Automotive News Canada - September 2021 - 17

* SEPTEMBER 2021
17
TADA chief: Bring dealers
into the digital discussion
'There's no denying that is the
future, [but] I don't think we
can drop all the other ways we
engage with customers just
because of digital retail'
By PERRY LEFKO
T ORONTO CORRESPONDENT
MICHAEL EATSON, PRESIDENT OF THE
Trillium Automobile Dealers Association
(TADA) since May, has cautionary advice for
automakers keen on online sales.
" The [automaker] is pushing for digital
retail, although we're getting some mixed messages
as to the demands from the consumer.
Manufacturers need to be cautious how progressive
they are, " said Eatson, dealer principal at
Peterborough Volkswagen,
140 kilometres northeast of
downtown Toronto.
" There's no denying that
is the future, [but] I don't
think we can drop all the
other ways we engage with
customers just because of
digital retail. "
Eatson: " We
need to be able
to consummate
a deal off-site
digitally with
those signatures
to make it
easier for the
consumer. "
SUPPLIED PHOTO
Eatson urged automakers
to work with their dealer
networks to navigate the
digital course. " It's engaging
and listening to the
dealers just to find out what
their people want, " he said.
" At the end of the day,
we're the front line, and
sometimes manufacturers
don't listen enough to their
front-line people. "
Still, the pandemic has
accelerated the shift toward online shopping,
and TADA is looking to ensure that regulations
governing Ontario retailers reflect the trends in
consumer buying habits, Eatson said.
TADA, which represents 1,100 franchised
dealerships in Ontario, has been lobbying
the province to modernize the Motor Vehicle
Dealers Act, which currently requires that all
transactions be finalized at the place of purchase.
The act is under review and TADA will
be among the stakeholders pushing for change,
Eatson said.
" With [COVID-19] and online digital selling,
the act needs to be reviewed, and we're trying to
make some inroads there. We need to be able to
consummate a deal off-site digitally with those
signatures to make it easier for the consumer.
There were temporary changes throughout
COVID, but we still needed to do the transaction
on-site. "
Eatson, whose term as TADA chief is one
year, replaced Cliff Lafreniere, president of
Pinwood Park Motors in Kirkland Lake, Ont.,
600 kilometres north of Toronto. The TADA
president is appointed from the organization's
executive team, which is restricted to
dealer members. After his term, Eatson will
become president of the Canadian International
AutoShow in Toronto.
Eatson, 57, followed his parents into the family
business in 1987 after graduating from university.
" Most of my life has been working at
the dealership, whether it was at night or weekends,
washing cars or working in the parts,
working service, all those sorts of things. "
Eatson's two sons, Eric and Graeme, have
also joined the business. " You always think you
are going to be something else, " Michael Eatson
said, " But at the end of the day when you are
hanging around cars from the time you are five
years old, you grow fond of engines and oil and
grease and sales and people, and it all just kind
of falls together. "
Eatson spoke with Automotive News Canada on
a range of issues facing the industry:
ON BUILDING TRUST WITH CONSUMERS
For sales and service, it's all about transparency
and communication. You need to understand
the wants and needs of your customer.
To be transparent is to
give them everything they need
to make an educated decision on
what it is they are looking for. I
train my people [that] this isn't
a one-shot deal. If you build that
relationship and you are transparent,
you build trust. ... I would have to say most
dealers are down the road of being transparent, or
they are not in business very long.
ON OTTAWA'S GOAL TO END THE SALE BY 2035
OF NEW INTERNAL-COMBUSTION VEHICLES
There's just so many things that need to happen,
so I think there's a fear out there with the
date the federal government is pushing [for all cars
to be electric by 2035]. Is it going to be good for
the environment? Let's hope so. Do I think it's the
future? Absolutely. If people experience electric
and get the range they would like to see, it's going
to be exciting. ... I think the price point is going to
be critical.
ON TADA'S PUSH FOR THE RETURN OF PROVINCIAL
REBATES FOR ELECTRIC VEHICLES
It's certainly something we're always communicating
with [the Ontario government] that we
think will help the industry.
ON THE DEBATE OVER WHETHER TO REQUIRE THAT
DEALERSHIP EMPLOYEES BE VACCINATED
That's a contentious topic. That's such a personal
thing. I have not mandated that at our dealership
[in Peterborough], but we have the self-test
kits if we need to do that. ... I believe we need to
trust the medical professionals to guide us down
the right path, and we've seen vaccines are helping.
