Automotive News Canada - January 2020 - v2 - 6

* J A N U A R Y 2 020

J.D. Power: Demand for stickshift in
Quebec is being driven by sports cars
utility body-styled vehicles
do not offer manuals at all."
equipped with a manual
Contrary to Nissan's
transmission in Quebec was
statements, J.D. Power's
just under $27,000 in 2019 vs.
data indicates that while the
the national average of just
take rate on manual transunder $32,000. However, he
missions is higher across
said that that type of buyer
all segments in Quebec -
is becoming less
comprising 2.7 per
common, much as it
cent of sales in that
is across Canada, as
province through
consumers move to
November vs. 1.9
utility vehicles and
per cent in the rest
the average transacof Canada - comtion prices increase.
pact cars don't fol"In Canada, the
low that same trend.
manual gearbox on
A wider gap existed
average is 76 per
in that segment in
cent of the price of
2016 and 2017, when
Steve Milette:
the automatic, but
11.6 and 11.0 per
Some buyers
in Quebec the ratio are choosing
cent of compact cars
in pricing is clossold in Quebec had
a lower
er to 70 per cent,"
a manual transmisprice - or a
Karwel said.
higher trim
sion, respectively, as
level - over
"Clearly, there
opposed to 9.8 and 8.7
all-wheel drive per cent nationally.
is a budget-conin vehicles
scious buyer
However, through
such as the
still out there in
November, these figQashqai.
Quebec.
ures had become
FILE PHOTO
"But the overnearly even at 5.1
all trend is indisper cent in Quebec
putable. This buyer is disand 5.0 per cent through the
appearing in Quebec. Every
rest of Canada.
year, there are fewer and
Karwel said that the
fewer. In my former roles, I
stronger market for manucan confirm that [carmakals that remains in Quebec
ers] did order specifically
is therefore not being driven
equipped cars for Quebec
by value models.
which were low-priced man"The higher proportion
uals with low spec.
on average, for all vehicles,
"We can see from the data is being driven by sports and
that it is happening less fremuscle cars, which aren't
quently, especially as many
cheap," he said. - ANC
CONTINUED FROM PA GE 3

Based on percentage, sales
of manual-equipped Corolla
Hatchbacks in Quebec were higher
than in other provinces.
P H O T O : T O Y O TA

Similar story
for Yaris, Corolla
TOYOTA CANADA ALSO REPORTS
that, compared with the rest of
Canada, Quebec had a higher take
rate in 2019 of value-priced vehicles
with manual transmissions, such
as the Yaris, the Corolla and the
Corolla Hatchback.
However the Prairie provinces took the lead selling manual-equipped Tacoma pickups, 11 per
cent versus nine per cent in British
Columbia and eight per cent in
Ontario. In Quebec, it was four per
cent.
Over that same period, markets
outside of Quebec were the hotbeds
for front-wheel drive on models that
could be optioned with all-wheel
drive. Atlantic Canada bought 57
per cent of its Sienna minivans with
front-wheel drive versus 56 per cent
in Ontario and 32 per cent in Quebec;
in the RAV4 compact SUV, 21 per
cent of those purchased in Ontario
were front-wheel versus 19 per cent
in Quebec and 12 per cent in Atlantic
Canada. - ANC

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2020 outlook

cle assembly in Oshawa, Ont.,
and Ford Motor Co. has said
consumers into used vehicles.
it would cut about 450 jobs
"There are some Canadian
at its Oakville, Ont., plant
indicators coming in suggestby February. Fiat Chrysler
ing some weakness in the
Automobiles plans to end one
economy," Young said, noting
of three shifts at its Windsor,
concerns around November
Ont., factory.
jobs numbers and eco"It's clear that
nomic growth under
there's enough
two per cent in 2019.
money to go around,
Consumers are
and we're going to
expected to continue
be expecting our fair
favouring utility vehishare as well in 2020
cles and pickups over
bargaining," Dias
passenger cars, consaid.
tinuing a trend over
Negotiations with
the past decade. Light
GM, which also runs
trucks accounted for
Rebekah
a powertrain plant in
Young: Expect St. Catharines, Ont.,
74 per cent of total
Canadian new-vehicle sales to
could be acrimonicontinue their ous. In late 2018 and
sales in 2019, accordslow slide.
ing to DesRosiers
early 2019, Unifor
FILE PHOTO
Automotive
organized a major
Consultants. That
anti-GM campaign in
could soon rise to 80 per cent,
response to the automaker's
Black Book's Murphy said,
plans to end vehicle producthough not much higher than
tion in Oshawa. And in 2017,
that.
the union went on strike at
GM's Ingersoll, Ont., plant for
CONSOLIDATION CONTINUES
about a month to back contract demands.
Single-point dealerships in
"That has certainly cloudCanada are becoming rarer
ed our relationship with
as margins on new vehicles
General Motors," Dias said.
shrink and large groups con"That's just a fact."
tinue consolidating. Don't
Contract talks covering
expect that to change, said
employees at the Ingersoll
Gordie Gerbrandt, director of
plant take place in 2021.
Canadian operations for Tim
Lamb Group, a U.S.-based
THE POLITICS
dealership brokerage.
"Some dealers are kind
The political calculus
of contemplating where the
in Canada changed in 2019
market is at and where it's
with the election of the new
going right now," Gerbrandt
Liberal minority governsaid.
ment. Prime Minister Justin
More than half of all new
Trudeau's Liberals now need
vehicles in Canada are sold at
support from one of the oppodealerships owned by groups,
sition parties to pass legislaa figure that has surged from
tion - making, for instance,
as low as just nine per cent in
the ratification of the United
2000, according to DesRosiers.
States-Mexico-Canada
Gerbrandt said tight marAgreement less of a slamgins, high costs associated
dunk than it once seemed.
with automaker-mandated
While the Conservatives
dealership image programs
have indicated they'll support
and the increasingly
the USMCA, the New
complex nature of the
Democratic Party is
industry are combincalling for regular
ing to make it difficult
reviews of the deal.
for many indepenThe new composident stores and small
tion of the House of
dealership groups to
Commons also makes
navigate a declining
it more likely that
new-vehicle market.
the Liberals will pursue policies on elecUNIFOR BARGAINING
tric vehicles and luxJustin
ury taxes designed to
A year after conTrudeau's
win support from the
tentious negotiations Liberals need
NDP. The Liberals,
in the United States
other parties
for instance, have
to pass
with the United
legislation,
already said they
Auto Workers that
so the
would pursue a
led to a 40-day strike
USMCA trade
10-per-cent luxury
at General Motors
pact is not
tax on vehicles over
plants, the Detroit
necessarily
$100,000.
Three will go to the
Politics south of
bargaining table with a done deal.
the border could also
Unifor in 2020. It like- PB HL OOOT OM :B E R G
be a factor later in
ly won't be much
the year. Donald Trump's
easier for the automakers in
2016 election ushered in an
Canada - especially considera of uncertainty in North
ering that Unifor and its preAmerican trade that finaldecessor, the Canadian Auto
ly seemed to resolve itself
Workers, have historically
with the negotiation of the
been the more aggressive of
USMCA. But the November
the two unions.
2020 presidential election
Unifor President Jerry
could threaten to change
Dias said the union seeks
that, should Trump or his
major investments from each
Democratic opponent pursue
of the automakers, even as
further changes to trade polthe companies cut back in
icy or if the U.S.-China trade
Canada. In 2019, GM ended
war heats up. - ANC
more than a century of vehiCONTINUED FROM PA GE 3

Automotive News Canada - January 2020 - v2

Table of Contents for the Digital Edition of Automotive News Canada - January 2020 - v2