VOLKSWAGEN O KSWAGEN VOLVO ACURA ALFA-ROMEO AST TLINER GENESIS GM GMC HONDA HYUNDAI INFINIT INFINITI NIT N IIT TI JAG JAGUAR AGUAR J JEEP EEP EE EP K EP KIA IA LAMBORGHINI LAND LAND-ROVER LEXUS LINCOLN SLA TOYOTA VOLKSWAGEN N VOLVO ACURA ALFA-ROM ALFA-ROMEO ME EO O AS A ASTON-MARTIN STO TON T ON-MARTIN AUDI BENTLEY B BMW BUGATTI BUICK CADIL AR JEEP KIA LAMBORGHINI NI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLA MCLAREN MERCEDES MINI MITS ASTON-MARTIN AUDI BENTLEY LEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DO DODGE FERRARI FIAT FORD LOTUS MASERATI MAZDA A MCLAREN CLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM R ROLLS-ROYCE SMART SU DILLAC CHEVROLET CHRYSLER R DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS G GM GMC HONDA HYUNDAI INF I MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO ACURA T FORD FREIGHTLINER GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVER RT SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY BMW BUGA DAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN ME ACURA ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DODG ND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM LEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS G MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKS LER DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LA SCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MART R GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTU The New Car Dealers SLA TOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MARTIN AUDI Association BENTLEY BMW represents BUGATTI BUICK CADIL AR JEEP KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS390 MASERATI MAZDA auto MCLAREN MERCEDES MINI MITS more than franchised retailers in BC. ASTON-MARTIN AUDI BENTLEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD LOTUS MASERATI MAZDA MCLAREN MERCEDES NewCarDealers.ca MINI MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SU #DrivingLocalEconomies DILLAC CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS GM GMC HONDA HYUNDAI INF I MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO ACURA T FORD FREIGHTLINER GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVER

The NCDA congratulates Th l Glacier Toyota and owner Ken Leboe for 50 years in business with Toyota Canada!

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In the News for CEV: n

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The BC government has just launched the CleanBC website, encouraging people to “Go Electric BC” by switching to a new electric vehicle. It showcases some of the cars and models that are currently available for rebates through the CEVforBC and federal iZEV incentive programs. The website can be viewed at goelectricbc. gov.bc.ca. The CEVforBC™ Program has played an important role in accelerating the transition to clean energy vehicles in BC. Not surprisingly, this province is once again on pace to break all previous sales records relating to clean energy vehicles for 2019. (More than 9,700 transactions from January to September, 2019) To help encourage greater EV adoption, the province announced that it will be making more than $4 million available in new CleanBC rebates. Through the program, homeowners can access a $350 rebate to install a level-2 charging station in a single-family home. A $2,000 rebate is available for the installation of a level-2 charging station designed for multiple users in condominiums. An additional $350 rebate will be available for a limited time only for BC Hydro customers with a level-2 charging station installed.

POWERING UP Making the Move to Level 2 Chargers Level 1: Using regular household outlets

Level 2: Using larger dryer outlets

Level 2 Chargers 3X faster charge

120V

Type VS

240V

10X greater range (1 hour = 30 km versus only 3 km for Level 1)

4 of 5 Currently Use a Level 1 Charger Level 2 Charger use is growing

80% of EV Owners use Level 1 chargers

Over 1,000 Level 2 Charging Stations are now installed in public places in BC and that number is rising steadily. With incentives of up to $2,000 in place for installing a Level 2 charger in workplaces, workplace charging will become more common. The cost of residential installation varies from $700-$2,000 depending on the configuration.

Listening to You: NCDA Chairman’s Tour and Member Survey Made with

Hearing what you have to say about issues facing the automotive dealership industry is crucial to the NCDA of BC, and there are numerous ways your association reaches out to listen to your concerns. The latest NCDA Chairman’s Tour, which engages with members, kicked off in Kelowna in September, and throughout the fall, included stops in Dawson Creek, Langley, Prince George, Terrace and Victoria, among others, made possible by the CADA. The NCDA has also launched a member survey to provide important feedback about your priorities, how you rate the NCDA and what you think we can do to improve services to you. The online survey of members, conducted by independent market research company Return on Insight, asked for input in October, with highlights to be made available before the end of 2019. Watch for a summary of the findings in the next issue of Signals in February! NCDA kicks off the annual Chairman’s Tour in Kelowna in September.

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Signals Magazine October - December 2019


Women in the Driver’s Seat Women across the province are driving sales at local auto dealerships. In this ongoing series, Signals takes a look at some of BC’s top women auto dealers. Joanna Newman began her career in the automotive industry at an early age. She watched her grandfather, uncle and father start a Ford dealership in Alberta in 1961, and worked in every department, from parts and service reconditioning to accounting, sales and the business office.

Later, she attended a year-long course at the NADA Dealer Academy in McLean, Virginia, graduating as one of three women in a class of 35 students. “The course focused on every fundamental aspect of an auto dealership,” she recalls. “It was very challenging and rewarding, and allowed me to grow as a leader in the automotive world.” Newman opened a Penticton Kia dealership with her spouse, David, and is deeply proud of its achievements. “We’ve worked very hard to get where we are today and we’re so grateful to be one of the rare stand-alone franchises in the industry,” she says, adding that women constitute 40 per cent of the staff at Penticton Kia. The automotive industry delivers a fastpaced and rewarding career and Newman is quick to recommend that other women enter the field.

Joanna Newman, Penticton Kia

“Things have come a very long way in the industry since I first started over 40 years ago,” she says. “My advice to other women is to always be true to themselves and to follow their passion, no matter how difficult things might seem at the time.”

