Highlights from the Toronto Auto Show - Autosphere

PM 40014105
C a n a d a ’ s P r e m i e r D e a l e r M a g a z i n e
March 2012 – $3,95
WALKAROUND t
2012 Mercedes-Benz
C63 AMG Coupe
6
SPECIAL FILE
F&I FIVE TRENDS
Coming Trends
8
Highlights from
the Toronto Auto Show
The Canadian International Auto Show celebrates “The Next Dimension”.
More details on this story page 12.
Digital Marketing
A Brave New World
Auto dealers across Canada are embracing the exciting
possibilities of social media with enthusiasm. They’re learning
to communicate with a whole new audience through a more
meaningful and ultimately profitable dialogue.
DISTRIBUTORS TO THE TRADE
WEST
6200 Tomken Road
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L5T 1X7
Tel. 905 670-9791
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Page 14
EAST
140 McLevin Ave., Unit 6-7
Scarborough, ON
M1B 3V1
Tel. 416 292-8202
AutoJournal Visits... Audi Terminal
19
t
SALES STATISTICS
The Chinese Car
Leads the World
Brossard – In today’s market, building a new dealership to factory specs is an achievement in itself.
More details and pictures page 22.
tiredistribution.com
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ROUSSEAU AUTOMOTIVE COMMUNICATION
455 Notre-Dame East, Suite 311
Montreal, Quebec H2Y 1C9
Tel. : 514 289-0888 or 1 877 989-0888
Fax : 514 289-5151
PUBLISHER
Isabelle Courteau
CONTRIBUTORS AND COLLABORATORS:
Shirley Brown, Jack Kazmierski, Frédéric Laporte,
Jil McIntosh and Robert Varga
GRAPHIC DESIGN TEAM
Kevin Foster and Virginie Gilbert-Hébert
SALES ASSISTANT
Marie-Hélène Côté 514 289-0888, x 23
sales@autosphere.ca
January / February 2012 • AutoJournal
PUBLISHER’S WORD ISABELLE COURTEAU
The Automotive World at Your Fingertips
It’s truly a privilege to be part of the auto industry
today, and it’s a privilege for us at Rousseau Automotive
Communication to be able to bring the automotive world
to your doorstep through the pages of AutoJournal.
If you’ve had the opportunity to attend the Montreal,
Toronto, Detroit or Los Angeles auto show (to name but
a few), you know that the vehicles and technologies available
today are truly outstanding. Moreover, the future
looks even brighter when you think about what’s in the
pipeline for the months and years to come.
You’ll find some of the highlights from the 2012
Canadian International Auto Show in this issue of
AutoJournal. We were truly impressed by the number of
concept vehicles and premieres on display at this year’s
show, and we’re sharing a few of the highlights with you.
With over 1,000 vehicles on display at this year’s Toronto
show, we couldn’t cover them all, but trust us when we say
that the future of our industry looks bright indeed.
We’re also happy to tell you about some of the winners at
this year’s Car of the Year Award ceremonies, presented by
the Automobile Journalists Association of Canada (AJAC).
Here again is proof that our industry is coming out with
ideas, technologies and designs that dazzle the senses while
at the same time appealing to our need of safe, reliable and
fuel-efficient transportation.
And while we’re on the subject of dazzling the senses,
our Walkaround this month features the AMG Coupe
AROUND THE GLOBE
We might not have the fondest memories of coupe utility
vehicles, such as the Chevrolet El Camino or the
Subaru Baja, but the Peugeot Hoggar’s designers decidedly
don’t feel the same way.
The vehicle’s design is quite a surprise, as is its name,
which, according to the Peugeot website, refers to a mountain
chain in the Sahara desert. And all this, despite the fact
that the car was specifically developed for South America,
as it said, “to grow its policy of commercial expansion in
the Brazilian market.”
Adapted from the Peugeot 207, the Hoggar is assembled
at the Porto Real plant in Rio de Janeiro. It comes with
a 1.4 or 1.6-litre one-cylinder engine, and is available in
three finishing options. It has a payload of 742 kilos and a
1,151-litre load space.
Aimed mostly at the male driver, the versatile Hoggar
attempts to bring together the best of both worlds: a
solid, all-purpose vehicle that’s just as comfortable as a
European sedan. In 2010, Peugeot-Citroën sold 294,300
SALES
Jean Boutzis 416 473-2915
jean.boutzis@autosphere.ca
Steve Carey 905 497-7590
steve.carey@autosphere.ca
Luc Champagne 514 945-1299
luc.champagne@autosphere.ca
Alain P. Gariépy 514 984-2269
alain.p.gariepy.@autosphere.ca
Stéphanie Massé 514 476-1171
stephanie.masse@autosphere.ca
Réjean A. Rousseau 450 649-9007
rejean.rousseau@autosphere.ca
ADMINISTRATION
Françoise Poynee 514 289-0888, x 28
administration@autosphere.ca
CIRCULATION MANAGER
Nancy Belleville 514 289-0888, x 25
distribution@autosphere.ca
from Mercedes-Benz. This spectacular automobile packs
a punch with an unbeatable combination of style, power,
luxury and performance. While it certainly sells itself,
our Walkaround pinpoints the reasons why prospects will
want to see an AMG parked in their driveway.
If you’re selling to new Canadians (or would like to
better penetrate this market), you’ll be interested in our
story about a financing program specifically designed
for individuals without enough of a credit history here
in Canada to allow them to secure conventional financing.
And if you think there’s a “typical” vehicle new
Canadians are interested in, wait until you find out what
they’re actually buying.
We’ve also published an interview with the new
president of Ford Canada, we’re taking you on a tour
of one of the most attractive dealerships in the country,
we’re offering tips on selling used cars, and we’re taking
a closer look at residual values.
Like I said at the outset, it’s a privilege for us to bring
you the automotive world, and there’s certainly no shortage
of exciting material for us to cover. We hope you
enjoy the March issue.
@
Don’t hesitate to send me your
comments and suggestions!
isabelle.courteau@autosphere.ca
The Peugeot Hoggar – From Sahara To Brazil
vehicles in South America, a number that’s sharply on
the rise. Meanwhile, a total of 3.63 million units of all
brands were sold in Brazil alone.
Frédéric Laporte
ACCOUNTING
Esther Twells 514 289-0888, x 26
finance@autosphere.ca
DIRECTION
President : Jean-Luc Rousseau
AutoJournal is published 10 times per year and 7 200 copies are
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PM 40014105
ISSN no. 1927-7083
SUMMARY
Vol. 1 n o 2 – March 2012
Dealership World 4
MV-1
Canada’s Newest Wheelchair Accessible Vehicle
Headlines
Hyundai 5
Taking Home Gold
Volkswagen
Touareg TDI Clean Diesel Named CUV of the Year
GM of Canada
Voltec Named 2012 Best New Technology
Walkaround 6
2012 Mercedes-Benz C663 AMG Coupe
Presenting Premium Sport Coupes
F&I Special File 8
Coming Trends
Management 10
Value Your Team
What’s Your People Quotient?
F&I News 11
StartRight
Automotive Financing for New Canadians
KPMG
Survey Short-Circuits Electrification
Mercedes-Benz
Announcing Top Management Changes
RAPID! Response
Connects Salespeople with Customers
Fisker Karma
Qualifies for CleanEnergy Incentive
Events
2012 CIAS 12
Highlights from the Toronto Auto Show
Digital Marketing 14
Social Media
Used Cars
Understanding the Used Car Dept. 16
Get Out of the Car Business
Remarketing
Residual Values 1 7
Sales Momentum
Business Talks
Dianne Craig 1 8
...and the Winner is...
Columns
Vox Pop 4
Social Media: Worthwhile or a Waste of Time?
Brand Awareness 14
2011 Record Breakers
A Word from Dennis 20
Car Shows Focus on Eco-Friendly Green
Automobile Statistics 20
The Chinese Car Leads the World
AutoJournal Visits ... 22
Park Avenue Group
Audi Terminal in Quebec is a North American First

