Automotive News Canada - April 2017 - 6

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LUXURY BRANDS GROW CANADA SALES
THROUGH SMALL UTILITY VEHICLES

Tablets are rapidly finding their way into service departments, with the goal of providing a friendly and
consistent experience. For example, a tablet can demonstrate why a four-wheel alignment is
necessary and can also outline the benefits. ( P H O T O : D E A L E R - F X )

Tablet takeover
Proponents say the technology is
critical to increasing transparency
and trust in the service lane
By MICHAEL GOETZ
TORONTO CORRESPONDENT

THE MARCH TO DEPLOY COMPUTER TABLETS
for service write-up appears to be unstoppable.
"Based on the momentum and technology in the
(service tablet) space,
I would say that in the
next 18 months pretty
much every OEM will
be doing something,
or working on something" to incorporate
service-lane tablets
says Gary Kalk, founder and CEO of DealerFX, an Ontario-based
provider of tablet technology for the auto
industry.
Kalk adds that the
momentum is produced by a more robust and developed integration technology, which allows the tablet to be part of all facets of the dealership's operations.
Customer engagement is enhanced with a connected tablet, because the advisor is not preoccupied with going in and out of systems just to complete a basic work order. It also allows the advisor
to know more about the vehicle, especially if the
tablet is connected to the vehicle's diagnostics port,
to produce a list of repairs and maintenance.

SERVICE SILVER BULLET
Chris Travell, the director of North American
automotive solutions for Bond Brand Loyalty, says
that tablets can shore up the traditional weak spots
in a dealer's service department: trust and transparency.
"The tablet should be able to do a better job of
explaining to the customer why we're doing this
procedure on their car, and why it costs what it
does ... If you can explain it better at the front end
for no surprises at the back end, then that will pay
dividends over the course of the whole customer
experience."
While Travell is pumped about tablets, he
doesn't see the full rollout happening as quickly as
Falk suggests.
"They're going to be prevalent, but the time
frame is up for grabs."
One factor that could slow things, according to
Travell, is the significant investment needed for the
tablets, sophisticated wifi, training, monthly fees
for support and dealer management system (DMS)
integration, etc.
"Not an inexpensive undertaking," says Travell.

FCA PILOTS PROGRAM

The U.S. market is further along the tablet curve
than Canada.
The most prominent adopters in the United
States are Sonic Automotive and Fiat Chrysler
Automobiles (FCA). FCA uses Dealer-FX technology, and Kalk says about 1,500 dealers are on the program now.
"FCA is looking to deploy the technology in
other countries, so we embarked on a pilot project
with FCA in Canada."
The pilot program begins at five Ontario dealerships. Dealer-FX is also running a pilot for
VW-Audi Canada and is in development for one at
Toyota-Lexus Canada.

MITSUBISHI LEADS
Mitsubishi Canada, however, is already deep
into its service-lane tablet rollout, the first such
national automaker program in the country. Also
partnered with Dealer-FX, Mitsubishi now has 57 of
its 89 Canadian stores either up and running, or in
the process. The plan is to standardize the service
experience.
"Our goal is to be 100 per cent by end of the
year," says Paul Simmonds, senior director of aftersales, Mitsubishi Motor Sales of Canada.
"We decided to
go with a technology-based solution."
The approach leverages a standardized
menu, factored with
individual driving
and dealership-visit
histories. Reminders
and promotions are
tailored to fit specific customer needs and
profiles, and are sent
out digitally.
PAUL SIMMONDS
"Why would you be
Senior director of aftersales
interested in a brake
for Mitsubishi Motor Sales
promotion if you just
of Canada
purchased a car in the
last six months? It doesn't mean anything to you, if
it isn't targeted to you," says Simmonds.
And when customers show up in the service
lane, they no longer feel like they are at the mercy
of one specific person behind a counter preaching
their own gospel on car repairs.
"This is a really interactive experience that is
completely open, transparent and friendly. They
can see what was done last time, what will be recommended at the next visit, the prices, the benefits."
"For dealers participating in the program, we're
seeing massive improvements in customer satisfaction," says Simmonds. "Service sales are up as well.
You wouldn't think they could move up in tandem,
but they are.
"Customers are very happy with the service they
are getting." - ANC

For dealers. . . we're
seeing massive
improvements
in customer
satisfaction.

Luxury automakers are expanding their reach in Canada by grabbing
an increasingly bigger piece of the
compact and subcompact segment,
according to auto researchers at J.D.
Power.
The most recent numbers show
the top three trade-ins at the time of a compact-luxury-utility-vehicle purchase are not luxury vehicles. They are: intermediate
sized SUVs at 21.3 per cent; intermediate cars, 19.2 per cent;
and compact cars, 16.4 per cent.
"The number of new luxury nameplates in these segments is
growing; many were not even in the Canadian marketplace five
years ago," J.D. Power's Rob Karwel said.

FACEBOOK CANADA LAUNCHES AUTO TEAM
TO WORK WITH AUTOMAKERS, DEALERS

Facebook Canada has established an automotive practice, comprising seven people dedicated to
helping automakers and dealerships
build their brands and increase sales
through use of the social networking site. Josh Bloom will lead the new
team.
Previously, Facebook's Canadian
automotive resources consisted of
one client partner who called on all automakers operating in
Canada.
"That was just not enough resources to take on the challenges of mobile marketing and drive meaningful results for this market," Bloom said. "So we staffed up quite a bit."

GM ISSUES ONLINE CODING CHALLENGE
TO FIND SOFTWARE DEVELOPERS

The GM Canada Coding Challenge is a way for the company
to identify, interview and possibly hire Android and Java developers for its automotive-technology and infotainment systems.
"More software development and coding is critical to vehicles
and the future of mobility," said Ted Graham, GM Canada's head
of open innovation.
The challenge is run completely online, where candidates
take one of the automaker's coding tests. If they pass, they qualify for a direct invitation to interview.

MAGNA BACKS TORONTO ARTIFICIAL
INTELLIGENCE RESEARCH CENTRE

Canada's biggest auto-parts supplier says it will invest $5 million in the Vector Institute, an independent artificial intelligence research
facility that recently launched in downtown Toronto.
Vector will be dedicated to exploring artificial intelligence, specializing in the fields of deep learning and
machine learning. The research is aimed at attracting, developing and retaining some of the best and brightest in the area of
artificial intelligence.

ONTARIO PREMIER, AUTO EXECS DISCUSS
STRATEGY AHEAD OF NAFTA TALKS

Ontario Premier Kathleen Wynne
met with Canadian automotive executives and labour leaders in Toronto on
March 24 to strategize about how best
to approach a potential renegotiation of the North American Free Trade
Agreement.
The group, which also included
Minister of Economic Development
and Growth Brad Duguid, discussed
the importance of emphasizing the
interconnectedness of the North American automotive industry.
The approach has emerged as a key tactic in countering trade
pressures from the U.S. government.

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