Automotive News Canada - May 2017 - 25

* MAY 2017

Remaining reman companies find new niches
CONTINUED FROM PA GE 3

REMANUFACTURING FACTS

"significant growth" in its Canadian supply business. It sells automotive parts to
companies such as Lordco, Uni-Select,
Best Buy, Carquest and Canadian Tire, of
which "a significant portion are remanufactured in the United States," he says.
Smaller Canadian remanufacturers
have found their own niche as trusted
suppliers to smaller businesses.
"In the last five or six years, we've seen
growth in double digits year over year,"
said Jerry Sayegh, vice-president of operations for Capital Gear. The company
employs 28 people in Edmonton and specializes in rebuilding transmissions for
heavy trucks. It also sells remanufactured
drivetrain parts through its website to
customers in 24 countries.

PREDICTABLE QUALITY
"We're not the cheapest in our market,
but people come to us because they know
what they're going to get," says Sayegh.
"There's a lot of parts made overseas,
but I don't see the market turning; maybe
for automotive, but not on the heavy side,
I don't see it. There'll always be business."
Brent Walker is not so sure. He
employs 10 people at John Stuart Power
Mike Kelly of
D&V Electronics
says that remanufacturing of
alternators has
hit bottom, but
the market is
rebounding.

AutoCanada
2016 earnings
remain flat
from 2015

* In the United States, the Federal
Vehicle Repair Cost Savings Act of
2015 mandates that remanufactured
parts must be considered first when servicing civilian government vehicles.

CONTINUED FROM PA GE 3

decade, beginning as executive vice-president/chief
financial officer in November
2005. Landry took over as
president after Orysiuk's resignation.
Mark Warsaba was
named senior vice-president/chief operations officer, effective April 1. He
joined AutoCanada in 2013 as
dealer principal with Audi
Winnipeg and St. James
Volkswagen in Winnipeg.

* In 2016, Cardone remanufactured more
than 63,000 metric tonnes of discarded or non-useable auto parts and recycled more than 18,000 tonnes of scrap
metal. It also recycled almost 600,000
litres of waste oil.
* Cardone estimates its customers for
remanufactured parts save up to 40 per
cent of the cost of buying new parts.
Product engineers disassemble a
rear-axle assembly at the Cardone
remanufacturing facility in Philadelphia.
(PHOTO: CARDONE)

Brake in Stoney Creek, Ont., and he says
the business is "feast or famine."
"It's certainly been affected by the
Chinese and the Koreans," he says, "and
it means we're a much leaner machine.
There are a lot less companies from 10
or 15 years ago, and the ones still in existence have had to diversify to survive."
John Stuart is in its 71st year of business and no longer provides services for
regular automotive drivers. Instead, it has
found a niche.
"You'll come to us because you have
to," says Walker. "You've got a 1959
Austin Princess and it's one of the limousines in your fleet and you've got a wed-

* Cardone also estimates its remanufacturing processes use about 20 per cent
of the energy of manufacturing new
parts from scratch, equivalent to 16 million barrels of oil.

ONE-TIME EXPENSE
AutoCanada's 2017 Q1
report stated non-recurring management-transition costs of $1.7 million
related to Orysiuk's departure. The report did not
reveal any specifics of the
transition costs, so it is not
known who received what
amounts. Landry declined
comment when contacted by
Automotive News Canada.
It reported more than $2.8
billion in revenue from existing and new dealerships in
2016. That remained relatively flat from 2015. - ANC

Source: Cardone

ding in two months and you're trying to
keep this vehicle on the road. Or you've
got a combine that's down in the field and
it needs a water pump, and John Deere
sells a water pump for $2,800 and you
don't have $2,800."
In the business of remanufacturing,
estimated in 2011 to be worth US $43 billion in North America, automotive parts
rank in third place after aerospace parts
and heavy-duty off-road parts. - ANC

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PEOPLE ARE SAYING
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AUTOMOTIVE NEWS CANADA!

a. Special insight on Canada. Issues that are speciﬁc to the Canadian industry being discussed. It's based on what's happening up here. It's valuable to get market speciﬁc view
APRIL 2017 | VOL. 2, NO. 4 | AUTOMOTIVENEWS.CA FOR BREAKING NEWS AND DIGITAL EDITION

n my duties as setting direction for quality planning. Breaking news as it happens. Canadian content, perspective.
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the form of higher prices