DEALERSHIP WORLD
VOX POP
In the auto business, which traditionally
ranks as one of the fastest
paced and most progressive industries,
social media has clearly made
its mark, with multiple manufacturers
using Facebook and Twitter
to try and target their desired audiences.
Yet at the dealer level, where
vehicles are actually sold, does it
really have a significant influence in
driving new business? Auto Journal
contacted a number of new vehicle
dealers in different parts of Canada,
to gauge their opinions.
Barrie – “There’s no question that
Social Media has revolutionized the
way in which customers interact with
a business like ours. Many people
spend a lot of time doing research
online before they decide to contact
a potential business. As a result we
feel it’s important to provide potential
customers with significant and
valuable information. Because so
many people use Social Media these
days, we see it as a vital part of our
marketing strategies, though in
JACK KAZMIERSKI
mv-1
Canada’s Newest Wheelchair Accessible Vehicle
The MV-1 is the world’s first factory-built vehicle manufactured
“from the ground up” for wheelchair accessibility.
The MV-1 boasts and extra wide and high entryway.
This van is now available in
Canada, and will be initially
sold through 17 MEDIChair dealers
across Canada with a planned
expansion to almost 30 dealers
within the next two years.
“The market for accessible transportation
in Canada is large and it is
growing rapidly along with Canada’s
aging population,” says Nick Grande,
CEO of MV-1 Canada. “The MV-1 is
the world’s first factory-built wheel-
Social Media: Worthwhile or a Waste of Time?
It’s currently viewed as one of the hottest trends in communication, but is Social Media really
effective as a business tool in auto retailing? We contacted a number of dealers to find out.
order to be effective you need to be
targeting the right people at the right
time. Taking this approach helps us
stay connected with loyal customers,
but also helps us expose our brands
and services to new ones.”
Tracy Tuckett, Jackson’s Toyota,
Barrie, ON
Brockville – “We’re currently testing
the waters when it comes to Social
Media. We have a Facebook page,
though at this point we’re still evaluating
how much time and money to
pour into it. One thing we’ve noticed
is that from our perspective, print
advertising is much less effective
than it used to be, so we’re devoting
more resources to online marketing.
We’ve developed our own smartphone
app and we’ve made a big push
to reconnect with our existing customers
and cultivate new ones. With
the next generation, I think the ability
to use tools like Social Media will
prove to be an effective way to connect
with future customers since they
use Twitter, Facebook and texting as
chair accessible vehicle built to meet
the unique physical needs of those
with mobility and other disability
issues and their caregivers.”
The MV-1 has an extra wide
and high entryway and is available
a means of regular communication.
That said, it is early days yet and
we’re taking a look at best practices to
help develop a Social Media strategy
that’s both effective for us and our
customers.”
Kevin Beattie, Beattie Chrysler-
Dodge-Jeep, Brockville, ON
Fredericton – “In smaller cities like
Fredericton, where people tend to
shop locally, our emphasis has been
on providing quality service to our
customers; finding a vehicle that
fits their needs and placing a strong
emphasis on building long-lasting
relationships. With Social Media,
it’s difficult to say at this point how
effective it would be for our business,
since the metrics are very
hard to measure in terms of time
and resources. Nevertheless, we are
watching others who use Twitter and
Facebook and if we see there is an
opportunity to help grow our business,
we’ll definitely consider it.”
Steve Lenihan, Sutherland Honda,
Fredericton, NB
with either a manual or automatic
retractable access ramp which can
withstand up to 1200 pounds. The
non-slip ramp disappears between
the floor and the frame to keep it
protected from the elements.
Backed by a three-year, 60,000
kms, bumper-to-bumper and fiveyear,
120,000 kms, ramp warranty,
MV-1 Canada has selected a network
of over 500 automotive service
centres across Canada to handle
MV-1 servicing.
“Because the MV-1 requires
no conversion, it’s an easy choice
for people who need an accessible
vehicle, whether for personal use or
livery applications,” Grande adds.
“We have just received approval
from the City of Toronto for the
MV-1 to be used for accessible transportation
by taxi car, limousine and
para-transit companies. This will
benefit many Torontonians who
cannot take commercial or public
transit today.”
newmarket – “I think how effective
Social Media is, depends on
many different factors, ranging
from the brand of vehicles you
sell, your location, as well as the
target customers you’re looking to
reach. If, like us, you’re competing
with a number of same brand
dealers in the local area, then as
a tool to help bring customers
in, Facebook or Twitter probably
isn’t going to be as effective
as say, a higher end dealer, such
as Porsche, which has fewer locations
but the potential to reach
customers over a much wider
area. At the end of the day we’re
in the business of selling and servicing
cars, and although social
media and online marketing can
help us connect with existing and
new customers, ultimately, it’s
still that one-on-one relationship
which counts.”
Mark Swirla, Pfaff Volkswagen,
Newmarket, ON
4 March 2012 • AutoJournal

HEADLINES
Hyundai
Taking Home Gold
Recently crowned “Canadian Car President and CEO of Hyundai
of the Year” by the Automobile Auto Canada. “The Elantra com-
Journalists Association of Canada petes in Canada’s critical compact
(AJAC), the victory for the Hyundai segment, so for it to win Canadian
Elantra is all the sweeter since it Car of the Year is vindication for
comes just about a month after all the effort Hyundai design-
the car was named the 2012 North ers and engineers invested into
American Car of the Year during the the project. We wanted to bring
North American International Auto Canadians a new take on the com-
Show in Detroit.
pact sedan; one with great style,
But this isn’t Hyundai’s only quality, safety, and incredible fuel
back-to-back victory. The Genesis efficiency. So, we couldn’t be more
luxury sedan earned both titles in proud that AJAC agreed it should
2009 - proof positive that the com- win Canada’s highest automotive
pany is hitting all the right notes award.”
with both consumers and auto In addition to the Canadian Car
experts alike.
of the Year award, Hyundai also
“The all-new Elantra was sim- took home top spot in a number of
ply the single most important new other AJAC categories. The Accent
vehicle that Hyundai has ever and Elantra were named Best New
launched,” said Steve Kelleher, Small Car under $21,000 and
volkswagen
Touareg TDI Clean Diesel
Named CUV of the Year
The Automobile Journalists
Association of Canada (AJAC)
have named the Volkswagen
Touareg TDI Clean Diesel the 2012
Canadian Utility Vehicle of the Year,
beating out the Dodge Journey (Best
New SUV / CUV under $35,000),
and the BMW X3 (Best New SUV /
CUV over $60,000).
“Winning this award is a tremendous
honour,” said John
White, President of Volkswagen
Canada. “The Volkswagen Touareg
is extremely capable both on and off
road, and surrounds its passengers
in comfort and luxury. We are very
pleased to be recognized for all of
the hard work our engineers and
designers have put in.”
The Touareg also won the award
for the “Best New SUV/CUV
($35,000 - $60,000).” – J.K.
John White (L) accepts the award for 2012 CUV of the Year from Marc LaChapelle
Best New Small Car over $21,000,
respectively, while the Veloster won
the Best New Design award for 2012
(beating out the Jaguar XKR-S, and
the Ranger Rover Evoque), as well as
the Best New Sports/Performance
Car under $50,000.
“It’s a great honour to have the
Hyundai Veloster win the Best New
Design award from AJAC,” said
Kelleher. “Fluidic Sculpture was
Hyundai’s first foray into developing
its own, distinctive design language
and the Veloster was sculpted from
the outset to be the most aggressive
iteration of that approach. The
Veloster is a design halo for the
entire Hyundai brand, so to win an
award based on the car’s styling is
proof that our designers have found
success.” – J.K.
The Automobile Journalists
Association of Canada (AJAC)
named the Voltec propulsion system
as the “2012 Best New Technology.”
“We are very proud to receive
AJAC’s 2012 Best New Technology
award for the Voltec propulsion
system,” said Kevin Williams,
president and managing director
at GM of Canada. “The Voltec
propulsion system is the heart of
the Chevrolet Volt, which combines
pure electric drive and an
efficient range-extending engine
to create the only electric vehicle
on the market today that does not
President and CEO of Hyundai Auto Canada,
Steve Kelleher, expresses his appreciation for
the 2012 Canadian Car of the Year award.
Kevin Williams (R) accepts the award for 2012 Best New Technology from Gerry Malloy.
gm oF canada
Voltec Named 2012
Best New Technology
require a customer to make compromises
on when and where they
can travel.”
The Voltec propulsion system
consists of a 16-kWh lithium-ion
battery pack and electric drive unit
that provide pure electric range
between 40 and 80 km, depending
on terrain, driving techniques and
temperature. A 1.4L gasoline-powered
engine extends the range up to
an additional 500 km on a full tank
of fuel by operating the vehicle’s
electric drive system. – J.K.
MORE ON AUTOSPHERE.CA
March 2012 • AutoJournal 5

PHOTOS: SMERCEDES-BENZ
WALKAROUND
JiL MciNtOsh
2012 Mercedes-Benz c63 AMG coupe
Presenting Premium sport coupes
Premium cars attract knowledgeable customers; here’s what to show them once they arrive in the showroom.
Any time you’re dealing with a
customer who’s interested in a
sports model, you have someone
who is specialized and knowledgeable.
It’s going to require equally specialized
knowledge on your part, especially
since your customer has undoubtedly
read a great deal about the model, and
is depending on you to explore the car
in-depth and in person.
Using the 2012 Mercedes-Benz C63
AMG Coupe as an example, we’ll walk
the customer around the vehicle. In
some cases, the performance car is a
unique model, but here, it is the top
version in the C-Class Coupe family.
Torque is important
That means a 6.2-litre V8 engine that
produces 451 horsepower at 6,800
rpm, and 443 lb-ft of torque at 5,000
rpm, versus the 302 horsepower and
273 lb-ft of the C350. In the past, customers
were primarily interested in
horsepower, but today, and especially
in the premium segment, torque is
of equal or even more importance.
By comparing its engine output to
others in its model line, if applicable,
and with the vehicles it faces as
competitors – in this case, cars such
as BMW’s 3 Series or Audi’s S5, for
example – the customer gets a better
sense of where the vehicle fits into the
performance market. Just as importantly,
he or she knows that you’ve
done your homework.
The transmission is of equal
importance, and it’s essential to know
anything about it that makes it different
from other models. All C-Class
Coupe models use a seven-speed automatic
transmission, but on the C63,
The AMG is Mercedes-Benz’s performance division
it’s an AMG Speedshift MCT (Multi
Clutch Technology) unit. This uses an
electronically-controlled wet clutch
instead of a torque converter, and has
a console-mounted dial that lets the
driver select Controlled Efficiency
for maximum fuel economy, or the
sportier S, S+ and M modes that can
deliver gear changes in as quickly as 0.1
seconds. That’s an important difference
between the C350’s transmission
and the C63’s unit, and it’s essential to
be able to explain it to the customer.
Once he or she is behind the wheel,
point out the shift paddles located on
it, which can be flicked for upshifts
or downshifts without removing the
hands from the steering wheel. Many
models have paddle shifters, but their
designs can differ – one for up and the
other for down, or redundant pushpull
paddles on both sides – and cus-
tomers should be shown which type it
is, especially before taking the vehicle
for a test-drive.
What sets it apart
Performance models will usually
have exterior differences from others
in the lineup, and you should walk
the customer around and show these
off. In the C63 AMG’s case, there is
a distinctive front fascia, unique rear
black diffuser insert, sports exhaust
system with twin chrome tailpipes,
and distinctive badges. It’s important
that customers know what sets
the vehicle apart.
Spend some time on the wheels,
which in this case are 18-inch
light-alloy rims. Performance cars
come with performance tires, and
unless the car’s going to be parked
throughout the nastier weather,
your customer is going to need
winter tires. You should already
know what tire and wheel package
is going to be appropriate. Take
your customer through the parts
department if the combination is
on display.
Go through the interior, pointing
out features that differentiate the
model. On the C63, these include a
steering wheel with flattened top and
bottom, metallic trim, alloy pedals,
and the AMG logo that displays in
the speedometer when the ignition
is turned on. Be sure to talk about
automated functions that customers
will appreciate. In this case, they
include active bi-xenon headlamps,
auto-dimming rearview and exterior
ESTIMATED RESIDUAL VALUE
MSRP $66,900
12 months $49,800
24 months $45,060
36 months $35,580
48 months $30,840
60 months $26,100
Source: Canadian Black Book
mirrors, adaptive high-beam assist,
rain-sensing windshield wipers, and
automatic climate control.
Safety is critical
Safety features are important to
customers, especially if the vehicle
will be used to transport the family.
Whiplash is a common injury in
many crashes, so point out the
active head restraints – the NECK-
PRO feature on Mercedes-Benz –
which provide head support and
reduce the neck extension that can
cause trauma. You need to explain
such features as brake assist or
adaptive brakes, seatbelt pretensioners,
tire pressure monitoring
systems, headlamp washers and the
positions of all the airbags, especially
if the model you’re showing
has innovative safety features that
competitors may not have.
You should also be very familiar
with the infotainment system and
be able to explain all of its features
to the customer, both on the testdrive
and then again when the car
is being delivered.
With such a specialized customer,
being able to point out the details is
the key to a successful walk-around
on any performance model.
6 March 2012 • AutoJournal