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No Better Place To See Or Buy A Car Than At The Vancouver International Auto Show AN INTERVIEW WITH JIM PATTISON (FIRST OF TWO PARTS) Blair Qualey, President and CEO of NCDA BC, recently sat down with Jim Pattison, Honorary Chair of the 100th Vancouver International Auto Show, to talk about cars, auto shows and defining business success. Blair: The Vancouver International Auto Show next March will be the 100th one held. Given your role as Honorary Chair of the event, why would you say the auto show is important for the automotive business in British Columbia?

“I’m a big believer that anything that draws people to a location with fun and flair is good for business. They need to be fun to go to and in my days, auto shows have always been fun to go to!” 16

Signals Magazine October - December 2019

Jim: Well, first of all, you don’t want to miss coming to Vancouver if you don’t already live here. Secondly, this will be the best auto show in Canada. For a 100-year anniversary, there will be nothing better than what you will see here in 2020. Special occasions are great. If you do it properly, they boost the product, the people and the image. Looking back at Expo ‘86 when the BC government decided to put on a world fair, we can see it boosted the city. And that boost is still there today. The same is true in the automotive business. When people come to an auto show, they get excited. I’m a big believer that anything that draws people to a location with fun and flare is good for

business. They need to be fun and in my days, auto shows have always been fun events to attend! Blair: I know that for many years if you weren’t away travelling for business, you’d come to the Vancouver International Auto Show. You’ve always told me that you thought auto shows were important. Now we are facing a number of vehicle man-


ufacturers pulling out from shows. Do you have any messages for these folks around the ongoing importance of auto shows, and why it’s important to the business? Jim: Well, it seems to me that people are interested in cars and they drive cars, and there are always new things and new models out there. Everyone uses a car at one point or another and it’s become the North American way of life. Blair: I come across people who say, ‘Blair, I was at the show looking and comJim Pattison shows NCDA’s Blair Qualey his office wall of photos. paring with other vehicles . . . and I went away and bought something totally different.’ Do you think that’s Jim: We’re managing to deal “When you can go one of the values of seeing everything in one place at the show? with it by doing what we’ve alto a car dealership Jim: Absolutely. When you can go to a car dealership or see it on ways done — focus on customer your computer — or however you are looking at it — it still comes service. Nothing happens until or see it on your down to the fact that kicking the tires is the best way to look. At the somebody buys something, so computer — or auto show there are so many cars to see, it’s the best place to go. we’re looking after that side of the however you are There’s no better place to see or to buy a car than at an auto show. business. In some cases, we’re not Blair: Can you tell us about your first car? Do you remember it? doing as well as I’d like us to do — looking at it — it still Jim: I certainly do. It was a 1937 Austin two-door convertible. but that’s why we have managers comes down to the who can help fix problems. When fact that kicking the you’re in business, you are always going to have some kind of probtires is the best way lems, but the businesses that sucto look.” ceed are the ones that deal with the problems successfully.

Jim Pattison with his first vehicle.

Blair: So why did you choose that vehicle? Jim: Well, the war was on and I would have taken anything I could get. My Dad helped me borrow the money. It was $357 in those days. There were price controls and you could only sell things at a price the government set, so that’s what we bought it for. I drove it to school for two years and then I sold it and made $100. Blair: A lot of people I talk to, including government decisionmakers and consumers, are talking about the uncertainty in the world, south of the border, in China and Hong Kong, and things like Brexit. How do you see these things impacting the auto business going forward? Jim: Well, it creates uncertainty. I’ve never seen so much upheaval as we have in the world today, and with uncertainty you lose confidence. I think we’re seeing some of that right now. Blair: So what do you recommend to car dealers? How are you managing this?

Learning about the Jim Pattison Group of Companies with BC business icon Jim Pattison

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GOVERNMENT ADVOCACY

NCDA Government Relations Update This past summer marked the second anniversary of Premier John Horgan’s BC NDP government. His government is in an enviable fiscal position with an expected surplus of around $150 million at the end of this year. As the Premier and his government prepare for the fall session of the Legislature, Premier Horgan is expecting to face a number of challenges, including the pending results of the federal election, the forest industry’s continuing mill closures across the province, the ongoing saga around the Trans Mountain pipeline, and signs of a slowing economy. The New Car Dealers Association of BC (NCDA) has been working on behalf of all its members, their employees and their families, as well as the community, as it continues its advocacy. The association’s goal is to continue to build on its recognition within the BC government as the voice of the auto industry, and to get British Columbians behind the wheels of more affordable and fun-to-drive vehicles that are also safer and cleaner. The NCDA has been focusing on several pressing issues with the government around affordability, including ensuring sustainable funding is in place for new electric vehicle sales, reducing purchase costs for consumers, establishing insurance rebates for consumers who choose to purchase vehicles with advance braking systems, and working to reduce the negative effects of the layered taxes that dealerships face in the auto business.

As a result of the challenges, the main theme of Blair’s presentation was the ongoing layering of taxes and fees, which now negatively impacts the viability of dealerships across the province. The committee understood the impact and recommended many of the issues that Blair raised. One of the best examples is the committee’s recommendation to re-evaluate the luxury tax on vehicles. In July, the NCDA was in Victoria for a series of meetings with Finance Minister Carole James to reinforce the message of the negative toll of layered taxes and fees as presented to the Select Standing Committee of Finance, and to push for a review of the provincial sales tax on vehicles and re-evaluate the application for the luxury tax on vehicles, especially on work trucks. Finally, the BC Government has just launched the CleanBC website encouraging people to “Go Electric BC” by switching to a new electric vehicle. It showcases some of the cars and models that are currently available for rebates through the CEVforBC and Federal iZEV incentive programs. The website can be viewed at goelectricbc.gov.bc.ca. It has been a very busy summer and fall for the NCDA, and with the new session of the BC Legislature underway as of early October, it continues to have the pedal to the metal representing its members to the government.

