Automotive News Canada - December 2022 - 31

* DECEMBER 2022
31
BrightDrop flips the switch, slowly
CONTINUED FROM PAGE 1
GM Canada's West did not directly
address whether battery supply constraints
will slow ramp-up times at
CAMI. The first Ultium Cells manufacturing
plant in Ohio is now up and running,
she said, with two more battery factories
in the United States under construction
and another in the planning stages.
" There's such a willingness for adoption
for our Ultium-based vehicles that
we're anxious to scale up the battery
manufacturing across all of those sites
that have been announced, " West said.
In an email to
Automotive News
Canada, Sam Fiorani,
vice-president of global
vehicle forecasting at
U.S.-based AutoForecast
Solutions (AFS), said
that the strong demand
for batteries combined
with the limited output
will hamper production
for BrightDrop in 2023.
AFS expects GM to
build 16,500 BrightDrop
vans in 2023, about onethird
of the automaker's
initial plans, Fiorani
said. And even that, he
said, " might be optimistic. "
Van
Boekel:
EVs take
fewer
workers to
assemble,
but more
time is
involved
in building
them.
FILE PHOTO
" With such a limited
number of batteries available, concentrating
on higher-priced and potentially higher-profit
models such as the [US] $115,000
GMC Hummer EV makes more sense
than the fleet-focused BrightDrop vans. "
GM said it plans to build 50,000
BrightDrop vans a year at CAMI by 2025.
FEWER WORKERS REQUIRED
The new products will be a major
adjustment for the work force, which has
spent more than 15 years building the
Chevrolet Equinox crossover. Once up
to full capacity, the Zevo 600 and 400 programs
will also mean fewer jobs.
BrightDrop assembly will require
about 400 hourly production employees
per shift, said Unifor's Van Boekel. Three
shifts of production employees plus 200
tradespeople across all shifts totals 1,400
hourly workers, which is about twothirds
the previous staffing level, he said.
" Unfortunately, it takes less people
to build electric than it did an [internal-combustion
engine] vehicle, " Van
Boekel said.
But with the future being electric, he
noted, there is a silver lining. " It looks
like we should be here for decades. "
West also signaled that the BrightDrop
vehicle program will be at CAMI for the
long haul, calling it the " home manufacturing
location for many years to come. "
STARTING SLOW
BrightDrop's arrival at the Ingersoll
plant has been planned since early 2021,
when GM and Unifor signed a contract to
build the delivery vans there. On May 1,
CAMI shut down for a retrofit that cost
about $1 billion.
For about a year prior, low-volume
assembly of the vans took place at Kuka
AG, a GM supplier near Detroit.
West credited the smaller-scale starting
point for helping set the stage for
the " record " turnaround time on CAMI
retooling.
" Doing it at a much smaller scale and a
smaller footprint enabled us to develop
the tools, develop the processes and then
bring it here where we have the fullscale
footprint, and we can ramp up to
high volume, " she told Automotive News
Canada.
Despite the van being larger than the
Equinox, West said, " About 70 per cent of
By 2025, GM expects to build 50,000 BrightDrop vehicles a year at the retooled
CAMI plant. AutoForecast Solutions expects 16,500 in 2023, and with battery
supply challenges, that " might be optimistic. " PHOTO: BRIGHTDROP
the vehicle is very similar to any of the
vehicles that we produce. "
We used to build one Equinox
a minute. These will be
about one per five-and-a-half
minutes. So a lot slower, but
there's a lot more to them.
MIKE VAN BOEKEL
Unifor chairman at CAMI
The size of the van will mean a different
pace on the line, however.
" We used to build one Equinox a minute, "
Van Boekel said. " These will be
about one per five-and-a-half minutes.
So a lot slower, but there's a lot more to
them. "
FIRST CANADIAN CUSTOMER
As plant staff in Ontario prepare for
volume production to begin, BrightDrop
has also extended its order book into
Canada.
On Dec. 5, GM announced DHL
Express Canada - the Canadian arm of
the Germany-based logistics company -
will receive its first BrightDrop vans in
early 2023 but did not disclose the size of
the order.
