Automotive News Canada - February 2018 - v2 - 17

* FEBRUARY 2018

Canada's Foreign Affairs Minister Chrystia
Freeland, left, has been optimistic that NAFTA
negotiations were on the "right track,"
but much uncertainty remains.
(PHOTOS: REUTERS, GENERAL MOTORS, HYUNDAI)

elections in July and the
now more vehicles on the road
American mid-term elections
in Canada, which will benethis summer will push for a
fit both the automakers and
resolution of some sort in the
the aftermarket, provided the
first few months of 2018.
automakers provide access to
"Those are the two things
data for the maintenance of
that are really driving a
their vehicles.
first-quarter completion of the
"There are some concerns
deal, if there is going to be a
for manufacturers of cars
deal," he said. "Dealing with
not being fully willing to parthe fallout of the NAFTA nego- ticipate, and being open and
tiations will be a key challenge transparent and sharing inforin 2018. What a new agreement mation," said Champagne.
will look like will be import"We have a voluntary agreeant for all the players in the
ment in Canada and there may
industry."
be a need for the govAdams is also conernment to step up
cerned for potenand regulate to ensure
tial new emissions
fair access to data for
controls that might
the aftermarket."
become regulated in
If such an agree2018. The U.S. National
ment is upheld, he
Transport Safety
said, there'll be plenty
Authority (NTSA) and
of work for everyone
the Environmental
in 2018.
Protection Agency
"It's a zero-net
David Adams:
have April deadlines
"Dealing with effect, because the
for determining what
overall industry is
the fallout of
the NAFTA
to do with greengrowing. We're going
negotiations
house-gas regulations.
to see an expansion
will be a key
"It seems unlikeof the industry for a
challenge in
ly they'll be ratchwhile. Eventually,
2018."
eted down to be more
we'll see a decrease of
aggressive, given the
vehicles on the road,
current EPA administrator,
but not for a little while."
and maybe the U.S. will take
One of the biggest disrupits foot off the gas," Adams
tors, he said, will come from
said.
changes to the fundamental
"The challenge becomes,
sales model of dealerships.
what does Canada do in
Buyers will begin purchasing
response, because the prime
their vehicles online, skipping
minister was elected on a platmuch of the face-to-face proform of doing something on
cess. Already, Hyundai is sellclimate change."
ing Genesis luxury vehicles
The Canadian governthrough agency storefronts
ment is expected to produce
instead of franchised dealera national strategy for emisships, and Champagne sees
sions controls in 2018. This
this as the thin end of the autocould affect sales of gasomakers' wedge. It cuts out the
line-powered vehicles as it pro- middle man and disrupts the
motes promote sales of electric traditional supply chain.
and plug-in electric vehicles
"Disruptions always bring
across the country.
great opportunities to the people who are ready to adapt,"
DATA FOR THE AFTERMARKET
he said. "We often talk about
Modern vehicles require lit- the Kodak moment. I don't see
the middle man disappearing
tle maintenance, which reducin 18 months the way Kodak
es the need for visits to dealdid, but at the same time a lot
erships or aftermarket service
of our members are very well
centres. However, there are

aware and very well
prepared. They've
diversified their business model to increase
their presence in the
e-commerce space.
They're going to benefit and grow from that
disruption.
"It's not good or
bad, it's different. I
think it provides for
opportunities."- ANC

We think in 2018 it will pull back
a little. Nothing dramatic,
because the other econo-metric
things are pretty stable,
including NAFTA,
hopefully.
ROBERT KARWEL

J.D. Power's Power
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Table of Contents for the Digital Edition of Automotive News Canada - February 2018 - v2