“We will continue to build on our strong recognition within the BC government as the voice of the auto industry. “ In early summer, the Finance Committee undertook its annual consultation with industry groups to prepare for the government’s 2020 provincial budget. Blair Qualey, NCDA President and CEO, presented to the Select Standing Committee on Finance, providing input on behalf of members. The NCDA believes this is a critical opportunity to tell the government first-hand of the impact on affordability that the rising cost of taxation has on NCDA members and their thousands of employees across the province. From left: Blair Qualey, President and CEO, NCDA; BC Premier John Horgan; Jeff Hall, Chairman of NCDA, Hallmark Ford.

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Signals Magazine October - December 2019


A Chance to Engage BY BLAIR QUALEY

The Union of BC Municipalities (UBCM) recently hosted elected officials from all three levels of government at its annual convention in Vancouver. The event is highly anticipated by the New Car Dealers Association (NCDA) as it provides an opportunity to engage politicians of all political stripes about our association and the strength of our members’ contributions to the economy, as well as discuss some of the challenges we face and the positive results of our collective partnerships. We believe the NCDA brings an important perspective to the discussion because we represent more than 390 small businesses in 55 communities across the province. Our sector generates about $16 billion in economic activity and employs more than 30,000 people around the province. Much of the discussion with delegates during the five-day event related to the state of the auto sector and the increasing adoption of electric vehicles. To drive home that Blair Qualey with BC Finance Minister Carole James at UBCM. point (no pun intended), the NCDA hosted a clean energy vehicle test drive event to demonstrate the range of “Our sector generates about $16 billion in economic vehicles now in the marketplace. Viewing a full battery of EVs like activity and employs more than 30,000 people the Chevrolet Bolt, Tesla Model 3, Kia Niro and plug-in hybrid Mitaround the province.” subishi Outlander, delegates from across the province got behind the wheel of some of these models. The CEVforBC™ program has played an important role in acAnother level of discussion with delegates was the issue of how celerating the transition to clean energy vehicles in BC, and in best to address workforce needs of the future. As the NCDA works doing so, providing both environmental and economic benefits. to formulate a strategy to entice more young people into the sector, It should come as no surprise that our province is once again on we are also encouraging government to continue its investments pace to break all previous sales records relating to clean energy in job and apprenticeship training around the province. vehicles for 2019. We enjoy what we believe is a very thoughtful and productive However, we all recognize there remain challenges impacting partnership with all levels of government. It’s one that positivethis transition. Most notable is access to conveniently located fast ly impacts our members, consumers and communities — and charging stations, both within our communities and along major through which we all mutually benefit. highway routes. Progress is being made, but suffice to say, it’s a process that must continue. 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LAND-ROVER LEXUS NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS GM GMC HONDA HYUNDAI INFINITI JAG MASERATI MAZDA MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD FREIGHTLINER KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHR ER GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MARTIN AUDI BEN CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWA TON-MARTIN AUDI BENTLEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM A TOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-R MASERATI MAZDA MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS GM GMC HONDA H P KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DODGE FERRARI INER GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY BMW BUGATTI LAC CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO AC O ASTON-MARTIN AUDI BENTLEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROY TESLA TOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN MERCE ISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVER OTUS MASERATI MAZDA MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS GM GMC HONDA HYUN EEP KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DODGE FERRARI F NER GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY BMW BUGA CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLV TON-MARTIN AUDI BENTLEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM ROLLSTOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN MER SSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVE ASERATI MAZDA MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS GM GMC HONDA HYU LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLVOACURA ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY BMW BUGATTI BUICK CADILLAC CHEVROLET CHRYSLER DODGE FERRARI YUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN VOLVO ACURA ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY BMW BUGA RRARI FIAT FORD FREIGHTLINER GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN MERCEDES MINI MITSUBISHI NISSAN PORSCHE RAM ROLLS-ROYCE SMART SUBARU TESLA TOYOTA VOLKSWAGEN GATTI BUICK CADILLAC CHEVROLET CHRYSLER DODGE FERRARI FIAT FORD FREIGHTLINER GENESIS GM GMC HONDA HYUNDAI INFINITI JAGUAR JEEP KIA LAMBORGHINI LAND-ROVER LEXUS LINCOLN LOTUS MASERATI MAZDA MCLAREN MERCEDES MINI MIT BISHI NISSA A ALFA-ROMEO ASTON-MARTIN AUDI BENTLEY KIA LAMBORGHINI LAND-ROVER LEXUS LINCOL ART SUBARU TESLA TOYOTA VOLKSWAG ESIS GM GMC HONDA HYUNDAI INFINIT NI MITSUBISHI NISSAN PORSCHE R RYSLER DODGE FERRARI FIAT FO N LOTUS MASERATI MAZDA EY BMW BUGATTI BUICK GMC HONDA ARU TESLA

BC’s New Car Dealers

#DrivingLocalEconomies providing over 30,000 family supporting jobs

donated over $40,000 For Grants and Scholarships

contributed $2.9 billion of total gdp Into Bc’s Economy

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On the Road in BC:

New Cars, New Fuel, Old Dreams

Toyota Mirai

With the continued growth of electric vehicles in BC, two of three highly anticipated new cars coming in 2020

are riding that trend. The first has deep roots in BC. Ballard Power Systems is a made-in-BC global success story marking its 40th anniversary in 2019. The global fuel cell pioneer is celebrating four decades of achievement by arranging for several employees to buy BC’s first fleet of Fuel Cell Electric Vehicles (FCEVs) from Toyota Canada — in the form of the Toyota Mirai. Mirai means “future” in Japanese, which is appropriate, since the growth of hydrogen fuel stations in BC is set to be a big part of the province’s future.