In all, GM said it has more than 25,000
reservations or expressions of interest for
BrightDrop vans.
BrightDrop Chief Commercial Officer
Steve Hornyak told sibling publication
Automotive News that while DHL marks
the first Canadian order, the company is
seeing a " tremendous amount of pull " to
bring its vehicles to the country.
" [Canada is] very, very EV-friendly, "
Hornyak said. " They've got the government
supporting it from an infrastructure
perspective as well as from a credit
perspective. ... And the fact that the vehicle's
built here doesn't hurt. "
BrightDrop's initial focus remains on
North America, Hornyak said, but it continues
to explore pursuing global sales in
the future. - ANC
- With files from Lindsay VanHulle
'Cause marketing' benefits communities and, often, dealers
CONTINUED FROM PAGE 9
14 times over the past 15 years and
being named the 2022 Alberta Dealer of
Excellence (Metro) by the Motor Dealers'
Association of Alberta (MDA). His father
received the same award in 1984. This
year, Valentine said, the group is on track
to sell about 800 new and 400 used vehicles,
its biggest year ever.
GOOD FOR THE SOUL, AND SALES
" I guess it's called karma, " Valentine
said. But he emphasized that he is motivated
by a desire to help his community
and by his Catholic faith.
" I believe that the true measure of success
is leaving the world better than you
found it. Our business is a tool to improve
the lives of everyone around us. ... That's
why we are in business. "
Supporting charities and minor sports
" pays off in the long run, " he said. " It's a
win-win. It makes you feel good, and it's
led to more sales. "
Volvo's annual excellence awards recognize
dealers who are leaders and role
models in propelling the brand's growth
and improving the customer experience,
said Mark McDade, director of retailer
development for Volvo Car
Canada.
" Valentine Volvo's success
can be traced back to its long
history as a family business that
focuses on customer service
and satisfaction, " McDade said.
" Valentine Volvo has made community
giving an essential part
of its business. "
'THEY DON'T WANT TO BRAG'
Although many dealerships
in Canada contribute to charities
and support community
sports organizations, the
Canadian Automobile Dealers
Association (CADA) doesn't
keep statistics on total contributions.
In addition, dealers are
often silent about the work they
do, said Jeff Glackin, leader of
sales for the Dealer Authority marketing
agency near Dayton, Ohio.
Glackin:
" If [dealers] can
show they're
not just trying
to jam a car into
somebody's
garage, that's
good for their
image. "
SUPPLIED PHOTO
" Dealers are some of the most generous
people on the planet, but they don't want
to brag about it, " Glackin said. " If they
can show they're not just trying to jam
a car into somebody's garage,
that's good for their image. "
Valentine was not looking for
financial gain. But his generosity
has delivered the same business
benefits as a marketing
approach advocated by Dealer
Authority, which advises dealers
to consider " cause marketing "
- essentially boosting their
brand by aligning with social
causes. It outlines three business
benefits from giving back to the
community:
Increased dealership loyalty:
Studies show that when a business
improves a customer's life,
that customer will likely become
an advocate for the business.
Earn new customers: When
given a choice between two dealerships,
customers are more
likely to support the one that benefits
their community.
Sell more cars: When executed properly,
cause marketing can increase sales.
Customers are more likely to purchase
from a dealership, even if it doesn't necessarily
mean getting the best price.
EXAMPLES OF EXCELLENCE
Valentine shares the MDA 2022
Dealer of Excellence honour with Todd
Ducharme, general manager of Westlock
Motors in Westlock, Alta., who won in the
nonmetro category.
The association bases its award on
business acumen, community involvement,
and association and industry
involvement.
Valentine's industry contributions
include 18 years as chair of the
Volvo Canada Retailer Advisory Board
and stints as president of the Calgary
Motor Dealers Association and Calgary
International Auto and Truck Show. He
has also been a member of the MDA board
of directors.
" It is this peer recognition, from those
who would often be considered competitors,
that makes this award so meaningful, "
said MDA President Gerald Wood in
a statement. - ANC
Automotive News Canada - December 2022

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