Automotive News Canada - October 2020 - 6

* O C T O B E R 2 0 20

Pattison, now 92,
buys/eyes more
dealerships

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STORIES
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ONGOING WEB COVERAGE
CONTRACT TALKS

Unifor, the union representing auto workers at the
Detroit Three in Canada, ratified a three-year deal with
Ford, with Fiat Chrysler Automobiles next in line. The
final contract to be negotiated is with General Motors.

COVID-19 STRESS RISING

Jimmy Pattison's auto unit purchased the Victoria-based Campus Auto Group, which has Acura, Nissan
and Infiniti stores as well as Campus Honda. And Pattison wants to buy more.
P H O T O S V I A C A M P U S H O N D A / J I M M Y PAT T I S O N

The pandemic has altered some
aspects of consumer spending, but
'We've never seen business better
in the car business right now'
By STEVE MERTL

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

number of deals have since been revived as auto sales
bounced back. Lewicki did not advise Pattison on the
Campus Auto deal.
Pattison remains on the lookout for other acquisitions. Sometimes a manufacturer will offer a tip that
one of its dealers is thinking of selling. Often, it's dealer principals themselves who call.
"Sometimes it's health reasons," Pattison said.
"Sometimes they want to retire and their family
doesn't want to follow through in the family business."
Although new-car sales plunged during the early
months of the pandemic, they roared back through
the summer. In September, sales were up an estimated 2.4 per cent over the same period last year, according to DesRosiers Automotive Consultants.
Used-car wholesale prices strengthened through
early fall after a spring decline, according to data
from Canadian Black Book, reflecting strong demand
and worries about tight supply.
Sales results have varied by brand and segment as
well as region, Harbottle said.
"Generally, the Lower Mainland [Metro
Vancouver] has been stronger than Vancouver Island
for new-vehicle sales," he said. "Used-vehicle sales are
up in most markets in Canada. Light-truck and SUV
models are capturing a growing and larger share of
the market this year."

VANCOUVER - BILLIONAIRE AUTO DEALER
Jimmy Pattison remains bullish on the future of auto
sales in Canada and is buying dealerships despite
uncertainty wrought by COVID-19.
The entrepreneur's sprawling, privately held
empire encompasses everything from supermarkets
to forest companies to broadcasting, but Pattison got
his start selling cars. The Jim Pattison Group's autosales unit owns 26 dealerships across western Canada
that, along with the group's leasing arm, employ 1,445
people.
"We've never seen business better in the car business right now," Pattison, who turned 92 on Oct. 1,
told Automotive News Canada.
"In the last few months, business has been very
good and particularly the used-car business."
Pattison has backed his optimism with the recent
purchase of additional dealerships. Earlier this year,
he acquired Victoria's Campus Auto Group from Dick SAFETY IN SALES
Graham, who is retiring after more than 40 years in
Pattison played down the possibility of another
the business. Campus Auto comprises four stores sell- sales drop if a second wave of COVID-19 forces more
ing Honda, Acura, Nissan and Infiniti.
restrictions on Canadians.
Bill Harbottle, president of Pattison's
"People want to be sure they feel safe, and
auto group, said Campus was attractive as a
a lot of people feel safer in their own car than
long-established operation with long-serving,
they do on the bus or the train."
loyal staff and a shared philosophy on cusThe pandemic altered the sales environtomer service. The acquisition also expandment at Pattison's dealerships, too, although
ed Pattison's brand presence on Vancouver
no employees are currently working from
Island, Harbottle said. He did not disclose
home, Harbottle said, and service operations
details of the deal.
in most locations are fully staffed. COVID-19
Purchase agreements for the dealerships,
is speeding the trend to online sales, and staff
which were negotiated in 2019, received
are delivering demonstrator vehicles to cusapproval from the automakers in January
tomers' homes.
Lewicki:
before closing in March, just as the pandemic Buy-sell deals
"There definitely has been an accelerated
took hold, Harbottle said.
were being
move to digital retailing and changes in the
put on hold or
"There was never any thought about not
overall purchase/sale process," he said.
even cancelled
completing due to the pandemic. When we
Pattison agreed.
when COVID-19
make an agreement, we stick to it, and our
"People are avoiding crowds and not getview is always long term - i.e., 25 to 30 years took hold, but
ting together. Anything that takes meeting
Pattison gets
out - not short term."
together with strangers is definitely being
"full credit" for hit."
forging ahead.
PANDEMIC DIDN'T STOP DEALS
The pandemic hasn't stopped Pattison
FILE PHOTO
Mike Lewicki of Toronto-based Lewicki
from heading to his office in downtown
Automotive Consulting, which advisVancouver, but he has had to modify his
es on dealership mergers and acquisitions, praised
annual fall trip across the West to visit his holdings.
Pattison's purchases. Several buy-sell transactions
Instead of driving as he normally does, he'll fly and
scheduled to close during government-mandated
pick up a car. He prefers to drive because it's easier
business shutdowns when COVID-19 took hold in the
to drop in unexpectedly on the supermarkets, radio
spring were cancelled as buyers invoked their agreestations and farm-equipment dealerships he owns in
ment's "adverse material event" clause.
smaller towns.
"Full credit to Jim if he had that deal and he chose
"And besides," Pattison said, "I like driving, so it's
to not use that clause," said Lewicki, adding that a
not work." - ANC