Corvette Stingray

pack, pushing energy to two synchronous electric motors, one for each axle. Iconic is the word most people use to describe the heritage of the Corvette Stingray, and if the launch of the 2020 “Next Generation Corvette” is any indication, the draw of history remains strong. Chevrolet set records for the level of interest in its 2020 mid engine C8 online launch, with almost 500,000 people straining the limits of technology during a live-streaming event in August. The most powerful production Stingray ever made, the 2020 Corvette is powered by a new 6.2-litre V8 engine, which is visible through a rear hatch window. With 495 HP and 470 pounds of torque, the power is evident, as is the hype. Power, speed and history combine in what Chevrolet calls Porsche Taycan “a dream 67 years in the making.”

Since the first hydrogen station opened in Vancouver in 2018, over $3 million has been earmarked by Natural Resources Canada and the BC government to build two more hydrogen stations in the Lower Mainland. Six stations are slated to be built by the end of 2020 in BC’s two biggest urban markets. Toyota predicts that by 2030, fully half of its global sales will be electrified vehicles. Continuing on the electric front, Porsche recently launched what the ROBB Report called “one of the most anticipated cars of the decade.” The new Porsche electric Taycan is a marvel of engineering, with 750 horsepower and acceleration from 0 to 60 mph in 2.8 seconds. The drive train features a transmission to assist with acceleration, driven by a 93-kWh lithium-ion battery

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Signals Magazine October - December 2019

OFFICIAL SUPPLIER TO


How New Disclosure Requirements Will Affect BC Companies BY KATRINA YAWORSKY As of June 13, 2019, all private, federally-incorporated corporations must now comply with new disclosure requirements in the Canada Business Corporations Act. The Province of British Columbia has introduced a similar piece of legislation to amend its Business Corporations Act, which governs provincially-incorporated companies. If you operate a federal or provincial company, there are certain disclosure rules that your company must abide by.

Amendments to the CBCA The federal government has turned its focus to corporate governance and transparency. On December 13, 2018, Bill C-86 received royal assent and came into force June 13, 2019. Several statutes, including the Canada Business Corporations Act (the “CBCA”), have also been amended effective June 13, 2019.

What Needs to be Disclosed? As of June 13, 2019, all private CBCA corporations must establish a detailed register listing all individuals (just natural persons) with “significant control” of the corporation. This information is in addition to the existing director and shareholder registers that a corporation must maintain. An individual with significant control is someone who: is a registered or beneficial owner of, or has control or direction over, directly or indirectly, a “significant number of shares” of the corporation; or has any direct or indirect influence that, if exercised, would result in control in fact of the corporation. A “significant number of shares” is defined as being 25 per cent or more of the outstanding shares of the corporation, measured by the fair market value or voting rights. Additionally, if an individual is acting jointly or in concert with one or more shareholders who collectively own or control a significant number of shares of the corporation, each of these individuals must also be included in the register and are deemed to have “significant control.” The register must contain the following information about each individual with significant control of the corporation: name, birthdate and latest address; jurisdiction of residence for tax purposes; the date when the individual obtained significant control and/or ceased to hold significant control of the corporation; description of how the individual has significant control of the company; and description of the reasonable steps taken by the corporation in each financial year to ensure the register is complete and accurate. Although the information contained in the register is not generally available to the public, it must be available for inspection by shareholders and creditors of the corporation, and it may have to

be disclosed to the Director of Corporations Canada upon request. Certain other parties may gain access to the register; however, they must first submit an application that contains an affidavit affirming that the information obtained from the register will only be used: in an effort to influence the voting of shareholders; for an offer to acquire securities of the corporation; or for any other matter relating to the affairs of the corporation.

Obligation to Maintain Register The corporation itself is obligated to prepare and update its register’s information at least annually. Specifically, the corporation must take “reasonable steps” to ensure that all individuals with significant control over the corporation have been identified and that the information in the register is complete and accurate. The corporation must, in any event, revise the register within 15 days of the corporation becoming aware that any information should be updated or recorded. The CBCA stipulates that failure to comply with the disclosure requirements can result in a director, officer or shareholder being held personally liable for a fine of up to $200,000 or imprisonment for a term of up to six months, or both. This is whether or not the corporation is prosecuted for a related offence.

How Does This Affect You? The amendments to the CBCA signal that corporate governance best practices is a significant focus for our current federal government. The purpose of the additional disclosure requirements is, in part, to promote corporate transparency, to help inform potential investors in their decisions, to provide additional tools to law enforcement agencies, and to prevent misuse of corporate and other legal entities for tax evasion and other criminal acts such as money laundering, financing of terrorist activities, corruption and so on. The Province of British Columbia has introduced a similar piece of legislation, Bill 24, to amend its Business Corporations Act. This statue governs provincially-incorporated companies. The amendments identified by Bill 24 are very similar to the federal legislation and require private companies to prepare and maintain a “transparency register” of information concerning “significant individuals.” These terms generally mirror the definitions provided for in the CBCA, discussed above. It is expected that provincial/ territorial legislators across Canada will similarly follow the federal government’s example. The takeaway is that Bill 24 will come into force by regulation shortly. The regulations will clarify many of the interpretation and application issues raised by the proposed legislation, so that private BC companies can properly implement a detailed register of all significant individuals falling within the scope of the amendments. In short order, disclosure by BC companies will be required so that current information on individuals with significant control of the company is listed and available for inspection.

