Automotive News Canada - February 2017 - 10

* FEBRUARY 2017

CUVs are 'just tall passenger cars' Mexico still popular
despite uncertainty
over Trump trade talk

CONTINUED FROM PA GE 1

side of the business, and hence
that product availability is
resulting in sales," said Robert
Karwel, a senior manager in
J.D. Power's Canadian automotive division. "You'll notice
that new segments are being
formed in Canada solely due to
the introduction of new SUV
nameplates."
Most of the compact and
some of the midsize utility
vehicle models didn't exist five
or six years ago, Karwel said.
He said advanced engineering and better fuel efficiency
have made all utility vehicles,
from compact to full-size, "just
tall passenger cars with few of
them offering much off-road
capability."
Karwell called better ride
quality, improved fuel economy, additional safety features
and cargo space "a winning
combination."
"It's these engineering or

design traits that are bringing more people into the segment, because these vehicles
are very easy to live with now,
with few compromises, which
was not the case 20 years ago
when most of the business was
built on traditional truck platforms," he said.

ABNORMAL SHIFT
The compact utility vehicle
has overtaken the compact car
as the largest segment in the
Canadian market, accounting
for about 22 per cent of total
industry volume. The compact
car makes up about 17 per cent.
"Shifts like this are not normal," said Gonazalo Contreras,
Ford's product and marketing
manager for CUVs and SUVs.
"It's scary to see how fast
and how quick this shift has
happened since 2013."
That's the year the compact
SUV passed the compact car in
Canadian volume.
The market is now being

When the Honda HR-V arrived, there were few direct competitors. Others include the Chevy Trax and the new Nissan
Qashqai. ( P H O T O : H O N D A )

flooded with small utility vehicles as buyers rush in. Makes
and models include the Honda
HR-V, Chevy Trax, Nissan
Qashqai and Ford EcoSport,
which goes on sale in early
2018.
Contreras called the
EcoSport "very important" to
the Ford lineup.
"When we do our forecast
and look at different segments
and the marketplace, we see
that the mini-SUV segment has
been growing significantly. We
wanted to be part of that pie,"
he said.

HEATING UP
Contreras says that the segment "is going to be very competitive" very soon.
Nissan Canada President
Joni Paiva won't reveal
sales projections for the new
Qashqai, but he said the automaker expects it to be "a big
volume seller."
He called buyers of compact
utility vehicles "more urban
centric," meaning people who
are looking for some cargo
space and more flexibility than
a compact car or midsize sedan
offers.
He said the Qashqai takes
direct aim at the compact-car
segment.
"The positioning for
Qashqai is a positioning that
fills a void in the market,"
Paiva said. "There's a void
there, for people who prefer
premium crossover utility and
functionality but at the level of
the compact car segment. That
makes us confident." - ANC

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manufacturing facility in
Coahuila, Mexico, six years
ago and has invested between
$3 million and $4 million
there. Bhogal said the company views Mexico as a highgrowth market, a stance that
has not changed under the
Trump administration.

NO BACKING OUT NOW
"There's nothing you can
really do to insulate yourself against it," he said. "You
can't just start backing out
of things. Donald Trump will
only be here for hopefully
not more than four years, so
maybe the policies won't be
so sustained."

But the reality is we
have a good customer
base in [the Mexico]
market, we're still
supplying products to
them, and we've got
every reason
to believe that's going
to continue.
DENNY ALLEN

Director of media relations,
Samuel, Son and Co.
Michael Kettle, sales manager for London Automotive
and Manufacturing, a metal
stamping company with
a production facility in
Queretaro, Mexico, echoes
this stance.
"There's no change [for
us] thus far because there
have not been any changes,"
Kettle said. "We're not sure
if there's anything coming ...
I think it's all speculation at
this point."

POSITIVE PREMISE
"Samuel is paying close
attention to what goes on
with the current administra-

CANADA
IN MEXICO
7 - Canadian-automotivesupply-chain companies that
began new operations in
Mexico between 2015 and
2016 (59, up from 52).
115 - Facilities in Mexico
operated by Canadian
companies.
14 - Mexican states in
which Canadian companies
have facilities, nearly half of
the 31 states.
35 - Canadian companies
engaged in parts-and-components manufacturing at
facilities in Mexico.
26 - Canadian companies
engaged in tooling and
machinery operations in
Mexico.
43 - Canadian companies
engaged in other functions
in Mexico, such as
engineering and design, raw
materials, and gauges and
fixtures.
Source: Canadian Automotive
Footprint Mexico 2016, Government
of Canada; Canadian Automotive
Footprint Mexico 2015, Government
of Canada

tion in the U.S.," said Denny
Allen, Director of Media
Relations for Samuel, Son and
Co., a Canadian parts manufacturer in Mississauga, Ont.,
with a 200-employee operation in Coahuila specializing
in tubing products.
"Sure, it's up and down,
and we basically have to
stand by and see which way
the wind blows. But the reality is we have a good customer
base in (the Mexico) market,
we're still supplying products
to them, and we've got every
reason to believe that's going
to continue. That's the premise on which we're operating.
"It would be safe to say
that we're hitting the pause
button to wait and see how
this all plays out. But in the
meantime we are continuing operations as usual in the
Mexican market." - ANC

Ballard inks fuel-cell deal
with China bus-maker

BURNABY, B.C. - BALLARD POWER SYSTEMS HAS signed
a deal with Zhuhai Yinlong Energy Group to supply 10 fuel-cell
engines to the China-based battery-electric bus maker, the latest in a series of deals with bus builders from that country.
The agreement calls for Ballard to deliver the FCveloCityMD 30-kilowatt engines in 2017 to power Yinlong buses destined for smog-choked Beijing.
Ballard CEO Randy MacEwen said Yinlong, projected to
produce 35,000 EV buses this year, is expanding its product
portfolio to include hybrid fuel cell-powered buses to complement its existing battery-electric models. - ANC

http://www.QuorumDMS.com/nada2017

Table of Contents for the Digital Edition of Automotive News Canada - February 2017