Automotive News Canada - September 2016 - 18

* SEPTEMBER 2016

More government money on the table
for alternative-fuel cars means more sales
CONTINUED FROM PA GE 3

grams, said Blair Qualey, president and CEO of the NCDA.
"Programs like Clean Energy
Vehicles for BC and BC SCRAPIT have helped British Columbia
become a national leader in
clean energy vehicle usage and
all of us in the industry, including dealers, vehicle manufacturers and other key partners, look
forward to ... maximize the effectiveness of these investments."
Toyota Canada Corporate
Vice-President Stephen Beatty
said in an interview it's important to clearly define the objectives of incentive programs "to
ensure they are designed to
move consumer choice in the
direction of greenhouse-gas
reduction, not simply the adoption of select technologies."
He said buyers want a
low-emission vehicle that meets
their needs, not opt for a product
based simply on the size of the
available incentive.

HYBRIDS RULE, FOR NOW
"B.C. drivers seem to have
embraced that philosophy and
we have experienced robust
sales of hybrids and other fuel
efficient low-emission vehicles.
Without the challenges posed by
range, refuelling, cold climate
or size of vehicle, we believe
hybrids still represent the most
realistic greenhouse gas-reducing advanced technology suited
to the Canadian driver," he says.
Beatty said Toyota continues to set new records in hybrid
sales and "right now, one out
of every 10 Toyota vehicles sold

Right now, one out of
every 10 Toyota vehicles
sold is a hybrid.
STEPHEN BEATTY

Toyota Canada
Corporate Vice-President
is a hybrid."
Chad Heard at Hyundai
Canada said Hyundai doesn't
expect a big change in hydrogen
fuel cell vehicle sales, although
interest is definitely there.
"We're at the limit of the
infrastructure for hydrogen vehicles in B.C.," he says,
although plans for at least one
more fuelling facility are in the
works.
The incentive program
should be beneficial for sales of
the Ioniq battery electric vehicle
coming soon, to be followed by a
plug-in version next year.
General Motors Canada
spokesman George Saratlic
said the company is serving the
growing electric-vehicle market
with cars such as the Chevrolet
Volt and Bolt EV, coming later
this year.

CO-ORDINATED APPROACH
B.C. is taking "the right
approach" by recognizing that
consumer adoption of EVs
requires a coordinated focus
on new technology, improved
recharging networks and con-

sumer incentives.
In comparing EV sales in
jurisdictions with incentive
programs, Saratlic said, those
with higher levels of consumer
purchase incentives "generally
have higher EV sales."
The expanded support will
help more people participate
in the program when making
climate conscious decisions.
Luxury vehicles priced higher
than $77,000 are not eligible for
incentives.
Supporting alternative and
more fuel-efficient vehicle technology was a key component
in the province's On the Move
10-year transportation plan to
improve B.C.'s transportation
network.

UNEQUAL DISTRIBUTION
Ontario boosted its electric-vehicle support last
February, raising incentives
to between $6,000 and $10,000
for EVs with up to $3,000 more
for vehicles with larger battery
capacities and another $1,000 for
vehicles with occupancy for five
or more. There's $1,000 more
cash available for the purchase
and installation of chargers for
home or business. Incentives for
vehicles priced between $75,000
and $150,000 is capped at $3,000.
Quebec's program provides
$8,000 for all EVs while plug-in
hybrids qualify for $500, $1,000
or $8,000 depending on battery
size. Low-speed EVs qualify
for $1,000 and gasoline-electric
hybrids $500.
The federal government does
not have a green vehicle incentive plan. - ANC

Our dealership consulting & brokerage services
provide brokered buyer leads

TRANS-CANADA NEWS
CONTINUED FROM PA GE 3

president Denis Ducharme,
are made every year to one
metro dealer (Calgary or
Edmonton) and a non-metro
dealer (the rest of the province).
Their peers nominate candidates and the applications
are examined by a panel of
past recipients who select the
winners based on the criteria
of business acumen, community involvement and association/industry involvement.