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SPECIAL FILE
F&i coming trends
What Experts Are Predicting
This year the ‘soothsayers’ are predicting a much better year for new sales in the light vehicle market.
According to DesRosiers there was an increase of 15.4%... the highest level in four years!
That brings up the question of
F&I… and trends that could
affect business in 2012. We
contacted some people about F&I
to get their opinions of what the
trends might be across Canada.
U.S. trends seem to be ‘More players,
more competition’; ‘Thinner
interest-rate margins’; ‘Greater
volume’; ‘Greater emphasis on
aftermarket products’ and ‘New
regulations’. Let’s see how those
stack up in Canada.
Initiatives and solutions
Diana Mahdessian, Scotiabank
in Toronto, states, “On the topic of
coming trends in the F&I sectors
for 2012, yes, there is more competition
that’s recently entered the
Canadian market and competitive
pressures on the automotive business
will likely continue. More
competition is always better for
the customer, but does make it
tough on all the banks as margins
get squeezed. Like our competitors,
we are expecting to grow our
share of the market, and that’s why
it’s important for us to consistently
present innovative products and
solutions for our dealer customers,
in addition to the customer
service excellence Scotiabank is
known for. We really focus on
those innovative solutions that are
good for the consumer as well as
our dealership customers. To that
end, we make sure that the solutions
we offer make their job easier
and make it easier for them to
move the vehicles off the lot.”
Raymond O‘Kane, BMO,
Toronto, believes there will be more
players in the lending field and an
increase in leasing penetration.
“We’re not going back to the glory
days of 40%+ leasing penetration,
but I think we’ll get closer to 25%.
There’ll definitely be thinner margins,
but from a finance prospective,
we’ll win on dealer satisfaction.
That covers the breadth of responsiveness,
speed (dealer approval
and speed of funding) and relationship
at the store level by the F&I.
From BMO’s perspective, we’ve put
a heavy focus (and will continue)
on dealer satisfaction, both at the
8
store and relationship levels with
underwriting and funding.
“I don’t know if there’ll be
greater volumes. We’re forecasting
new car sales up about 2% this
year over last year, but we do see an
increase in used car values. Because
of the past year’s events, the high
lease penetration hasn’t turned
used cars back into the marketplace,
so that volume is down.
Increasing prices will be due to
insufficient new and used cars in
demand in the next few years.
“We seem to be lagging a little
in the whole social network. Some
manufacturers/dealers are grabbing
hold of the whole social network
but it’s slower in this industry
than others where consumers will
take recommendations both on
vehicles and on dealerships from
their peer group as opposed to
anyone else. If you’re treating your
customers well, customer endorsement
carries
a lot of
ABC MOTORS
Helping You Protect Your Investment
Customer: Smith Gilbert (Steve) Vehicle: Model 1234
Current deal as written, not including selectec Menu Package items below!
weight in the social network
environment. The dealers and
manufacturers can really latch on
to the power of one – the power
of talking to a customer one-onone
and allowing that to pyramid
whether through Facebook,
Twitter, and I think we’ll see the
benefits.
“As to new regulations, Canada
is very heavily regulated now so
there’ll always be adjustments, but
not any huge regulations, which
would have a negative fact on the
growth or distraction of business.
The other thing I don’t see
emerging in 2012 is the signing of
contracts digitally… the technology
exists, but I think the speed of
adoption will be slower here.”
Seamless processes
Kerry Mueller, One-Eighty
Corporation, Waterloo, Ontario,
has some
Purchase Type: Finance Total Sale Price: $32,839.00 Payment Frequency: Monthly Term in months: 60
Stock Number: Designed Not Trade-in $0.00 Amortization Period: NA Interest rate: 5.90%
OEC Deal #: 36666677 Down Payment $0.00 Balloon: $8,562.00
Financed amount $41,0505.57 Monthly Payment: $668.68
• Platinum (New) Package • Gold (New) Package • Value (New) Package • Econo Package
definite ideas about new trends for
2012… the first being ‘doing things
seamlessly’! “This will speed up
processing in F&I… people will
soon be signing contracts on tablets!
The documents will be digital
(pdfs)… once you have everything
in a digital format, you can submit
the credit app seamlessly – fill it
out once, away it goes and you get
the response back. You can validate
the contract before you actually
deliver the car to make sure it’s mistake
free. You speed up your processes,
less mistakes that people resign,
faster funding… and signing
on tablets. Then you’re able to submit
all the documents in a digital
package.”
Something else Kerry sees is
‘Customer-facing presentations’…
very common in the US and soon
to be in Canada. The big screen
presentation
faces
the cus-
Paint Guard $319 Paint Guard $319 Stone Guard $255 Paint Guard $319
Window Tint $296 Window Tint $296 Paint Guard $319 Window Tint $296
Interior Guard $198 Stone Guard $255 UV Wear Protection
$1,099 Assure Credit
$298
(New) 60 months
Residual Life 18-65
Stone Guard $255 UV Wear Protection
$1,099 Critical Illness 18-59 ~$910
(New) 60 months
UV Wear Protection
$1,099
(New) 60 months
FREE VW GOLF SHIRT (value $50) FREE VW KEY CHAIN (value $50)
You are Saving : $568 You are Saving : $371 You are Saving : $170 You are Saving : $277
Monthly Package Payment: $49
(Daily)
Monthly Finance Payment: $717
(estimated)
Customer Disclamer Statement:
I decline all protection products offered to me.
Monthly Package Payment: $44
(Daily)
Monthly Finance Payment: $713
(estimated)
Monthly Package Payment: $38
(Daily)
Monthly Finance Payment: $706
(estimated)
Monthly Package Payment: $32
(Daily)
Monthly Finance Payment: $700
(estimated)
Date: 2/10/2012 Prepared By: ONE-EIGHTY Acccess
Customer Signature: __________________________ Restore removed Rows Print Email

tomer allowing them
to see the ‘packages’
available for their new vehicle….
items the dealer would recommend
because they’re really good
value and would be wise to have.
This makes it easy for the customer
to understand at a glance.
Claude Moureaux, Desjardins
Group, Quebec, said he sees the
focus on revenue generating and
loyalty-building products. “With
thinner margins, dealers are looking
to increase sales of complimentary/aftermarket
products and service
contracts to drive profitability.
If the dealer can place a service
contract, etc., that will bring that
customer back a point-of-sale, he
can capture his lifetime value and
increase cross-sales opportunities
when interacting with the customer.
The focus is on speed, throughput
at point-of-sale and simplicity of
the financing process.
“Next – virtual F&I solutions.
There’s a significant shift with new
technologies coming about and
soon we’ll see new applications
emerging… mobile apps, virtual
solutions for F&I… things becoming
an extension of the showroom
used on new supports and tools, like
“To stay competitive and win
over the dealership customers’
business, it’s important for us to
present innovative products and
solutions for our customers.”
– Diana Mahdessian, Director Retail Programs, Scotiabank
iPads. The actual salesperson/F&I
person will have an iPad 3 showing
simulations of what he can do. In
time, we’ll also see a secured endto-end
e-process for financing.
“From a market prospective,
there’s a concentration of the lenders
on prime, near-prime and a significant
growth of the sub-prime
segment. There’s likely going to
be some increased incentives and
highly competitive rates by lenders
to attract prime and near prime
financing at the point-ofsale.
We see manufacturers
continuing to seek new complimentary
financing partnerships to
broaden their acceptance and the
possibilities to support their other
offers.
“The last trend is new regulations:
regulators are looking at
the possibility of capping F&I revenues.
Consumer protection laws
are calling for more transparency…
what’s built into the cost of loans.
That will change the game in how
we interact with the customer both
from the F&I point-of-sale and as
a financial institution. Those new
regulations (in the works) will be
calling for new requirements and
new processes at point-of-sale and
new ways to carry out the financing,”
stated Moureaux.
Looking at F&I software
Ray Menocal, ADP Dealer Service,
along with Paul Helie, the Canadian
F&I Product Manager and Scott
Counsel, Canadian Marketing
Communications, talked about
what they see from an F&I software
perspective.
Ray explains, “When the customer
says ‘that’s the car I want’,
they’re directed to F&I where the
deal is closed. The paperwork is
done, whether they’re paying by
cash or financing, and likely try to
sell other products.
“In that respect, let’s talk about
the F&I software. A lot of these
paths are automated i.e. the customer
has options. Our software
allows the customer to choose the
best financing rate. We’ll calculate
all the financing/interest rates,
what payment the customer wants,
then give him options on how he
wants to see that. Our software
automates that for the customer
and allows the dealer to see all their
options. Because it’s one workflow,
one product, there are no double
entries! The customer has chosen
the vehicle, picked the options, etc.,
so by the time the customer reaches
the F&I office, the software is waiting
for the F&I manager reducing
work, time and errors”
“We believe that’s where the
industry is going – fully automated
software,” says Paul. “This
is also integrated with accounting
inventory, so when the manager is
‘desking’ the deal, the customer’s
vehicle is up-to-date with the costing,
open work order, closed work
order, everything is integrated.
“Since there are many players
now, we’re trying to make it easier
for business managers to do their
day-to-day business i.e. a specific
form needs to be printed from a
credit portal whereas another form
needs to be printed from a forms
portal. We’ll be automating most of
that to make it easier for the manager.
It’s all about full disclosure,
making sure we’re able to provide
it to the customer in front of the
business manager. Because of the
Internet, it’s now necessary to play
fair and promote the trust factor.”
Get sales involved
Gordon Swail, IAP/SAL Group says,
“In talking about thinner margins,
the reserves are not as lucrative as they
were. One big difference is the dealer’s
ability to partner with their supplier
to create a joint effort in marketing
the products. The more the supplier
FINANCE & INSURANCE
– the ones offering training –
gets involved in creating that
identity in the dealership,
as far as the financial services
department, the more
profitable the dealership is.
Today when the dealership
gets their sales management
team involved, educate their
salespeople about what goes
on in the finance process,
they’re head and shoulders
above those who follow the
traditional market keeping
the ‘finance role’ secret. The
key words now are partnership,
education and transparency because
there’s so much negative information
for the consumer about the financing
part of the car business.
“Customers are afraid to listen
to a finance manager and this is
where that transparency and education
come in starting with the
first person who greets the customer
all the way through to the
sales manager and the finance
manager… they all have to be saying
the same thing!
“One of the best things that
happened in the industry was the
aggressive nature that various governing
bodies have taken in terms
of requiring disclosure, compliance,
etc. It’s forced the kind of ‘old
west’ mentality out of the business
and brought a new breed of finance
manager into it – young, educated,
creative, looking for a career and
looking to follow all the guidelines
that should have been followed all
along! The job satisfaction for those
working in the finance department
is when they take their eye off the
day-to-day measurement tool and
focus more on the customer experience.
And that’s what we try to do.
When you have a real conversation
with a customer, you treat them with
respect and not only do they appreciate
it, they buy the product.
“It all comes back with creating
a philosophy in the dealership that
everybody buys into. The ones that
do are the most profitable.”
And there are the F&I 2012
Trends from industry experts that
we were able to gather for this file.
You have trends to share with us?
Would you like to share your point
of view? Do not hesitate to contact
us at autojournal@autosphere.ca.
March 2012 • AutoJournal 9

