Automotive News Canada - September 2021 - 1

CALGARY DEALERS TO ANCHOR FIRST NATIONS PROJECT/P22
SEPTEMBER 2021 | VOL. 5, NO. 9 | AUTOMOTIVENEWS.CA FOR BREAKING NEWS AND DIGITAL EDITION
A JABBING
QUESTION
By DAVID KENNEDY
T ORONTO BUREAU CHIEF
THE GROWING WAVE OF
Canadian employers enacting
mandatory-vaccine policies has
automakers, parts suppliers
and dealers walking a fine line
between protecting their staff
and infringing on their rights.
" From social settings in
New York to corporate settings
in Toronto, we're seeing mandatory
vaccination regimes
becoming more commonplace, "
said Flavio Volpe, president
of the Automotive Parts
Manufacturers' Association
(APMA).
In August, bigname
private employers
such as Royal Bank
of Canada, Rogers
Communications Inc.
and financial services
company Sun Life said
staff returning to offices
must be fully vacciIndustry
moves tentatively on
imposing vaccine mandates for staff
Volpe:
Many jobs
in the auto
industry
cannot
be done
remotely.
FILE PHOTO
nated. The federal
government
and a series of
provinces and
municipalities
set similar
rules, with several
jurisdictions
taking the
added step of
establishing a
vaccine passport
for social activities
such
as eating at
restaurants
or attending concerts.
For automakers, the
legal obstacles to putting
mandatory-vaccine policies
in place are essentially
the same as for other
employers, Volpe said,
but the requirements for
staff to be on-site are
often greater.
" There are duties
within the industry, disciplines
within the industry, that can
be done remotely, the pandemic
has shown that, " Volpe said.
" But making things cannot be
done through Zoom. "
NO MANDATES YET
Automakers such as
General Motors, Honda and
SEE DEALERS PAGE 24
Alarm bells
sound on
affordability
Vehicles are becoming increasingly
expensive, potentially sidelining
buyers until supply increases
By JOHN IRWIN
AUTOMOTIVE NEWS CANADA
RISING USED PRICES AND REDUCED NEWvehicle
incentives, both spurred by the ongoing
microchip shortage, could soon become a concern for
the industry, as customers are potentially priced out
of the market, experts say.
" It's definitely on the cusp of
becoming an issue because we can't
have sustained increases in retail pricing
of vehicles and consumers not getting
gun-shy about it, " Robert Karwel,
senior manager of J.D. Power's automotive
practice in Canada, said on the
Aug. 13 edition of the Automotive News
Canada's podcast.
Driven by the global semiconductor
shortage, the tight supply of new
and used vehicles has significantly
increased prices over the past several
months. According to J.D. Power,
incentives as a percentage of vehicle
Employers should ensure their policies
include alternatives to getting vaccinated
as well as exceptions for " somebody
who had a human rights-based
reason for not getting the mandatory
vaccination, " said labour lawyer Michael
Sherrard. SUPPLIED PHOTO
Karwel:
Incentives
could rise
if prices
become a
turnoff.
FILE PHOTO
prices dropped in the first half of the year to the lowest
level in Canada since the firm began tracking that
data in 2012. Incentives accounted for about eight per
cent of average vehicle prices.
Used-vehicle values have also been rising. The
14-day moving average of used retail prices sat
at about $28,500 in early September, according to
Canadian Black Book data. Prices had previously
hovered at about $25,000 since late 2019 through the
SEE BUYERS PAGE 24
Lithia deal means Pfaff will expand 'very quickly'
By KELLY TAYLOR
and GREG LAYSON
AUTOMOTIVE NEWS CANADA
PFAFF AUTOMOTIVE
Partners is poised for growth in
Canada following the sale of a
majority stake to U.S. powerhouse
Lithia Motors Inc., according to
the Toronto-based luxury group's
CEO and a mergers and acquisitions
specialist.
Canadian luxury
group eyes
new dealership
acquisitions and
the adoption of
omnichannel tools
Chris Pfaff said along with
the influx of cash comes access
to Lithia's management systems
and, eventually, its Driveway
omnichannel sales platform.
Omnichannel refers to a selling
system designed to provide
a seamless transition from
tire-kicking to purchasing for
potential customers, whether they
start their journey online or in
person.
" We're going to grow very
quickly here in Canada, " Pfaff
said in an Automotive News
Canada podcast.
" I'd say that putting these two
companies together is one plus
one equals three. It's really, really
strong. "
Pfaff Automotive operates
16 luxury dealerships across
Canada, a variety of leasing
and financing outlets as well as
a motorsports team, a HarleyDavidson
dealership and a
marine equipment restailer.
SEE LITHIA PAGE 27
30+ Years' Experience
www.LACLTD.CA
Buy Sell Dealership Expertise
647.223.3855
Pfaff: " I'd say
that putting these
two companies
together is one
plus one equals
three. It's really,
really strong. "
FILE PHOTO
LEWICKI M&A Advisory
http://www.AUTOMOTIVENEWS.CA http://www.LACLTD.CA
Automotive News Canada - September 2021

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