Highlights from the Toronto Auto Show - Autosphere
Highlights from the Toronto Auto Show - Autosphere
Highlights from the Toronto Auto Show - Autosphere
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PM 40014105<br />
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<br />
March 2012 – $3,95<br />
WALKAROUND t<br />
2012 Mercedes-Benz<br />
C63 AMG Coupe<br />
6<br />
SPECIAL FILE<br />
F&I FIVE TRENDS<br />
Coming Trends<br />
8<br />
<strong>Highlights</strong> <strong>from</strong><br />
<strong>the</strong> <strong>Toronto</strong> <strong>Auto</strong> <strong>Show</strong><br />
The Canadian International <strong>Auto</strong> <strong>Show</strong> celebrates “The Next Dimension”.<br />
More details on this story page 12.<br />
Digital Marketing<br />
A Brave New World<br />
<strong>Auto</strong> dealers across Canada are embracing <strong>the</strong> exciting<br />
possibilities of social media with enthusiasm. They’re learning<br />
to communicate with a whole new audience through a more<br />
meaningful and ultimately profitable dialogue.<br />
DISTRIBUTORS TO THE TRADE<br />
WEST<br />
6200 Tomken Road<br />
Mississauga, ON<br />
L5T 1X7<br />
Tel. 905 670-9791<br />
sales@atlastire.com<br />
Page 14<br />
EAST<br />
140 McLevin Ave., Unit 6-7<br />
Scarborough, ON<br />
M1B 3V1<br />
Tel. 416 292-8202<br />
<strong>Auto</strong>Journal Visits... Audi Terminal<br />
19<br />
t<br />
SALES STATISTICS<br />
The Chinese Car<br />
Leads <strong>the</strong> World<br />
Brossard – In today’s market, building a new dealership to factory specs is an achievement in itself.<br />
More details and pictures page 22.<br />
tiredistribution.com<br />
MORE ON
Our service says it all.<br />
Andnowsodoesourname.<br />
Introducing TD <strong>Auto</strong> Finance.<br />
WithTD’sacquisitionofChryslerFinancialcompleted,we’repleasedtoannounce<br />
thatTDFinancingServicesisnowcalledTD<strong>Auto</strong>Finance,nowoneof<strong>the</strong>topbankownedautofinancersinNorthAmerica.Andwhileournamemayhavechanged,<br />
ourgreatserviceandcommitmenttohelpingyougrowyourautobusinessneverwill.<br />
To learn more,<br />
please call 1-888-489-8337 or<br />
visit www.tdautofinance.ca<br />
TD <strong>Auto</strong> Finance (Canada) Inc. is a wholly-owned subsidiary of The <strong>Toronto</strong>-Dominion Bank. ® / The TD logo and o<strong>the</strong>r trade-marks are <strong>the</strong> property of The <strong>Toronto</strong>-Dominion Bank or a wholly-owned subsidiary, in Canada and/or o<strong>the</strong>r countries.
ROUSSEAU AUTOMOTIVE COMMUNICATION<br />
455 Notre-Dame East, Suite 311<br />
Montreal, Quebec H2Y 1C9<br />
Tel. : 514 289-0888 or 1 877 989-0888<br />
Fax : 514 289-5151<br />
PUBLISHER<br />
Isabelle Courteau<br />
CONTRIBUTORS AND COLLABORATORS:<br />
Shirley Brown, Jack Kazmierski, Frédéric Laporte,<br />
Jil McIntosh and Robert Varga<br />
GRAPHIC DESIGN TEAM<br />
Kevin Foster and Virginie Gilbert-Hébert<br />
SALES ASSISTANT<br />
Marie-Hélène Côté 514 289-0888, x 23<br />
sales@autosphere.ca<br />
January / February 2012 • <strong>Auto</strong>Journal<br />
PUBLISHER’S WORD ISABELLE COURTEAU<br />
The <strong>Auto</strong>motive World at Your Fingertips<br />
It’s truly a privilege to be part of <strong>the</strong> auto industry<br />
today, and it’s a privilege for us at Rousseau <strong>Auto</strong>motive<br />
Communication to be able to bring <strong>the</strong> automotive world<br />
to your doorstep through <strong>the</strong> pages of <strong>Auto</strong>Journal.<br />
If you’ve had <strong>the</strong> opportunity to attend <strong>the</strong> Montreal,<br />
<strong>Toronto</strong>, Detroit or Los Angeles auto show (to name but<br />
a few), you know that <strong>the</strong> vehicles and technologies available<br />
today are truly outstanding. Moreover, <strong>the</strong> future<br />
looks even brighter when you think about what’s in <strong>the</strong><br />
pipeline for <strong>the</strong> months and years to come.<br />
You’ll find some of <strong>the</strong> highlights <strong>from</strong> <strong>the</strong> 2012<br />
Canadian International <strong>Auto</strong> <strong>Show</strong> in this issue of<br />
<strong>Auto</strong>Journal. We were truly impressed by <strong>the</strong> number of<br />
concept vehicles and premieres on display at this year’s<br />
show, and we’re sharing a few of <strong>the</strong> highlights with you.<br />
With over 1,000 vehicles on display at this year’s <strong>Toronto</strong><br />
show, we couldn’t cover <strong>the</strong>m all, but trust us when we say<br />
that <strong>the</strong> future of our industry looks bright indeed.<br />
We’re also happy to tell you about some of <strong>the</strong> winners at<br />
this year’s Car of <strong>the</strong> Year Award ceremonies, presented by<br />
<strong>the</strong> <strong>Auto</strong>mobile Journalists Association of Canada (AJAC).<br />
Here again is proof that our industry is coming out with<br />
ideas, technologies and designs that dazzle <strong>the</strong> senses while<br />
at <strong>the</strong> same time appealing to our need of safe, reliable and<br />
fuel-efficient transportation.<br />
And while we’re on <strong>the</strong> subject of dazzling <strong>the</strong> senses,<br />
our Walkaround this month features <strong>the</strong> AMG Coupe<br />
AROUND THE GLOBE<br />
We might not have <strong>the</strong> fondest memories of coupe utility<br />
vehicles, such as <strong>the</strong> Chevrolet El Camino or <strong>the</strong><br />
Subaru Baja, but <strong>the</strong> Peugeot Hoggar’s designers decidedly<br />
don’t feel <strong>the</strong> same way.<br />
The vehicle’s design is quite a surprise, as is its name,<br />
which, according to <strong>the</strong> Peugeot website, refers to a mountain<br />
chain in <strong>the</strong> Sahara desert. And all this, despite <strong>the</strong> fact<br />
that <strong>the</strong> car was specifically developed for South America,<br />
as it said, “to grow its policy of commercial expansion in<br />
<strong>the</strong> Brazilian market.”<br />
Adapted <strong>from</strong> <strong>the</strong> Peugeot 207, <strong>the</strong> Hoggar is assembled<br />
at <strong>the</strong> Porto Real plant in Rio de Janeiro. It comes with<br />
a 1.4 or 1.6-litre one-cylinder engine, and is available in<br />
three finishing options. It has a payload of 742 kilos and a<br />
1,151-litre load space.<br />
Aimed mostly at <strong>the</strong> male driver, <strong>the</strong> versatile Hoggar<br />
attempts to bring toge<strong>the</strong>r <strong>the</strong> best of both worlds: a<br />
solid, all-purpose vehicle that’s just as comfortable as a<br />
European sedan. In 2010, Peugeot-Citroën sold 294,300<br />
SALES<br />
Jean Boutzis 416 473-2915<br />
jean.boutzis@autosphere.ca<br />
Steve Carey 905 497-7590<br />
steve.carey@autosphere.ca<br />
Luc Champagne 514 945-1299<br />
luc.champagne@autosphere.ca<br />
Alain P. Gariépy 514 984-2269<br />
alain.p.gariepy.@autosphere.ca<br />
Stéphanie Massé 514 476-1171<br />
stephanie.masse@autosphere.ca<br />
Réjean A. Rousseau 450 649-9007<br />
rejean.rousseau@autosphere.ca<br />
ADMINISTRATION<br />
Françoise Poynee 514 289-0888, x 28<br />
administration@autosphere.ca<br />
CIRCULATION MANAGER<br />
Nancy Belleville 514 289-0888, x 25<br />
distribution@autosphere.ca<br />
<strong>from</strong> Mercedes-Benz. This spectacular automobile packs<br />
a punch with an unbeatable combination of style, power,<br />
luxury and performance. While it certainly sells itself,<br />
our Walkaround pinpoints <strong>the</strong> reasons why prospects will<br />
want to see an AMG parked in <strong>the</strong>ir driveway.<br />
If you’re selling to new Canadians (or would like to<br />
better penetrate this market), you’ll be interested in our<br />
story about a financing program specifically designed<br />
for individuals without enough of a credit history here<br />
in Canada to allow <strong>the</strong>m to secure conventional financing.<br />
And if you think <strong>the</strong>re’s a “typical” vehicle new<br />
Canadians are interested in, wait until you find out what<br />
<strong>the</strong>y’re actually buying.<br />
We’ve also published an interview with <strong>the</strong> new<br />
president of Ford Canada, we’re taking you on a tour<br />
of one of <strong>the</strong> most attractive dealerships in <strong>the</strong> country,<br />
we’re offering tips on selling used cars, and we’re taking<br />
a closer look at residual values.<br />
Like I said at <strong>the</strong> outset, it’s a privilege for us to bring<br />
you <strong>the</strong> automotive world, and <strong>the</strong>re’s certainly no shortage<br />
of exciting material for us to cover. We hope you<br />
enjoy <strong>the</strong> March issue.<br />
@<br />
Don’t hesitate to send me your<br />
comments and suggestions!<br />
isabelle.courteau@autosphere.ca<br />
The Peugeot Hoggar – From Sahara To Brazil<br />
vehicles in South America, a number that’s sharply on<br />
<strong>the</strong> rise. Meanwhile, a total of 3.63 million units of all<br />
brands were sold in Brazil alone.<br />
Frédéric Laporte<br />
ACCOUNTING<br />
Es<strong>the</strong>r Twells 514 289-0888, x 26<br />
finance@autosphere.ca<br />
DIRECTION<br />
President : Jean-Luc Rousseau<br />
<strong>Auto</strong>Journal is published 10 times per year and 7 200 copies are<br />
distributed per subscriber for all automobile merchants new and<br />
used of Quebec and Canada.<br />
Material in <strong>Auto</strong>Jounal may not be reproduced in any form without<br />
written consent <strong>from</strong> Rousseau <strong>Auto</strong>motive Communication.<br />
Subscription : Price with taxes included is $ 39,50<br />
for 1-year (10 numbers), <strong>the</strong> price per copy is $ 3,95.<br />
Change of address : Send us your new and old address, your<br />
phone number or <strong>the</strong> subscriber number which appears<br />
on <strong>the</strong> address sticker on <strong>the</strong> front of magazine. Please<br />
give us four to five weeks for <strong>the</strong> change to be made.<br />
PM 40014105<br />
ISSN no. 1927-7083<br />
SUMMARY<br />
Vol. 1 n o 2 – March 2012<br />
Dealership World 4<br />
MV-1<br />
Canada’s Newest Wheelchair Accessible Vehicle<br />
Headlines<br />
Hyundai 5<br />
Taking Home Gold<br />
Volkswagen<br />
Touareg TDI Clean Diesel Named CUV of <strong>the</strong> Year<br />
GM of Canada<br />
Voltec Named 2012 Best New Technology<br />
Walkaround 6<br />
2012 Mercedes-Benz C663 AMG Coupe<br />
Presenting Premium Sport Coupes<br />
F&I Special File 8<br />
Coming Trends<br />
Management 10<br />
Value Your Team<br />
What’s Your People Quotient?<br />
F&I News 11<br />
StartRight<br />
<strong>Auto</strong>motive Financing for New Canadians<br />
KPMG<br />
Survey Short-Circuits Electrification<br />
Mercedes-Benz<br />
Announcing Top Management Changes<br />
RAPID! Response<br />
Connects Salespeople with Customers<br />
Fisker Karma<br />
Qualifies for CleanEnergy Incentive<br />
Events<br />
2012 CIAS 12<br />
<strong>Highlights</strong> <strong>from</strong> <strong>the</strong> <strong>Toronto</strong> <strong>Auto</strong> <strong>Show</strong><br />
Digital Marketing 14<br />
Social Media<br />
Used Cars<br />
Understanding <strong>the</strong> Used Car Dept. 16<br />
Get Out of <strong>the</strong> Car Business<br />
Remarketing<br />
Residual Values 1 7<br />
Sales Momentum<br />
Business Talks<br />
Dianne Craig 1 8<br />
...and <strong>the</strong> Winner is...<br />
Columns<br />
Vox Pop 4<br />
Social Media: Worthwhile or a Waste of Time?<br />
Brand Awareness 14<br />
2011 Record Breakers<br />
A Word <strong>from</strong> Dennis 20<br />
Car <strong>Show</strong>s Focus on Eco-Friendly Green<br />
<strong>Auto</strong>mobile Statistics 20<br />
The Chinese Car Leads <strong>the</strong> World<br />
<strong>Auto</strong>Journal Visits ... 22<br />
Park Avenue Group<br />
Audi Terminal in Quebec is a North American First
DEALERSHIP WORLD<br />
VOX POP<br />
In <strong>the</strong> auto business, which traditionally<br />
ranks as one of <strong>the</strong> fastest<br />
paced and most progressive industries,<br />
social media has clearly made<br />
its mark, with multiple manufacturers<br />
using Facebook and Twitter<br />
to try and target <strong>the</strong>ir desired audiences.<br />
Yet at <strong>the</strong> dealer level, where<br />
vehicles are actually sold, does it<br />
really have a significant influence in<br />
driving new business? <strong>Auto</strong> Journal<br />
contacted a number of new vehicle<br />
dealers in different parts of Canada,<br />
to gauge <strong>the</strong>ir opinions.<br />
Barrie – “There’s no question that<br />
Social Media has revolutionized <strong>the</strong><br />
way in which customers interact with<br />
a business like ours. Many people<br />
spend a lot of time doing research<br />
online before <strong>the</strong>y decide to contact<br />
a potential business. As a result we<br />
feel it’s important to provide potential<br />
customers with significant and<br />
valuable information. Because so<br />
many people use Social Media <strong>the</strong>se<br />
days, we see it as a vital part of our<br />
marketing strategies, though in<br />
JACK KAZMIERSKI<br />
mv-1<br />
Canada’s Newest Wheelchair Accessible Vehicle<br />
The MV-1 is <strong>the</strong> world’s first factory-built vehicle manufactured<br />
“<strong>from</strong> <strong>the</strong> ground up” for wheelchair accessibility.<br />
The MV-1 boasts and extra wide and high entryway.<br />
This van is now available in<br />
Canada, and will be initially<br />
sold through 17 MEDIChair dealers<br />
across Canada with a planned<br />
expansion to almost 30 dealers<br />
within <strong>the</strong> next two years.<br />
“The market for accessible transportation<br />
in Canada is large and it is<br />
growing rapidly along with Canada’s<br />
aging population,” says Nick Grande,<br />
CEO of MV-1 Canada. “The MV-1 is<br />
<strong>the</strong> world’s first factory-built wheel-<br />
Social Media: Worthwhile or a Waste of Time?<br />
It’s currently viewed as one of <strong>the</strong> hottest trends in communication, but is Social Media really<br />
effective as a business tool in auto retailing? We contacted a number of dealers to find out.<br />
order to be effective you need to be<br />
targeting <strong>the</strong> right people at <strong>the</strong> right<br />
time. Taking this approach helps us<br />
stay connected with loyal customers,<br />
but also helps us expose our brands<br />
and services to new ones.”<br />
Tracy Tuckett, Jackson’s Toyota,<br />
Barrie, ON<br />
Brockville – “We’re currently testing<br />
<strong>the</strong> waters when it comes to Social<br />
Media. We have a Facebook page,<br />
though at this point we’re still evaluating<br />
how much time and money to<br />
pour into it. One thing we’ve noticed<br />
is that <strong>from</strong> our perspective, print<br />
advertising is much less effective<br />
than it used to be, so we’re devoting<br />
more resources to online marketing.<br />
We’ve developed our own smartphone<br />
app and we’ve made a big push<br />
to reconnect with our existing customers<br />
and cultivate new ones. With<br />
<strong>the</strong> next generation, I think <strong>the</strong> ability<br />
to use tools like Social Media will<br />
prove to be an effective way to connect<br />
with future customers since <strong>the</strong>y<br />
use Twitter, Facebook and texting as<br />
chair accessible vehicle built to meet<br />
<strong>the</strong> unique physical needs of those<br />
with mobility and o<strong>the</strong>r disability<br />
issues and <strong>the</strong>ir caregivers.”<br />
The MV-1 has an extra wide<br />
and high entryway and is available<br />
a means of regular communication.<br />
That said, it is early days yet and<br />
we’re taking a look at best practices to<br />
help develop a Social Media strategy<br />
that’s both effective for us and our<br />
customers.”<br />
Kevin Beattie, Beattie Chrysler-<br />
Dodge-Jeep, Brockville, ON<br />
Fredericton – “In smaller cities like<br />
Fredericton, where people tend to<br />
shop locally, our emphasis has been<br />
on providing quality service to our<br />
customers; finding a vehicle that<br />
fits <strong>the</strong>ir needs and placing a strong<br />
emphasis on building long-lasting<br />