MANAGEMENT
ROBERT VARGA WITH ERNIE BUGELLI
value your team
What’s Your People Quotient?
We’re in the people business, so it’s only logical to assume that we make
people a priority. However, the truth is we can always do better.
At the sake of sounding cliché, a
book that left a lasting impression
on me is, “How to Win friends and
Influence People” by Dale Carnegie.
In my mind, the title is a bit misleading
because it’s not about winning or
influencing but rather about being
authentic, doing the right thing and
being an overall good person.
The big lesson for me - people
just want to feel important.
Whether it’s a colleague, supplier,
customer, family member or the
student serving you coffee at Tim
Horton’s – it’s all the same. And the
best part, this civility and kindness
costs you nothing.
Happy Lee day!
John Esplen, owner of Humberview
Group in Toronto, Ontario has an
annual “Lee Day.” It’s a fun ski day
to celebrate a General Manager, Lee
Wittick. It’s not about Lee’s performance,
sales volume or CSI scores. It’s
about appreciating and celebrating
Lee as a valuable person to the organization
at large.
Would your world be a better place
if you were to do something like this?
F&I NEWS
JACK KAZMERSKI
kpmg
Survey Short-Circuits
Electrification
According to KPMG’s 13th
annual Global Automotive
Executive Survey, the internal
combustion engine will not be
replaced by electric vehicles anytime
soon. Nonetheless, automakers
are expected to pump
investment into electric technology
as part of their long-term
strategy.
KPMG’s Global Automotive
survey found that electromobility
is not predicted to exceed 15% of
new car registrations globally by
2025, and that executives in North
America and Western Europe
expect even less adoption of electromobility
in the short-term, projecting
e-vehicles will only account
for 6-10% of global annual sales.
How do you think it would make the
recipient (or you) feel?
Are you listening?
Making people feel important
doesn’t require a special day. It can
be done every day, beginning with the
simplest of things, like really listening.
Not sitting in your office on your
BlackBerry while someone is talking,
but actually giving them your full,
undivided attention and respect.
Providing a forum for your people
to have a voice is powerful. They will
thrive, be more energized and productive
– if they feel they matter. In
the long run, you’ll also avoid turnover
– a problem that plagues our
industry.
Allowing people to make decisions
and take ownership is only one component.
The key to completing the
‘people quotient circle’ is to acknowledge
it and tell others. Unfortunately,
many miss this point and you would
not believe the impact this one seemingly
small detail can have.
One of my favourite quotations sums
it up nicely: “Praise and encouragement
is to people, what sunshine and rain is
Nearly two-thirds of those
surveyed say that optimization
of the internal combustion
engine offers greater efficiency
and the most potential for carbon
emission reduction than the
current technologies over the
next 5 years.
to a flower.” Praise and encouragement
make people feel important.
Ernie’s rules
One thing I love about our business
is the people we get the privilege to
meet. In the spirit of sharing worthwhile
information and connecting
great people, I thought I would introduce
you to someone who has left a
lasting impression on me (and many
others). Ernie Bugelli is a superstar
General Manager of Audi MidTown
Toronto and Agincourt Autohaus.
I have long admired how he manages,
develops and nurtures his
people – all with an abundance of
energy and a ton of fun.
Here are some of “Ernie’s Rules”:
u First off, replace the word ‘employees’
with ‘partners.’ Once you do this
and see your people as true partners,
fantastic things begin to happen.
v Allow people to work with you
versus for you. Make them part of
positive change and challenge them
to find solutions. Let them take
Fisker karma
Qualifies for Clean
Energy Incentive
2012 Fisker Karma
The 2012 Fisker Karma is the latest
addition to the growing list of
new vehicles available in British
Columbia that qualify under the
Clean Energy Vehicle (CEV) Point
of Sale Incentive Program. The
Karma, a battery electric vehicle
with extended range, qualifies for
ownership, grow and learn from their
inevitable screw-ups.
w As leaders, we are looked upon
to provide vision, direction, support
and appreciation. Once a common
goal becomes shared, it begins to
take shape when a truly collaborative
effort is employed. The greatest
quarterbacks of all time could not
block for themselves or catch the balls
they threw downfield.
x Lastly, visit the front lines often.
Ernie recently donned coveralls and
spent a few days working with his
detailing team. He learned two things.
First, how incredibly out of shape he
is (every muscle hurt the next day),
but more importantly, how unbelievably
hard his team works to support
his entire operation. Ernie also came
to realize how much they really care
about their customers and how great
they work together as a true team.
Are these things taken for granted
in most dealerships? If you allow
yourself to live it, you gain a greater
appreciation for it.
a discount of up to $5,000
off the pre-tax sticker
price when purchased or
leased at a new car dealer
in BC.
The Karma brings to
16 the number of vehicles
now qualifying under the
program, which kicked off
December 1st.
Fisker Automotive is
an American auto manufacturer,
founded in 2007,
that produces luxury Electric
Vehicles with extended range
(EVer). EVer is Fisker’s proprietary
plug-in hybrid electric powertrain,
which consists of an efficient gasoline
engine, an electric generator, a
Lithium-ion battery pack, and two
electric motors at the rear wheels.
10 March 2012 • AutoJournal

F&I NEWS
JACK KAZMERSKI
startrigHt
Automotive Financing for New Canadians
Could some of your customers benefit from a financing program designed specifically for newcomers to Canada?
T
here’s nothing more frustrating
than a potential sale that goes bad
when the customer can’t get financing
for his purchase. Losing a sale
to bad credit is one thing, but losing
a deal simply because the customer
is a newcomer to Canada without a
credit history in our country is quite
another. This person could be perfectly
credit-worthy, but he or she
can’t prove it because they haven’t
lived in Canada long enough to have
a healthy financial track record.
Two years ago, Scotiabank came
out with a program designed to help
new Canadians secure the financing
they need for an automobile
purchase. Scotiabank’s multicultural
banking division already had
a program in place at the time to
provide newcomers to Canada
with banking solutions through
the StartRight Banking program.
So the bank decided to extend the
program towards automotive financing
and put together the StartRight
Auto Loan program.
rapid! response
Connecting Salespeople
Suddenly, dealers with large immigrant
clientele who previously had
their hands tied when trying to finance
a vehicle, now had a solution. Due to a
lack of credit history in Canada, these
newcomers were forced to pay cash
and typically bought a lower priced,
used vehicle. With the StartRight Auto
Loan program, dealers could now provide
flexibility to these customers and
offer a new, more reliable vehicle with
a warranty while still preserving the
newcomers’ cash.
In addition, dealers who did not
previously have immigrant clientele,
began to benefit from new business
from an untapped market segment.
Promotion
To promote the StartRight Auto Loan
program, Scotiabank has worked
directly with a number of manufacturers
to integrate this program into
their advertising and ethnic marketing
strategy. The bank also featured the
StartRight program in Scotiabank’s
2010 annual report with a picture of
a recent immigrant picking up their
vehicle, having used the StartRight
program to finance the purchase.
The program is also promoted
alongside StartRight Banking marketing
as one of the innovative
with Customers time. Not only does it allow the sales-
DMT Development Systems Group
Inc. recently debuted a novel lead
management and tracking system
developed for car dealers. Known as
RAPID! Response, this technology
brings the salesperson and the customer
together in real time.
“Traditionally, when a consumer
requests something from the dealer
online it goes into an infrastructure
which is controlled by the OEM
or dealer or both,” explains Glen
Demetrioff, DMT Development
Systems Group president. “This
infrastructure process really hampers
how fast the dealership can actually
reply to a consumer.”
DMT has been able to leverage
the mobile environment to push the
information that comes from the
internet directly to a desktop, laptop
or mobile device, without the lag
person to answer an online customer
immediately, but it also allows the
sales manager to monitor that conversation
in real time.
Currently adopted by Volvo and
Mitsubishi dealers across Canada,
DMT hopes to roll out this new technology
with other manufacturers
across Canada.
DMT Development Systems Group
president, Glen Demetrioff, demonstrates
the RAPID! Response technology.
products available to Canadian
newcomers.
To get the word out to dealers,
Scotiabank has used two main communication
avenues to publicize
this program. First, the bank leverages
their strong relationships with
their exclusive and semi-exclusive
automotive manufacturers through
Scotiabank’s head office to inform
OEMs of the benefits of the program
so they can, in turn, promote it to their
network of dealers.
Second, Scotiabank area sales
managers from the bank’s Dealer
Finance Centres (with dealer specific
relationships across the country) are
informing their dealers of the program
in person with dealer visits.
Training
To help dealerships and salespeople
– including F&I Managers – properly
promote this program to potential
customers, Scotiabank has created
comprehensive training guides that
mercedes-Benz
Announcing Top
Management Changes
Mercedes-Benz Financial Services
(MBFS) Canada Corporation
recently announced top management
changes. Brian Fulton, previous
President and CEO with
operational responsibilities for
the financial services activities in
Canada, will now lead the financial
services operations in China.
Stefan Karrenbauer, previously
responsible for Operations
Development Mercedes-Benz Bank
and Europe, has succeeded Fulton
as President and CEO, Mercedes-
Benz Financial Services Canada
(effective Feb.1, 2012).
Karrenbauer has been with the
company since 1996 and has held key
leadership positions in the United
States, France, and Belgium.
outline every detail, ranging from
marketing to the step-by-step submission
process. Scotiabank area
sales managers visit dealers across the
country to provide one-on-one training
on the StartRight program.
While Ontario is largely seen as the
immigration focal point due to the presence
of the large multicultural city of
Toronto, the program has demonstrated
the growing strength of immigration
across the country with a significant
portion of loan approvals coming from
British Columbia, for example.
And while we may have a notion of
what a “typical” new Canadian would
want to drive, Scotiabank says their
program has been utilized for a wide
variety of cars, from family sedans
to compacts to luxury vehicles. In
fact, significant volume has come in
through luxury SUVs.
Potential
Scotiabank has captured a unique
segment of the market by providing
industry-leading solutions to OEMs
looking to expand their ethnic market
share. The bank is determined to
continue to lead through innovation,
with the StartRight Auto Loan program
being one tool for driving more
business for dealers and OEMs.
March 2012 • AutoJournal 11