With cases spiking, both Quebec and Ontario are
grappling with how to best curb the spread of the virus.
Ontario Premier Doug Ford hasn't ruled out implementing
new restrictions that could impact the economy.

A SIMPLER SEAT THAT'S ALSO SMART

Magna International Inc. is introducing its automated next-generation EZ Entry seat, with new
technology that eliminates extra parts, plastic,
links and pinch points. Magna showcased the
technology during a demonstration to journalists
in suburban Detroit in early October. The elimination of parts allows for more foot clearance and
PHOTO: MAGNA 75 millimetres (nearly three inches) more cushion width. The seat will also be available to automakers in partially automated and manual models. The automated seat can be operated via smartphone to change the position.

WAITING ON THE SORENTO HYBRID

The next-generation 2021 Kia Sorento midsize utility vehicle will
arrive at Canadian dealerships before the end of 2020, but the
hybrid variants won't arrive until a year later. While both hybrid
and plug-in hybrid iterations will be available at launch in the United States, the
units sold there during the first model year
will be offered with only front-wheel drive,
a configuration Kia Canada won't offer
to Canadians, according to Director of
PHOTO: KIA
Marketing Michael Kopke. "In this segment,
AWD is the primary purchase reason," Kopke told Automotive
News Canada in an email.

FORD'S POWER-PACKED PICKUP

The newest powertrain option for the 2021 Ford F-150 will also
be the most powerful. Ford said in late
September that the F-150's optional 3.5-litre
PowerBoost V-6 hybrid will generate 430
horsepower and 570 pound-feet of torque,
topping the output of the truck's other five
optional engines. The torque figure would
PHOTO: FORD
be the highest in the truck's history. The
hybrid will be able to tow up to 12,700 pounds (5,760 kilograms)
and haul up to 2,120 pounds (960 kilograms), Ford says.

LIGHT TOUCH FOR THE MASSES

Nissan has long reserved carbon-fibre components to such applications as hoods and roofs of the low-volume GT-R sports car.
But a production breakthrough means Nissan
will soon deploy the lightweight material in
mass-market models. The new manufacturing
process slashes the time and cost needed to
make carbon fibre parts. Deploying it will help
Nissan trim about 175 pounds, on average,
PHOTO: NISSAN
from the weights of future vehicles. Nissan
executives say the company needs to broaden its use of carbon
fibre to help meet increasingly stringent fuel-economy regulations.

VW PAYS FOR CLIMATE ACTION

The federal government launched a fund in mid-September to
invest in community-based projects to curb emissions, with the
bulk of the money coming from a fine that Volkswagen paid for
breaking Canada's diesel-emissions rules. The $206-million fund
is part of a new Climate Action and Awareness Fund, which
seeks to boost research by empowering youth and communities. Johnathan Wilkinson, minister of environment and climate
change, said in statement the fund "will create jobs for Canadians
in science and technology, academia, and at the grassroots community level." - ANC

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Automotive News Canada - October 2020

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