Automotive News Canada - October 2022 - 18

18
* OCTOBER 2022
Champagne wants the world to come to Canada
So he's traveling the
world to land battery
business for what 'is
going to be a major sector'
By DAVID KENNEDY
T ORONTO BUREAU CHIEF
THE FEDERAL MINISTER OF
innovation, science and industry continued
the government's lobbying blitz of key
automotive and battery players during
a two-stop trip to the United States in
September.
François-Philippe
Champagne, who believes
Canada can become a world
powerhouse in the electric
space, is traveling the
globe, pitching companies
to set up their supply chains here.
At the North American International
Detroit Auto Show on Sept. 14, he met with
representatives from Ford, General Motors
and Stellantis. He then flew to California
for a tour of Tesla's Fremont assembly
plant and to meet with " senior management "
at the EV maker.
Following the trip, Champagne
appeared on the Sept. 23 Automotive News
Canada Podcast to discuss the progress his
office is making to attract investments, the
rationale behind backing corporate spending
with public funds, and what other
key industry players are on his call sheet.
Responses have been edited for clarity and
length.
WHAT WAS THE FOCUS OF YOUR MEETINGS
WITH THE DETROIT THREE AT THE RECENT
AUTO SHOW IN DETROIT?
The point was really to [discuss] with the
folks in the United States about how we can
increase the production of batteries.
The word on the street is about speed
and scale. Whether it's Ford, whether it's
GM, whether it's Stellantis, the focus was
on how Canada can be of help delivering
the battery plants that are needed. Many
of them have some capacity, but everyone
agrees they need much more. I'm trying to
find ways to build them faster, in Canada,
to meet market demand.
STELLANTIS AND GM HAVE ALREADY COMMITTED
TO BATTERY SUPPLY-CHAIN INVESTMENTS
IN CANADA. ARE YOU WORKING ON GETTING
FORD INTO THE SECTOR?
Sure. You just have to give me time.
This is a generational transformation
in the sector. For OEMs, this is going at
light speed. You're basically rechanneling
your supply chain from an internal-combustion-engine
vehicle to a battery-electric
vehicle and everything in between, so
things are happening very
quickly.
You can rest assured
that I'm talking to all of
them. And they understand
that the " why Canada " is
clear. In some cases, we're
working on the " how " they can enter the
battery ecosystem; and with others, we're
working on the " when. "
YOU HAD MEETINGS WITH TESLA IN AUGUST
AND SEPTEMBER. AT WHAT STAGE ARE THOSE
TALKS AND WHAT HAVE THEY FOCUSED ON?
We've been looking at what more they
can do in Canada.
A RECENT REPORT FOUND CANADA'S BATTERY
ECOSYSTEM COULD CREATE 250,000 CANADIAN
JOBS. DO YOU THINK THIS IS REALISTIC?
Yes. I'm working every day to make
that a reality. Whatever the final number
will be is something for experts like that
to look at. But for me, I see big. I want us
to seize the moment. I want us to be ambitious.
Champagne:
" The government needs to be part of the equation [to back automotive
investments] if we want to compete and land some of these deals. " SUPPLIED PHOTO
My point is always going out of the
beaten track and saying, " What else can
we do? " This is the approach I've taken
with the German manufacturers; this
is what I've done with Tesla as well. We
need to be out there, and with this type of
approach. This is going to be a major sector.
PAST
GOVERNMENTS HAVE BEEN CRITICIZED
FOR BEING UNWILLING TO BACK AUTOMOTIVE
INVESTMENTS WITH PUBLIC MONEY. WHY HAS
YOUR GOVERNMENT BEEN MORE WILLING TO
SUPPORT THESE PROJECTS?
Because those are some of the best
investments that we can make. The return
on investment for Canadians is great. I
don't see them as grants but as investments.
Because if you look at the life cycle
at these plants, there are large economic
benefits for the country and for workers.
The government needs to be part of
the equation if we want to compete and
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land some of these deals. What we're
doing is very much comparable to what
they do in Germany, what they do in the
United States, what they do in the United
Kingdom.
MANY GLOBAL AUTOMAKERS HAVE SHOWN AN
INTEREST IN CANADA'S BATTERY SUPPLY CHAIN,
BUT NOT HYUNDAI OR KIA SO FAR. ON YOUR
UPCOMING TRIP TO SOUTH KOREA, WILL YOU
MEET WITH THEM?
Well, you know me, huh? We'll be engaging
with them. We've already engaged
with a number of Korean companies in the
auto sector, but we'll be having meetings
with some of them in person. LG Energy
Solution is very engaged. We've been
talking to Samsung. We've been talking to
SK Group. We're talking to basically everyone,
certainly in the battery ecosystem.
With respect to the OEMs, we'll have the
opportunity to meet them when we're in
Korea. - ANC
Grooming the
next generation
CONTINUED FROM PAGE 9
good thing going, " she said.
No data exists on how many
dealerships are family owned, but
about half of Canada's 3,000-plus
franchised stores are single point,
said Michael Lewicki of buy-sell
company Lewicki Automotive
Consulting. Until about 2000, nearly
95 per cent of dealerships were
single point, but the consolidation
has accelerated in the past 10
years, he said.
Younger clients he works
with tend to be aggressive with
growth strategies, while older
clients are more likely to be considering
throwing in the towel,
he said.
" If the second generation is
not there or is not capable, then
that [dealership] is a candidate
for sale. "
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Laura Zanchin said her father,
81, is actively involved.
" He's the one cracking the
whip. He sets the pace, and
everyone else is trying to catch
up. He's going to be doing this for
the rest of his life. "
Both dealership groups plan to
grow when the right opportunities
come along, but Zanchin said
she doesn't believe such growth
is essential to survival.
SC 13120
" It doesn't matter what size we
are, in the end, we are a family
that's done a helluva lot. " - ANC
FAMILY ADVICE
Several key factors that
help foster multigeneration
ownership:
* Let the children decide.
Before giving them
responsibility, Vaughn
Wyant waited until his
sons expressed a desire
in their mid- to late 20s to
be in the business. Laura
Zanchin's son, Gianluca,
27, is involved, she said,
while her daughter opted
for a different career path.
* Start the next generation
in junior roles.
That way, both Wyant
and Zanchin said, they
can learn the business
inside and out " We try to
make sure that we stay
very, very grounded, " said
Vaughn Wyant.
* Ensure they have the
needed education.
Family members must
make an honest assessment
of their own skills,
said Michael Lewicki.
Phillip Wyant has a master's
degree in accounting
and Michael has a degree
in automotive marketing.
Laura and Andria Zanchin
have communications
degrees.
https://www.joeverde.com/Video-Joe-Verde-Automotive-News-4.html?sc=13120
Automotive News Canada - October 2022

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