Automotive News Canada - October 2019 - v2 - 8

* O C T O B E R 2 0 19

Dealers want data assurances Suppliers in limbo,
along with USMCA

They don't want to lose a grip
on information within their DMS
By DOUG FIRBY

CALGARY CORRESPONDENT

positive sign.
"I'd listen to the adults
Canadian supplier, sources
in the room, Lighthizer and
much of its materials from
Pelosi," Volpe said. "As long
within North America.
as those two keep talking like
APMA President Flavio
they're working, then whatVolpe said the United Statesever the president tweets is
Mexico-Canada Agreement
meaningless."
(USMCA) could
Volpe said
be a major boon
that while he
for his memwas confident
bers, adding anythe USMCA
where from $6
would be ratibillion $8 billion
fied, the process
a year in new
could be dragged
business, thanks
out beyond this
to increased
year and into
local-content
2020, an elecrequirements,
tion year in the
The APMA's Flavio
according to an
United States,
Volpe says that as
internal APMA
or beyond. He
long as U.S. Trade
estimate. That's
said waiting for
because USMCA Representative Robert ratification can
Lighthizer and House
would require
cause complicaSpeaker Nancy Pelosi tions for suppli75 per cent of a
"keep talking like
vehicle's comers when planthey're working," then ning their busiponents to be
it doesn't matter what ness.
sourced from
Donald Trump tweets
within the three
"If you're in
countries to cross about the ratification
planning, it gets
of USMCA. F I L E P H O T O
borders without
a little more hartariffs, up from
ried because
62.5 per cent in the current
you're not going to go out
North American Free Trade
and buy more volume before
Agreement (NAFTA).
you need to of local con"The content levels are
tent, and you're not going to
going to drive the business
enter into a new commercial
for us," Volpe said.
arrangement until they know
The deal, reached in 2018,
that start date, nor is your
requires ratification by
supplier. So, it's a little more
all three countries to take
tension on the forward-lookeffect. Mexico ratified earing piece of the business," he
lier this year. Canada has
said.
yet to, although the United
POLITICAL QUESTIONS
States appears to be the biggest roadblock as Congress is
Even before the impeachsplit between the two major
ment inquiry, the USMCA's
parties, making passage
passage through Congress
uncertain.
appeared tenuous. While
both the Democratic and
UNCERTAINTY IN THE U.S.
Republican parties have
The American political
members that have expressed
calculus became even more
skepticism about free trade
questionable in September,
in general, it appears paswhen Speaker of the House
sage will likely come down
Nancy Pelosi said the House
to whether it can get through
of Representatives would
the House of Representatives,
open a formal impeachwhich the Democrats
ment inquiry into Trump.
took control of this year.
The inquiry, which centres
Democrats are seeking such
on evidence Trump preschanges as stronger envisured Ukraine's president to
ronmental protections and
investigate the son of politenforcement provisions for
ical rival Joe Biden, has
the USMCA's labour rules.
engulfed American politics
Trump, meanwhile, has
and threatens to delay or
signaled little willingness to
derail USMCA ratification,
make changes to the deal and
which was already uncertain has threatened to withdraw
given many Democrats' confrom NAFTA if USMCA does
cerns over labour provisions
not pass Congress.
in the deal.
Wildeboer thinks free
Trump seemed to
trade will prevail.
acknowledge as much, telling
"I don't think anybody
reporters in September that
believes that we're not going
he did not think Pelosi would to have a North American
"have time" to bring up the
free-trade agreement. If you
USMCA for a vote.
follow where we are in free
U.S. Trade Representative
trade, where 37 states have
Robert Lighthizer, meantheir biggest export partner
while, appeared more optiin Canada, we're not going to
mistic, saying he was confibe outside the tent as far as
dent it would pass because
that goes. And we can always
"it would be a catastrophe"
cut them off on their energy,
for the American economy if
but nobody wants to do that."
it did not.
- ANC
Volpe said he took
- Grace Macaluso
Lighthizer's comments as a
contributed to this report.
CONTINUED FROM PA GE 1

DEALERS ACROSS CANADA WHO ARE
worried about losing exclusive control of customer data when they use third-party dealership
management system (DMS) providers can take
steps to prevent mismanagement of consumer
information, experts say.
Todd Bourgon, executive director of the
Ontario-based Trillium Automobile Dealers
Association (TADA), said dealers want assurances that manufacturers will not use customer contact data as a way to circumvent dealerships.
"There's always been, and will always be, a
battle over who controls the customers," Bourgon
said.
Part of the worry, he said, is what happens to
the data when it is in the hands of DMS providers that have contracts allowing them to share it
with other third parties.
"Is it being repurposed? Is it being monetized?" Bourgon asked. "My question is, why
would they need [such clauses]?"
Every dealership, regardless of size, uses a
DMS provider, said Bourgon, adding "there's no
way to run the service department [in particular]
without them."
Contractual clauses that authorize a DMS provider to share data with a third party, such as a
manufacturer or marketing firm, are the root of
the concern.
If a DMS provider uses the data or sells it to
another organization, then "multiple mixed messages" could be emailed to consumers, Bourgon
said. Under the Canada Anti-Spam Law, customers who receive too many emails can simply
unsubscribe and cut off all contact with a dealership, missing essential information such as recall
notices.
"It can be a vicious circle," Bourgon said.
Jim McManes, principal of McManes

Jim McManes of McManes Automotive Group in
Calgary says many dealers worry about keeping
exclusive control of their data, especially if
manufacturers can buy data and communicate
with customers directly. F I L E P H O T O

Automotive Group in Calgary, said a lot of dealers are worried about keeping exclusive control
of their data, especially if manufacturers are able
to purchase dealer data from a DMS provider and
use it to reach customers directly.
"A lot of times, manufacturers think they
don't need us," McManes said. "They do need us."
The issue of securing customer data, he
said, was on the agenda of the Fiat Chrysler
Automobiles dealer council meeting in late
October.
There are about five large DMS companies
in Canada and more than a dozen in the United
States, said Tom Hope, vice-president of D.I.S.
Services, a DMS provider owned by PBS Systems
Inc. in Mississauga, Ont. Each has its own
approach to data-sharing rights.
PBS Systems maintains the databases at the
dealership and effectively acts as the dealers' IT
department, Hope said. Other DMS companies
store the data off-site.
Ohio-based Reynolds & Reynolds is one of the

SEE DMS PROVIDERS PAGE 43

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Automotive News Canada - October 2019 - v2

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