relationships. With Social Media,<br />
it’s difficult to say at this point how<br />
effective it would be for our business,<br />
since <strong>the</strong> metrics are very<br />
hard to measure in terms of time<br />
and resources. Never<strong>the</strong>less, we are<br />
watching o<strong>the</strong>rs who use Twitter and<br />
Facebook and if we see <strong>the</strong>re is an<br />
opportunity to help grow our business,<br />
we’ll definitely consider it.”<br />
Steve Lenihan, Su<strong>the</strong>rland Honda,<br />
Fredericton, NB<br />
with ei<strong>the</strong>r a manual or automatic<br />
retractable access ramp which can<br />
withstand up to 1200 pounds. The<br />
non-slip ramp disappears between<br />
<strong>the</strong> floor and <strong>the</strong> frame to keep it<br />
protected <strong>from</strong> <strong>the</strong> elements.<br />
Backed by a three-year, 60,000<br />
kms, bumper-to-bumper and fiveyear,<br />
120,000 kms, ramp warranty,<br />
MV-1 Canada has selected a network<br />
of over 500 automotive service<br />
centres across Canada to handle<br />
MV-1 servicing.<br />
“Because <strong>the</strong> MV-1 requires<br />
no conversion, it’s an easy choice<br />
for people who need an accessible<br />
vehicle, whe<strong>the</strong>r for personal use or<br />
livery applications,” Grande adds.<br />
“We have just received approval<br />
<strong>from</strong> <strong>the</strong> City of <strong>Toronto</strong> for <strong>the</strong><br />
MV-1 to be used for accessible transportation<br />
by taxi car, limousine and<br />
para-transit companies. This will<br />
benefit many <strong>Toronto</strong>nians who<br />
cannot take commercial or public<br />
transit today.”<br />
newmarket – “I think how effective<br />
Social Media is, depends on<br />
many different factors, ranging<br />
<strong>from</strong> <strong>the</strong> brand of vehicles you<br />
sell, your location, as well as <strong>the</strong><br />
target customers you’re looking to<br />
reach. If, like us, you’re competing<br />
with a number of same brand<br />
dealers in <strong>the</strong> local area, <strong>the</strong>n as<br />
a tool to help bring customers<br />
in, Facebook or Twitter probably<br />
isn’t going to be as effective<br />
as say, a higher end dealer, such<br />
as Porsche, which has fewer locations<br />
but <strong>the</strong> potential to reach<br />
customers over a much wider<br />
area. At <strong>the</strong> end of <strong>the</strong> day we’re<br />
in <strong>the</strong> business of selling and servicing<br />
cars, and although social<br />
media and online marketing can<br />
help us connect with existing and<br />
new customers, ultimately, it’s<br />
still that one-on-one relationship<br />
which counts.”<br />
Mark Swirla, Pfaff Volkswagen,<br />
Newmarket, ON<br />
4 March 2012 • <strong>Auto</strong>Journal
HEADLINES<br />
Hyundai<br />
Taking Home Gold<br />
Recently crowned “Canadian Car President and CEO of Hyundai<br />
of <strong>the</strong> Year” by <strong>the</strong> <strong>Auto</strong>mobile <strong>Auto</strong> Canada. “The Elantra com-<br />
Journalists Association of Canada petes in Canada’s critical compact<br />
(AJAC), <strong>the</strong> victory for <strong>the</strong> Hyundai segment, so for it to win Canadian<br />
Elantra is all <strong>the</strong> sweeter since it Car of <strong>the</strong> Year is vindication for<br />
comes just about a month after all <strong>the</strong> effort Hyundai design-<br />
<strong>the</strong> car was named <strong>the</strong> 2012 North ers and engineers invested into<br />
American Car of <strong>the</strong> Year during <strong>the</strong> <strong>the</strong> project. We wanted to bring<br />
North American International <strong>Auto</strong> Canadians a new take on <strong>the</strong> com-<br />
<strong>Show</strong> in Detroit.<br />
pact sedan; one with great style,<br />
But this isn’t Hyundai’s only quality, safety, and incredible fuel<br />
back-to-back victory. The Genesis efficiency. So, we couldn’t be more<br />
luxury sedan earned both titles in proud that AJAC agreed it should<br />
2009 - proof positive that <strong>the</strong> com- win Canada’s highest automotive<br />
pany is hitting all <strong>the</strong> right notes award.”<br />
with both consumers and auto In addition to <strong>the</strong> Canadian Car<br />
experts alike.<br />
of <strong>the</strong> Year award, Hyundai also<br />
“The all-new Elantra was sim- took home top spot in a number of<br />
ply <strong>the</strong> single most important new o<strong>the</strong>r AJAC categories. The Accent<br />
vehicle that Hyundai has ever and Elantra were named Best New<br />
launched,” said Steve Kelleher, Small Car under $21,000 and<br />
volkswagen<br />
Touareg TDI Clean Diesel<br />
Named CUV of <strong>the</strong> Year<br />
The <strong>Auto</strong>mobile Journalists<br />
Association of Canada (AJAC)<br />
have named <strong>the</strong> Volkswagen<br />
Touareg TDI Clean Diesel <strong>the</strong> 2012<br />
Canadian Utility Vehicle of <strong>the</strong> Year,<br />
beating out <strong>the</strong> Dodge Journey (Best<br />
New SUV / CUV under $35,000),<br />
and <strong>the</strong> BMW X3 (Best New SUV /<br />
CUV over $60,000).<br />
“Winning this award is a tremendous<br />
honour,” said John<br />
White, President of Volkswagen<br />
Canada. “The Volkswagen Touareg<br />
is extremely capable both on and off<br />
road, and surrounds its passengers<br />
in comfort and luxury. We are very<br />
pleased to be recognized for all of<br />
<strong>the</strong> hard work our engineers and<br />
designers have put in.”<br />
The Touareg also won <strong>the</strong> award<br />
for <strong>the</strong> “Best New SUV/CUV<br />
($35,000 - $60,000).” – J.K.<br />
John White (L) accepts <strong>the</strong> award for 2012 CUV of <strong>the</strong> Year <strong>from</strong> Marc LaChapelle<br />
Best New Small Car over $21,000,<br />
respectively, while <strong>the</strong> Veloster won<br />
<strong>the</strong> Best New Design award for 2012<br />
(beating out <strong>the</strong> Jaguar XKR-S, and<br />
<strong>the</strong> Ranger Rover Evoque), as well as<br />
<strong>the</strong> Best New Sports/Performance<br />
Car under $50,000.<br />
“It’s a great honour to have <strong>the</strong><br />
Hyundai Veloster win <strong>the</strong> Best New<br />
Design award <strong>from</strong> AJAC,” said<br />
Kelleher. “Fluidic Sculpture was<br />
Hyundai’s first foray into developing<br />
its own, distinctive design language<br />
and <strong>the</strong> Veloster was sculpted <strong>from</strong><br />
<strong>the</strong> outset to be <strong>the</strong> most aggressive<br />
iteration of that approach. The<br />
Veloster is a design halo for <strong>the</strong><br />
entire Hyundai brand, so to win an<br />
award based on <strong>the</strong> car’s styling is<br />
proof that our designers have found<br />
success.” – J.K.<br />
The <strong>Auto</strong>mobile Journalists<br />
Association of Canada (AJAC)<br />
named <strong>the</strong> Voltec propulsion system<br />
as <strong>the</strong> “2012 Best New Technology.”<br />
“We are very proud to receive<br />
AJAC’s 2012 Best New Technology<br />
award for <strong>the</strong> Voltec propulsion<br />
system,” said Kevin Williams,<br />
president and managing director<br />
at GM of Canada. “The Voltec<br />
propulsion system is <strong>the</strong> heart of<br />
<strong>the</strong> Chevrolet Volt, which combines<br />
pure electric drive and an<br />
efficient range-extending engine<br />
to create <strong>the</strong> only electric vehicle<br />
on <strong>the</strong> market today that does not<br />
President and CEO of Hyundai <strong>Auto</strong> Canada,<br />
Steve Kelleher, expresses his appreciation for<br />
<strong>the</strong> 2012 Canadian Car of <strong>the</strong> Year award.<br />
Kevin Williams (R) accepts <strong>the</strong> award for 2012 Best New Technology <strong>from</strong> Gerry Malloy.<br />
gm oF canada<br />
Voltec Named 2012<br />
Best New Technology<br />
require a customer to make compromises<br />
on when and where <strong>the</strong>y<br />
can travel.”<br />
The Voltec propulsion system<br />
consists of a 16-kWh lithium-ion<br />
battery pack and electric drive unit<br />
that provide pure electric range<br />
between 40 and 80 km, depending<br />
on terrain, driving techniques and<br />
temperature. A 1.4L gasoline-powered<br />
engine extends <strong>the</strong> range up to<br />
an additional 500 km on a full tank<br />
of fuel by operating <strong>the</strong> vehicle’s<br />
electric drive system. – J.K.<br />
MORE ON AUTOSPHERE.CA<br />
March 2012 • <strong>Auto</strong>Journal 5
PHOTOS: SMERCEDES-BENZ<br />
WALKAROUND<br />
JiL MciNtOsh<br />
2012 Mercedes-Benz c63 AMG coupe<br />
Presenting Premium sport coupes<br />
Premium cars attract knowledgeable customers; here’s what to show <strong>the</strong>m once <strong>the</strong>y arrive in <strong>the</strong> showroom.<br />
Any time you’re dealing with a<br />
customer who’s interested in a<br />
sports model, you have someone<br />
who is specialized and knowledgeable.<br />
It’s going to require equally specialized<br />
knowledge on your part, especially<br />
since your customer has undoubtedly<br />
read a great deal about <strong>the</strong> model, and<br />
is depending on you to explore <strong>the</strong> car<br />
in-depth and in person.<br />
Using <strong>the</strong> 2012 Mercedes-Benz C63<br />
AMG Coupe as an example, we’ll walk<br />
<strong>the</strong> customer around <strong>the</strong> vehicle. In<br />
some cases, <strong>the</strong> performance car is a<br />
unique model, but here, it is <strong>the</strong> top<br />
version in <strong>the</strong> C-Class Coupe family.<br />
Torque is important<br />
That means a 6.2-litre V8 engine that<br />
produces 451 horsepower at 6,800<br />
rpm, and 443 lb-ft of torque at 5,000<br />
rpm, versus <strong>the</strong> 302 horsepower and<br />
273 lb-ft of <strong>the</strong> C350. In <strong>the</strong> past, customers<br />
were primarily interested in<br />
horsepower, but today, and especially<br />
in <strong>the</strong> premium segment, torque is<br />
of equal or even more importance.<br />
By comparing its engine output to<br />
o<strong>the</strong>rs in its model line, if applicable,<br />
and with <strong>the</strong> vehicles it faces as<br />
competitors – in this case, cars such<br />
as BMW’s 3 Series or Audi’s S5, for<br />
example – <strong>the</strong> customer gets a better<br />
sense of where <strong>the</strong> vehicle fits into <strong>the</strong><br />
performance market. Just as importantly,<br />
he or she knows that you’ve<br />
done your homework.<br />
The transmission is of equal<br />
importance, and it’s essential to know<br />
anything about it that makes it different<br />
<strong>from</strong> o<strong>the</strong>r models. All C-Class<br />
Coupe models use a seven-speed automatic<br />
transmission, but on <strong>the</strong> C63,<br />
The AMG is Mercedes-Benz’s performance division<br />
it’s an AMG Speedshift MCT (Multi<br />
Clutch Technology) unit. This uses an<br />
electronically-controlled wet clutch<br />
instead of a torque converter, and has<br />
a console-mounted dial that lets <strong>the</strong><br />
driver select Controlled Efficiency<br />
for maximum fuel economy, or <strong>the</strong><br />
sportier S, S+ and M modes that can<br />
deliver gear changes in as quickly as 0.1<br />
seconds. That’s an important difference<br />
between <strong>the</strong> C350’s transmission<br />
and <strong>the</strong> C63’s unit, and it’s essential to<br />
be able to explain it to <strong>the</strong> customer.<br />
Once he or she is behind <strong>the</strong> wheel,<br />
point out <strong>the</strong> shift paddles located on<br />
it, which can be flicked for upshifts<br />
or downshifts without removing <strong>the</strong><br />
hands <strong>from</strong> <strong>the</strong> steering wheel. Many<br />
models have paddle shifters, but <strong>the</strong>ir<br />
designs can differ – one for up and <strong>the</strong><br />
o<strong>the</strong>r for down, or redundant pushpull<br />
paddles on both sides – and cus-<br />
tomers should be shown which type it<br />
is, especially before taking <strong>the</strong> vehicle<br />
for a test-drive.<br />
What sets it apart<br />
Performance models will usually<br />
have exterior differences <strong>from</strong> o<strong>the</strong>rs<br />
in <strong>the</strong> lineup, and you should walk<br />
<strong>the</strong> customer around and show <strong>the</strong>se<br />
off. In <strong>the</strong> C63 AMG’s case, <strong>the</strong>re is<br />
a distinctive front fascia, unique rear<br />
black diffuser insert, sports exhaust<br />
system with twin chrome tailpipes,<br />
and distinctive badges. It’s important<br />
that customers know what sets<br />
<strong>the</strong> vehicle apart.<br />
Spend some time on <strong>the</strong> wheels,<br />
which in this case are 18-inch<br />
light-alloy rims. Performance cars<br />
come with performance tires, and<br />
unless <strong>the</strong> car’s going to be parked<br />
throughout <strong>the</strong> nastier wea<strong>the</strong>r,<br />
your customer is going to need<br />
winter tires. You should already<br />
know what tire and wheel package<br />
is going to be appropriate. Take<br />
your customer through <strong>the</strong> parts<br />
department if <strong>the</strong> combination is<br />
on display.<br />
Go through <strong>the</strong> interior, pointing<br />
out features that differentiate <strong>the</strong><br />
model. On <strong>the</strong> C63, <strong>the</strong>se include a<br />
steering wheel with flattened top and<br />
bottom, metallic trim, alloy pedals,<br />
and <strong>the</strong> AMG logo that displays in<br />
<strong>the</strong> speedometer when <strong>the</strong> ignition<br />
is turned on. Be sure to talk about<br />
automated functions that customers<br />
will appreciate. In this case, <strong>the</strong>y<br />
include active bi-xenon headlamps,<br />
auto-dimming rearview and exterior<br />
ESTIMATED RESIDUAL VALUE<br />
MSRP $66,900<br />
12 months $49,800<br />
24 months $45,060<br />
36 months $35,580<br />
48 months $30,840<br />
60 months $26,100<br />
Source: Canadian Black Book<br />
mirrors, adaptive high-beam assist,<br />
rain-sensing windshield wipers, and<br />
automatic climate control.<br />
Safety is critical<br />
Safety features are important to<br />
customers, especially if <strong>the</strong> vehicle<br />
will be used to transport <strong>the</strong> family.<br />
Whiplash is a common injury in<br />
many crashes, so point out <strong>the</strong><br />
active head restraints – <strong>the</strong> NECK-<br />
PRO feature on Mercedes-Benz –<br />
which provide head support and<br />
reduce <strong>the</strong> neck extension that can<br />
cause trauma. You need to explain<br />
such features as brake assist or<br />
adaptive brakes, seatbelt pretensioners,<br />
tire pressure monitoring<br />
systems, headlamp washers and <strong>the</strong><br />
positions of all <strong>the</strong> airbags, especially<br />
if <strong>the</strong> model you’re showing<br />
has innovative safety features that<br />
competitors may not have.<br />
You should also be very familiar<br />
with <strong>the</strong> infotainment system and<br />
be able to explain all of its features<br />
to <strong>the</strong> customer, both on <strong>the</strong> testdrive<br />
and <strong>the</strong>n again when <strong>the</strong> car<br />
is being delivered.<br />
With such a specialized customer,<br />
being able to point out <strong>the</strong> details is<br />
<strong>the</strong> key to a successful walk-around<br />
on any performance model.<br />
6 March 2012 • <strong>Auto</strong>Journal
Deals that<br />
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get our<br />
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Atlantic & Quebec<br />
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514-233-7858<br />
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647-283-7009<br />
Western Canada<br />
Darren Kiley<br />
604-505-8387<br />
scotiabank.com/scotiadealeradvantage<br />
® Registered trademarks of The Bank of Nova Scotia. Scotia Dealer Advantage Inc. is a wholly-owned subsidiary of The Bank of Nova Scotia, used under license.