For more information on this subject, please contact SHK Law Corporation and one of our experienced lawyers will be pleased to speak with you. shk.ca

newcardealers.ca

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The Canadian Dealer Academy: Canadian Content, Customization and Convenience Back in 2013 when the Automotive Dealership Management Program (ADMP) was first being developed, there was a notable lack of specifically Canadian content in automotive dealership education. The Automotive Business School of Canada (ABSC) set out to successfully fill that gap for the Canadian auto industry by tailoring information to the needs of Canadian dealers. The ABSC spent over two years performing extensive research with manufacturers and dealers across the country to build a curriculum and format that were relevant and applicable for Canadian dealers. One of the major outcomes of the research was to ensure the curriculum was designed with Canadian legislation, data and expertise in mind. This national, results-oriented program focuses on the current issues, trends and technologies in automotive dealership management, areas that are key to remaining competitive in a demanding Canadian marketplace. Participants learn to synthesize management theory with practical, hands-on learning in a program that strives to produce well-rounded and entrepreneurial managers who can contribute to the overall operational growth and success of the dealership. While some courses provide depth in departmental operations, the majority provide a broader perspective across all departments by teaching the skills needed to manage employees, deal with customers, examine finances and promote interdepartmental cooperation. The program prepares graduates to reliably demonstrate abilities in a variety of areas, including: n Strategy. Developing a comprehensive dealership operations strategy that synthesizes an understanding of theories, current industry issues, available technologies and Canadian best practices using current and relevant management principles; n Marketing. Leading-edge online and traditional marketing strategies are also explored, including using social media deployment to optimize the customer experience, improving customer satisfaction and retention and, ultimately, increasing profitability.

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Signals Magazine October - December 2019

Jason Dale, Executive Director, Automotive Business School of Canada.

Human Resources. Understanding how to plan appropriate human resource strategies in order to promote teamwork, build effective leaders, manage performance and improve employee satisfaction. n Legal Knowledge. Highlighting how to integrate knowledge of legal requirements and ethical standards into all professional business interactions. n Optimize Profitability. Exploring strategies to improve the profitability and effectiveness of the parts, service, and new and used vehicle departments within a dealership as well as optimizing relations between them. n Financial Reporting. How to interpret and evaluate financial and operating reports and propose concrete solutions to improve performance based on current Canadian industry benchmarks. n Growth. Best practices for developing strategic plans to integrate an entrepreneurial mindset into growing all departments within a dealership. n Sustainability. How to effectively employ the latest environmentally sustainable practices within the industry. The ADMP was also built to be convenient for dealers. It takes place on a part-time basis over the course of a year with a threeday, on-site component roughly every two months. This allows dealers to remain focused on their dealership while upgrading their knowledge and skills. With the support of CADA and provincial dealer associations, the on-site components are run across the country, allowing dealers to reduce their travel time and expenses. Current offering locations include Vancouver, Edmonton, Toronto, Montreal and Halifax. The goal is to ensure the program is accessible to every new car dealer across the country. This gives dealers an opportunity to not only get management training but to learn from and network with other dealers in their province. Since its launch in 2015, the ADMP has graduated over 150 dealers all across Canada. The extensive positive feedback received by graduates speaks to the extraordinary impact of this innovative program. Take the time to find out more at DealershipManagement.ca. n


DealershipManagement.ca newcardealers.ca

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MEET SPECIAL OLYMPICS BC ATHLETES

Jesse and Zack Thibeault

BC’s New Car Dealers are among Special Olympics BC (SOBC)’s longest-standing champions. It’s our privilege to introduce you to SOBC athletes and coaches from around the province. Their stories show the difference you make by supporting Special Olympics — you help create experiences of joy, friendship, empowerment, skill development and health improvements for more than 5,200 athletes with intellectual disabilities in 55 BC communities. Surrey’s terrific Thibeault twins are a force to be reckoned with — both on and off the ice. Speed skaters Jesse and Zack both qualified for the Special Olympics Team BC 2020 Training Squad through their successful racing at the 2019 Special Olympics BC Winter Games. They have been working extremely hard preparing to be at their best for the 2020 Special Olympics Canada Winter Games, which will be held in Thunder Bay next February. This event will bring together hundreds of dedicated athletes from coast to coast who will compete with pride, and show the abilities of individuals with intellectual disabilities. Zack Thibeault won gold medals in all three of his races at the 2019 SOBC Games (1,000m, 1,500m and 3,000m), and his goals for the National Games are to have a positive attitude and achieve personal bests in all his races. As a member of the Team BC 2020 Training Squad, Zack says, “I’m honoured to be part of a team of amazing athletes! We all achieved excellence in our sport because we were all determined to train hard and do our best.” At the 2019 SOBC Games, Jesse Thibeault achieved a gold medal in the 500m and silver medals in the 777m and 1,000m, but “best of all” was the fact that he earned a personal best in the 500m. “I felt incredibly proud of my accomplishments because I didn’t even

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Signals Magazine October - December 2019

know how to skate four years ago. I really trained hard to get to the Provincial Winter Games,” he says. Jesse feels that competing at the National Games “means I have an opportunity to be the best that I can, both on and off the ice, and to make my province and team proud.” This will be the second National Games appearance for the Thibeaults, after they showed their abundant athletic skills in the 2018 Special Olympics Canada Summer Games in Antigonish. In addition to their athletic accomplishments, Zack and Jesse are certified Special Olympics BC Health Messengers who made a widely acclaimed athlete health and nutrition informational video.

Learn more about the Thibeaults and Special Olympics Team BC 2020 at soteambc2020.ca. Please visit specialolympics.bc.ca to meet more SOBC athletes and learn about the Special Olympics programs in your community.

Make a difference with the New Car Dealers Foundation / Special Olympics BC Auction Over the last 30 years, the New Car Dealers Foundation / Special Olympics BC Auction has raised nearly $5.1 million to support Special Olympics BC’s life-changing, year-round sport programs for individuals with intellectual disabilities, and the empowering work of the New Car Dealers Foundation. To make a difference by getting involved in this important event, please contact Christina Hadley, SOBC Vice President, Fund Development & Communications, by phone at 604-737-3073 / 1-888-854-2276 toll-free or by email at chadley@specialolympics.bc.ca.


