Automotive News Canada - November 2020 - 6

* N O V E M B E R 2 020

TRENDING
STORIES
automotivenews.ca
Volkswagen Moncton adopted a strategy of rapidly responding to customer inquiries, day or night.
PHOTOS: DALE PRESTON

Two-pronged strategy ignites
sales surge at VW store
The improvement is the result
of a yearlong reimagining
of processes where 'nothing
falls through the cracks'

sales staff handles the responses personally, even on
evenings and weekends, providing requested information and engaging with buyers. Staff members
try to convince prospective buyers to book specific
appointment times, which leads to a greater commitment from the client.

By DOUG FIRBY

USED-VEHICLE INVENTORY IS KEY

AUTOMOTIVE NEWS CANADA

A SMALL VOLKSWAGEN DEALERSHIP IN
Atlantic Canada turbocharged its sales by implementing ultra-rapid response to customer inquiries and
increasing trade-in values.
Volkswagen Moncton sold 11 new and used vehicles on Oct. 28, a best-ever day for the dealership,
which has just six sales
staff, according to General
Manager Benoit Boudreau.
Although the COVID-19
pandemic has made sales
numbers difficult to compare,
he said gross revenues on
new-car sales was up $300,000
over the third quarter in 2019,
while used-vehicle revenue
was up $150,000. That's growth of 10 to 15 per cent, he
said.
The improvement is the result of a yearlong
reimagining of Volkswagen Moncton sales processes. The review began before COVID-19 struck, but it
also just happened to make the dealership pandemic-ready, Boudreau said.
" With COVID, every lead is so important. Nothing
falls through the cracks. "
Eleven car sales in a 24-hour period might be nothing more than a good day for a large urban car dealership. But for a small dealership with typical new- and
used annual sales volume of 700, the number is significant.

A HARD LOOK AT OPERATIONS
Moncton, N.B., with a population of about 72,000,
is a retail hub in Atlantic Canada. Its big-box outlets and variety of auto dealerships draw shoppers
from a 150-kilometre radius, Boudreau said. Yet, the
Volkswagen dealership didn't seem to be getting a big
enough piece of the pie. As Boudreau took a hard look
at sales practices, he convinced Kyle Wilson to leave
a nearby Honda dealership and take on the role of
general sales manager.
Wilson said he quickly implemented a series of
tactics that he had learned from his mentor John
Brushett Jr., son of the dealer principal at Moncton
Honda. His six-year apprenticeship with Brushett has
paid dividends, he said. " I always say, 'What would
John do?' "
At the Volkswagen store, Wilson focused on
increasing customer acquisition, boosting the number of trade-ins and responding almost instantly to
customer inquiries. The first step was teaching sales
staffers to respond quickly to any customer who contacts them via the website, any time of day, any day
of the week.
" A bad response within two minutes is better than
a good response a day later, " Wilson said.
Rather than relying on third-party call centres,

Wilson said rapid response is just the beginning, however. To help generate leads, he takes most
cars in on trade - and sells even well-used models
through the dealership - rather than sending older
models out to auction. That increases the variety
of brands and price options he can offer customers:
" Inventory is key to getting the leads, " he said.
Selling trade-ins through the dealership also provides an economic incentive for buyers. An auction
house might only give the dealership $1,500 for an older car, but
Wilson said he might be able to sell
it for $5,000 and pass the gains on
to a buyer through a higher tradein value. And a student who can
only afford a $5,000 vehicle right
now is more likely to remember
his experience and come back in
the future when he or she is ready
to buy new.
Boudreau:
At the peak of the pandemic,
Volkswagen
the showroom was closed for six
Moncton's
rapid-response weeks, said Boudreau, who was
forced to cut back to three sales
strategy
staffers, including the manager.
boosted gross
And that forced the dealership
revenue on
new- and
to rely heavily on virtual contact
used-car sales
and 24/7 availability, a lesson he
10 to 15 per
learned from his wife, who sells
cent in the
real estate.
third quarter.
" We're not asking everyone to
give up three hours of their weekend, " Boudreau said. " But selling
cars. ... It's not a job from 8 to 5. "
Boudreau is particularly happy
with steady improvements in customer acquisition. Although he
did not provide hard numbers, he
said the variety of used-car brands
for sale proves the dealership has
gained market share. And he credWilson: Takes
its the rapid-response strategy.
most vehicles
" You've got to skate really fast.
on trade and
You can't score if you can't reach
sells them on
the puck. "
the lot rather
The dealership is back to its full
than sending
complement of six sales staff memthem to
bers, said Wilson, and they are
auction.
continuing to hone the skills they
developed during the pandemic. The dealership does
not have formal training for them, but provides continuous feedback by reviewing sales presentations.
Wilson said he is encouraging his employees to
use phones more as a means of drawing clients into
the showroom. The dealership is also expanding the
use of text messaging since many customers prefer it.
Buyers browse online, he said; when they walk into
the dealership, they are ready to do business.
" It's really not rocket science. If they're coming
into the dealership, they're buying a car. " - ANC