SPECIAL FILE<br />
F&i coming trends<br />
What Experts Are Predicting<br />
This year <strong>the</strong> ‘soothsayers’ are predicting a much better year for new sales in <strong>the</strong> light vehicle market.<br />
According to DesRosiers <strong>the</strong>re was an increase of 15.4%... <strong>the</strong> highest level in four years!<br />
That brings up <strong>the</strong> question of<br />
F&I… and trends that could<br />
affect business in 2012. We<br />
contacted some people about F&I<br />
to get <strong>the</strong>ir opinions of what <strong>the</strong><br />
trends might be across Canada.<br />
U.S. trends seem to be ‘More players,<br />
more competition’; ‘Thinner<br />
interest-rate margins’; ‘Greater<br />
volume’; ‘Greater emphasis on<br />
aftermarket products’ and ‘New<br />
regulations’. Let’s see how those<br />
stack up in Canada.<br />
Initiatives and solutions<br />
Diana Mahdessian, Scotiabank<br />
in <strong>Toronto</strong>, states, “On <strong>the</strong> topic of<br />
coming trends in <strong>the</strong> F&I sectors<br />
for 2012, yes, <strong>the</strong>re is more competition<br />
that’s recently entered <strong>the</strong><br />
Canadian market and competitive<br />
pressures on <strong>the</strong> automotive business<br />
will likely continue. More<br />
competition is always better for<br />
<strong>the</strong> customer, but does make it<br />
tough on all <strong>the</strong> banks as margins<br />
get squeezed. Like our competitors,<br />
we are expecting to grow our<br />
share of <strong>the</strong> market, and that’s why<br />
it’s important for us to consistently<br />
present innovative products and<br />
solutions for our dealer customers,<br />
in addition to <strong>the</strong> customer<br />
service excellence Scotiabank is<br />
known for. We really focus on<br />
those innovative solutions that are<br />
good for <strong>the</strong> consumer as well as<br />
our dealership customers. To that<br />
end, we make sure that <strong>the</strong> solutions<br />
we offer make <strong>the</strong>ir job easier<br />
and make it easier for <strong>the</strong>m to<br />
move <strong>the</strong> vehicles off <strong>the</strong> lot.”<br />
Raymond O‘Kane, BMO,<br />
<strong>Toronto</strong>, believes <strong>the</strong>re will be more<br />
players in <strong>the</strong> lending field and an<br />
increase in leasing penetration.<br />
“We’re not going back to <strong>the</strong> glory<br />
days of 40%+ leasing penetration,<br />
but I think we’ll get closer to 25%.<br />
There’ll definitely be thinner margins,<br />
but <strong>from</strong> a finance prospective,<br />
we’ll win on dealer satisfaction.<br />
That covers <strong>the</strong> breadth of responsiveness,<br />
speed (dealer approval<br />
and speed of funding) and relationship<br />
at <strong>the</strong> store level by <strong>the</strong> F&I.<br />
From BMO’s perspective, we’ve put<br />
a heavy focus (and will continue)<br />
on dealer satisfaction, both at <strong>the</strong><br />
8<br />
store and relationship levels with<br />
underwriting and funding.<br />
“I don’t know if <strong>the</strong>re’ll be<br />
greater volumes. We’re forecasting<br />
new car sales up about 2% this<br />
year over last year, but we do see an<br />
increase in used car values. Because<br />
of <strong>the</strong> past year’s events, <strong>the</strong> high<br />
lease penetration hasn’t turned<br />
used cars back into <strong>the</strong> marketplace,<br />
so that volume is down.<br />
Increasing prices will be due to<br />
insufficient new and used cars in<br />
demand in <strong>the</strong> next few years.<br />
“We seem to be lagging a little<br />
in <strong>the</strong> whole social network. Some<br />
manufacturers/dealers are grabbing<br />
hold of <strong>the</strong> whole social network<br />
but it’s slower in this industry<br />
than o<strong>the</strong>rs where consumers will<br />
take recommendations both on<br />
vehicles and on dealerships <strong>from</strong><br />
<strong>the</strong>ir peer group as opposed to<br />
anyone else. If you’re treating your<br />
customers well, customer endorsement<br />
carries<br />
a lot of<br />
ABC MOTORS<br />
Helping You Protect Your Investment<br />
Customer: Smith Gilbert (Steve) Vehicle: Model 1234<br />
Current deal as written, not including selectec Menu Package items below!<br />
weight in <strong>the</strong> social network<br />
environment. The dealers and<br />
manufacturers can really latch on<br />
to <strong>the</strong> power of one – <strong>the</strong> power<br />
of talking to a customer one-onone<br />
and allowing that to pyramid<br />
whe<strong>the</strong>r through Facebook,<br />
Twitter, and I think we’ll see <strong>the</strong><br />
benefits.<br />
“As to new regulations, Canada<br />
is very heavily regulated now so<br />
<strong>the</strong>re’ll always be adjustments, but<br />
not any huge regulations, which<br />
would have a negative fact on <strong>the</strong><br />
growth or distraction of business.<br />
The o<strong>the</strong>r thing I don’t see<br />
emerging in 2012 is <strong>the</strong> signing of<br />
contracts digitally… <strong>the</strong> technology<br />
exists, but I think <strong>the</strong> speed of<br />
adoption will be slower here.”<br />
Seamless processes<br />
Kerry Mueller, One-Eighty<br />
Corporation, Waterloo, Ontario,<br />
has some<br />
Purchase Type: Finance Total Sale Price: $32,839.00 Payment Frequency: Monthly Term in months: 60<br />
Stock Number: Designed Not Trade-in $0.00 Amortization Period: NA Interest rate: 5.90%<br />
OEC Deal #: 36666677 Down Payment $0.00 Balloon: $8,562.00<br />
Financed amount $41,0505.57 Monthly Payment: $668.68<br />
• Platinum (New) Package • Gold (New) Package • Value (New) Package • Econo Package<br />
definite ideas about new trends for<br />
2012… <strong>the</strong> first being ‘doing things<br />
seamlessly’! “This will speed up<br />
processing in F&I… people will<br />
soon be signing contracts on tablets!<br />
The documents will be digital<br />
(pdfs)… once you have everything<br />
in a digital format, you can submit<br />
<strong>the</strong> credit app seamlessly – fill it<br />
out once, away it goes and you get<br />
<strong>the</strong> response back. You can validate<br />
<strong>the</strong> contract before you actually<br />
deliver <strong>the</strong> car to make sure it’s mistake<br />
free. You speed up your processes,<br />
less mistakes that people resign,<br />
faster funding… and signing<br />
on tablets. Then you’re able to submit<br />
all <strong>the</strong> documents in a digital<br />
package.”<br />
Something else Kerry sees is<br />
‘Customer-facing presentations’…<br />
very common in <strong>the</strong> US and soon<br />
to be in Canada. The big screen<br />
presentation<br />
faces<br />
<strong>the</strong> cus-<br />
Paint Guard $319 Paint Guard $319 Stone Guard $255 Paint Guard $319<br />
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Interior Guard $198 Stone Guard $255 UV Wear Protection<br />
$1,099 Assure Credit<br />
$298<br />
(New) 60 months<br />
Residual Life 18-65<br />
Stone Guard $255 UV Wear Protection<br />
$1,099 Critical Illness 18-59 ~$910<br />
(New) 60 months<br />
UV Wear Protection<br />
$1,099<br />
(New) 60 months<br />
FREE VW GOLF SHIRT (value $50) FREE VW KEY CHAIN (value $50)<br />
You are Saving : $568 You are Saving : $371 You are Saving : $170 You are Saving : $277<br />
Monthly Package Payment: $49<br />
(Daily)<br />
Monthly Finance Payment: $717<br />
(estimated)<br />
Customer Disclamer Statement:<br />
I decline all protection products offered to me.<br />
Monthly Package Payment: $44<br />
(Daily)<br />
Monthly Finance Payment: $713<br />
(estimated)<br />
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Monthly Finance Payment: $706<br />
(estimated)<br />
Monthly Package Payment: $32<br />
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Monthly Finance Payment: $700<br />
(estimated)<br />
Date: 2/10/2012 Prepared By: ONE-EIGHTY Acccess<br />
Customer Signature: __________________________ Restore removed Rows Print Email
tomer allowing <strong>the</strong>m<br />
to see <strong>the</strong> ‘packages’<br />
available for <strong>the</strong>ir new vehicle….<br />
items <strong>the</strong> dealer would recommend<br />
because <strong>the</strong>y’re really good<br />
value and would be wise to have.<br />
This makes it easy for <strong>the</strong> customer<br />
to understand at a glance.<br />
Claude Moureaux, Desjardins<br />
Group, Quebec, said he sees <strong>the</strong><br />
focus on revenue generating and<br />
loyalty-building products. “With<br />
thinner margins, dealers are looking<br />
to increase sales of complimentary/aftermarket<br />
products and service<br />
contracts to drive profitability.<br />
If <strong>the</strong> dealer can place a service<br />
contract, etc., that will bring that<br />
customer back a point-of-sale, he<br />
can capture his lifetime value and<br />
increase cross-sales opportunities<br />
when interacting with <strong>the</strong> customer.<br />
The focus is on speed, throughput<br />
at point-of-sale and simplicity of<br />
<strong>the</strong> financing process.<br />
“Next – virtual F&I solutions.<br />
There’s a significant shift with new<br />
technologies coming about and<br />
soon we’ll see new applications<br />
emerging… mobile apps, virtual<br />
solutions for F&I… things becoming<br />
an extension of <strong>the</strong> showroom<br />
used on new supports and tools, like<br />
“To stay competitive and win<br />
over <strong>the</strong> dealership customers’<br />
business, it’s important for us to<br />
present innovative products and<br />
solutions for our customers.”<br />
– Diana Mahdessian, Director Retail Programs, Scotiabank<br />
iPads. The actual salesperson/F&I<br />
person will have an iPad 3 showing<br />
simulations of what he can do. In<br />
time, we’ll also see a secured endto-end<br />
e-process for financing.<br />
“From a market prospective,<br />
<strong>the</strong>re’s a concentration of <strong>the</strong> lenders<br />
on prime, near-prime and a significant<br />
growth of <strong>the</strong> sub-prime<br />
segment. There’s likely going to<br />
be some increased incentives and<br />
highly competitive rates by lenders<br />
to attract prime and near prime<br />
financing at <strong>the</strong> point-ofsale.<br />
We see manufacturers<br />
continuing to seek new complimentary<br />
financing partnerships to<br />
broaden <strong>the</strong>ir acceptance and <strong>the</strong><br />
possibilities to support <strong>the</strong>ir o<strong>the</strong>r<br />
offers.<br />
“The last trend is new regulations:<br />
regulators are looking at<br />
<strong>the</strong> possibility of capping F&I revenues.<br />
Consumer protection laws<br />
are calling for more transparency…<br />
what’s built into <strong>the</strong> cost of loans.<br />
That will change <strong>the</strong> game in how<br />
we interact with <strong>the</strong> customer both<br />
<strong>from</strong> <strong>the</strong> F&I point-of-sale and as<br />
a financial institution. Those new<br />
regulations (in <strong>the</strong> works) will be<br />
calling for new requirements and<br />
new processes at point-of-sale and<br />
new ways to carry out <strong>the</strong> financing,”<br />
stated Moureaux.<br />
Looking at F&I software<br />
Ray Menocal, ADP Dealer Service,<br />
along with Paul Helie, <strong>the</strong> Canadian<br />
F&I Product Manager and Scott<br />
Counsel, Canadian Marketing<br />
Communications, talked about<br />
what <strong>the</strong>y see <strong>from</strong> an F&I software<br />
perspective.<br />
Ray explains, “When <strong>the</strong> customer<br />
says ‘that’s <strong>the</strong> car I want’,<br />
<strong>the</strong>y’re directed to F&I where <strong>the</strong><br />
deal is closed. The paperwork is<br />
done, whe<strong>the</strong>r <strong>the</strong>y’re paying by<br />
cash or financing, and likely try to<br />
sell o<strong>the</strong>r products.<br />
“In that respect, let’s talk about<br />
<strong>the</strong> F&I software. A lot of <strong>the</strong>se<br />
paths are automated i.e. <strong>the</strong> customer<br />
has options. Our software<br />
allows <strong>the</strong> customer to choose <strong>the</strong><br />
best financing rate. We’ll calculate<br />
all <strong>the</strong> financing/interest rates,<br />
what payment <strong>the</strong> customer wants,<br />
<strong>the</strong>n give him options on how he<br />
wants to see that. Our software<br />
automates that for <strong>the</strong> customer<br />
and allows <strong>the</strong> dealer to see all <strong>the</strong>ir<br />
options. Because it’s one workflow,<br />
one product, <strong>the</strong>re are no double<br />
entries! The customer has chosen<br />
<strong>the</strong> vehicle, picked <strong>the</strong> options, etc.,<br />
so by <strong>the</strong> time <strong>the</strong> customer reaches<br />
<strong>the</strong> F&I office, <strong>the</strong> software is waiting<br />
for <strong>the</strong> F&I manager reducing<br />
work, time and errors”<br />
“We believe that’s where <strong>the</strong><br />
industry is going – fully automated<br />
software,” says Paul. “This<br />
is also integrated with accounting<br />
inventory, so when <strong>the</strong> manager is<br />
‘desking’ <strong>the</strong> deal, <strong>the</strong> customer’s<br />
vehicle is up-to-date with <strong>the</strong> costing,<br />
open work order, closed work<br />
order, everything is integrated.<br />
“Since <strong>the</strong>re are many players<br />
now, we’re trying to make it easier<br />
for business managers to do <strong>the</strong>ir<br />
day-to-day business i.e. a specific<br />
form needs to be printed <strong>from</strong> a<br />
credit portal whereas ano<strong>the</strong>r form<br />
needs to be printed <strong>from</strong> a forms<br />
portal. We’ll be automating most of<br />
that to make it easier for <strong>the</strong> manager.<br />
It’s all about full disclosure,<br />
making sure we’re able to provide<br />
it to <strong>the</strong> customer in front of <strong>the</strong><br />
business manager. Because of <strong>the</strong><br />
Internet, it’s now necessary to play<br />
fair and promote <strong>the</strong> trust factor.”<br />
Get sales involved<br />
Gordon Swail, IAP/SAL Group says,<br />
“In talking about thinner margins,<br />
<strong>the</strong> reserves are not as lucrative as <strong>the</strong>y<br />
were. One big difference is <strong>the</strong> dealer’s<br />
ability to partner with <strong>the</strong>ir supplier<br />
to create a joint effort in marketing<br />
<strong>the</strong> products. The more <strong>the</strong> supplier<br />
FINANCE & INSURANCE<br />
– <strong>the</strong> ones offering training –<br />
gets involved in creating that<br />
identity in <strong>the</strong> dealership,<br />
as far as <strong>the</strong> financial services<br />
department, <strong>the</strong> more<br />
profitable <strong>the</strong> dealership is.<br />
Today when <strong>the</strong> dealership<br />
gets <strong>the</strong>ir sales management<br />
team involved, educate <strong>the</strong>ir<br />
salespeople about what goes<br />
on in <strong>the</strong> finance process,<br />
<strong>the</strong>y’re head and shoulders<br />
above those who follow <strong>the</strong><br />
traditional market keeping<br />