AN UPGRADE

warns Scotiabank senior economist
Carlos Gomes.
Despite record sales in Canada
since 2013, Gomes believes the record
run is likely coming to an end.
One of the main reasons is that
vehicle prices are increasing "fairly
significantly."
Over the past 15 years, the industry did "a great job" of limiting price
hikes to 1.5-2 per cent per year, well
below the average against household

income, Gomes said. "Now we're seeing increases in the order of six per
cent year-over-year ... leading to some
deterioration in vehicle affordability.
"The Canadian dollar was very
weak last year, and the automakers
have started to pass on the impact of
that low currency."
Dennis DesRosiers, president of
DesRosiers Automotive Consultants,

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FIXED-OPS

By JIL McINTOSH

TORONTO CORRESPONDENT

BIG YEAR-OVER-YEAR PRICE HIKES
for new vehicles are more likely than
personal household debt to end the
country's four-year record sales run,

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Proving that outsiders can
actually help generate leads and
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By STEVE MERTL

VA N C O U V E R C O R R E S P O N D E N T

THE INTERNET, PREFERRED ENTRY POINT
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In the United States, CarGurus.com has eclipsed
AutoTrader.com to become the number-one site in
terms of traffic, with 23 million unique visitors a
month.
CEO Langley Steinert, co-founder of online travel agent TripAdvisor, has similar ambitions for
Canada, where the Canadian version has grown to
800,000 unique monthly visitors since going live in
2015.
AutoTrader Canada (not affiliated with the U.S.
entity) would not provide comparable site metrics,
which it considers proprietary. A spokesman said
via email it is Canada's largest automotive marketplace, with more than 400,000 live listings and growing.

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By GREG LAYSON
ONLINE EDITOR

THE FUTURE OF CANADA'S AUTOMOTIVE
industry is not about horsepower, "it's about software power," says federal Minister of Economic
Development, Navdeep Bains.
That was the message for the country's auto
sector when he sat down with Automotive News
Canada in an exclusive interview March 31.
Bains has spent much of the first year of the
Liberal government's mandate touting innovation
as the best way to keep automotive investment coming into Canada.
He said he sees no new investment by any
automaker in the short term, and that's why he's
focused on the technological advancements of the
future.
"People think of the automotive sector very
much in the context of the past," Bains said.
"I think it represents a very bright future in terms
of connectivity, mobility, technology and innovation jobs.
"I'm not sure people fully appreciate that."
He said his ministry and the federal government
"are really going to drive that agenda."

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write on Canada! The convenience I get the email and can always read late. In-depth stories. It is great to get Canadian input in the auto industryI don't have to comb throug

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t's Canadian! I like the local content and coverage of issues that matter to the industry in Canada. Special insight on Canada. Issues that are speciﬁc to the Canadian i
n what's happening up here. It's valuable to get market speciﬁc views on a variety of topics to aid me in my duties as setting direction for quality planning. Breaking news as
pective. Great insight into the industry. I most love seeing new technology in products and vehicles. It's informative. Canada-centric. I appreciate the coverage... always had to g
. I know what's happening in the industry. Just nice to get Canadian perspective. It is Canadian! Local coverage. Great publication design and content. l like news in regard
dian factories that build them. I am happy to get a publication with a Canadian focus and glad to see you have used writers, like Jeremy Sinek, who are very good at what they
ta. Canadian content! Woo hoooo! It is relevant to us! Up to date news and perspectives from a Canadian point of view. Even though I work for an American Vendor- it i
my backyard! The variety of topics covered. A Canadian perspective. It covers local issues. Finally a Canadian perspective. Automotive News is like wrapping up the best of
otor Trend all in one great issue. Truly focuses on Canadian automotive stories. The fact that you had the ﬁrst coverage of the sale of ABC to Cerberus was very good. Resemb
market. The truly All Canadian contentBreaking news alerts & length of stories. I'm originally from Canada, so everything! Keeps me current. Finally, Canadian news by the

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omb through Automotive For
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for Canadian
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manufacturers
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contact
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or (313)

id. Surprised how many articles you can ﬁnd to write on Canada! The convenience I get the email and can always read late. In-depth stories. It is great to get Canadian input
cles are different to what we usually get in Canada. It's Canadian! I like the local content and coverage of issues that matter to the industry in Canada. Special insight

to the Canadian industry being discussed. It's based on what's happening up here. It's valuable to get market speciﬁc views on a variety of topics to aid me in my duties as set

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