Building a Legacy of Access HOW TWO HONDA DEALERSHIPS ARE LEADING THE ACCESSIBILITY MOVEMENT WITHIN THE INDUSTRY

Accessibility has been on Ryan Jones’ radar for some time. Jones, the General Manager of Marv Jones Honda, says it can be traced back to Rick Hansen’s iconic “Man In Motion World Tour.” The tour raised global awareness about the potential of people with disabilities, and in Maple Ridge, where Ryan and his father operate Marv Jones Honda, this was no exception. And it was here that Jones’ father and owner of Marv Jones Honda hosted a welcome reception for Hansen at City Hall — an experience that continues to inspire the family. Recently, Marv Jones Honda has worked with the Rick Hansen Foundation (RHF) to participate in Canada’s accessibility movement by becoming leaders in the car dealership industry. Marv Jones Honda is in the midst of renovations that include several accessibility upgrades aimed at making the space easier to navigate for people with disabilities — whether they be future employees or customers. The team is working to ensure the improvements meet the growing demand for accessibility. With one in five people currently living with a disability, plus Canada’s aging boomer population, the number of people with disabilities is on the rise. “The timing makes a lot of sense to make the facility more accessible,” says Jones. One of the biggest upgrades they’re making won’t be visible to customers: in addition to working on walkways and washrooms, the dealership’s upstairs office is being renovated to ensure it can hire and support employees of all abilities. “Individuals should be able to contribute all of the skills they have to the workforce and not be held back by physical limitations,” says Jones. This will ensure their office provides an inclusive environment, and enable them to hire skilled applicants who may otherwise be limited by physical barriers — it’s a win-win. Inclusive hiring practices are just one of the economic benefits to accessibility. Marv Jones Honda will also be able to welcome more customers through their doors. Businesses should take note: according to a 2018 report from the Conference Board of Canada, spending by people with disabilities is expected to rise from 14 to 21 per cent of the total consumer market by 2030. General Manager of Vancouver’s Carter Honda, Geoff Jessup, agrees that prioritizing access is a great business decision. As he points out, “People will want to do business with you if they know you have their best interests in mind.” Carter Honda recently received a Rick Hansen Foundation

General Manager Geoff Jessup at Carter Honda receives Rick Hansen Accessibility Certificate.

Accessibility Certification™ rating in order to learn more about their space’s current level of accessibility. Following the rating, Carter Honda received a scorecard outlining areas that could be improved — and they’re already getting to work. Their first priority was to ensure their parking spaces are accessible. The building achieved RHF Accessibility Certification, something Jessup wasn’t surprised to learn. Jessup, who has worked at Carter Honda for 22 years, was in an accident a few years ago and now requires the use of a wheelchair. Because the Carter Honda dealership was accessible, he didn’t have to leave the career he loved. “Car dealerships historically have been good corporate citizens in their communities,” said Jones. “It makes sense that we as an industry are working towards accessibility for everybody.” To learn how your dealership can become more accessible, or to book a rating, visit: rickhansen.com. newcardealers.ca

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The Importance of Giving Back Community Driver Awards are presented on an annual basis to recognize the superb achievements of hardworking and dedicated new car dealers throughout British Columbia. Dealerships considered for these awards are strongly involved in their communities and exemplify business camaraderie. Here are three recent winners: Kot Auto Group, Okanagan President of Kot Auto Group, John Kot, this year’s award-winner from the Okanagan region, says playing an active role in the local community is a no-brainer. “We do it at all five of our locations. It’s something we really believe in — making sure our community knows we’ll be around for a long time.”

The team at Kot Auto presents a donation to the Kelowna General Hospital Foundation.

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Signals Magazine October - December 2019

Kot credits his upbringing in Weyburn, Saskatchewan for understanding the importance of being part of the community. “I come from a small town and I’ve always had that mentality – I think it’s important to give back.” The Kot Auto Group has pledged $100,000 over five years to Kelowna General Hospital. But the giving doesn’t stop there. Kot gives all of its employees $500 to go towards causes and charities of their choosing around the Christmas holidays. “My wife Trina and I thought ‘instead of us picking the charity, why not let the staff decide?’” The initiative, which has resulted in around $150,000 being donated to causes and charities in the community, has been a huge success among staff. Kot Auto Group has also become a lead sponsor of Kelowna General Hospital’s heart and surgical centre. The group’s generous donation of $100,000 over five years will allow the hospital to develop new technology and purchase new equipment. The cause is near and dear to John and Trina as their daughter has dealt with a heart condition since birth.

This year marks the second time Kot Auto Group has been named the Community Driver Award Winner, with the last time being back in 2016. And given how prolific their involvement within the community has been, it may not be the last. AM Ford, Kootenays For the team of 35 at AM Ford in Trail, generational customers are an integral part of the business. The 35-year-old dealership, started in 1984 by Dan Ashman, has been selling and servicing vehicles for some of its customers for more than three or four generations. “They come to us for the selection,” says Ashman. “We always run at least $7 million per year in new inventory and in excess of $1 million per year in used. And we sell between 650 and 700 new and used vehicles a year.” A pillar of his business ethos is maintaining flexibility for staff members. “As an employer you have to be flexible and you can never compromise a family situation. Family members need time off for family events, so I’ve always made it a policy to be as flexible as possible.” That can be challenging in a dealership, which is akin to running five businesses at once. “It’s how you pull together those five departments — parts, service, used vehicle sales, new vehicle sales and finance — into one cohesive, motivated team that makes the difference,” he says. But family and business also merge at


In an event organized by MacCarthy Motors, Terrace Search and Rescue received $15,000 following the “dunk” of Terrace Search and Rescue President Dave Jephson.

Dan Ashman, president and dealer principal of AM Ford Sales Ltd., was thrilled to accept a plaque commemorating 35 years as a Ford of Canada Dealer. With Ashman is Dean Stoneley, president of the Ford Motor Company of Canada.

