Automotive News Canada - June 2020 - v2 - 1

RETAIL PRIORITY: CURRENT CLIENTS OR INTERNET LEADS?/P11

JUNE 2020 | VOL. 4, NO. 6 | AUTOMOTIVENEWS.CA FOR BREAKING NEWS AND DIGITAL EDITION

Dealers lean in
to digital tools
during pandemic

THE SUPPLY CHAIN'S

BIGGEST
TEST
A second
shutdown is
not an option

LINDA HASENFRATZ
Linamar

The challenge is connecting
with customers who are
fearful for their health
By JOHN IRWIN
and GRACE MACALUSO

AUTOMOTIVE NEWS CANADA

DON WALKER
Magna

Parts makers warn
of liquidity crunch

ANOTHER PANDEMIC-INDUCED
economic shutdown could prove lethal
to a weakened auto supply chain,
industry experts and executives warn.
"If there is a stoppage by any government ... again, you are going to
CANADIAN SUPPLIERS ARE SOUNDING
see a free-fall of liquidities, bankruptthe alarm that the road ahead will be rocky
cies [and] restructuring," said Don
- even make or break - as vehicle producWalker, CEO of Magna International
tion slowly resumes amid the COVID-19 panInc. "Because then the banks will say,
demic.
'Well, if you stopped
Some warned of a finanagain, how would you
By JOHN IRWIN
cial crunch after months withpossibly get started?'
AUTOMOTIVE NEWS CANADA
out work, while others say their
"And they'll stop
backs have been put against the
the funding. We don't
TIM GALBRAITH
wall by automakers unwilling to bend rigid
have an option but to keep going, in
Cavalier Tool &
timelines.
my opinion," Walker said during the
Linamar Corp., the second-largest CanadaMay 28 Daily Drive podManufacturing
based supplier by annual sales volume to autocast hosted by sibling
makers, is monitoring the health of Tier 2 and 3 compublication Automotive
panies, as well as tool-and-die makers. The coming months
News.
are "going to be the most critical" for suppliers as they
Health experts have
manage their cash flow, said CEO Linda Hasenfratz.
warned of a potential
"It's something we're keeping a very close eye on.
second wave of infecObviously, the next couple of months for a lot of suptions later in the year,
pliers are going to be very tough from a cash-flow perpossibly during flu seaspective."
son, threatening to
Tim Galbraith, sales manager at mold maker
overwhelm health care systems.
Cavalier Tool & Manufacturing in Windsor, Ont.,
During the first round of COVIDagrees.
19, economic activity ground to a halt
"We're fortunate enough to be one of the companies
throughout much of North America,
that's doing well, but my concern is the last two quarwith the auto manufacturing sector
ters of this year, with programs in the automotive
essentially closed down for about two
industry that have been postponed and canceled.
months.
It's going to have a devastating impact on the
Linamar Corp. CEO Linda
industry, probably in the third and fourth
Hasenfratz urged governments to

COVID-19

SEE HASENFRATZ PAGE 13

JONATHON AZZOPARDI
Laval Tool

SEE SOME PAGE 13

RETAILERS SHIFTING TOWARD A
contactless service and sales
model are making inroads in
an economy shaped by the
rules of COVID-19.
Wendy Bulmer, general manager of Acura of
Moncton in New Brunswick,
said that in December her
dealership moved to a digBulmer:
ital sales platform. As the
COVID-19 pandemic struck, Expects
permanent
the dealership ramped up
shift to a
local advertising, touting its contactless
contactless capabilities for
sales
purchasing a vehicle.
environment.
Acura of Moncton ended P H O T O V I A
May just three vehicles shy W E N D Y B U L M E R
of its original sales target
and received 200 leads in April, compared
with 80-90 in a typical month, said Bulmer.
While some clients still "want to come in

SEE CONTACTLESS PAGE 17

Sales forecast
improves but it
still calls for pain
'It is a surprise on the
upside. But I wouldn't say
it's time to celebrate yet'
By GREG LAYSON

D I G I TA L A N D M O B I L E E D I T O R

NEW-VEHICLE SALES ARE TRACKING
better than the dire predictions made in
April, but analysts warn against popping
the recovery champagne any time soon.
May sales plunged an estimated 44 per
cent, compared with Scotiabank's initial
forecast of 80 per cent. The bank's now
looking at a 25-per-cent drop for June,

SEE SALES PAGE 14

Samir
Akhavan

MANAGING PARTNER

416.880.8989 samir@templetonmarsh.com WWW.TEMPLETONMARSH.COM

http://www.AUTOMOTIVENEWS.CA http://WWW.TEMPLETONMARSH.COM

Automotive News Canada - June 2020 - v2

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