Automotive News Canada - April 2021-v2 - 9

9

* APRIL 2021

Used vehicles
fuel renewal
for AutoCanada
'We're moving away
from just being
a new-car dealer'

both new
and used
vehicles despite
er demand from first-time car buyers
a global microchip
and many potential new-vehicle cusshortage that has
tomers who are being pushed into the
hampered
inventory
By JOHN IRWIN
used market because of a lack of new
across the country.
AUTOMOTIVE NEWS CANADA
product.
Rawluk attributed
Canadian Black Book (CBB), which
the supply to a " centracks the country's used-vehicle marWHILE MANY CANADIAN
Rawluk: A
trally organized and
ket, said in late March its data shows
" centrally
dealers struggle to find inventory,
data-driven used-veused-vehicle listings " significantly
organized
AutoCanada Inc. is awash in used
hicle buying strateand
below " their levels in 2019.
vehicles because of the group's foregy " enacted in 2020.
data-driven
" In the near term, we continue to
sight last fall, Executive Chairman
As part of that iniused-vehicle
expect slower new-vehicle sales, drivPaul Antony said.
tiative the company
buying
en by the chip shortage, which will
" In Canada, we really, really
said it made a " constrategy "
reduce the number of trade-ins, furstepped up in October and November
certed effort " to boost
gives
ther depleting the supply of used
when we knew that new cars would be
its used inventory.
AutoCanada
inventory, " CBB said in a March 23
in shortage, so our used-car [supplies]
This puts it in a posiample
note.
at our stores are probably triple what
tion to " meet market
th
Scotiabank
Lighthouse,
100
Yonge St., 5 demand
Floor, Toronto
inventory.
" Tight used-vehicle inventory levit has been in the
past, " Antony
said
and maxi-ON, M5C 2W1
PHOTO:
els,
relative to 123456
demand, will continue
in a March interview
with Automotive
mize profitability " in
N K E D I NAd 3
File: 1457198
AutomotiveL INews
Workfront#:
to be a key factor in the near term. "
News Canada.
the prime spring sellMichael Rawluk,
public-x 7.377 " Colours:
ing months.
Trim:the
10.437 "
CMYK + PMS 186
Insertion: March 24, 2021
NEW STRATEGY IN USED CARS
ly traded company's president, said
Many Canadian dealers are grapBleed:
0.125 that
Deadline:
March
24, 2021
on a March 3 call
with analysts
AutoCanada,
which
has 66 dealerpling with lower-than-normal used-veAutoCanada had a 100-day supply of
ships in Canada and the United States,
hicle inventory during a time of high-

Safety: n/a

Designer: Kate

Prod: n/a

PHOTO: ISTOCK

has weathered the inventory shortage
in this country and aims to build out a
nationwide network of used-only dealerships.
In December, it acquired Haldimand
Motors, an independent used-vehicle dealership near Hamilton, Ont., as
a part of that strategy. It also plans to
develop a national digital used-sales
platform.
" We're moving away from just being
a new-car dealer, " Antony said. " We
view used vehicles as a gateway into
new vehicles, as a gateway into service
[and] as a gateway into our ecosystem. "
AutoCanada reported net income
of $24.3 million in the fourth quarter
of 2020, compared with a $16.8-million
loss a year earlier. It recorded $876.1
million in revenue, up 8.3 per cent
from 2019 and a record for the

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Automotive News Canada - April 2021-v2

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