EVENTS
2012 cias
Highlights from the
Toronto Auto Show
The Canadian International Auto Show celebrates “The Next Dimension.”
Every year, our industry gathers
in Toronto to celebrate all
things automotive. Known as
the Canadian International Auto
Show, the theme of this year’s show
is, “The Next Dimension.”
It would seem that our industry
has rebounded nicely from
the recent recession, as this year’s
show featured more concept
vehicles and premieres than we’ve
seen in recent history.
Toyota hosted the opening ceremonies
this year, and marked the
occasion by unveiling four all-new
models: the Prius c, Prius Plug-in
Hybrid Vehicle (PHV), Prius v and
2012 Prius. Toyota’s Scion division
introduced the audience to the new
2013 FR-S sports car, which boasts a
2-plus-2 seating configuration with a
fold-flat cargo area large enough to
transport a full set of race tires for a
fun day at the track.
Tim Reuss, president and CEO of
Mercedes-Benz Canada, introduced
a number of new models, including
the seductive next generation
2013 Mercedes-Benz SL 550, which
boasts an irresistible combination
of ride comfort, luxury, style and
performance.
Mazda Canada president, Don
Romano, introduced the all-new
2013 Mazda CX-5, which will
be the first vehicle from Mazda
to offer the full complement of
SKYACTIV technologies, including
a 2.0L SKYACTIV-G engine,
6-speed manual or automatic
transmissions, and new,
lighter SKYACTIV body
and chassis architecture.
Ford came to the
party with a number
of vehicles, including
a very stylish
Fusion - brand
new for 2013.
Available with a
variety of powerplants,
and sure
to appeal to both
consumers and fleet
customers, this new model
is a real head-turner.
The Subaru XV is a production
vehicle currently being sold
in other markets. Subaru Canada
said they brought it to the Toronto
auto show in order to gather feedback
and input from Canadians. It
boasts impressive fuel efficiency,
excellent handling and driving
dynamics, a 1,500-lb. towing capacity,
and more.
Infiniti Canada invited members
from Cirque de Soleil to
help unveil the ETHEREA concept
vehicle. They also displayed
the Nissan e-NV200 concept van,
which features a driving range
similar to the Nissan LEAF, but
with the payload and cargo space
similar to the current NV200.
John White, president and CEO
of Volkswagen Group Canada
introduced the audience to the Golf
R (a sportier version of the GTI),
the Passat CC (now with room for
five), the 2013 Jetta
Hybrid (turbocharged), as well as
the Bulli concept.
Kia Canada debuted the allnew
2012 Rio sedan which boasts
fuel economy numbers as good as
4.9L/100 km (hwy), a heated steering
wheel, automatic folding side
mirrors and a cooling glove box.
GM launched a number of
vehicles, including the stunning
new 2013 Cadillac XTS - the most
technologically advanced production
car in the brand’s history.
Larger than the CTS, the new XTS
delivers the space, elegance and
dramatic presence you’d expect in
a Cadillac.
Honda Canada unveiled the 2013
Accord Coupe concept, providing a
first glimpse of the Accord’s new,
athletic styling direction. They also
took the wraps off the breathtaking
Acura NSX concept, promising to
The Elantra GT is a new 5-door vehicle
designed and engineered in Germany.
Tim Reuss, president and CEO
of Mercedes-Benz Canada
with the new 2013 SL 550.
Chrysler Canada president
and CEO, Reid Bigland,
unveils the 2013 Dodge Dart.
12 March 2012 • AutoJournal

10-Acura’s supercar, the NSX - will the
model they promise to bring to market
within 3 years look this good?
bring the new NSX supercar to the
market within the next three years.
One of the most significant
announcements from the Chrysler
family was the introduction of the
all-new 2013 Dodge Dart - the first
Chrysler Group vehicle built on Fiat
Group architecture. Due to go into
production later this year, the Dart
will be available in 12 exterior colours,
14 interior colours and trim
options, three different engines,
and three transmission choices.
Replacing the Elantra Touring,
the Elantra GT is a new 5-door
vehicle designed and engineered
in Germany. The GT continues
the company’s “Fluidic Sculpture”
approach to design, but with a more
European flare.
The Goodman is an ultra-luxurious
MINI designed in collaboration
with Rolls-Royce.
Featuring an interior designed by
Rolls-Royce, exclusive wheels, and
Rolls-Royce paint, this limited production
MINI is sure to sell out.
Jack Kazmierski
John White, president
and CEO of Volkswagen
Group Canada.
2012 TORONTO AUTO SHOW
The stunning all-new 2013 Cadillac XTS.
The Goodman is an ultra-luxurious MINI.
Subaru Canada’s Ted Lalka introduces the XV.
The all-new 2013 Ford Fusion
was designed to satisfy even the
most demanding customers.
March 2012 • AutoJournal 13

DIGITAL MARKETING
social media
A Brave New World
Auto dealers across Canada are embracing the exciting possibilities of social media with enthusiasm. They’re learning to
communicate with a whole new audience through a more meaningful and ultimately profitable dialogue.
The importance of developing
relationships with their customer
base is common knowledge
among auto dealers. And with the
advent of social media, there are
more opportunities than ever to
move beyond making a sale – and to
connect with a customer in a more
substantial way.
Creating a community
When Montmorency Ford Lincoln
sales manager José Gastan saw how
much time his kids were spending
on Facebook and Twitter, he realized
the future had arrived. “Smart companies
will take advantage of these
channels, but realize that they have
to use them differently,” he says. “It’s
not something you get an instant sale
out of – you can’t sell a car through
Facebook or Twitter.”
Gastan is just one of many
Canadian dealers who realize the
potential of social media – and
that its implementation requires an
effective strategy. An Ipsos Reid poll
taken last May showed that one in
three Canadians has a Blackberry,
iPhone or other type of smartphone.
They spend an amazing 17.3 hours
per week on their device, and 54 percent
claim they use it for activities
other than talking. Forty-eight percent
use their devices to check social
networking sites, like Facebook
and Twitter.
Gastan knows his kids aren’t the
only ones chatting and tweeting on
their smartphones. And he knows
that social media is about building
a community around his Montreal
dealership. “We never solicit the
people who are on our Facebook or
Twitter,” he says. “Especially young
kids, you can’t just try to sell them.
They want to participate, and they
appreciate that you’re making an
effort to reach them.”
Social media offers another way
of taking care of consumers, giving
them information and keeping them
up-to-date on new products and services
that they might be interested
in. It creates a laid-back environment
that consumers can feel comfortable
in, to linger, look around and chat.
You can maximize your marketing budget by integrating a social media strategy.
Building trust
Connecting with consumers in an
enjoyable, sometimes educational
and always congenial manner creates
a familiarity that leads to trust.
It’s about creating conversations,
interacting with consumers in a
way that keeps them engaged but
not pressured.
“We want to be able to communicate
with our customers in a different
way,” says Denis Kwan, general
manager and partner of Vancouver’s
Clarkdale Volkswagen. “People will
go on Facebook and say whatever
they want, but in person, they may be
a strong introvert. How do you engage
and talk to these people?”
“With social media, it’s like sitting
at a table, having a glass of wine with
your customers, 24 hours a day. And
they’re telling their friends about it
right in front of you,” he explains.
Kwan, who had just returned from
a three-day digital media conference,
emphasizes that this is not a direct
selling platform. “It’s an ability to open
up a dialogue with a customer who’s
either having a problem or wants to
brag for you and spreads news about
what’s going on,” he says.
“With channels like Facebook,
you get a lot of interaction and
dialogue between the participants,
and the dealer doesn’t have to run
the show – but occasionally join in
the conversation.”
The people behind the tools
One of the most important aspects
of implementing a social media
strategy is to ensure dealership
staff are not only trained, but actively
participating. To make best
use of the channels, the people in
the dealership need to know what’s
going on and maintain the dealer’s
presence by interacting regularly.
“The advantage is no longer the
technology, it’s the people driving
the technology,” says JP Paquin,
president of Montreal based Evolio,
an auto industry marketing consultant.
“You can have the best
plan in the world, but if you don’t
have the right people to carry it
out, it’s useless.”
“You have to recognize that
beyond the websites, the Facebook,
the Twitter, there are real people.
These people have to understand
what the name of the game is, they
have to have a vested interest in
making it work at the dealer level,
and they have to have some kind of
competency that is not car related but
technology based,” he says.
To that end, Paquin recently
established Evolio Talent, to help
dealerships recruit the right kind of
personnel for their social marketing
departments. “We’ll advertise the
job, go through resumes and interviews,
and do training. You need to
have people with the proper skill set
to pull this off.”
Home grown innovation
But Richie Samy, sales manager at
Heninger Scion in Calgary, only
needed his ingenuity and creativity
to launch a successful social media
strategy. Every time a customer
picks up their new Scion, Samy celebrates
it with a music video, which
is then posted to the dealership’s
YouTube channel.
“I do it all myself,” says Samy,
whose previous experience included
“People trust
social media
more than
traditional
advertising.”
– Josie Cino,
Interactive Media Productions
a stint as a music store manager. “We
had to maximize our budget with
Scion, there were very few marketing
dollars, so we had to rely on our creativity
and ingenuity. It’s not hard to do
with all the tools that are available.”
Samy takes the video with his
smartphone, and uses Windows Live
Movie Maker – which is free with any
computer – to edit the video. Usually,
the video consists of the customer visiting
the dealership, where their new
vehicle is covered by a large, shiny
sheet. A smiling and cheery audience
of staff applaud as the sheet is pulled
off the vehicle, and the client drives
the new vehicle down the dealership’s
curved ramp.
For an added touch, Samy hires
local talent to provide the music, and
then links to their website and fan
base for added exposure. If the customer
has a business, he’ll include
the business in the video and link to
their media as well.
“I don’t have any background in
film or video, and it’s been trial
and error from the beginning,”
he admits. “I started doing these
videos in April of 2011 and it’s
14 March 2012 • AutoJournal