ONGOING WEB COVERAGE
ONLINE, NOT IN PERSON

In a normal year, auto shows would be ramping up
by now, but with COVID-19 raging in many countries,
reveals and debuts will move into the virtual world.

COVID-19 STRESS RISING

As cases surge, some provinces are looking at a targeted
response to keep the virus at bay. They're enacting lockdowns, closures and gathering limits to varying degrees.
Depending on the severity, some measures could affect
the economy and the auto industry.

EVs, SELF-DRIVING TECH A TOUGH SELL

J.D. Power's 2020 Q3 Mobility Confidence Index found that
North American vehicle owners have not changed their opinions
on battery-electric vehicles or self-driving
technologies. The study includes insights
from the United States and Canada. Only
13 per cent of consumers polled said
they expect to buy an EV before the end
of 2022 while 30 per cent said they have
no intention to ever consider buying one.
For autonomous vehicles, in the United
States, 14 per cent of people who drive a PHOTO: CHEVROLET
personal vehicle feel comfortable riding in self-driving cars. In
Canada, the percentage is 13.

EV MAKER EXPANDS MALL PRESENCE

Canadian electric-vehicle startup ElectraMeccanica says it will
open six U.S. retail outlets before the end of November. Four
stores will open in California and another two in Arizona.
ElectraMeccanica says the Scottsdale store will be seasonal. The
six locations are " in prominent shopping centres, " and " will be
strategically positioned in high-visibility areas alongside notable
name-brand anchor stores, " the automaker said. The Vancouver
startup, which builds and sells the Solo, a three-wheeled, all-electric commuter vehicle designed for urban settings, already has
four stores on the U.S. West Coast.

XC40 RECHARGE STARTS AT $66,345

Volvo's first electric vehicle is priced to move, even if it might not
get very far on a full charge. The 2021 XC40 Recharge P8 compact crossover will start at $66,345,
including shipping, when it goes on
sale early next year. The battery-propelled version of Volvo's XC40 compact crossover delivers 402 horsepower and a maximum range of about 335
kilometres. The XC40 is at the forePHOTO: VOLVO
front of a wave of emissions-free models expected from the automaker. Volvo wants battery-powered
vehicles to account for half of its global sales by 2025.

DRIVER-ASSISTANCE FEATURES STANDARD

Nissan Canada says its Safety Shield 360 technology will come
standard in 11 models beginning in 2021. Safety Shield 360 is
a suite of six technologies: automatic emergency braking with
pedestrian detection, high-beam assist, lane-departure warning, rear cross-traffic alert, rear automatic braking and blindspot warning. The technology is already standard for the 2020
Sentra, Leaf, Maxima, Qashqai, Kicks and Titan in Canada and
will be standard in the 2021 Rogue. Additional models will be
announced in the coming months.

TECH GIANT JOINS EV JOINT VENTURE

BlackBerry Ltd. has become the second Canadian contributor
to the Arcfox Î±T, a high-end electric utility vehicle from China's
Beijing Automotive Group Co. (BAIC). The Waterloo, Ont.-based
tech giant said its QNX Hypervisor technology underpins the
digital instrument cluster, console touch screen, AC screen and
head-up display in the Î±T, which is being built in a joint venture
between BAIC and Canada's Magna International. BlackBerry
already has linkages with China-based electric-vehicle startup
xPeng and Internet giant Baidu, which is developing an autonomous vehicle platform. - ANC

FOR FULL TE
XT

automotivenew
s.ca
FOR THESE S
TORIES AND
MORE

http://www.automotivenews.ca http://www.automotivenews.ca

Automotive News Canada - November 2020

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