But I also get the other side.
ON THE SUPPORT DEALERS NEED FROM AUTOMAKERS
Speaking only from my brand, it needs to be
good communication between the brand, the dealers
and the dealer councils, who play an active role
in those sorts of discussions.
ON THE INVENTORY SHORTAGE
It's absolutely a huge concern. Manufacturers
are moving product. As quick as it comes in, it
goes out. Everyone is fighting for that [microchip]
supply. Volkswagen has been very good to
the dealers, working through this with really good
communication, so we didn't get blindsided with
no inventory and helped us accordingly. ... I can't
sit here and blame the manufacturer for no microchips.
It's just a function of what happened.
ON THE AGENCY-SELLING MODEL
My brand [is] very committed to a dealer network.
I think it's silly to think that just selling
a car digitally is the end of the experience.
Customers still need to get their vehicles repaired
and engage with dealerships. ...Will that change
in how our facility looks or how we communicate
with our customers? Absolutely.
ON WHETHER HEALTH AND SAFETY PROTOCOLS
AT DEALERSHIPS WILL CONTINUE ONCE
COVID-19 SUBSIDES
I don't think all those things will change overnight.
I just feel like we're all comfortable and OK
with that now. I think the masks will probably disappear,
sooner [rather] than later. Whether that is
good or bad, I don't know. We're sanitizing vehicles,
and I don't think that will stop any time soon.
- ANC
The GV70, pictured, and GV80 utility vehicle have
been added to a Genesis lineup that had previously
consisted of three sedans. PHOTO: GENESIS
Genesis: Foothold,
now footprint
After starting online, the luxury
brand adds stores to 'see,
touch and feel' the vehicles
By DAVID KENNEDY
T ORONTO BUREAU CHIEF
FIVE YEARS AFTER LEANING ON AN ONLINE
sales model to gain a foothold in Canada, Genesis
Motors seems to be hitting its stride.
Hyundai's luxury division has seen huge sales
gains this year: Its 30 coast-to-coast distributors delivered
2,787 vehicles through August. This compares
with 671 during the same period in 2020, and 1,043
in 2019 - before the launch of two new utility vehicles
- according to the Automotive News Research &
Data Center in Detroit.
And as volume has picked up, the brand is
poised to establish a physical presence. The first of
the Genesis Retail Customer Experience Centres,
designed to show off the brand's vehicles, is scheduled
to open in September in London, Ont. Two others will
follow this year as construction progresses. Genesis
and each of its distributor partners are in earlier
phases of development on the more than two dozen
other experience centres that will open over the next
several years.
Coupled with consumers warming to buying vehicles
online, the new brick-and-mortar locales will
help Genesis reach a wider spectrum of buyers, said
Lawrence Hamilton, executive director of Genesis
Motors Canada.
" We know online is great for convenience, for
establishing pricing, for people doing things in their
own time, for research [and] for comparisons. It's
really lousy for doing test drives and physical product
see, touch and feel. "
Carrying out in-depth demonstrations,
" romancing " customers with vehicle features, and
building personal relationships are also difficult in an
online environment, Hamilton said.
MEETING CUSTOMERS WHERE THEY WANT TO BE MET
Moving to an omnichannel approach has always
been part of Genesis' long-term plan. Omnichannel
refers to technology and processes aimed at providing
a seamless buying experience for consumers whether
they shop online, in-store or both.
It will be a considerable shift for Genesis. Unlike
relying on conventional showrooms, where buyers
interact with product, the brand has pioneered what
it calls a " we come to you " approach. Potential customers
connect online with one of the Genesis agencies
in Canada to coordinate key touch points such as
test drives and vehicle delivery. But the bulk of the
transaction is digital.
Pricing is also a departure from the norm.
" The prices are online, they're transparent, there's
no negotiation, " said Eric Marshall, national manager
of sales for Genesis Motors Canada.
The brand has expanded its distributor network
steadily since its launch, turning to Hyundai dealers
with strong service reputations in key locations to act
as distributors. Going to market with 13, it has added
a handful of distribution points each year to reach 30
currently.
A few more Hyundai dealers could join the
Genesis ranks, but the bulk of the brand's Canadian
network is already built out, Hamilton said. All 30
SEE GENESIS NEXT PAGE
Automotive News Canada - September 2021

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