eally caught on. Everyone wants
their own video. We’ve won a lot
of sales from other dealers just
because our clients want to be part
of this cool thing.”
A spoke in the wheel
At Toronto’s Roy Foss Motors,
marketing manager Anne He uses
social media not only to reach
out, but also reinforce the brand
in a unique way. Together with a
sister dealership in Woodbridge,
Roy Foss has organized a program
called “Sonic Grades”, which
rewards high school students who
excel academically with the chance
to win their own Chevy Sonic.
“We’re connecting with students
with a Sonic Grades Facebook
page, which makes sense because
Facebook is used a lot by students,”
Anna explains. “By using social
media, not only are we spreading the
message but we’re using a medium
that they’re used to.”
The response to the program
has been tremendous, not only
from students but also from parents.
“We had so many phone calls
when we launched the program
from parents, who were surprised
that a dealership would initiate
this kind of program,” Anna says.
“Now, parents aren’t likely to go on
social media – they use the phone.
So social media is really like a spoke
in the wheel, it complements our
traditional advertising. It’s another
channel to communicate.”
Stay committed
According to Josie Cino, social
media manager at Interactive Media
Productions in Burlington, there are
many ways for dealers to get started
and take advantage of social media.
She says that half of her agency’s clients
are car dealers in the southwest
Ontario region.
“All you have to do to get started
is open a Facebook account, and post
photos of new cars that come in, create
a trivia quiz, include news about
what’s going on in the dealership,
and take a photo when someone
picks up a new car,” Cino says. “It’s
also a great way for dealers to get
inventory out, because social media
is so real-time. When they get a new
car on the lot, they can promote it.
And when they sell it, they can promote
that, too.”
Customers who have had a positive
experience at a dealership should
be encouraged to share it with their
friends. “They’ll be likely to go right
away to Facebook or Twitter and talk
about it, or do a Google review,” she
says. “So you’re strengthening your
existing customer relations as well as
building new ones.”
However, she adds that it’s important
to stay committed to what
you’ve started. “If you start a social
media account and you don’t follow
through, then no one’s going to
engage with you and it’s going to take
longer to be successful, to build that
trust,” she notes. “It takes a year to get
people to trust you – give it time and
stay on top of it.”
“If you need help to maintain
it, hire an agency or a third party,”
Cino advises. “A lot of people in
the auto industry are really busy,
they don’t have time to keep up
with it. But even if you hire someone,
it’s good to have the dealership
involved as well, to keep both parties
working together.”
Auto dealers are embracing the brave new world of social media.
An Ipsos Reid survey from May 26, 2011, showed that three in ten Canadians now own a smartphone.
She advises starting out with one
account, like Facebook, which is the
most social and has the largest network,
and is popular with dealers.
“Social media isn’t really that new
– it’s all about building relationships.
For car dealers, that’s what it’s
always been about. It’s just the tools
that are new.”
Krystyna Lagowski
MORE ON
March 2012 • AutoJournal 15

USED CAR
JACK KAZMIERSKI
understanding tHe used car dept.
Get Out of the Car Business
Stop looking at your used cars as cars, because they’re not cars – they’re money.
G
et out of the car business and
get into the money business.
That’s the core message Frank
Alfano, president of Progressive
Basics, has for dealerships with
respect to their used car departments.
Alfano wants dealers to start
thinking of their used car inventory
not as vehicles, but as money.
“The inventory you have on your
lot today,” Alfano argues, “no matter
it’s value, all it is is money.”
Whatever you have invested in
used car inventory, if it’s just sitting
there then it’s money doing nothing
- money you could be investing
elsewhere to create a better return
on investment.
“You have to look at your cars as
though they are sacks of money sitting
in your lot on the concrete,”
Alfano adds. “That bag of money
starts to erode instantly, and the
longer it sits there, the less money
you have in the bag.”
Why sell used cars?
If you’ve got vehicles sitting on
your used car lot for more than 60
days, you’re losing serious money.
If that’s a problem you’d like to fix,
Alfano believes you have to first
understand why you’re selling used
cars in the first place.
“What is the primary purpose
of the used vehicle department?”
Alfano asks. “The primary purpose,
as defined by Henry Ford in 1910, was
to invest the dealer’s capital in the customer’s
trade to allow the customer to
purchase another vehicle from the
dealership while turning that [vehicle
for a] profit in a short period of time.”
In other words, a truly successful
used car department is there primary
to facilitate the purchase of a
new vehicle from the dealership. The
customer’s trade, in turn, should be
turned for a profit in as little time
as possible.
“For every 100 people that walk
into your building, your used car
manager should appraise 33 customers’
used vehicles,” Alfano adds.
Understanding
your investment
Alfano also wants dealers to truly
understand that the vehicles on
the used car lot are an investment,
and that they should be yielding
a decent return on investment.
“When I ask dealers how they’re
doing, they tell me how many cars
they sold,” he says. “How come
nobody talks about how much
they made selling those cars? You
could have sold 100 cars and lost
$300,000.”
The key to success is a reasonable
goal. “Why not give your
used car manager the following
starting goal,” Alfano says. “Tell
him you want to see a 2% ROI per
month - that’s 24% per year. That
could be 3% or 4%, but you need
to give your manager some kind
of goal he can reach so that he
has some accountability to you,
other than, “We did a good job
last month.”
“You have to look at your cars
as though they are sacks of
money sitting in your lot on
the concrete.” – Frank Alfano
Alfano offers three simple rules
for dealers to live by:
Rule #1
- If you can’t measure it,
you can’t manage it.
Rule #2
- If you don’t measure it,
you won’t manage it.
Rule #3
- If you don’t do either,
you can’t win in the used car
investment game.
In order to put these rules to good
use, dealers need to set goals for
their used car managers (as stated
bellow), as well as have meaningful
sales meetings to discuss progress.
“A dedicated used car meeting
should be structured just like the
new car meeting where you discuss
your money,” Alfano adds.
“You need to discuss what’s going
on and how you’re going to get a
return on investment.”
The inventory myth
Dealers believe that inventory is
the answer, but Alfano doesn’t
buy that argument. “Some dealers
feel that if they have a bit of
space on their lot, they need to
fill it with inventory. Why? They
tell me how they bought 40 cars,
had a great sale, got rid of 28 of
them, had 12 left over which sat
on the lot for 6 months, everything
they made on the first 28
went away, and the 12 you had left
over ate all their profit. But you
know what? They do the exact
same thing next year.”
If your used car department
isn’t working the way you would
like it to, you need to rethink what
you’re doing, why you’re doing
it, and who is responsible for the
return on your investment. “Most
importantly,” Alfano says, “you
have to stop looking at used cars
as cars, because they’re not cars
- they’re money. And the thing
that we miss in the car business,
at the dealership level today, is
simply the process of managing
that money.”
Frank Alfano, president of Progressive Basics,
speaks about used car sales at the Remarketing
Forum in Niagara Falls, Ontario.
16 March 2012 • AutoJournal