<strong>the</strong> ‘finance role’ secret. The<br />
key words now are partnership,<br />
education and transparency because<br />
<strong>the</strong>re’s so much negative information<br />
for <strong>the</strong> consumer about <strong>the</strong> financing<br />
part of <strong>the</strong> car business.<br />
“Customers are afraid to listen<br />
to a finance manager and this is<br />
where that transparency and education<br />
come in starting with <strong>the</strong><br />
first person who greets <strong>the</strong> customer<br />
all <strong>the</strong> way through to <strong>the</strong><br />
sales manager and <strong>the</strong> finance<br />
manager… <strong>the</strong>y all have to be saying<br />
<strong>the</strong> same thing!<br />
“One of <strong>the</strong> best things that<br />
happened in <strong>the</strong> industry was <strong>the</strong><br />
aggressive nature that various governing<br />
bodies have taken in terms<br />
of requiring disclosure, compliance,<br />
etc. It’s forced <strong>the</strong> kind of ‘old<br />
west’ mentality out of <strong>the</strong> business<br />
and brought a new breed of finance<br />
manager into it – young, educated,<br />
creative, looking for a career and<br />
looking to follow all <strong>the</strong> guidelines<br />
that should have been followed all<br />
along! The job satisfaction for those<br />
working in <strong>the</strong> finance department<br />
is when <strong>the</strong>y take <strong>the</strong>ir eye off <strong>the</strong><br />
day-to-day measurement tool and<br />
focus more on <strong>the</strong> customer experience.<br />
And that’s what we try to do.<br />
When you have a real conversation<br />
with a customer, you treat <strong>the</strong>m with<br />
respect and not only do <strong>the</strong>y appreciate<br />
it, <strong>the</strong>y buy <strong>the</strong> product.<br />
“It all comes back with creating<br />
a philosophy in <strong>the</strong> dealership that<br />
everybody buys into. The ones that<br />
do are <strong>the</strong> most profitable.”<br />
And <strong>the</strong>re are <strong>the</strong> F&I 2012<br />
Trends <strong>from</strong> industry experts that<br />
we were able to ga<strong>the</strong>r for this file.<br />
You have trends to share with us?<br />
Would you like to share your point<br />
of view? Do not hesitate to contact<br />
us at autojournal@autosphere.ca.<br />
March 2012 • <strong>Auto</strong>Journal 9
MANAGEMENT<br />
ROBERT VARGA WITH ERNIE BUGELLI<br />
value your team<br />
What’s Your People Quotient?<br />
We’re in <strong>the</strong> people business, so it’s only logical to assume that we make<br />
people a priority. However, <strong>the</strong> truth is we can always do better.<br />
At <strong>the</strong> sake of sounding cliché, a<br />
book that left a lasting impression<br />
on me is, “How to Win friends and<br />
Influence People” by Dale Carnegie.<br />
In my mind, <strong>the</strong> title is a bit misleading<br />
because it’s not about winning or<br />
influencing but ra<strong>the</strong>r about being<br />
au<strong>the</strong>ntic, doing <strong>the</strong> right thing and<br />
being an overall good person.<br />
The big lesson for me - people<br />
just want to feel important.<br />
Whe<strong>the</strong>r it’s a colleague, supplier,<br />
customer, family member or <strong>the</strong><br />
student serving you coffee at Tim<br />
Horton’s – it’s all <strong>the</strong> same. And <strong>the</strong><br />
best part, this civility and kindness<br />
costs you nothing.<br />
Happy Lee day!<br />
John Esplen, owner of Humberview<br />
Group in <strong>Toronto</strong>, Ontario has an<br />
annual “Lee Day.” It’s a fun ski day<br />
to celebrate a General Manager, Lee<br />
Wittick. It’s not about Lee’s performance,<br />
sales volume or CSI scores. It’s<br />
about appreciating and celebrating<br />
Lee as a valuable person to <strong>the</strong> organization<br />
at large.<br />
Would your world be a better place<br />
if you were to do something like this?<br />
F&I NEWS<br />
JACK KAZMERSKI<br />
kpmg<br />
Survey Short-Circuits<br />
Electrification<br />
According to KPMG’s 13th<br />
annual Global <strong>Auto</strong>motive<br />
Executive Survey, <strong>the</strong> internal<br />
combustion engine will not be<br />
replaced by electric vehicles anytime<br />
soon. None<strong>the</strong>less, automakers<br />
are expected to pump<br />
investment into electric technology<br />
as part of <strong>the</strong>ir long-term<br />
strategy.<br />
KPMG’s Global <strong>Auto</strong>motive<br />
survey found that electromobility<br />
is not predicted to exceed 15% of<br />
new car registrations globally by<br />
2025, and that executives in North<br />
America and Western Europe<br />
expect even less adoption of electromobility<br />
in <strong>the</strong> short-term, projecting<br />
e-vehicles will only account<br />
for 6-10% of global annual sales.<br />
How do you think it would make <strong>the</strong><br />
recipient (or you) feel?<br />
Are you listening?<br />
Making people feel important<br />
doesn’t require a special day. It can<br />
be done every day, beginning with <strong>the</strong><br />
simplest of things, like really listening.<br />
Not sitting in your office on your<br />
BlackBerry while someone is talking,<br />
but actually giving <strong>the</strong>m your full,<br />
undivided attention and respect.<br />
Providing a forum for your people<br />
to have a voice is powerful. They will<br />
thrive, be more energized and productive<br />
– if <strong>the</strong>y feel <strong>the</strong>y matter. In<br />
<strong>the</strong> long run, you’ll also avoid turnover<br />
– a problem that plagues our<br />
industry.<br />
Allowing people to make decisions<br />
and take ownership is only one component.<br />
The key to completing <strong>the</strong><br />
‘people quotient circle’ is to acknowledge<br />
it and tell o<strong>the</strong>rs. Unfortunately,<br />
many miss this point and you would<br />
not believe <strong>the</strong> impact this one seemingly<br />
small detail can have.<br />
One of my favourite quotations sums<br />
it up nicely: “Praise and encouragement<br />
is to people, what sunshine and rain is<br />
Nearly two-thirds of those<br />
surveyed say that optimization<br />
of <strong>the</strong> internal combustion<br />
engine offers greater efficiency<br />
and <strong>the</strong> most potential for carbon<br />
emission reduction than <strong>the</strong><br />
current technologies over <strong>the</strong><br />
next 5 years.<br />
to a flower.” Praise and encouragement<br />
make people feel important.<br />
Ernie’s rules<br />
One thing I love about our business<br />
is <strong>the</strong> people we get <strong>the</strong> privilege to<br />
meet. In <strong>the</strong> spirit of sharing worthwhile<br />
information and connecting<br />
great people, I thought I would introduce<br />
you to someone who has left a<br />
lasting impression on me (and many<br />
o<strong>the</strong>rs). Ernie Bugelli is a superstar<br />
General Manager of Audi MidTown<br />
<strong>Toronto</strong> and Agincourt <strong>Auto</strong>haus.<br />
I have long admired how he manages,<br />
develops and nurtures his<br />
people – all with an abundance of<br />
energy and a ton of fun.<br />
Here are some of “Ernie’s Rules”:<br />
u First off, replace <strong>the</strong> word ‘employees’<br />
with ‘partners.’ Once you do this<br />
and see your people as true partners,<br />
fantastic things begin to happen.<br />
v Allow people to work with you<br />
versus for you. Make <strong>the</strong>m part of<br />
positive change and challenge <strong>the</strong>m<br />
to find solutions. Let <strong>the</strong>m take<br />
Fisker karma<br />
Qualifies for Clean<br />
Energy Incentive<br />
2012 Fisker Karma<br />
The 2012 Fisker Karma is <strong>the</strong> latest<br />
addition to <strong>the</strong> growing list of<br />
new vehicles available in British<br />
Columbia that qualify under <strong>the</strong><br />
Clean Energy Vehicle (CEV) Point<br />
of Sale Incentive Program. The<br />
Karma, a battery electric vehicle<br />
with extended range, qualifies for<br />
ownership, grow and learn <strong>from</strong> <strong>the</strong>ir<br />
inevitable screw-ups.<br />
w As leaders, we are looked upon<br />
to provide vision, direction, support<br />
and appreciation. Once a common<br />
goal becomes shared, it begins to<br />
take shape when a truly collaborative<br />
effort is employed. The greatest<br />
quarterbacks of all time could not<br />
block for <strong>the</strong>mselves or catch <strong>the</strong> balls<br />
<strong>the</strong>y threw downfield.<br />
x Lastly, visit <strong>the</strong> front lines often.<br />
Ernie recently donned coveralls and<br />
spent a few days working with his<br />
detailing team. He learned two things.<br />
First, how incredibly out of shape he<br />
is (every muscle hurt <strong>the</strong> next day),<br />
but more importantly, how unbelievably<br />
hard his team works to support<br />
his entire operation. Ernie also came<br />
to realize how much <strong>the</strong>y really care<br />
about <strong>the</strong>ir customers and how great<br />
<strong>the</strong>y work toge<strong>the</strong>r as a true team.<br />
Are <strong>the</strong>se things taken for granted<br />
in most dealerships? If you allow<br />
yourself to live it, you gain a greater<br />
appreciation for it.<br />
a discount of up to $5,000<br />
off <strong>the</strong> pre-tax sticker<br />
price when purchased or<br />
leased at a new car dealer<br />
in BC.<br />
The Karma brings to<br />
16 <strong>the</strong> number of vehicles<br />
now qualifying under <strong>the</strong><br />
program, which kicked off<br />
December 1st.<br />
Fisker <strong>Auto</strong>motive is<br />
an American auto manufacturer,<br />
founded in 2007,<br />
that produces luxury Electric<br />
Vehicles with extended range<br />
(EVer). EVer is Fisker’s proprietary<br />
plug-in hybrid electric powertrain,<br />
which consists of an efficient gasoline<br />
engine, an electric generator, a<br />
Lithium-ion battery pack, and two<br />
electric motors at <strong>the</strong> rear wheels.<br />
10 March 2012 • <strong>Auto</strong>Journal
F&I NEWS<br />
JACK KAZMERSKI<br />
startrigHt<br />
<strong>Auto</strong>motive Financing for New Canadians<br />
Could some of your customers benefit <strong>from</strong> a financing program designed specifically for newcomers to Canada?<br />
T<br />
here’s nothing more frustrating<br />
than a potential sale that goes bad<br />
when <strong>the</strong> customer can’t get financing<br />
for his purchase. Losing a sale<br />
to bad credit is one thing, but losing<br />
a deal simply because <strong>the</strong> customer<br />
is a newcomer to Canada without a<br />
credit history in our country is quite<br />
ano<strong>the</strong>r. This person could be perfectly<br />
credit-worthy, but he or she<br />
can’t prove it because <strong>the</strong>y haven’t<br />
lived in Canada long enough to have<br />
a healthy financial track record.<br />
Two years ago, Scotiabank came<br />
out with a program designed to help<br />
new Canadians secure <strong>the</strong> financing<br />
<strong>the</strong>y need for an automobile<br />
purchase. Scotiabank’s multicultural<br />
banking division already had<br />
a program in place at <strong>the</strong> time to<br />
provide newcomers to Canada<br />
with banking solutions through<br />
<strong>the</strong> StartRight Banking program.<br />
So <strong>the</strong> bank decided to extend <strong>the</strong><br />
program towards automotive financing<br />
and put toge<strong>the</strong>r <strong>the</strong> StartRight<br />
<strong>Auto</strong> Loan program.<br />
rapid! response<br />
Connecting Salespeople<br />
Suddenly, dealers with large immigrant<br />
clientele who previously had<br />
<strong>the</strong>ir hands tied when trying to finance<br />
a vehicle, now had a solution. Due to a<br />
lack of credit history in Canada, <strong>the</strong>se<br />
newcomers were forced to pay cash<br />
and typically bought a lower priced,<br />
used vehicle. With <strong>the</strong> StartRight <strong>Auto</strong><br />
Loan program, dealers could now provide<br />
flexibility to <strong>the</strong>se customers and<br />
offer a new, more reliable vehicle with<br />
a warranty while still preserving <strong>the</strong><br />
newcomers’ cash.<br />
In addition, dealers who did not<br />
previously have immigrant clientele,<br />
began to benefit <strong>from</strong> new business<br />
<strong>from</strong> an untapped market segment.<br />
Promotion<br />
To promote <strong>the</strong> StartRight <strong>Auto</strong> Loan<br />
program, Scotiabank has worked<br />
directly with a number of manufacturers<br />
to integrate this program into<br />
<strong>the</strong>ir advertising and ethnic marketing<br />
strategy. The bank also featured <strong>the</strong><br />
StartRight program in Scotiabank’s<br />
2010 annual report with a picture of<br />
a recent immigrant picking up <strong>the</strong>ir<br />
vehicle, having used <strong>the</strong> StartRight<br />
program to finance <strong>the</strong> purchase.<br />
The program is also promoted<br />
alongside StartRight Banking marketing<br />
as one of <strong>the</strong> innovative<br />
with Customers time. Not only does it allow <strong>the</strong> sales-<br />
DMT Development Systems Group<br />
Inc. recently debuted a novel lead<br />
management and tracking system<br />
developed for car dealers. Known as<br />
RAPID! Response, this technology<br />
brings <strong>the</strong> salesperson and <strong>the</strong> customer<br />
toge<strong>the</strong>r in real time.<br />
“Traditionally, when a consumer<br />
requests something <strong>from</strong> <strong>the</strong> dealer<br />
online it goes into an infrastructure<br />
which is controlled by <strong>the</strong> OEM<br />
or dealer or both,” explains Glen<br />
Demetrioff, DMT Development<br />
Systems Group president. “This<br />
infrastructure process really hampers<br />
how fast <strong>the</strong> dealership can actually<br />
reply to a consumer.”<br />
DMT has been able to leverage<br />
<strong>the</strong> mobile environment to push <strong>the</strong><br />
information that comes <strong>from</strong> <strong>the</strong><br />
internet directly to a desktop, laptop<br />
or mobile device, without <strong>the</strong> lag<br />
person to answer an online customer<br />
immediately, but it also allows <strong>the</strong><br />
sales manager to monitor that conversation<br />
in real time.<br />
Currently adopted by Volvo and<br />
Mitsubishi dealers across Canada,<br />
DMT hopes to roll out this new technology<br />
with o<strong>the</strong>r manufacturers<br />
across Canada.<br />
DMT Development Systems Group<br />
president, Glen Demetrioff, demonstrates<br />
<strong>the</strong> RAPID! Response technology.<br />
products available to Canadian<br />
newcomers.<br />
To get <strong>the</strong> word out to dealers,<br />
Scotiabank has used two main communication<br />
avenues to publicize<br />
this program. First, <strong>the</strong> bank leverages<br />
<strong>the</strong>ir strong relationships with<br />
<strong>the</strong>ir exclusive and semi-exclusive<br />
automotive manufacturers through<br />
Scotiabank’s head office to inform<br />
OEMs of <strong>the</strong> benefits of <strong>the</strong> program<br />