Fuel tax takes a bigger
bite out of Canadians
KINGSTON, Ont. -
Canadians paid about $20.5
billion in motor fuel taxes in
2015 and this year can expect
to see taxes' share of the
pump price reach 20 per cent
above 2010 levels, according
to research by locally based
consulting firm Kent Group.
Kent estimated the $15
billion paid for gasoline last
year equated to $420 per capita or $670 for a Toyota Corolla
owner driving 24,000 kilometres. On average, half the
total came from provincial
and municipal excise taxes,
while 27 per cent came from
the federal excise tax and the
rest mostly from GST/HST,
the Kent report said. It forecast an even higher tax bite
over the next couple of years
thanks to planned provincial
hikes, including new carbon
levies in Ontario and Alberta.

Mitsubishi joins
Breakfast Club in N.S.
HALIFAX, N.S. -
Mitsubishi Canada has
delivered a 2016 Mirage to
the Nova Scotia branch of
Breakfast Club of Canada in
the first of several planned

Mitsubishi has loaned a
Mirage compact car to support The Breakfast Club of
Canada in Nova Scotia.
vehicle loans to support programs that feed school children across Canada.
The sedan will help the
club visit schools in the
Annapolis Valley, Cape
Breton, Halifax, the North
Shore region, southern Nova
Scotia and among First
Nations to support nearly
4,800 children.
Breakfast Club serves
791,835 breakfasts to children
in Nova Scotia each year. The
vehicle loans are in addition
to an annual $100,000 funding commitment announced
in July.

Bodack takes helm
at M-B Durham,
joins Zanchin board
TORONTO, Ont. -
After almost 30 years with
Mercedes-Benz Canada, most
recently as vice-president, of
national sales, Neal Bodack
has left to become general manager and partner at
Mercedes-Benz Durham.
In addition to that role,
he also joins the senior leadership team at the Zanchin
Automotive Group. Zanchin,
which acquired the Durham
Mercedes shop in 2015, controls more than 30 multi-franchised dealerships in the
Greater Toronto Area.
- ANC

Pop-up shop is about brand
awareness and not sales
CONTINUED FROM PA GE 3

Taxation concepts

Goodwill valuations

Shares vs assets

Real estate planning

Legal and accounting/tax coordination

www.LACLtd.ca
Professional, independent, financial advice to
Canadian Dealer Principals for 25+ years
Michael Lewicki, CPA, CA
mlewicki@LACLtd.ca
(647) 223Ͳ3855

out the cars, take a brochure
and maybe buy some of the
BMW-branded merchandise on
display.
That's all customers can
buy because the popup is not
licensed for auto-sales transactions. Sales staff at the location provide referrals to the
dealership and arrange for test
drives.
"It's to generate the lead
and do the transaction at the
dealership itself," Jiwani said.
The popup has created traffic at the dealership, he said,
but at time of writing had only
resulted in one sale.
"Is the whole point to try
and sell lots of cars out of it?"
Jiwani said.
"Maybe not, but definitely to create awareness for the
brand (meaning The BMW
Store, not the marque)."
The approach is more conducive to marketing luxury
brands where monthly payments and practicality, important in the volume-sales market,
are trumped by image and lifestyle factors, he said.
It's too early say whether

Jessica Yet says the extent
of customer interaction is
discussing the cars, handing
out brochures and selling
BMW-branded merchandise.
(PHOTO: STEVE MERTL)

this popup will morph into a
permanent location, he said.
The space will stay open for
the rest of the year, with a decision in the new year whether
to remain.
"If it works, great," Jiwani
said. "If it doesn't, at least we
tried it and it's a good way to
generate some buzz and at the
same time it's a different and
unique form of advertising,
too." - ANC

http://www.LACLtd.ca

Table of Contents for the Digital Edition of Automotive News Canada - September 2016