Automotive News Canada - April 2021-v2 - 4

* APRIL 2021

Leased BMW
was totaled...
with no insurance
By ERIC FREEDMAN

LEGAL CORRESPONDENT

Canada, U.S. positively charged
The two countries
are aligned on climate
change, EVs and
battery-supply chains
By JOHN IRWIN

BMW FINANCIAL SERVICES CANADA IS
entitled to $85,500 from a lessee whose vehicle was totaled after the driver's insurance
was cancelled for nonpayment, an Ontario
Superior Court judge has ruled.
" This may seem a harsh
result " for lessee Jingwe
Liu, " but he does not come
to court with clean hands, "
Judge Annette Casullo
wrote in a March 2 opinion.
Here's what happened,
according to the decision: A customer leased
a new 2017 BMW M4 coupe for two years.
After one year, the lease was assigned to
Liu, who " became responsible for all obligations imposed under the lease, " including
insurance.
" All was not as it seemed, " however, and
Liu alleged that he had signed on behalf of
a friend who was " the true assignee " but
under age 18. The teenage friend missed two
loan installments and failed to pay insurance premiums.
The friend - without Liu's knowledge -
also allegedly subleased the BMW to another man. Casullo called that decision " indeed
unfortunate, " because the sublessee totaled
the car a month later, leaving it " unsalvageable. "
BMW Financial sued Liu for the balance
owed on the lease.
Liu admitted signing the lease but later
contended that his signature had been
forged and blamed the lender for negligently

SEE BMW PAGE 23

AUTOMOTIVE NEWS CANADA

CANADIAN AUTO INDUSTRY
executives are supporting the commitment by Canada and the United States
to work together on
vehicle-emission
rules and electric-vehicle battery production to combat climate change.
" The two governments were
out of sync [under
Trudeau:
former President
Donald Trump] with Minerals are
just one link
respect to their cliin a potential
mate change objecEV supply
tives and what they
chain in
wanted to see, "
Canada that
said David Adams,
would include
CEO of the Global
vehicle
Automakers of
assembly.
Canada, which lobPHOTO:
bies for import
BLOOMBERG
automakers. " I
think having a partner that's of the
same mindset will actually advance
Canada's interests " in EV battery production.
In February, Prime Minister
Justin Trudeau and U.S. President
Joe Biden agreed to " take aligned and
accelerated policy actions, including
efforts to achieve a zero-emissions-vehicle future, " according to the White
House's " Roadmap for a Renewed

EVs and counter China-based competU.S.-Canada Partnership. "
itors.
The integrated nature of the
The United States is also trying to
Canadian and U.S. auto industries
boost domestic production of EV metmakes " any sort of disharmonizaals, which the Biden administion amongst the way that
tration has said is critical. But
we regulate emissions or
Washington is increasingly
address zero-emissions vehiviewing Canada as a kind of
cles ... very challenging for
" 51st state " for mineral supply
the Canadian industry, "
purposes and plans to deepen
said Brian Kingston, CEO
financial and logistical partof the Canadian Vehicle
nerships with the country's
Manufacturers' Association
mining sector over time, a
(CVMA), a champion for the
U.S. government source told
Detroit Three automakers in Biden:
Wants U.S.
Reuters.
this country.
production
" We have an opportuniThe two leaders also
of EV metals, ty here, " said the CVMA's
agreed to " work together to
and Canada
Kingston. " We're sitting on
build the necessary supply
has the
vast critical-minerals reserves.
chains " to make the counminerals
I think Canada is well-positries " global leaders in all
required to
tioned to be that supplier " to
aspects of battery developmake that
North America.
ment and production. "
happen.
Kingston said it would also
In recent months, Trudeau P H O T O :
be crucial for vehicles proand Ontario Premier Doug
BLOOMBERG
duced in Canada to be exempt
Ford have spoken of their
from any buy-American provisions
desire to build an EV supply chain in
the Biden administration develops for
Canada, from mining materials needthe U.S. government's vehicle fleet. In
ed for batteries through assembling
January, Biden vowed to replace his
vehicles. During negotiations with
government's roughly 650,000 vehiUnifor in late 2020 and early 2021, the
cles with electric models made in the
Detroit Three committed to build batUnited States.
tery-electric vehicles in Canada this
" We do not want to find ourselves
decade.
on the outside of any buy-America
BATTERY BUDDIES
provision, " Kingston said. " That's
something that will be extremely
The development of a battery supimportant in the electric-vehicle space
ply chain is a complicated proposias we become a manufacturing hub
tion, but it appears officials on both
for this new vehicle technology. We
sides of the border want to make it
have to make sure that we are a part
happen. Reuters news agency reportof any U.S. purchasing decision and
ed in March that the U.S. government
we don't end up on the wrong side of
was working to help U.S. miners and
Buy America policy. " - ANC
battery makers expand into Canada,
part of a strategy to boost regional
- Reuters contributed to this report
production of minerals used to make

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Milette: New Nissan program
boosted first-quarter sales
CONTINUED FROM PA GE 3

said Nissan Canada spokesman Didier Marsaud, who
declined to provide details.

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Milette said the new bonus
program helped to boost
Nissan's first-quarter sales
results, which were up 28
per cent from a year earlier
when including the Infiniti
luxury brand.
" We are one quarter into
this new program, and what
I can say is we're back in
growth mode, " he said.
Still, some dealers who
spoke with Automotive
News Canada hoped Nissan
Canada would eventually
back off of its targets completely, especially as the
COVID-19 pandemic continues to keep some customers
out of the market and as the
global microchip shortage
affects new-vehicle inventory.
" The carrot is not as big
now, but I would still think
that for most dealers, it's as
much as $150,000 to them that
they could miss out on " if
sales targets are not hit, said
a Nissan dealer who spoke on
the condition of anonymity.

" You're under the gun to perform. "

TARGETS 'NOT ARBITRARY'
Milette said the company's
sales targets are managed by
a third party and they vary
depending on the health of
the dealer's market and other
factors.
" Targets... are not arbitrary, " he said. " A third
party would tell us, 'Here's
the size of the market for
Dealer ABC. It's a market
that's going up or down,
here's the segmentation of
the market [and] what's been
sold in the market.' "
Bender said the dealer advisory board is pushing Nissan Canada to make
adjustments to its target
methodology.
" It's an impossible task
to try to balance these targets right now, but our hopes
are that in a normal market that they do balance out
and are reasonable, " he said.
" Hopefully we can work with
them and get some support
around target methodology
and maybe get some changes
around that. " - ANC
- With files from
Urvaksh Karkaria.

http://www.dealerminecrm.com/anc-talk-to-an-expert http://www.DealerMineCRM.com

Automotive News Canada - April 2021-v2

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