so <strong>the</strong>y can, in turn, promote it to <strong>the</strong>ir<br />
network of dealers.<br />
Second, Scotiabank area sales<br />
managers <strong>from</strong> <strong>the</strong> bank’s Dealer<br />
Finance Centres (with dealer specific<br />
relationships across <strong>the</strong> country) are<br />
informing <strong>the</strong>ir dealers of <strong>the</strong> program<br />
in person with dealer visits.<br />
Training<br />
To help dealerships and salespeople<br />
– including F&I Managers – properly<br />
promote this program to potential<br />
customers, Scotiabank has created<br />
comprehensive training guides that<br />
mercedes-Benz<br />
Announcing Top<br />
Management Changes<br />
Mercedes-Benz Financial Services<br />
(MBFS) Canada Corporation<br />
recently announced top management<br />
changes. Brian Fulton, previous<br />
President and CEO with<br />
operational responsibilities for<br />
<strong>the</strong> financial services activities in<br />
Canada, will now lead <strong>the</strong> financial<br />
services operations in China.<br />
Stefan Karrenbauer, previously<br />
responsible for Operations<br />
Development Mercedes-Benz Bank<br />
and Europe, has succeeded Fulton<br />
as President and CEO, Mercedes-<br />
Benz Financial Services Canada<br />
(effective Feb.1, 2012).<br />
Karrenbauer has been with <strong>the</strong><br />
company since 1996 and has held key<br />
leadership positions in <strong>the</strong> United<br />
States, France, and Belgium.<br />
outline every detail, ranging <strong>from</strong><br />
marketing to <strong>the</strong> step-by-step submission<br />
process. Scotiabank area<br />
sales managers visit dealers across <strong>the</strong><br />
country to provide one-on-one training<br />
on <strong>the</strong> StartRight program.<br />
While Ontario is largely seen as <strong>the</strong><br />
immigration focal point due to <strong>the</strong> presence<br />
of <strong>the</strong> large multicultural city of<br />
<strong>Toronto</strong>, <strong>the</strong> program has demonstrated<br />
<strong>the</strong> growing strength of immigration<br />
across <strong>the</strong> country with a significant<br />
portion of loan approvals coming <strong>from</strong><br />
British Columbia, for example.<br />
And while we may have a notion of<br />
what a “typical” new Canadian would<br />
want to drive, Scotiabank says <strong>the</strong>ir<br />
program has been utilized for a wide<br />
variety of cars, <strong>from</strong> family sedans<br />
to compacts to luxury vehicles. In<br />
fact, significant volume has come in<br />
through luxury SUVs.<br />
Potential<br />
Scotiabank has captured a unique<br />
segment of <strong>the</strong> market by providing<br />
industry-leading solutions to OEMs<br />
looking to expand <strong>the</strong>ir ethnic market<br />
share. The bank is determined to<br />
continue to lead through innovation,<br />
with <strong>the</strong> StartRight <strong>Auto</strong> Loan program<br />
being one tool for driving more<br />
business for dealers and OEMs.<br />
March 2012 • <strong>Auto</strong>Journal 11
EVENTS<br />
2012 cias<br />
<strong>Highlights</strong> <strong>from</strong> <strong>the</strong><br />
<strong>Toronto</strong> <strong>Auto</strong> <strong>Show</strong><br />
The Canadian International <strong>Auto</strong> <strong>Show</strong> celebrates “The Next Dimension.”<br />
Every year, our industry ga<strong>the</strong>rs<br />
in <strong>Toronto</strong> to celebrate all<br />
things automotive. Known as<br />
<strong>the</strong> Canadian International <strong>Auto</strong><br />
<strong>Show</strong>, <strong>the</strong> <strong>the</strong>me of this year’s show<br />
is, “The Next Dimension.”<br />
It would seem that our industry<br />
has rebounded nicely <strong>from</strong><br />
<strong>the</strong> recent recession, as this year’s<br />
show featured more concept<br />
vehicles and premieres than we’ve<br />
seen in recent history.<br />
Toyota hosted <strong>the</strong> opening ceremonies<br />
this year, and marked <strong>the</strong><br />
occasion by unveiling four all-new<br />
models: <strong>the</strong> Prius c, Prius Plug-in<br />
Hybrid Vehicle (PHV), Prius v and<br />
2012 Prius. Toyota’s Scion division<br />
introduced <strong>the</strong> audience to <strong>the</strong> new<br />
2013 FR-S sports car, which boasts a<br />
2-plus-2 seating configuration with a<br />
fold-flat cargo area large enough to<br />
transport a full set of race tires for a<br />
fun day at <strong>the</strong> track.<br />
Tim Reuss, president and CEO of<br />
Mercedes-Benz Canada, introduced<br />
a number of new models, including<br />
<strong>the</strong> seductive next generation<br />
2013 Mercedes-Benz SL 550, which<br />
boasts an irresistible combination<br />
of ride comfort, luxury, style and<br />
performance.<br />
Mazda Canada president, Don<br />
Romano, introduced <strong>the</strong> all-new<br />
2013 Mazda CX-5, which will<br />
be <strong>the</strong> first vehicle <strong>from</strong> Mazda<br />
to offer <strong>the</strong> full complement of<br />
SKYACTIV technologies, including<br />
a 2.0L SKYACTIV-G engine,<br />
6-speed manual or automatic<br />
transmissions, and new,<br />
lighter SKYACTIV body<br />
and chassis architecture.<br />
Ford came to <strong>the</strong><br />
party with a number<br />
of vehicles, including<br />
a very stylish<br />
Fusion - brand<br />
new for 2013.<br />
Available with a<br />
variety of powerplants,<br />
and sure<br />
to appeal to both<br />
consumers and fleet<br />
customers, this new model<br />
is a real head-turner.<br />
The Subaru XV is a production<br />
vehicle currently being sold<br />
in o<strong>the</strong>r markets. Subaru Canada<br />
said <strong>the</strong>y brought it to <strong>the</strong> <strong>Toronto</strong><br />
auto show in order to ga<strong>the</strong>r feedback<br />
and input <strong>from</strong> Canadians. It<br />
boasts impressive fuel efficiency,<br />
excellent handling and driving<br />
dynamics, a 1,500-lb. towing capacity,<br />
and more.<br />
Infiniti Canada invited members<br />
<strong>from</strong> Cirque de Soleil to<br />
help unveil <strong>the</strong> ETHEREA concept<br />
vehicle. They also displayed<br />
<strong>the</strong> Nissan e-NV200 concept van,<br />
which features a driving range<br />
similar to <strong>the</strong> Nissan LEAF, but<br />
with <strong>the</strong> payload and cargo space<br />
similar to <strong>the</strong> current NV200.<br />
John White, president and CEO<br />
of Volkswagen Group Canada<br />
introduced <strong>the</strong> audience to <strong>the</strong> Golf<br />
R (a sportier version of <strong>the</strong> GTI),<br />
<strong>the</strong> Passat CC (now with room for<br />
five), <strong>the</strong> 2013 Jetta<br />
Hybrid (turbocharged), as well as<br />
<strong>the</strong> Bulli concept.<br />
Kia Canada debuted <strong>the</strong> allnew<br />
2012 Rio sedan which boasts<br />
fuel economy numbers as good as<br />
4.9L/100 km (hwy), a heated steering<br />
wheel, automatic folding side<br />
mirrors and a cooling glove box.<br />
GM launched a number of<br />
vehicles, including <strong>the</strong> stunning<br />
new 2013 Cadillac XTS - <strong>the</strong> most<br />
technologically advanced production<br />
car in <strong>the</strong> brand’s history.<br />
Larger than <strong>the</strong> CTS, <strong>the</strong> new XTS<br />
delivers <strong>the</strong> space, elegance and<br />
dramatic presence you’d expect in<br />
a Cadillac.<br />
Honda Canada unveiled <strong>the</strong> 2013<br />
Accord Coupe concept, providing a<br />
first glimpse of <strong>the</strong> Accord’s new,<br />
athletic styling direction. They also<br />
took <strong>the</strong> wraps off <strong>the</strong> breathtaking<br />
Acura NSX concept, promising to<br />
The Elantra GT is a new 5-door vehicle<br />
designed and engineered in Germany.<br />
Tim Reuss, president and CEO<br />
of Mercedes-Benz Canada<br />
with <strong>the</strong> new 2013 SL 550.<br />
Chrysler Canada president<br />
and CEO, Reid Bigland,<br />
unveils <strong>the</strong> 2013 Dodge Dart.<br />
12 March 2012 • <strong>Auto</strong>Journal
10-Acura’s supercar, <strong>the</strong> NSX - will <strong>the</strong><br />
model <strong>the</strong>y promise to bring to market<br />
within 3 years look this good?<br />
bring <strong>the</strong> new NSX supercar to <strong>the</strong><br />
market within <strong>the</strong> next three years.<br />
One of <strong>the</strong> most significant<br />
announcements <strong>from</strong> <strong>the</strong> Chrysler<br />
family was <strong>the</strong> introduction of <strong>the</strong><br />
all-new 2013 Dodge Dart - <strong>the</strong> first<br />
Chrysler Group vehicle built on Fiat<br />
Group architecture. Due to go into<br />
production later this year, <strong>the</strong> Dart<br />
will be available in 12 exterior colours,<br />
14 interior colours and trim<br />
options, three different engines,<br />
and three transmission choices.<br />
Replacing <strong>the</strong> Elantra Touring,<br />
<strong>the</strong> Elantra GT is a new 5-door<br />
vehicle designed and engineered<br />
in Germany. The GT continues<br />
<strong>the</strong> company’s “Fluidic Sculpture”<br />
approach to design, but with a more<br />
European flare.<br />
The Goodman is an ultra-luxurious<br />
MINI designed in collaboration<br />
with Rolls-Royce.<br />
Featuring an interior designed by<br />
Rolls-Royce, exclusive wheels, and<br />
Rolls-Royce paint, this limited production<br />
MINI is sure to sell out.<br />
Jack Kazmierski<br />
John White, president<br />
and CEO of Volkswagen<br />
Group Canada.<br />
2012 TORONTO AUTO SHOW<br />
The stunning all-new 2013 Cadillac XTS.<br />
The Goodman is an ultra-luxurious MINI.<br />
Subaru Canada’s Ted Lalka introduces <strong>the</strong> XV.<br />
The all-new 2013 Ford Fusion<br />
was designed to satisfy even <strong>the</strong><br />
most demanding customers.<br />
March 2012 • <strong>Auto</strong>Journal 13
DIGITAL MARKETING<br />
social media<br />
A Brave New World<br />
<strong>Auto</strong> dealers across Canada are embracing <strong>the</strong> exciting possibilities of social media with enthusiasm. They’re learning to<br />
communicate with a whole new audience through a more meaningful and ultimately profitable dialogue.<br />
The importance of developing<br />
relationships with <strong>the</strong>ir customer<br />
base is common knowledge<br />
among auto dealers. And with <strong>the</strong><br />
advent of social media, <strong>the</strong>re are<br />
more opportunities than ever to<br />
move beyond making a sale – and to<br />
connect with a customer in a more<br />
substantial way.<br />
Creating a community<br />
When Montmorency Ford Lincoln<br />
sales manager José Gastan saw how<br />
much time his kids were spending<br />
on Facebook and Twitter, he realized<br />
<strong>the</strong> future had arrived. “Smart companies<br />
will take advantage of <strong>the</strong>se<br />
channels, but realize that <strong>the</strong>y have<br />
to use <strong>the</strong>m differently,” he says. “It’s<br />
not something you get an instant sale<br />
out of – you can’t sell a car through<br />
Facebook or Twitter.”<br />
Gastan is just one of many<br />
Canadian dealers who realize <strong>the</strong><br />
potential of social media – and<br />
that its implementation requires an<br />
effective strategy. An Ipsos Reid poll<br />
taken last May showed that one in<br />
three Canadians has a Blackberry,<br />
iPhone or o<strong>the</strong>r type of smartphone.<br />
They spend an amazing 17.3 hours<br />
per week on <strong>the</strong>ir device, and 54 percent<br />
claim <strong>the</strong>y use it for activities<br />
o<strong>the</strong>r than talking. Forty-eight percent<br />
use <strong>the</strong>ir devices to check social<br />
networking sites, like Facebook<br />
and Twitter.<br />
Gastan knows his kids aren’t <strong>the</strong><br />
only ones chatting and tweeting on<br />
<strong>the</strong>ir smartphones. And he knows<br />
that social media is about building<br />
a community around his Montreal<br />
dealership. “We never solicit <strong>the</strong><br />
people who are on our Facebook or<br />
Twitter,” he says. “Especially young<br />
kids, you can’t just try to sell <strong>the</strong>m.<br />
They want to participate, and <strong>the</strong>y<br />
appreciate that you’re making an<br />
effort to reach <strong>the</strong>m.”<br />
Social media offers ano<strong>the</strong>r way<br />
of taking care of consumers, giving<br />
<strong>the</strong>m information and keeping <strong>the</strong>m<br />
up-to-date on new products and services<br />
that <strong>the</strong>y might be interested<br />
in. It creates a laid-back environment<br />
that consumers can feel comfortable<br />
in, to linger, look around and chat.<br />
You can maximize your marketing budget by integrating a social media strategy.<br />
Building trust<br />
Connecting with consumers in an<br />
enjoyable, sometimes educational<br />
and always congenial manner creates<br />
a familiarity that leads to trust.<br />
It’s about creating conversations,<br />
interacting with consumers in a<br />
way that keeps <strong>the</strong>m engaged but<br />
not pressured.<br />
“We want to be able to communicate<br />
with our customers in a different<br />
way,” says Denis Kwan, general<br />
manager and partner of Vancouver’s<br />
Clarkdale Volkswagen. “People will<br />
go on Facebook and say whatever<br />
<strong>the</strong>y want, but in person, <strong>the</strong>y may be<br />
a strong introvert. How do you engage<br />
and talk to <strong>the</strong>se people?”<br />
“With social media, it’s like sitting<br />
at a table, having a glass of wine with<br />
your customers, 24 hours a day. And<br />
<strong>the</strong>y’re telling <strong>the</strong>ir friends about it<br />
right in front of you,” he explains.<br />
Kwan, who had just returned <strong>from</strong><br />
a three-day digital media conference,<br />
emphasizes that this is not a direct<br />
selling platform. “It’s an ability to open<br />
up a dialogue with a customer who’s<br />
ei<strong>the</strong>r having a problem or wants to<br />
brag for you and spreads news about<br />
what’s going on,” he says.<br />
“With channels like Facebook,<br />
you get a lot of interaction and<br />
dialogue between <strong>the</strong> participants,<br />
and <strong>the</strong> dealer doesn’t have to run<br />
<strong>the</strong> show – but occasionally join in<br />
<strong>the</strong> conversation.”<br />
The people behind <strong>the</strong> tools<br />
One of <strong>the</strong> most important aspects<br />
of implementing a social media<br />
strategy is to ensure dealership<br />
staff are not only trained, but actively<br />
participating. To make best<br />
use of <strong>the</strong> channels, <strong>the</strong> people in<br />
<strong>the</strong> dealership need to know what’s<br />
going on and maintain <strong>the</strong> dealer’s<br />
presence by interacting regularly.<br />
“The advantage is no longer <strong>the</strong><br />
technology, it’s <strong>the</strong> people driving<br />
<strong>the</strong> technology,” says JP Paquin,<br />
president of Montreal based Evolio,<br />
an auto industry marketing consultant.<br />
“You can have <strong>the</strong> best<br />
plan in <strong>the</strong> world, but if you don’t<br />