REMARKETING
JACK KAZMIERSKI
residual values
...and the Winner is...
Canadian Black Book awards top marks to cars, trucks and SUVs
with the best retained values.
The 2012 “Best Retained Value
Awards” were recently handed
out by Canadian Black Book
(CCB). By putting 2008 model year
vehicles under the microscope, CCB
has determined that “after four
years the Japanese continue to dominate,
Europeans stay the course
CATEGORY 2012 AWARD WINNER
SUB-COMPACT Honda Fit
COMPACT CAR Volkswagen Golf
MID-SIZE CAR
Honda Accord (Tie)
Subaru Outback (Tie)
FULL-SIZE CAR Toyota Avalon
ENTRY LUXURY CAR BMW 1 Series
LUXURY CAR Lexus GS Series
PREMIUM LUXURY CAR Lexus LS Series
PREMIUM SPORTS CAR Audi R8
SPORTS CAR Dodge Challenger
SMALL PICKUP Toyota Tacoma
FULL-SIZE PICKUP Toyota Tundra
MINIVAN Honda Odyssey
FULL-SIZE VAN Dodge Sprinter
COMPACT SUV Jeep Wrangler
MID-SIZE SUV Toyota FJ Cruiser
FULL-SIZE SUV Toyota Sequoi
LUXURY SUV BMW X6
and North American manufacturers
steadily improve.”
Collectively, Honda, Lexus, Subaru
and Toyota took home 11 first-place
Retained Value Awards, while Audi,
BMW, and VW collectively won four,
and Dodge and Jeep walked away with
a total of three (collectively).
The Dodge Challenger, which debuted in 2008, is a first-time winner in the Sports Car category.
CCB also handed out 2nd and 3rd
place awards in each category.
Toyota and Lexus stood headand-shoulders
above the competition.
Toyota walked away with
five first, four second and one
third-place finish, while Lexus
took two firsts and one second.
Of special note, says CCB, is
the fact that in three categories,
Toyota, Honda and Dodge
each have claimed the winner’s
podium for three years straight
while the Subaru Outback has
either won or tied for first in the
Mid-sized Car category for three
years running.
North American brands took
home 10 second- and third-place
finishes. Ford and Lincoln had
four, as did General Motors, while
Chrysler had two. Dodge was a
first-time category winner in the
Sports Car category with the new
Dodge Challenger, while the Jeep
Wrangler was a repeat winner in
the Compact SUV category
Analysis and insight
CCB wants consumers to think about
residual values before making a purchase.
“When deciding on a new car
or truck, consumers often search for
a model offering the best loan rate or
the richest incentives that lower the
sticker price,” says Kathy Ward, CEO
of Canadian Black Book. “But not
taking vehicle depreciation into consideration,
the single greatest cost of
vehicle ownership, can lead to a costly
surprise at trade-in time.”
Well-respected automotive analyst,
Dennis DesRosiers, offers his insight
on this year’s winners. “It’s interesting
that while new vehicle sales figures
may show Toyota lagging behind
North American models, the retained
value awards tell another story. The
Toyota Tundra and Tacoma models,
for example, have won Best Retained
Value in the Full-size Pick-up and
Small Pick-up categories for three
consecutive years although we typically
think of North America as the
top builder of trucks.”
MODEL 1 st 2 nd 3 rd
SUB-COMPACT CAR Honda Fit Toyota Yaris Pontiac Wave
COMPACT CAR Volkswagen Golf Mitsubishi Lancer Subaru Impreza
MID-SIZE CAR Honda Accord/Subaru Outback (TIE) – Subaru Legacy
FULL-SIZE CAR Toyota Avalon Nissan Maxima Dodge Charger
ENTRY LUXURY CAR BMW 1 Series Lexus IS Series Audi A3
LUXURY CAR Lexus GS Series BMW 5 Series Acura RL
PREMIUM LUXURY CAR Lexus LS Series Audi A8/S8 BMW 6 Series
PREMIUM SPORTS CAR Audi R8 Porsche Boxster Porsche 911
SPORTS CAR Dodge Challenger Audi A5/S5 Mini Cooper
SMALL PICKUP Toyota Tacoma Ford Explorer Sport Trac Mazda B Series
FULL-SIZE PICKUP Toyota Tundra Ford F Series Lincoln Mark LT
MINIVAN Honda Odyssey Toyota Sienna Chrysler Town & Country
FULL-SIZE VAN Dodge Sprinter GMC Savana Chevrolet Express
COMPACT SUV Jeep Wrangler Toyota RAV4 Honda CR-V
MID-SIZE SUV Toyota FJ Cruiser Toyota Highlander Toyota 4Runner
FULL-SIZE SUV Toyota Sequoi Ford Expedition GMC Yukon XL
LUXURY SUV BMW X6 Lexus LX570 Mercedes-Benz G-Class
March 2012 • AutoJournal 17

BUSINESS TALK
ISABELLE COURTEAU
auto Journal interviews dianne craig
Sales Momentum
Exchanging the sunny south for the chilly north, recently appointed Ford of Canada CEO,
Dianne Craig looks forward to building on Ford of Canada’s recent success.
On November 1st, 2011 Dianne
Craig, was appointed Chief
Executive Officer for Ford
Motor Company of Canada Limited,
succeeding David Mondragon. Craig,
who joined Ford Motor Company
back in 1986 and has been a driving
force in developing Ford and Lincoln
dealer relations in the US. Although
she realizes, as Ford of Canada
CEO, she has big shoes to fill, with
her extensive sales and marketing
experience, there’s every indication
she can build upon Mondragon’s
legacy which witnessed Ford conquering
new customers in Canada
as well as emerging as the country’s
top selling automaker for the first
time in over 50 years. Recently Auto
Journal caught up with her at the
Canadian International Auto Show
in Toronto.
AJ Congratulations on the new position, it
must seem quite daunting and exciting at
the same time?
DC Yes it, is. I’m really glad to
be here and I look forward to
continuing the work that David
has done. There are many challenges
on the road ahead in the
Canadian market but we’ve got
plans in place to ensure we’re in
the best possible position of meeting
those challenges and building
upon our success.
AJ You’ve been with Ford Motor Company
for more than 25 years, are there any
similarities between when you started and
where the industry is today?
DC When I started at Ford, the company
was on a roll, we had seven of
the top 10 selling vehicle nameplates
in the US and broke new
ground with vehicles like the 1983
Ford Thunderbird and 1986 Ford
Taurus. Quality was improving,
the vehicles were more exciting and
Ford was becoming more profitable,
so perhaps you can say that in some
respects the situation today mirrors
the scenario of the late-1980s.
AJ What do you think has been critical to the
company’s success, such as growing market
share and profitability this time around?
DC I think a lot of it has to do with
focusing on the core business.
History often provides us with great
lessons and from Ford’s perspective,
building the Premier Automotive
Group, with its multiple different
brands took us too far away from the
concept of Ford Motor Company.
Since 2006, we’ve re-focused our
efforts on the core business and by
investing heavily in product development;
we’ve been able to bring a record
number of new vehicles to market,
while leveraging our expertise in
different markets around the world.
Today, we’re very much a global company
and I think maintaining that
world focus has been instrumental
in our success in recent years.
AJ One topic of conversation in recent years
has been the re-invention of Lincoln, what
is your view on the subject?
DC There is no question that Ford
is committed to Lincoln over the
longer term. We’ve been developing
independent design and engineering
for the Lincoln brand and we’re
in the process of re-defining what
the concept of Lincoln is all about.
Our plan is to provide Lincoln customers
with a very unique, intimate
ownership experience, something
that will make Lincoln stand
apart from other luxury brands.
We believe it’s something consumers
are willing to pay for, provided
it fits their criteria.
AJ From your perspective, are there any
comparisons between the US and Canadian
vehicle markets, especially in view of your
recent experiences?
DC Probably the one thing I wasn’t
quite prepared for is actually how
different they are. While trucks are
strong sellers in both markets, the
overall product mix is quite different.
Smaller cars account for a larger
percentage of the market in Canada.
Although we’ve never had a greater
level of integration between Ford’s
operations in different countries,
there’s still a good degree of autonomy
between Canada and the US,
and I think that’s important. I also
think that it’s reflected in sales here,
we’re currently segment leaders
with the Escape, F-150, Fusion and
Mustang, plus the Fiesta and Focus
are also doing well. We’ve tried to
provide Canadians with a range of
vehicles that combine practicality,
style and value and I think the
market has responded.
AJ Looking to the future, what do you see
as critical factors in shaping consumers’ car
buying habits?
DC Today, there’s a lot of emphasis
on saving fuel and new powertrain
technologies, a trend that is likely
to continue. By offering alternatives
in propulsion, such as gas, Hybrid,
Plug-in Hybrid, diesel and electric
vehicle technology, automakers
can provide a number of different
options to suit the varying needs of
their customers and that is crucial to
success in the long term. However,
in order to make that possible, flexible
manufacturing (the ability to
produce different cars and trucks at
the same facilities, based on changes
in demand) is absolutely crucial to
ensure the dealers and end customers
get the vehicles they need. It’s
something we’ve been focused on at
Ford in recent years.
Dianne Craig, who is originally from Buffalo, New York, is no stranger to the cold and after
a stint in Atlanta, says she feels "like I've come home" as Ford of Canada CEO.
18 March 2012 • AutoJournal

March 2012 • AutoJournal 19

SALES STATISTICS
Observations
From Dennis
Car Shows Focus on
Eco-Friendly Green
Our readers who enjoy the thoughts
of Dennis DesRosiers, know just
how succinct and relevant they can
be. To help you appreciate his viewpoint
even more, we have included
the results of his recent insights,
looking at some of today’s leading
issues. In this column, our expert
analyst notes that never before have
so many vehicles, featuring such low
fuel consumption, been presented
as was the case at the recent Detroit
Auto Show - a trend, he suggests,
created by government action.
“This amazing number of ‘green’
vehicles on display in Detroit primarily
reflects the power of government
bureaucracies and not so
much the desire of consumers to
buy these vehicles.
The Detroit Auto Show, held in
January 2012, as well as other recent
North American events, has seen
manufacturers presenting vehicles
that are now ‘greener’ than ever. “All
this is so political. In Detroit – epicentre
of gas-guzzling horsepower -
who would have thought that Class
B and C vehicles, plus hybrids, would
not only get the lion’s share of floor
space, but also the most media attention,”
wonders the analyst.
As it happens, the conception and
development of vehicles on show
has been strongly influenced by
the CAFE (Corporate Average Fuel
Economy) standards going into full
effect in 2016. CAFE standards, first
set up in the United States in 1975,
modify the whole approach to the
design and production of our automobiles.
That hasn’t stopped North
American drivers from being among
the greediest on the planet, due in
big part to the popularity of SUVs
over the last decade or so, which
have side-stepped the pressure to
comply with CAFE requirements.
So DesRosiers went to Detroit to
check out the so-called ‘green’ models
including: Ford (hybrid and electric),
Cadillac ATS and Buick Encore,
Chevrolet Sonic RS, Dodge Dart,
Toyota Prius C, etc. In his opinion,
manufacturers are sending a message
to consumers, somewhat tarnished
by a fair dose of hypocrisy, namely:
“We design and build vehicles which
will require much less fuel, which will
reduce our dependence on fossil fuels
and, most importantly for us, will overcome
the obstacles set up by CAFE…
Drop by our showrooms and choose
from a choice of hatchbacks, hybrids
and yes, even big cars, now boasting
small, fuel-efficient engines… Oh, and
by the way, if you still want a monster
gas guzzler, we’ve got what you need,
too,” he notes ironically.
A ready-made response
for future failure
DesRosiers even goes so far as to suggest
the likely response of manufacturers,
when it comes to the predictable
failure of green vehicle sales:
“These fuel-efficient models were
heavily promoted in our showrooms,
so it’s not our fault if consumers didn’t
buy them.” The analyst further adds:
“This huge splurge of green vehicles
at the Detroit Show more aptly
reflects the triumph of the bureaucrats,
rather than the desire of the
consumers to buy these vehicles (and
certainly not a preference of those
who live in the industrial Northeast
US, the primary demographic of the
Show’s attendees).”
What you didn’t see
or hear at the Show
Dennis DesRosiers points out that
when an industry goes to extraordinary
lengths and expense to
promote its public image, you can
sure learn a lot by what is NOT seen
or said.
And so DesRosiers notes that several
elements that were seen or mentioned
frequently at recent Detroit
Shows, have now simply disappeared
from the scene. Such is the case, for
example, for ethanol: “Given the end
of government subsidies, auto builders
are no longer obliged to push this
politically-backed, non-solution on
consumers. The sudden media attention,
followed by the equally sudden
disappearance of this alternative fuel,
makes you wonder just how effective
any government-backed green program
can be.” So it’s farewell to terms
such as ‘flex fuel’, which allowed
engines to run on a fuel mix that
could be up to 85% ethanol.
With the federal ethanol subsidy
finally off the books, automakers no
longer have any reason to continue
pushing this entirely political nonsolution
on the vehicle buying public.
The glut of attention followed by
rapid disappearance of the repudiated
alternative fuel, calls into question
the efficacy of every green scheme
receiving government support.
The analyst also notices the end
of passenger compartment lighting,
which could be adapted according
to intensity and interior colour
schemes to create a particular atmosphere.
“Ambient lighting, all the
rage in 2008-11, has vanished from
showroom speak just as quickly as
it appeared.”
Dennis DesRosiers concludes
with some thoughts about the venerable
V8 engine: “Gone, forgotten
and fast gaining a bad rep.”
Frédéric Laporte
The Chinese road network, as seen here in
Beijing, is rapidly expanding to accommodate
millions of additional vehicles streaming
towards the big city centres.
20 March 2012 • AutoJournal

