Automotive News Canada - March 2022 - 26

26
* MARCH 2022
Consumers not yet letting fuel
costs drive their vehicle choices
CONTINUED FROM PAGE 8
of Canada's recent interest-rate
increase of a quarter of a per cent.
But, Karwel warned that high
prices can't last forever.
" We're going to hit a wall
at some point, budgetwise
and economywise, " he said.
" Personally, I don't think
we're there yet. This might
be a blip, more about what
manufacturers can build
and bring to market. "
Karwel also said the rising
cost of fuel might eventually
play on the minds of
consumers but it hasn't, yet.
" Gas has slowly and gradually
been getting more
expensive, but that was
more to do with inflation, "
he said. " I don't think we've
seen any consumer trends
in vehicle purchase habits
reflecting the change in
price in fuel.
" Are we going to see a
massive uptick in EVs this year?
Not as many as you'd think.
Because they're getting more
expensive, too. "
DesRosiers Automotive
Consultants estimates that
February sales totaled 98,722 vehicles,
down 12.4 per cent from the
112,654 sold in February 2021.
CHIP SHORTAGE STILL FELT
The industry is still grappling
with supply problems caused by
the ongoing global shortage of
semiconductors, now entering its
second year.
" [Automaker] production
continues to be a concern due
to the ongoing chip shortage, "
said AutoCanada's Antony. " We
shouldn't bank on near-term relief
from the chip shortage,
which has us anticipating
that new-vehicle volumes
[will] be lower than prior
years for at least the first
half of 2022.
Antony:
Microchip
shortages and
inventory are
hampering
auto
production,
and the war in
Ukraine could
add to that.
FILE PHOTO
" Possibly exacerbating
the issue [are] reports
that the Ukraine conflict
could further strain supply,
as both Russia and
the Ukraine are critical
suppliers of key microchip
components. "
DesRosiers Automotive
Consultants said the seasonally
adjusted annual
sales rate for February
came in at 1.62 million,
down from last February's
1.85 million but " broadly
in line with the levels seen
over the last 10 months. "
DesRosiers managing partner
Andrew King suggests that March
sales might be a key indicator for
what's to come in the remainder of
2022.
" Looking forward, we will be
watching the market closely in
March to see if it can come anywhere
close to the torrid pace of
March 2021, when sales reached
175,186 units, " King said.
March 2021 was the last strong
sales month, after which the semiconductor
shortage really began to
bite the market hard, starting in
the second quarter. - ANC
Dealers cope with a mixed bag of
mask mandates across the country
CONTINUED FROM PAGE 3
In late January, the province's dealers
were hit with a requirement that any business
of 1,500 square metres or more - including
the service area - could not admit customers
who did not have a QR vaccination
code.
" Customers were mad when they weren't
allowed to go in, " Poëti said. Although the
requirement lasted only a few weeks before
the government dropped it, he said, " It was a
nightmare. "
British Columbia lifted mask mandates
March 11 for " low-risk indoor, public settings,
but maintained them for health-care settings,
such as doctors' offices. " Blair Qualey, president
of the 400-plus-member New Car Dealers
Association of British Columbia, said he
expects most retailers in the province will
" continue to be careful " once restrictions
are lifted.
" Dealers have a responsibility to
protect their employees and customers. "
A
BUMPY ROAD TO NORMAL?
In the remainder of the country,
Alberta and Saskatchewan lifted mask
mandates March 1; Manitoba planned
to lift its mandate March 15; New
Brunswick, and Newfoundland and
Labrador on March 14; Prince Edward
Island on April 7; and Nova Scotia on
March 21.
Norris: " We're in limbo here " because
Alberta says no more masks, while the
city mandate remains. FILE PHOTO
ident of the Wyant Automotive Group, said
protective equipment such as transparent
plastic barriers will remain in
place at the company's 29 dealerships,
although he sees them eventually
coming down.
Wyant:
Protective
In Amherst, N.S., Ryan Madonald,
dealer principal at Cumberland
Honda, said that when the mandate
is lifted, the store will not continue
enforcing masking for staff or customers
- it is up to retailers if they want
to continue - but " we will still offer masks to
staff and customers who wish to wear one for
the foreseeable future. "
In western Canada, Vaughn Wyant, presCLASSIFIED
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equipment
will stay in
place, and
staff must
mask up if
the customer
comes in
wearing one.
FILE PHOTO
Staff has been instructed that if a
customer enters the dealership wearing
a mask, then the staff person who
deals with that customer is required
to wear a mask as well. Otherwise,
masks are not required.
Although Alberta has lifted the
mask mandate, the provincial capital
of Edmonton imposed its own. Mike
Norris, owner of Volvo of Edmonton,
said the dealership will comply with
the city's rules unless the provincial
government intervenes.
" We're in limbo here because the
mayor is fighting with the province. "
What Norris calls the " gong show "
in Alberta stands in stark contrast to Florida,
where he attended a meeting of Volvo dealers
in late February. Florida is wide open, with
no restrictions, he said. - ANC

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Automotive News Canada - March 2022

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