have <strong>the</strong> right people to carry it<br />
out, it’s useless.”<br />
“You have to recognize that<br />
beyond <strong>the</strong> websites, <strong>the</strong> Facebook,<br />
<strong>the</strong> Twitter, <strong>the</strong>re are real people.<br />
These people have to understand<br />
what <strong>the</strong> name of <strong>the</strong> game is, <strong>the</strong>y<br />
have to have a vested interest in<br />
making it work at <strong>the</strong> dealer level,<br />
and <strong>the</strong>y have to have some kind of<br />
competency that is not car related but<br />
technology based,” he says.<br />
To that end, Paquin recently<br />
established Evolio Talent, to help<br />
dealerships recruit <strong>the</strong> right kind of<br />
personnel for <strong>the</strong>ir social marketing<br />
departments. “We’ll advertise <strong>the</strong><br />
job, go through resumes and interviews,<br />
and do training. You need to<br />
have people with <strong>the</strong> proper skill set<br />
to pull this off.”<br />
Home grown innovation<br />
But Richie Samy, sales manager at<br />
Heninger Scion in Calgary, only<br />
needed his ingenuity and creativity<br />
to launch a successful social media<br />
strategy. Every time a customer<br />
picks up <strong>the</strong>ir new Scion, Samy celebrates<br />
it with a music video, which<br />
is <strong>the</strong>n posted to <strong>the</strong> dealership’s<br />
YouTube channel.<br />
“I do it all myself,” says Samy,<br />
whose previous experience included<br />
“People trust<br />
social media<br />
more than<br />
traditional<br />
advertising.”<br />
– Josie Cino,<br />
Interactive Media Productions<br />
a stint as a music store manager. “We<br />
had to maximize our budget with<br />
Scion, <strong>the</strong>re were very few marketing<br />
dollars, so we had to rely on our creativity<br />
and ingenuity. It’s not hard to do<br />
with all <strong>the</strong> tools that are available.”<br />
Samy takes <strong>the</strong> video with his<br />
smartphone, and uses Windows Live<br />
Movie Maker – which is free with any<br />
computer – to edit <strong>the</strong> video. Usually,<br />
<strong>the</strong> video consists of <strong>the</strong> customer visiting<br />
<strong>the</strong> dealership, where <strong>the</strong>ir new<br />
vehicle is covered by a large, shiny<br />
sheet. A smiling and cheery audience<br />
of staff applaud as <strong>the</strong> sheet is pulled<br />
off <strong>the</strong> vehicle, and <strong>the</strong> client drives<br />
<strong>the</strong> new vehicle down <strong>the</strong> dealership’s<br />
curved ramp.<br />
For an added touch, Samy hires<br />
local talent to provide <strong>the</strong> music, and<br />
<strong>the</strong>n links to <strong>the</strong>ir website and fan<br />
base for added exposure. If <strong>the</strong> customer<br />
has a business, he’ll include<br />
<strong>the</strong> business in <strong>the</strong> video and link to<br />
<strong>the</strong>ir media as well.<br />
“I don’t have any background in<br />
film or video, and it’s been trial<br />
and error <strong>from</strong> <strong>the</strong> beginning,”<br />
he admits. “I started doing <strong>the</strong>se<br />
videos in April of 2011 and it’s<br />
14 March 2012 • <strong>Auto</strong>Journal
eally caught on. Everyone wants<br />
<strong>the</strong>ir own video. We’ve won a lot<br />
of sales <strong>from</strong> o<strong>the</strong>r dealers just<br />
because our clients want to be part<br />
of this cool thing.”<br />
A spoke in <strong>the</strong> wheel<br />
At <strong>Toronto</strong>’s Roy Foss Motors,<br />
marketing manager Anne He uses<br />
social media not only to reach<br />
out, but also reinforce <strong>the</strong> brand<br />
in a unique way. Toge<strong>the</strong>r with a<br />
sister dealership in Woodbridge,<br />
Roy Foss has organized a program<br />
called “Sonic Grades”, which<br />
rewards high school students who<br />
excel academically with <strong>the</strong> chance<br />
to win <strong>the</strong>ir own Chevy Sonic.<br />
“We’re connecting with students<br />
with a Sonic Grades Facebook<br />
page, which makes sense because<br />
Facebook is used a lot by students,”<br />
Anna explains. “By using social<br />
media, not only are we spreading <strong>the</strong><br />
message but we’re using a medium<br />
that <strong>the</strong>y’re used to.”<br />
The response to <strong>the</strong> program<br />
has been tremendous, not only<br />
<strong>from</strong> students but also <strong>from</strong> parents.<br />
“We had so many phone calls<br />
when we launched <strong>the</strong> program<br />
<strong>from</strong> parents, who were surprised<br />
that a dealership would initiate<br />
this kind of program,” Anna says.<br />
“Now, parents aren’t likely to go on<br />
social media – <strong>the</strong>y use <strong>the</strong> phone.<br />
So social media is really like a spoke<br />
in <strong>the</strong> wheel, it complements our<br />
traditional advertising. It’s ano<strong>the</strong>r<br />
channel to communicate.”<br />
Stay committed<br />
According to Josie Cino, social<br />
media manager at Interactive Media<br />
Productions in Burlington, <strong>the</strong>re are<br />
many ways for dealers to get started<br />
and take advantage of social media.<br />
She says that half of her agency’s clients<br />
are car dealers in <strong>the</strong> southwest<br />
Ontario region.<br />
“All you have to do to get started<br />
is open a Facebook account, and post<br />
photos of new cars that come in, create<br />
a trivia quiz, include news about<br />
what’s going on in <strong>the</strong> dealership,<br />
and take a photo when someone<br />
picks up a new car,” Cino says. “It’s<br />
also a great way for dealers to get<br />
inventory out, because social media<br />
is so real-time. When <strong>the</strong>y get a new<br />
car on <strong>the</strong> lot, <strong>the</strong>y can promote it.<br />
And when <strong>the</strong>y sell it, <strong>the</strong>y can promote<br />
that, too.”<br />
Customers who have had a positive<br />
experience at a dealership should<br />
be encouraged to share it with <strong>the</strong>ir<br />
friends. “They’ll be likely to go right<br />
away to Facebook or Twitter and talk<br />
about it, or do a Google review,” she<br />
says. “So you’re streng<strong>the</strong>ning your<br />
existing customer relations as well as<br />
building new ones.”<br />
However, she adds that it’s important<br />
to stay committed to what<br />
you’ve started. “If you start a social<br />
media account and you don’t follow<br />
through, <strong>the</strong>n no one’s going to<br />
engage with you and it’s going to take<br />
longer to be successful, to build that<br />
trust,” she notes. “It takes a year to get<br />
people to trust you – give it time and<br />
stay on top of it.”<br />
“If you need help to maintain<br />
it, hire an agency or a third party,”<br />
Cino advises. “A lot of people in<br />
<strong>the</strong> auto industry are really busy,<br />
<strong>the</strong>y don’t have time to keep up<br />
with it. But even if you hire someone,<br />
it’s good to have <strong>the</strong> dealership<br />
involved as well, to keep both parties<br />
working toge<strong>the</strong>r.”<br />
<strong>Auto</strong> dealers are embracing <strong>the</strong> brave new world of social media.<br />
An Ipsos Reid survey <strong>from</strong> May 26, 2011, showed that three in ten Canadians now own a smartphone.<br />
She advises starting out with one<br />
account, like Facebook, which is <strong>the</strong><br />
most social and has <strong>the</strong> largest network,<br />
and is popular with dealers.<br />
“Social media isn’t really that new<br />
– it’s all about building relationships.<br />
For car dealers, that’s what it’s<br />
always been about. It’s just <strong>the</strong> tools<br />
that are new.”<br />
Krystyna Lagowski<br />
MORE ON<br />
March 2012 • <strong>Auto</strong>Journal 15
USED CAR<br />
JACK KAZMIERSKI<br />
understanding tHe used car dept.<br />
Get Out of <strong>the</strong> Car Business<br />
Stop looking at your used cars as cars, because <strong>the</strong>y’re not cars – <strong>the</strong>y’re money.<br />
G<br />
et out of <strong>the</strong> car business and<br />
get into <strong>the</strong> money business.<br />
That’s <strong>the</strong> core message Frank<br />
Alfano, president of Progressive<br />
Basics, has for dealerships with<br />
respect to <strong>the</strong>ir used car departments.<br />
Alfano wants dealers to start<br />
thinking of <strong>the</strong>ir used car inventory<br />
not as vehicles, but as money.<br />
“The inventory you have on your<br />
lot today,” Alfano argues, “no matter<br />
it’s value, all it is is money.”<br />
Whatever you have invested in<br />
used car inventory, if it’s just sitting<br />
<strong>the</strong>re <strong>the</strong>n it’s money doing nothing<br />
- money you could be investing<br />
elsewhere to create a better return<br />
on investment.<br />
“You have to look at your cars as<br />
though <strong>the</strong>y are sacks of money sitting<br />
in your lot on <strong>the</strong> concrete,”<br />
Alfano adds. “That bag of money<br />
starts to erode instantly, and <strong>the</strong><br />
longer it sits <strong>the</strong>re, <strong>the</strong> less money<br />
you have in <strong>the</strong> bag.”<br />
Why sell used cars?<br />
If you’ve got vehicles sitting on<br />
your used car lot for more than 60<br />
days, you’re losing serious money.<br />
If that’s a problem you’d like to fix,<br />
Alfano believes you have to first<br />
understand why you’re selling used<br />
cars in <strong>the</strong> first place.<br />
“What is <strong>the</strong> primary purpose<br />
of <strong>the</strong> used vehicle department?”<br />
Alfano asks. “The primary purpose,<br />
as defined by Henry Ford in 1910, was<br />
to invest <strong>the</strong> dealer’s capital in <strong>the</strong> customer’s<br />
trade to allow <strong>the</strong> customer to<br />
purchase ano<strong>the</strong>r vehicle <strong>from</strong> <strong>the</strong><br />
dealership while turning that [vehicle<br />
for a] profit in a short period of time.”<br />
In o<strong>the</strong>r words, a truly successful<br />
used car department is <strong>the</strong>re primary<br />
to facilitate <strong>the</strong> purchase of a<br />
new vehicle <strong>from</strong> <strong>the</strong> dealership. The<br />
customer’s trade, in turn, should be<br />
turned for a profit in as little time<br />
as possible.<br />
“For every 100 people that walk<br />
into your building, your used car<br />
manager should appraise 33 customers’<br />
used vehicles,” Alfano adds.<br />
Understanding<br />
your investment<br />
Alfano also wants dealers to truly<br />
understand that <strong>the</strong> vehicles on<br />
<strong>the</strong> used car lot are an investment,<br />
and that <strong>the</strong>y should be yielding<br />
a decent return on investment.<br />
“When I ask dealers how <strong>the</strong>y’re<br />
doing, <strong>the</strong>y tell me how many cars<br />
<strong>the</strong>y sold,” he says. “How come<br />
nobody talks about how much<br />
<strong>the</strong>y made selling those cars? You<br />
could have sold 100 cars and lost<br />
$300,000.”<br />
The key to success is a reasonable<br />
goal. “Why not give your<br />
used car manager <strong>the</strong> following<br />
starting goal,” Alfano says. “Tell<br />
him you want to see a 2% ROI per<br />
month - that’s 24% per year. That<br />
could be 3% or 4%, but you need<br />
to give your manager some kind<br />
of goal he can reach so that he<br />
has some accountability to you,<br />
o<strong>the</strong>r than, “We did a good job<br />
last month.”<br />
“You have to look at your cars<br />
as though <strong>the</strong>y are sacks of<br />
money sitting in your lot on<br />
<strong>the</strong> concrete.” – Frank Alfano<br />
Alfano offers three simple rules<br />
for dealers to live by:<br />
Rule #1<br />
- If you can’t measure it,<br />
you can’t manage it.<br />
Rule #2<br />
- If you don’t measure it,<br />
you won’t manage it.<br />
Rule #3<br />
- If you don’t do ei<strong>the</strong>r,<br />
you can’t win in <strong>the</strong> used car<br />
investment game.<br />
In order to put <strong>the</strong>se rules to good<br />
use, dealers need to set goals for<br />
<strong>the</strong>ir used car managers (as stated<br />
bellow), as well as have meaningful<br />
sales meetings to discuss progress.<br />
“A dedicated used car meeting<br />
should be structured just like <strong>the</strong><br />
new car meeting where you discuss<br />
your money,” Alfano adds.<br />
“You need to discuss what’s going<br />
on and how you’re going to get a<br />
return on investment.”<br />
The inventory myth<br />
Dealers believe that inventory is<br />
<strong>the</strong> answer, but Alfano doesn’t<br />
buy that argument. “Some dealers<br />
feel that if <strong>the</strong>y have a bit of<br />
space on <strong>the</strong>ir lot, <strong>the</strong>y need to<br />
fill it with inventory. Why? They<br />
tell me how <strong>the</strong>y bought 40 cars,<br />
had a great sale, got rid of 28 of<br />
<strong>the</strong>m, had 12 left over which sat<br />
on <strong>the</strong> lot for 6 months, everything<br />
<strong>the</strong>y made on <strong>the</strong> first 28<br />
went away, and <strong>the</strong> 12 you had left<br />
over ate all <strong>the</strong>ir profit. But you<br />
know what? They do <strong>the</strong> exact<br />
same thing next year.”<br />
If your used car department<br />
isn’t working <strong>the</strong> way you would<br />
like it to, you need to rethink what<br />
you’re doing, why you’re doing<br />
it, and who is responsible for <strong>the</strong><br />
return on your investment. “Most<br />
importantly,” Alfano says, “you<br />
have to stop looking at used cars<br />
as cars, because <strong>the</strong>y’re not cars<br />
- <strong>the</strong>y’re money. And <strong>the</strong> thing<br />
that we miss in <strong>the</strong> car business,<br />
at <strong>the</strong> dealership level today, is<br />
simply <strong>the</strong> process of managing<br />
that money.”<br />
Frank Alfano, president of Progressive Basics,<br />
speaks about used car sales at <strong>the</strong> Remarketing<br />
Forum in Niagara Falls, Ontario.<br />
16 March 2012 • <strong>Auto</strong>Journal
REMARKETING<br />
JACK KAZMIERSKI<br />
residual values<br />
...and <strong>the</strong> Winner is...<br />
Canadian Black Book awards top marks to cars, trucks and SUVs<br />
with <strong>the</strong> best retained values.<br />
The 2012 “Best Retained Value<br />
Awards” were recently handed<br />
out by Canadian Black Book<br />
(CCB). By putting 2008 model year<br />
vehicles under <strong>the</strong> microscope, CCB<br />
has determined that “after four<br />
years <strong>the</strong> Japanese continue to dominate,<br />
Europeans stay <strong>the</strong> course<br />
CATEGORY 2012 AWARD WINNER<br />
SUB-COMPACT Honda Fit<br />
COMPACT CAR Volkswagen Golf<br />
MID-SIZE CAR<br />
Honda Accord (Tie)<br />
Subaru Outback (Tie)<br />
FULL-SIZE CAR Toyota Avalon<br />
ENTRY LUXURY CAR BMW 1 Series<br />
LUXURY CAR Lexus GS Series<br />
PREMIUM LUXURY CAR Lexus LS Series<br />
PREMIUM SPORTS CAR Audi R8<br />
SPORTS CAR Dodge Challenger<br />
SMALL PICKUP Toyota Tacoma<br />
FULL-SIZE PICKUP Toyota Tundra<br />