AM Ford. Ashman’s father worked on the sales floor for 20 years from 1990 until 2010. “To be able to work with your father is one of the greatest rewards in life, particularly when the employer is the son,” he says. His son, Shaun, runs a GPS tracking system for Ford in Dallas, Texas; his daughter, Kirsten Ashman-Ellis, is a Ford operations manager in Metro Edmonton; and his son, Daniel, is sales and operations manager at AM Ford. Ashman attributes the success of the business to his staff, more than half of whom have been at the dealership for more than 15 years. “Several have been on staff for 20 years and a few for 35 years,” he reflects. “We have a high retention rate and I think it’s because we believe in treating people the way we want to be treated ourselves.”

dear to the hearts of customers, employees and management. Among the recipients of MacCarthy Motors’ fundraising and donations are children’s sports teams, local music performances, high school dry graduation parties, the Canadian Cancer Society, Terrace Search & Rescue and a backpack program for local children in need. Last year, after Telegraph Creek was devastated by wildfire, MacCarthy Motors staff opted to cancel a summer fun event they had planned and donate the budget for that event to the relief fund. “That’s just an example of the community ethos that pervades our dealership,” reflects Joey Prevost, general manager and partner. When the company received this year’s Community Driver Award, it marked the second time in three years it had been the recipient. “It’s a great honour for us and gives us validation that we’re doing a lot of things correctly,” Prevost says.

One of the initiatives he propelled is a bursary and grant fund for Coast Mountain College. When Prevost noticed an absence of grants and bursaries, he brought local car dealers in Terrace together to create an association and pledge a three-year commitment to a fund that was matched by the college. “The result is $30,000 in bursaries and grants that will stay directly in our area,” he said. “Our goal is to promote auto dealership education in the north, where we have all the capabilities to train young people locally. The idea is that if we can be trained in the north, we can stay in the north.” The dealership sells close to 1,000 new and used vehicles each year and services a population of 65,000 from Terrace and surrounding communities. “Ours is a family-run business that thrives on a very personal customer experience,” Prevost reflected. “We treat our staff and our customers like family.” Applications for 2020 Community Driver Awards will be available in December.

MacCarthy Motors, Terrace and Prince Rupert For MacCarthy Motors, a dealership with 58 staff and two locations in Terrace and Prince Rupert, community involvement is an integral part of doing business. Over the past two years the dealership has donated close to $50,000 in causes near and Coast Mountain College Foundation receives $30,000 as a result of a MacCarthy Motors initiative.


ADESA

Helping You Help Others with Working Wonders Charity Auctions ADESA is proud to assist dealerships and charities by offering an easy-to-use vehicle auction service through its “donate a vehicle to charity” program. The way it works is simple: the vehicle being donated can be dropped off with ADESA in any condition — or transportation for it can be arranged. Any costs incurred by the donor for transporting or detailing the vehicle are deducted from the net proceeds of the eventual sale amount. The chosen charity then issues a tax receipt based on the final amount to the donor of the vehicle. No minimum reserve price is set and the normal ADESA seller fee is waived for

donated vehicles benefiting registered charities. The charity benefiting is responsible for promoting the program, incorporating ADESA logos in all advertising materials, and acknowledging the role of the dealership providing the vehicle.

Dealerships simply need to fill out the appropriate donor-signed forms, provide the vehicle registration and assign the vehicle for auction. ADESA does the rest — helping you help others!

Liquidity Weekly Auction Times:

Wednesday 7:00PM Thursday 9:30AM Saturday 10:00AM

604.232.4403 ADESA.ca/Vancouver Join the marketplace where Demand Meets Supply 28

Signals Magazine October - December 2019

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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 your association’s activities. OFFICIAL SUPPLIERS

Premier Partners

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

CARFAX Canada is the definitive source of automotive information, delivering vehicle history, appraisal and evaluation. Drawing on billions of data records from thousands of unique sources, its products enable used vehicle buyers and sellers to make informed decisions. Including CARFAX Canada reports with your used vehicle inventory could be that edge over the competition that you’ve been looking for. Let CARFAX Canada show you the difference, and help you sell more cars and make more money! Learn more at www.carfax.ca

First Canadian Insurance Corporation is a national, privately chartered life insurance company that has been offering life and disability insurance coverage on consumer loans through automotive dealership financial service offices since September 1998. Since that time, the First Canadian Group of Companies has been marketing its insurance, mechanical breakdown protection and protection product programs through automotive, RV and marine dealers across Canada with tremendous success. Learn more at www.firstcanadian.ca

GOLD LEVEL

TradeRev is a revolutionary vehicle appraisal and auctioning system designed to be as mobile as businesses need. It give sellers the power to launch live, one hour, real-time auctions from the palms of their hands. Buyers can also enjoy full, endto-end service from anywhere. With Mobile Checkout, instant bids and more, TradeRev helps dealerships sell more new cars by getting their customer the trade value they want. Learn more at www.traderev.com

SILVER LEVEL

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 www.michaelmason.ca

Premier Partners

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 www.adesa.ca/vancouver

GOLD LEVEL BRONZE LEVEL

Cox Automotive is transforming the way the world buys, sells and owns cars with industry-leading marketing, software, financial, wholesale and e-commerce solutions for consumers, dealers, manufacturers and the overall automotive ecosystem worldwide. The global company has 34,000 team members in more than 220 locations and is a partner to more than 50,000 auto dealers as well as most automobile manufacturers. Learn more at www.coxautoinc.ca

30

Signals Magazine October - December 2019

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 www.siriusxm.ca


ASSOCIATE MEMBER LISTING

Associate Members of the New Car Dealers Association of BC provide vital products and services to Dealer Members, allowing them to do business with greater cost effectiveness, environmental responsibility, and general efficiency. ACCOUNTING Baker Tilly WM LLP