automoBile statistics
The Chinese Car Leads the World
China’s Auto Phenomenon has become so significant that all other countries now have to compare themselves to this nation when it comes to their own car industries.
To digest this, first of all we have to
take a look at the stunning statistics.
For example, 16,867 Canadians
drove home a new Audi in 2011,
whereas the Chinese bought more
than 313,000 Audis in comparison!
That puts Audi at the top of the luxury
brands in this country, and the most
important market for this manufacturer
anywhere in the world.
To reach such a winning level of
success, Audi relies on a network of
225 dealerships located in more than
one hundred Chinese cities. And
Audi management wants to boost this
number to more than 400 by the end
of next year.
The numbers are impressive
– yet still low
China’s statistics are very impressive,
primarily thanks to its huge
population of 1.37 billion (according
to the 2011 census). The last
decade alone has seen a growth of
73.9 million. And exactly half of
the population now lives in urban
areas, a sharp increase of 13.46% in
the past ten years, since people have
been migrating towards the big centres
from the countryside.
These city dwellers, now better
off than ever before, represent a ripe
consumer target at which all mindful
auto manufacturers take aim.
The number of billionaires (including
an additional 69 in one year),
has now reached an astonishing 189
individuals, among the richest hoard
of fat cats on the planet! Economic
growth, thought to be around 10%
in 2010, and based mainly on its
own domestic consumption, has
increased to 18.5%, according to
Deputy Prime Minister, Li Keqiang.
When it comes to more ‘regular’
households, by 2015 the annual
income of more than four million
Chinese families will exceed
250,000 Renminbi (about $40,000).
According to McKinsey & Company,
that would place China fourth in
world rankings for highest household
income, after the United States,
Japan and the United Kingdom.
The Chinese purchased more
than 10 million new compacts in
2011, on a steady buy trend that
is simply incredible. During the
90s decade, the Chinese bought
an average 400,000 vehicles a year,
the same number as Quebeckers,
according to data from the Scotia
Bank Group. Since 2008, the
Chinese have passed five million
vehicles sold per annum, to
reach 9.4 million new vehicles
sold in 2010. In fact, the whole of
Asia, with 22.9 million cars sold
last year, thus becomes the most
important region in the world for
the car industry. Indeed, there
were about 60 million vehicles of
all types sold there in 2011.
China comes to the rescue
of the United States
China is not only the biggest creditor
of the US, it is also the key market for
the growth of many of its companies.
Such is the case for General Motors,
recently out of bankruptcy in the
United States, but whose new restructuring
has resulted in 2.55 million
GM vehicles being sold in China in
2011. The arrival on the scene of its
Cadillac model and the more affordable
Baojun brand, besides the ever
popular Buick and Chevrolet, has
meant an annual growth of 8.3%. So
now the Chinese buy slightly more
GMs than the Americans themselves,
with 2.5 million units sold last year
in the US.
The Volkswagen Group, which has
just announced the construction of its
12th and 13th manufacturing plants
in China, sold 1.7 million vehicles
in 2011. That’s an annual growth of
13.8%. Furthermore, VW is planning
production of two fully electric
EV models, starting in 2013. Plus, it’s
also introducing the SEAT brand, a
few years ahead of GM, according to
their ambitious plan.
Vehicles made by, and
produced for, the Chinese
The Chinese market is so important
to so many manufacturers, that they
don’t hesitate to come up with new
models, geared specifically to the
Chinese consumer. For example,
here you’ll find the impressive
BMW 760Li sedan, celebrating the
60th anniversary of the founding
of the People’s Republic of China.
Or how about the Audi A6L as well
as the stretch limo A4L, the China
Peugeot 508, and let’s not forget the
imposing BMW 535Li and 335Li…
all China-only specials and nowhere
to be found in Canada.
Finally, certain brands and
builders can ensure their viability
by staying focused just on the
Chinese market. Such is the case
for the following popular models:
Baojun, BYD, Chery, Dongfeng,
Geely, Great Wall, Hawtai, JAC,
Lifan, Nanjing, Roewe and
Zhejiang. Still not convinced of
the vitality of the Chinese auto
industry? Then consider that from
April 25 to May 2, 2010, more
than 800,000 visitors checked out
the Beijing Auto Show, including
the 145,000 who dropped by in a
single day!
Frédéric Laporte
The Chinese have bought themselves
most of the world’s longest
bridges including the Jiaozhou,
all of 42 kilometers in length.
March 2012 • AutoJournal 21

AUTOJOURNAL VISITS ...
park avenue group
Audi Terminal in Quebec is a North American First
Brossard – In today’s market, building a new dealership to factory specs is an achievement in itself. Factor in the added challenges of being the first on the continent,
with many of the required materials and components not even available on this side of the pond, and we can rightly proclaim that Norman Hébert Jr. and his team
have accomplished something truly remarkable.
On January 31st, the Park Avenue
Group inaugurated what Audi
refers to in their Image Program
as an ‘Audi Terminal’, on Taschereau
Boulevard West in Brossard Quebec.
The facility’s substantial footprint,
43,000 sq.ft., located on 120,000 sq.ft.
of land, is not what impresses most.
Rather it is the tasteful elegance of the
structure that catches the eye.
The incredible effect starts with
the stately 10 feet high by 10 feet wide
windows, specially imported from
the U.S. An armature-like metallic
grille covers part of the building and
certain windows, creating an ‘airport
hangar’ look.
There are no support columns
inside the vast showroom area, which
is designed for 11 vehicles but can
actually hold up to 20. Our attention
is immediately drawn to the sweeping
design of the interior wall, which is a
reproduction of one of the banking
turns of the fabled AVUS racecourse
(Automobil-Verkehrs und Übungs-
Strasse), where Auto Union, Audi’s
predecessor, broke multiple speed
records in the 1930s.
Jean-Philippe Ponton, Project
Manager for Constructions Reliance,
the firm that built the structure,
explained that for lack of anything
resembling the dark matte-finish
of these walls in North-America,
the material had to be imported
from Germany.
The ceiling is the next element that
grabs our attention. Starting from a
space designed and dedicated for cus-
FRéDéRIC LAPORTE
The Park Avenue Group inaugurates North America’s first Audi Terminal,
designed to the exact specificatvions required by the German automaker.
tomers to ‘touch and feel’ the inner
trim options of their future Audi, a
central column swoops upwards and
expands to the ceiling. A centrallylocated
customer greeting area features
a circular module, a theme
found throughout the Terminal.
A selection of ten iPad’s is available
for customers to catch up on e-mails
and browse the Web.
An open-air,
paperless concept
Park Avenue Audi customers are free
to roam the store’s two floors and
relax, have a coffee, and catch up on
the latest and greatest from Audi.
The few offices that can be seen are
for management. A paperless sales
environment, equipped with management
system modules and iPads
for the free-roaming sales staff, were
designed with customer service and
comfort in mind.
The service area, equipped with 13
hoists, also has its share of technology.
Since December, the parts and
service operations have been 100%
computerized according to David
Webber, Park Avenue Audi Vice-
President. The few days required
to implement these new procedures
were well worth the effort, as
the improvements gained from the
switchover have convinced management
to proceed with implementation
of the process for all the Park
Avenue Group Stores.
The architectural and customer
service innovations inherent in the
Audi terminal design were conceived
to provide a unique experience. From
the time customers drop off their
vehicles in the spacious climate-controlled
drive-through, right up to the
delivery of a freshly-cleaned vehicle,
every aspect of the process was
designed to be friendly and pressure
free. What is yet to be determined is
the impact this impressive environment
will have on the 563 new, and
191 used cars sold in 2011, versus the
2012 forecast of 1000 units?
Feel free to consult our website for
more pictures and insight into the
first North American Audi Terminal
at www.autosphere.ca
Incoming Audi Canada President,
Wolfgang Hoffman congratulates
Norman Hébert Jr., Dealer Principal
and Park Avenue Group President.
In spite of the obvious allure of this powerful R8, it is the beautiful concept of this showroom,
with its sweeping wall, which stole the show on this inaugural night.
22 March 2012 • AutoJournal

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