MINIVAN Honda Odyssey<br />
FULL-SIZE VAN Dodge Sprinter<br />
COMPACT SUV Jeep Wrangler<br />
MID-SIZE SUV Toyota FJ Cruiser<br />
FULL-SIZE SUV Toyota Sequoi<br />
LUXURY SUV BMW X6<br />
and North American manufacturers<br />
steadily improve.”<br />
Collectively, Honda, Lexus, Subaru<br />
and Toyota took home 11 first-place<br />
Retained Value Awards, while Audi,<br />
BMW, and VW collectively won four,<br />
and Dodge and Jeep walked away with<br />
a total of three (collectively).<br />
The Dodge Challenger, which debuted in 2008, is a first-time winner in <strong>the</strong> Sports Car category.<br />
CCB also handed out 2nd and 3rd<br />
place awards in each category.<br />
Toyota and Lexus stood headand-shoulders<br />
above <strong>the</strong> competition.<br />
Toyota walked away with<br />
five first, four second and one<br />
third-place finish, while Lexus<br />
took two firsts and one second.<br />
Of special note, says CCB, is<br />
<strong>the</strong> fact that in three categories,<br />
Toyota, Honda and Dodge<br />
each have claimed <strong>the</strong> winner’s<br />
podium for three years straight<br />
while <strong>the</strong> Subaru Outback has<br />
ei<strong>the</strong>r won or tied for first in <strong>the</strong><br />
Mid-sized Car category for three<br />
years running.<br />
North American brands took<br />
home 10 second- and third-place<br />
finishes. Ford and Lincoln had<br />
four, as did General Motors, while<br />
Chrysler had two. Dodge was a<br />
first-time category winner in <strong>the</strong><br />
Sports Car category with <strong>the</strong> new<br />
Dodge Challenger, while <strong>the</strong> Jeep<br />
Wrangler was a repeat winner in<br />
<strong>the</strong> Compact SUV category<br />
Analysis and insight<br />
CCB wants consumers to think about<br />
residual values before making a purchase.<br />
“When deciding on a new car<br />
or truck, consumers often search for<br />
a model offering <strong>the</strong> best loan rate or<br />
<strong>the</strong> richest incentives that lower <strong>the</strong><br />
sticker price,” says Kathy Ward, CEO<br />
of Canadian Black Book. “But not<br />
taking vehicle depreciation into consideration,<br />
<strong>the</strong> single greatest cost of<br />
vehicle ownership, can lead to a costly<br />
surprise at trade-in time.”<br />
Well-respected automotive analyst,<br />
Dennis DesRosiers, offers his insight<br />
on this year’s winners. “It’s interesting<br />
that while new vehicle sales figures<br />
may show Toyota lagging behind<br />
North American models, <strong>the</strong> retained<br />
value awards tell ano<strong>the</strong>r story. The<br />
Toyota Tundra and Tacoma models,<br />
for example, have won Best Retained<br />
Value in <strong>the</strong> Full-size Pick-up and<br />
Small Pick-up categories for three<br />
consecutive years although we typically<br />
think of North America as <strong>the</strong><br />
top builder of trucks.”<br />
MODEL 1 st 2 nd 3 rd<br />
SUB-COMPACT CAR Honda Fit Toyota Yaris Pontiac Wave<br />
COMPACT CAR Volkswagen Golf Mitsubishi Lancer Subaru Impreza<br />
MID-SIZE CAR Honda Accord/Subaru Outback (TIE) – Subaru Legacy<br />
FULL-SIZE CAR Toyota Avalon Nissan Maxima Dodge Charger<br />
ENTRY LUXURY CAR BMW 1 Series Lexus IS Series Audi A3<br />
LUXURY CAR Lexus GS Series BMW 5 Series Acura RL<br />
PREMIUM LUXURY CAR Lexus LS Series Audi A8/S8 BMW 6 Series<br />
PREMIUM SPORTS CAR Audi R8 Porsche Boxster Porsche 911<br />
SPORTS CAR Dodge Challenger Audi A5/S5 Mini Cooper<br />
SMALL PICKUP Toyota Tacoma Ford Explorer Sport Trac Mazda B Series<br />
FULL-SIZE PICKUP Toyota Tundra Ford F Series Lincoln Mark LT<br />
MINIVAN Honda Odyssey Toyota Sienna Chrysler Town & Country<br />
FULL-SIZE VAN Dodge Sprinter GMC Savana Chevrolet Express<br />
COMPACT SUV Jeep Wrangler Toyota RAV4 Honda CR-V<br />
MID-SIZE SUV Toyota FJ Cruiser Toyota Highlander Toyota 4Runner<br />
FULL-SIZE SUV Toyota Sequoi Ford Expedition GMC Yukon XL<br />
LUXURY SUV BMW X6 Lexus LX570 Mercedes-Benz G-Class<br />
March 2012 • <strong>Auto</strong>Journal 17
BUSINESS TALK<br />
ISABELLE COURTEAU<br />
auto Journal interviews dianne craig<br />
Sales Momentum<br />
Exchanging <strong>the</strong> sunny south for <strong>the</strong> chilly north, recently appointed Ford of Canada CEO,<br />
Dianne Craig looks forward to building on Ford of Canada’s recent success.<br />
On November 1st, 2011 Dianne<br />
Craig, was appointed Chief<br />
Executive Officer for Ford<br />
Motor Company of Canada Limited,<br />
succeeding David Mondragon. Craig,<br />
who joined Ford Motor Company<br />
back in 1986 and has been a driving<br />
force in developing Ford and Lincoln<br />
dealer relations in <strong>the</strong> US. Although<br />
she realizes, as Ford of Canada<br />
CEO, she has big shoes to fill, with<br />
her extensive sales and marketing<br />
experience, <strong>the</strong>re’s every indication<br />
she can build upon Mondragon’s<br />
legacy which witnessed Ford conquering<br />
new customers in Canada<br />
as well as emerging as <strong>the</strong> country’s<br />
top selling automaker for <strong>the</strong> first<br />
time in over 50 years. Recently <strong>Auto</strong><br />
Journal caught up with her at <strong>the</strong><br />
Canadian International <strong>Auto</strong> <strong>Show</strong><br />
in <strong>Toronto</strong>.<br />
AJ Congratulations on <strong>the</strong> new position, it<br />
must seem quite daunting and exciting at<br />
<strong>the</strong> same time?<br />
DC Yes it, is. I’m really glad to<br />
be here and I look forward to<br />
continuing <strong>the</strong> work that David<br />
has done. There are many challenges<br />
on <strong>the</strong> road ahead in <strong>the</strong><br />
Canadian market but we’ve got<br />
plans in place to ensure we’re in<br />
<strong>the</strong> best possible position of meeting<br />
those challenges and building<br />
upon our success.<br />
AJ You’ve been with Ford Motor Company<br />
for more than 25 years, are <strong>the</strong>re any<br />
similarities between when you started and<br />
where <strong>the</strong> industry is today?<br />
DC When I started at Ford, <strong>the</strong> company<br />
was on a roll, we had seven of<br />
<strong>the</strong> top 10 selling vehicle nameplates<br />
in <strong>the</strong> US and broke new<br />
ground with vehicles like <strong>the</strong> 1983<br />
Ford Thunderbird and 1986 Ford<br />
Taurus. Quality was improving,<br />
<strong>the</strong> vehicles were more exciting and<br />
Ford was becoming more profitable,<br />
so perhaps you can say that in some<br />
respects <strong>the</strong> situation today mirrors<br />
<strong>the</strong> scenario of <strong>the</strong> late-1980s.<br />
AJ What do you think has been critical to <strong>the</strong><br />
company’s success, such as growing market<br />
share and profitability this time around?<br />
DC I think a lot of it has to do with<br />
focusing on <strong>the</strong> core business.<br />
History often provides us with great<br />
lessons and <strong>from</strong> Ford’s perspective,<br />
building <strong>the</strong> Premier <strong>Auto</strong>motive<br />
Group, with its multiple different<br />
brands took us too far away <strong>from</strong> <strong>the</strong><br />
concept of Ford Motor Company.<br />
Since 2006, we’ve re-focused our<br />
efforts on <strong>the</strong> core business and by<br />
investing heavily in product development;<br />
we’ve been able to bring a record<br />
number of new vehicles to market,<br />
while leveraging our expertise in<br />
different markets around <strong>the</strong> world.<br />
Today, we’re very much a global company<br />
and I think maintaining that<br />
world focus has been instrumental<br />
in our success in recent years.<br />
AJ One topic of conversation in recent years<br />
has been <strong>the</strong> re-invention of Lincoln, what<br />
is your view on <strong>the</strong> subject?<br />
DC There is no question that Ford<br />
is committed to Lincoln over <strong>the</strong><br />
longer term. We’ve been developing<br />
independent design and engineering<br />
for <strong>the</strong> Lincoln brand and we’re<br />
in <strong>the</strong> process of re-defining what<br />
<strong>the</strong> concept of Lincoln is all about.<br />
Our plan is to provide Lincoln customers<br />
with a very unique, intimate<br />
ownership experience, something<br />
that will make Lincoln stand<br />
apart <strong>from</strong> o<strong>the</strong>r luxury brands.<br />
We believe it’s something consumers<br />
are willing to pay for, provided<br />
it fits <strong>the</strong>ir criteria.<br />
AJ From your perspective, are <strong>the</strong>re any<br />
comparisons between <strong>the</strong> US and Canadian<br />
vehicle markets, especially in view of your<br />
recent experiences?<br />
DC Probably <strong>the</strong> one thing I wasn’t<br />
quite prepared for is actually how<br />
different <strong>the</strong>y are. While trucks are<br />
strong sellers in both markets, <strong>the</strong><br />
overall product mix is quite different.<br />
Smaller cars account for a larger<br />
percentage of <strong>the</strong> market in Canada.<br />
Although we’ve never had a greater<br />
level of integration between Ford’s<br />
operations in different countries,<br />
<strong>the</strong>re’s still a good degree of autonomy<br />
between Canada and <strong>the</strong> US,<br />
and I think that’s important. I also<br />
think that it’s reflected in sales here,<br />
we’re currently segment leaders<br />
with <strong>the</strong> Escape, F-150, Fusion and<br />
Mustang, plus <strong>the</strong> Fiesta and Focus<br />
are also doing well. We’ve tried to<br />
provide Canadians with a range of<br />
vehicles that combine practicality,<br />
style and value and I think <strong>the</strong><br />
market has responded.<br />
AJ Looking to <strong>the</strong> future, what do you see<br />
as critical factors in shaping consumers’ car<br />
buying habits?<br />
DC Today, <strong>the</strong>re’s a lot of emphasis<br />
on saving fuel and new powertrain<br />
technologies, a trend that is likely<br />
to continue. By offering alternatives<br />
in propulsion, such as gas, Hybrid,<br />
Plug-in Hybrid, diesel and electric<br />
vehicle technology, automakers<br />
can provide a number of different<br />
options to suit <strong>the</strong> varying needs of<br />
<strong>the</strong>ir customers and that is crucial to<br />
success in <strong>the</strong> long term. However,<br />
in order to make that possible, flexible<br />
manufacturing (<strong>the</strong> ability to<br />
produce different cars and trucks at<br />
<strong>the</strong> same facilities, based on changes<br />
in demand) is absolutely crucial to<br />
ensure <strong>the</strong> dealers and end customers<br />
get <strong>the</strong> vehicles <strong>the</strong>y need. It’s<br />
something we’ve been focused on at<br />
Ford in recent years.<br />
Dianne Craig, who is originally <strong>from</strong> Buffalo, New York, is no stranger to <strong>the</strong> cold and after<br />
a stint in Atlanta, says she feels "like I've come home" as Ford of Canada CEO.<br />
18 March 2012 • <strong>Auto</strong>Journal
March 2012 • <strong>Auto</strong>Journal 19
SALES STATISTICS<br />
Observations<br />
From Dennis<br />
Car <strong>Show</strong>s Focus on<br />
Eco-Friendly Green<br />
Our readers who enjoy <strong>the</strong> thoughts<br />
of Dennis DesRosiers, know just<br />
how succinct and relevant <strong>the</strong>y can<br />
be. To help you appreciate his viewpoint<br />
even more, we have included<br />
<strong>the</strong> results of his recent insights,<br />
looking at some of today’s leading<br />
issues. In this column, our expert<br />
analyst notes that never before have<br />
so many vehicles, featuring such low<br />
fuel consumption, been presented<br />
as was <strong>the</strong> case at <strong>the</strong> recent Detroit<br />
<strong>Auto</strong> <strong>Show</strong> - a trend, he suggests,<br />
created by government action.<br />
“This amazing number of ‘green’<br />
vehicles on display in Detroit primarily<br />
reflects <strong>the</strong> power of government<br />
bureaucracies and not so<br />
much <strong>the</strong> desire of consumers to<br />
buy <strong>the</strong>se vehicles.<br />
The Detroit <strong>Auto</strong> <strong>Show</strong>, held in<br />
January 2012, as well as o<strong>the</strong>r recent<br />
North American events, has seen<br />
manufacturers presenting vehicles<br />
that are now ‘greener’ than ever. “All<br />
this is so political. In Detroit – epicentre<br />
of gas-guzzling horsepower -<br />
who would have thought that Class<br />
B and C vehicles, plus hybrids, would<br />
not only get <strong>the</strong> lion’s share of floor<br />
space, but also <strong>the</strong> most media attention,”<br />
wonders <strong>the</strong> analyst.<br />
As it happens, <strong>the</strong> conception and<br />
development of vehicles on show<br />
has been strongly influenced by<br />
<strong>the</strong> CAFE (Corporate Average Fuel<br />
Economy) standards going into full<br />
effect in 2016. CAFE standards, first<br />
set up in <strong>the</strong> United States in 1975,<br />
modify <strong>the</strong> whole approach to <strong>the</strong><br />
design and production of our automobiles.<br />
That hasn’t stopped North<br />
American drivers <strong>from</strong> being among<br />
<strong>the</strong> greediest on <strong>the</strong> planet, due in<br />
big part to <strong>the</strong> popularity of SUVs<br />
over <strong>the</strong> last decade or so, which<br />
have side-stepped <strong>the</strong> pressure to<br />
comply with CAFE requirements.<br />
So DesRosiers went to Detroit to<br />
check out <strong>the</strong> so-called ‘green’ models<br />
including: Ford (hybrid and electric),<br />
Cadillac ATS and Buick Encore,<br />
Chevrolet Sonic RS, Dodge Dart,<br />
Toyota Prius C, etc. In his opinion,<br />
manufacturers are sending a message<br />
to consumers, somewhat tarnished<br />
by a fair dose of hypocrisy, namely:<br />
“We design and build vehicles which<br />
will require much less fuel, which will<br />
reduce our dependence on fossil fuels<br />
and, most importantly for us, will overcome<br />
<strong>the</strong> obstacles set up by CAFE…<br />
Drop by our showrooms and choose<br />
<strong>from</strong> a choice of hatchbacks, hybrids<br />
and yes, even big cars, now boasting<br />
small, fuel-efficient engines… Oh, and<br />
by <strong>the</strong> way, if you still want a monster<br />
gas guzzler, we’ve got what you need,<br />
too,” he notes ironically.<br />
A ready-made response<br />
for future failure<br />
DesRosiers even goes so far as to suggest<br />
<strong>the</strong> likely response of manufacturers,<br />
when it comes to <strong>the</strong> predictable<br />
failure of green vehicle sales:<br />
“These fuel-efficient models were<br />
heavily promoted in our showrooms,<br />
so it’s not our fault if consumers didn’t<br />
buy <strong>the</strong>m.” The analyst fur<strong>the</strong>r adds:<br />
“This huge splurge of green vehicles<br />
at <strong>the</strong> Detroit <strong>Show</strong> more aptly<br />
reflects <strong>the</strong> triumph of <strong>the</strong> bureaucrats,<br />
ra<strong>the</strong>r than <strong>the</strong> desire of <strong>the</strong><br />
consumers to buy <strong>the</strong>se vehicles (and<br />