Dante Group

TradeRev

Likky Lavji // 604-671-4343 // dantegroup.ca

Caroline Galdamez // 888-260-4604 // traderev.com

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

Dealer Solutions North America

Unisync Group Limited

MNP LLP Accounting

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

Barry Good // 800-668-3243 x505 // unisyncgroup.com

Darrell Endresen // 604-949-2088 // mnp.ca

DMI Disability Management Institute

VAuto

Matt Hendrick // 604-542-3649 // disabilityinstitute.com

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

Accu-Trade

Drive Marketing Group

VinSolutions

Logan Keirstead // 506-859-6190 // accu-trade.com

Josh Chow // 604-837-3536 // drivemarketinggroup.ca

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

ADESA Auctions Canada

EBlock

Xtime

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

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

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

Audatex Canada

FLO-EV Charging Services

ZLC Financial

Darcy Gorchynski // 416-498-3777 // audatex.ca/autopoint

Simon Toung // 855-543-8356 x252 // flo.com

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

BCIT - School of Transportation

Georgian College (Automotive Business School of Canada)

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

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

FINANCIAL SERVICES BDO

Canadian Black Book

Harv Craven Design

Kristen Mundy // 403-205-5760 // bdo.ca

Richard Phillips // 905-413-7601 // canadianblackbook.com

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

Calla Financial Services

Canadian Linen & Uniform Service

Insurance Insight

Leanne MacKinnon // 604-921-4048 x122 // callafinancial.ca

Craig Sherlock // 778-331-6243 // canadianlinen.com

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

CIBC Commercial Banking

CARFAX Canada ULC

Kimoby

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

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

Alex Wojcik // 877-248-0204 // kimoby.com

National Bank

CarGurus

Manheim Auto Auction Company (Cox Automotive Canada)

Catalina Baciu // 778-231-8383 // nbc.ca

Lexi Lipton // 617-315-1137 // ca.cargurus.com

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

TD Auto Finance

Commander Warehouse Equipment

MarkVII Carwash Equipment

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

Brad Daws // 604-574-5797 // commander.ca

Bardia Lali // 587-227-4914 // markvii.net

RBC Automotive Finance Group

CO-OPS Consolidated Dealers Co-Op

Michael Mason & Co.

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

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

Scotia Dealer Advantage

Janette Tooley Andrade // 905-264-7022

NextGear Capital (Cox Automotive Canada)

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

Western Dealers Co-Auto

Jack Sulymka // 905-875-3522 // canada.nextgearcapital.com

Scotiabank Western Dealer Finance Centre

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

One Persuasion

Karen Stetz // 800-268-0762 // scotiabank.com

DMS PLATFORMS CDK Global

Michael Miller // 778-628-3949 // onepersuades.com

BMO - Bank of Montreal

Optiom

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

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

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

LGM Financial

DealerSocket

Radius Security

Stephanie Day // 604-806-5300 // lgm.ca

Jonathan Ord // 206-730-2055 // dealersocket.com

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

First Canadian Insurance Corporation

Reynolds and Reynolds

RSR Global

Darren Johnson // 250.217.5955 // firstcanadian.ca

George Schaeffer // 519-317-3400 // reyrey.com

Karey Davidson // 905-631-5865 // rsr-global.com

First West Leasing

Serti Information Solutions

SCI MarketView

Jay Brar // 604-539-5872 // firstwestleasing.ca

Nadine Harvey // 514-493-1909 // serti.com

Ted Davis // 905-415-6258 // scimarketview.com

iA Auto Finance

Solera Autopoint

SHK Law Corporation

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

Greg Laviolette // 250-896-5480 // autopoint.com

Roderick McCloy // 604-684-0727 // shk.ca

Industrial Alliance Insurance and Financial Services Inc.

INSURANCE SERVICES AllWest Insurance Services

Sirius XM Canada

John Eadie // 604-882-8220 // salgroup.com

Mike Mazgay // 416-408-6875 // sxmdealer.ca

General Bank of Canada

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

Spire Development Corporation

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

HUB International Insurance Brokers

Lawrence Green // 604-432-6650 // spiredevelopment.ca

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

Strathcom Media

SECURE SHREDDING Iron Mountain

Bill Warren // 780-433-8844 x302 // strathcom.com

Brett Spector // 407-274-8390 // ironmountain.com

Consultant Auto 360

Titan Certified Canada (TOA)

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

Dale Finch // 604-341-4933 // titancertified.com

PAYMENT PROCESSING, MERCHANT SERVICES PandaPay

Cox Automotive Canada

Total Graphics Inc.

Michael Laliberte // 1- (514)-446-1838 // www.pandapay.ca

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

Jeff Mesina // 604-294-0223 // totalgraphics.com

Crystal Clear Blades Inc.

Trader Corporation

905-761-7957 // crystalclearblades.com

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

New Car Dealers Association of BC

NCDA_BC VanAutoShow CEVforBC

NewCarDealersAssoc VIAS CEVforBC

NCDA_BC VanAutoShow CEVforBC

newcardealers.ca

31


E W O D T A WH R U O N I D NEE EMPLOYEE ? S T I F E N E B Great service

Afford able, predict able

Respon

sive

Lon g-t stab erm ility

Trustworthy

Fast payments

Solid advisors, support

e ectiv

-eff Cost

Retiree plans - dealers es - employe

Know our business

ns, o i t Op ility b i x fle

en Prov

Risk t emen g a n ma

Online admin

NEXT

ST

EP: Call Ka ren at CADA 1 800463-52 89 ext. 23 6

When you look closely, there really is only one option for your dealership – CADA 360 Employee Benefits Only CADA 360 Employee Benefits has been created by dealers for dealers, to help you and your people prosper. And only CADA 360 includes dealer and employee retiree options. Most importantly, only CADA 360 programs support CADA and provincial association advocacy. No other benefits plan supports this protection for your business.

For more information on CADA 360 Employee Benefits and CADA and provincial association advocacy, visit cada.ca.

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Signals Magazine, October-December 2019  

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