certainly not a preference of those<br />
who live in <strong>the</strong> industrial Nor<strong>the</strong>ast<br />
US, <strong>the</strong> primary demographic of <strong>the</strong><br />
<strong>Show</strong>’s attendees).”<br />
What you didn’t see<br />
or hear at <strong>the</strong> <strong>Show</strong><br />
Dennis DesRosiers points out that<br />
when an industry goes to extraordinary<br />
lengths and expense to<br />
promote its public image, you can<br />
sure learn a lot by what is NOT seen<br />
or said.<br />
And so DesRosiers notes that several<br />
elements that were seen or mentioned<br />
frequently at recent Detroit<br />
<strong>Show</strong>s, have now simply disappeared<br />
<strong>from</strong> <strong>the</strong> scene. Such is <strong>the</strong> case, for<br />
example, for ethanol: “Given <strong>the</strong> end<br />
of government subsidies, auto builders<br />
are no longer obliged to push this<br />
politically-backed, non-solution on<br />
consumers. The sudden media attention,<br />
followed by <strong>the</strong> equally sudden<br />
disappearance of this alternative fuel,<br />
makes you wonder just how effective<br />
any government-backed green program<br />
can be.” So it’s farewell to terms<br />
such as ‘flex fuel’, which allowed<br />
engines to run on a fuel mix that<br />
could be up to 85% ethanol.<br />
With <strong>the</strong> federal ethanol subsidy<br />
finally off <strong>the</strong> books, automakers no<br />
longer have any reason to continue<br />
pushing this entirely political nonsolution<br />
on <strong>the</strong> vehicle buying public.<br />
The glut of attention followed by<br />
rapid disappearance of <strong>the</strong> repudiated<br />
alternative fuel, calls into question<br />
<strong>the</strong> efficacy of every green scheme<br />
receiving government support.<br />
The analyst also notices <strong>the</strong> end<br />
of passenger compartment lighting,<br />
which could be adapted according<br />
to intensity and interior colour<br />
schemes to create a particular atmosphere.<br />
“Ambient lighting, all <strong>the</strong><br />
rage in 2008-11, has vanished <strong>from</strong><br />
showroom speak just as quickly as<br />
it appeared.”<br />
Dennis DesRosiers concludes<br />
with some thoughts about <strong>the</strong> venerable<br />
V8 engine: “Gone, forgotten<br />
and fast gaining a bad rep.”<br />
Frédéric Laporte<br />
The Chinese road network, as seen here in<br />
Beijing, is rapidly expanding to accommodate<br />
millions of additional vehicles streaming<br />
towards <strong>the</strong> big city centres.<br />
20 March 2012 • <strong>Auto</strong>Journal
automoBile statistics<br />
The Chinese Car Leads <strong>the</strong> World<br />
China’s <strong>Auto</strong> Phenomenon has become so significant that all o<strong>the</strong>r countries now have to compare <strong>the</strong>mselves to this nation when it comes to <strong>the</strong>ir own car industries.<br />
To digest this, first of all we have to<br />
take a look at <strong>the</strong> stunning statistics.<br />
For example, 16,867 Canadians<br />
drove home a new Audi in 2011,<br />
whereas <strong>the</strong> Chinese bought more<br />
than 313,000 Audis in comparison!<br />
That puts Audi at <strong>the</strong> top of <strong>the</strong> luxury<br />
brands in this country, and <strong>the</strong> most<br />
important market for this manufacturer<br />
anywhere in <strong>the</strong> world.<br />
To reach such a winning level of<br />
success, Audi relies on a network of<br />
225 dealerships located in more than<br />
one hundred Chinese cities. And<br />
Audi management wants to boost this<br />
number to more than 400 by <strong>the</strong> end<br />
of next year.<br />
The numbers are impressive<br />
– yet still low<br />
China’s statistics are very impressive,<br />
primarily thanks to its huge<br />
population of 1.37 billion (according<br />
to <strong>the</strong> 2011 census). The last<br />
decade alone has seen a growth of<br />
73.9 million. And exactly half of<br />
<strong>the</strong> population now lives in urban<br />
areas, a sharp increase of 13.46% in<br />
<strong>the</strong> past ten years, since people have<br />
been migrating towards <strong>the</strong> big centres<br />
<strong>from</strong> <strong>the</strong> countryside.<br />
These city dwellers, now better<br />
off than ever before, represent a ripe<br />
consumer target at which all mindful<br />
auto manufacturers take aim.<br />
The number of billionaires (including<br />
an additional 69 in one year),<br />
has now reached an astonishing 189<br />
individuals, among <strong>the</strong> richest hoard<br />
of fat cats on <strong>the</strong> planet! Economic<br />
growth, thought to be around 10%<br />
in 2010, and based mainly on its<br />
own domestic consumption, has<br />
increased to 18.5%, according to<br />
Deputy Prime Minister, Li Keqiang.<br />
When it comes to more ‘regular’<br />
households, by 2015 <strong>the</strong> annual<br />
income of more than four million<br />
Chinese families will exceed<br />
250,000 Renminbi (about $40,000).<br />
According to McKinsey & Company,<br />
that would place China fourth in<br />
world rankings for highest household<br />
income, after <strong>the</strong> United States,<br />
Japan and <strong>the</strong> United Kingdom.<br />
The Chinese purchased more<br />
than 10 million new compacts in<br />
2011, on a steady buy trend that<br />
is simply incredible. During <strong>the</strong><br />
90s decade, <strong>the</strong> Chinese bought<br />
an average 400,000 vehicles a year,<br />
<strong>the</strong> same number as Quebeckers,<br />
according to data <strong>from</strong> <strong>the</strong> Scotia<br />
Bank Group. Since 2008, <strong>the</strong><br />
Chinese have passed five million<br />
vehicles sold per annum, to<br />
reach 9.4 million new vehicles<br />
sold in 2010. In fact, <strong>the</strong> whole of<br />
Asia, with 22.9 million cars sold<br />
last year, thus becomes <strong>the</strong> most<br />
important region in <strong>the</strong> world for<br />
<strong>the</strong> car industry. Indeed, <strong>the</strong>re<br />
were about 60 million vehicles of<br />
all types sold <strong>the</strong>re in 2011.<br />
China comes to <strong>the</strong> rescue<br />
of <strong>the</strong> United States<br />
China is not only <strong>the</strong> biggest creditor<br />
of <strong>the</strong> US, it is also <strong>the</strong> key market for<br />
<strong>the</strong> growth of many of its companies.<br />
Such is <strong>the</strong> case for General Motors,<br />
recently out of bankruptcy in <strong>the</strong><br />
United States, but whose new restructuring<br />
has resulted in 2.55 million<br />
GM vehicles being sold in China in<br />
2011. The arrival on <strong>the</strong> scene of its<br />
Cadillac model and <strong>the</strong> more affordable<br />
Baojun brand, besides <strong>the</strong> ever<br />
popular Buick and Chevrolet, has<br />
meant an annual growth of 8.3%. So<br />
now <strong>the</strong> Chinese buy slightly more<br />
GMs than <strong>the</strong> Americans <strong>the</strong>mselves,<br />
with 2.5 million units sold last year<br />
in <strong>the</strong> US.<br />
The Volkswagen Group, which has<br />
just announced <strong>the</strong> construction of its<br />
12th and 13th manufacturing plants<br />
in China, sold 1.7 million vehicles<br />
in 2011. That’s an annual growth of<br />
13.8%. Fur<strong>the</strong>rmore, VW is planning<br />
production of two fully electric<br />
EV models, starting in 2013. Plus, it’s<br />
also introducing <strong>the</strong> SEAT brand, a<br />
few years ahead of GM, according to<br />
<strong>the</strong>ir ambitious plan.<br />
Vehicles made by, and<br />
produced for, <strong>the</strong> Chinese<br />
The Chinese market is so important<br />
to so many manufacturers, that <strong>the</strong>y<br />
don’t hesitate to come up with new<br />
models, geared specifically to <strong>the</strong><br />
Chinese consumer. For example,<br />
here you’ll find <strong>the</strong> impressive<br />
BMW 760Li sedan, celebrating <strong>the</strong><br />
60th anniversary of <strong>the</strong> founding<br />
of <strong>the</strong> People’s Republic of China.<br />
Or how about <strong>the</strong> Audi A6L as well<br />
as <strong>the</strong> stretch limo A4L, <strong>the</strong> China<br />
Peugeot 508, and let’s not forget <strong>the</strong><br />
imposing BMW 535Li and 335Li…<br />
all China-only specials and nowhere<br />
to be found in Canada.<br />
Finally, certain brands and<br />
builders can ensure <strong>the</strong>ir viability<br />
by staying focused just on <strong>the</strong><br />
Chinese market. Such is <strong>the</strong> case<br />
for <strong>the</strong> following popular models:<br />
Baojun, BYD, Chery, Dongfeng,<br />
Geely, Great Wall, Hawtai, JAC,<br />
Lifan, Nanjing, Roewe and<br />
Zhejiang. Still not convinced of<br />
<strong>the</strong> vitality of <strong>the</strong> Chinese auto<br />
industry? Then consider that <strong>from</strong><br />
April 25 to May 2, 2010, more<br />
than 800,000 visitors checked out<br />
<strong>the</strong> Beijing <strong>Auto</strong> <strong>Show</strong>, including<br />
<strong>the</strong> 145,000 who dropped by in a<br />
single day!<br />
Frédéric Laporte<br />
The Chinese have bought <strong>the</strong>mselves<br />
most of <strong>the</strong> world’s longest<br />
bridges including <strong>the</strong> Jiaozhou,<br />
all of 42 kilometers in length.<br />
March 2012 • <strong>Auto</strong>Journal 21
AUTOJOURNAL VISITS ...<br />
park avenue group<br />
Audi Terminal in Quebec is a North American First<br />
Brossard – In today’s market, building a new dealership to factory specs is an achievement in itself. Factor in <strong>the</strong> added challenges of being <strong>the</strong> first on <strong>the</strong> continent,<br />
with many of <strong>the</strong> required materials and components not even available on this side of <strong>the</strong> pond, and we can rightly proclaim that Norman Hébert Jr. and his team<br />
have accomplished something truly remarkable.<br />
On January 31st, <strong>the</strong> Park Avenue<br />
Group inaugurated what Audi<br />
refers to in <strong>the</strong>ir Image Program<br />
as an ‘Audi Terminal’, on Taschereau<br />
Boulevard West in Brossard Quebec.<br />
The facility’s substantial footprint,<br />
43,000 sq.ft., located on 120,000 sq.ft.<br />
of land, is not what impresses most.<br />
Ra<strong>the</strong>r it is <strong>the</strong> tasteful elegance of <strong>the</strong><br />
structure that catches <strong>the</strong> eye.<br />
The incredible effect starts with<br />
<strong>the</strong> stately 10 feet high by 10 feet wide<br />
windows, specially imported <strong>from</strong><br />
<strong>the</strong> U.S. An armature-like metallic<br />
grille covers part of <strong>the</strong> building and<br />
certain windows, creating an ‘airport<br />
hangar’ look.<br />
There are no support columns<br />
inside <strong>the</strong> vast showroom area, which<br />
is designed for 11 vehicles but can<br />
actually hold up to 20. Our attention<br />
is immediately drawn to <strong>the</strong> sweeping<br />
design of <strong>the</strong> interior wall, which is a<br />
reproduction of one of <strong>the</strong> banking<br />
turns of <strong>the</strong> fabled AVUS racecourse<br />
(<strong>Auto</strong>mobil-Verkehrs und Übungs-<br />
Strasse), where <strong>Auto</strong> Union, Audi’s<br />
predecessor, broke multiple speed<br />
records in <strong>the</strong> 1930s.<br />
Jean-Philippe Ponton, Project<br />
Manager for Constructions Reliance,<br />
<strong>the</strong> firm that built <strong>the</strong> structure,<br />
explained that for lack of anything<br />
resembling <strong>the</strong> dark matte-finish<br />
of <strong>the</strong>se walls in North-America,<br />
<strong>the</strong> material had to be imported<br />
<strong>from</strong> Germany.<br />
The ceiling is <strong>the</strong> next element that<br />
grabs our attention. Starting <strong>from</strong> a<br />
space designed and dedicated for cus-<br />
FRéDéRIC LAPORTE<br />
The Park Avenue Group inaugurates North America’s first Audi Terminal,<br />
designed to <strong>the</strong> exact specificatvions required by <strong>the</strong> German automaker.<br />
tomers to ‘touch and feel’ <strong>the</strong> inner<br />
trim options of <strong>the</strong>ir future Audi, a<br />
central column swoops upwards and<br />
expands to <strong>the</strong> ceiling. A centrallylocated<br />
customer greeting area features<br />
a circular module, a <strong>the</strong>me<br />
found throughout <strong>the</strong> Terminal.<br />
A selection of ten iPad’s is available<br />
for customers to catch up on e-mails<br />
and browse <strong>the</strong> Web.<br />
An open-air,<br />
paperless concept<br />
Park Avenue Audi customers are free<br />
to roam <strong>the</strong> store’s two floors and<br />
relax, have a coffee, and catch up on<br />
<strong>the</strong> latest and greatest <strong>from</strong> Audi.<br />
The few offices that can be seen are<br />
for management. A paperless sales<br />
environment, equipped with management<br />
system modules and iPads<br />
for <strong>the</strong> free-roaming sales staff, were<br />
designed with customer service and<br />
comfort in mind.<br />
The service area, equipped with 13<br />
hoists, also has its share of technology.<br />
Since December, <strong>the</strong> parts and<br />
service operations have been 100%<br />
computerized according to David<br />
Webber, Park Avenue Audi Vice-<br />
President. The few days required<br />
to implement <strong>the</strong>se new procedures<br />
were well worth <strong>the</strong> effort, as<br />
<strong>the</strong> improvements gained <strong>from</strong> <strong>the</strong><br />
switchover have convinced management<br />
to proceed with implementation<br />
of <strong>the</strong> process for all <strong>the</strong> Park<br />
Avenue Group Stores.<br />
The architectural and customer<br />
service innovations inherent in <strong>the</strong><br />
Audi terminal design were conceived<br />
to provide a unique experience. From<br />
<strong>the</strong> time customers drop off <strong>the</strong>ir<br />
vehicles in <strong>the</strong> spacious climate-controlled<br />
drive-through, right up to <strong>the</strong><br />
delivery of a freshly-cleaned vehicle,<br />
every aspect of <strong>the</strong> process was<br />
designed to be friendly and pressure<br />
free. What is yet to be determined is<br />
<strong>the</strong> impact this impressive environment<br />
will have on <strong>the</strong> 563 new, and<br />
191 used cars sold in 2011, versus <strong>the</strong><br />
2012 forecast of 1000 units?<br />
Feel free to consult our website for<br />
more pictures and insight into <strong>the</strong><br />
first North American Audi Terminal<br />
at www.autosphere.ca<br />
Incoming Audi Canada President,<br />
Wolfgang Hoffman congratulates<br />
Norman Hébert Jr., Dealer Principal<br />
and Park Avenue Group President.<br />
In spite of <strong>the</strong> obvious allure of this powerful R8, it is <strong>the</strong> beautiful concept of this showroom,<br />
with its sweeping wall, which stole <strong>the</strong> show on this inaugural night.<br />
22 March 2012 • <strong>Auto</strong>Journal
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