Automotive News Canada - December 2022 - 35

* DECEMBER 2022
35
Honda rubs dealers the right way with its EV approach
CONTINUED FROM PAGE 3
a tiered program or formal deadline the
way Ford has.
A possible reason Honda dealers
appear more willing is because the
upgrading costs are lower than Ford's.
And Honda has a longer history of bringing
EVs to market, Mori said. Many
installed chargers when the Honda
Clarity plug-in hybrid was introduced in
2018. Others are undergoing renovations
or even building entirely new dealerships,
" so they will naturally have more
costs, " he said.
Honda is ensuring dealers are upgraded
in the three provinces where Honda
will introduce its EVs: Quebec, British
Columbia and Ontario. Mori said it is
reasonable to expect that any dealer who
wants to sell the Prologue and future
EV models will invest in the tools, training
and infrastructure to properly service
the vehicle. " Dealers that do not feel
ready may choose to do so in the future, "
he said.
THREE-PROVINCE PRIORITY
Honda Canada told Automotive News
Canada it will sell the initial supply of
the Prologue in B.C., Quebec and Ontario
because B.C. and Quebec have consumer
rebates and enforceable sales mandates
for EVs, while southern Ontario
has broad EV charging infrastructure.
B.C. also has the highest EV adoption rate
in Canada, with EVs making up 17.5 per
cent of new passenger vehicle sales so far,
according to the province.
" In B.C., Ontario and Quebec, 94 per
cent of Honda dealers are on board " with
upgrading now for EV sales and service,
Mori said. " Those that are abstaining are
simply doing so for timing reasons. "
In a recent interview, Honda Canada
President Jean Marc Leclerc said the
company wants to ensure that Honda
and Acura EV buyers have the best possible
initial experience. Acura will bring
the battery-electric ZDX utility vehicle to
market in 2024, he said. Acura, a Honda
division also overseen by Leclerc, expects
its 51 dealerships in Canada to make the
upgrades for EV sales and service.
The ZDX and the Prologue are co-developed
with GM and are underpinned by
the automaker's BEV3 platform and its
Ultium battery and drive systems.
" People cannot have a
bad experience with an
EV because that will really
delay the progress that
we're expected to make, "
Leclerc said.
Leclerc:
An EV sales
mandate
" doesn't
mean that
people will
feel ready
to buy them
at that time.
The last
thing we
want is to ...
[find] we're
left with
vehicles on
dealer lots
that are not
selling. "
FILE PHOTO
" So, we're really working
very closely with the
[federal] government to
make sure that this happens
[by ensuring support
structures, such as a
comprehensive charging
network, are in place].
We've got to invest the
dollars that are required
to position us to be successful
in the future. "
B.C. and Quebec have
EV sales quotas and
advanced infrastructure
to charge EVs, Leclerc
said.
" And they have compliance
- they have the
consequences for not
hitting the percentages
of the mandates that
they've put forth, " he
said. " So obviously that's going to be a
priority for us.
" You can have a [sales] mandate; it
doesn't mean that people will feel ready to
buy them at that time. The last thing we
want is to fast forward two or three years
down the road and [find] we're left with
vehicles on dealer lots that are not selling. "
Sales
predictions put 2023 at a
similar level to 2021: 1.65 million
CONTINUED FROM PAGE 3
AFS said sales losses are " expected
to continue through the rest of the year
and into 2023. "
" A sales recovery in 2023 should bring
total vehicles sold above 2022 levels, but
not quite to 2021's 1.68 million units, " the
firm said.
ScotiaBank expects Canadian sales to
reach 1.65 million in 2023.
" Still below fundamental demand, but
with considerable bandwidths around
those figures in light of economic [and
policy] uncertainty, layered on top of
weak sight lines on auto
production plans, " the
bank said.
ANALYSIS
NOVEMBER
STATS/P33
DAC estimated 114,966
light vehicles were sold
in November, up 4.1 per
cent from the 110,448 sold
the same month in 2021.
However, DAC noted that sales totaled
143,315 in November 2019 before the pandemic
struck, a difference of 24.6-percent.
Monthly
sales figures are estimates
now that the vast majority of brands
report quarterly instead of monthly.
Among those that still report monthly,
Toyota saw its sales increase nine per
cent. Lexus surged 32.9 per cent with the
help of the NX crossover, which was up
425 per cent in November to 1,170 sales.
November Lexus NX sales were up
425 per cent. PHOTO: LEXUS
Toyota and Lexus combined sales
totaled 15,202 vehicles.
Kia sales spiked 58 per cent to 6,469
with big increases at the smaller end of
the scale: the Forte small car and the
Seltos subcompact crossover.
Subaru sales were up 13.8 per cent to
3,881 and the Outback wagon had its best
month ever, said Subaru, with 1,424 sold.
Monthly sales of the Forester, Legacy,
and WRX each surpassed the same
month last year, according to the automaker.
November
also marked the first
month that the new electric Solterra has
been available for purchase, and 45 were
sold.
Of the automakers reporting, Honda
was the biggest loser in November.
Sales were down 22.8 per cent to 8,069.
Individually, Honda and Acura were
down 20.8 per cent and 38.8 per cent,
respectively. - ANC
By HARRY PEGG
CALGARY CORRESPONDENT
GERRY WOOD,
executive chairman
of Calgary's Wood
Automotive Group, has
named sons Rory and
Cailean as the company's
first vice-presidents.
Cailean assumes the
new role of vice-president
sales and marketing while
Rory has been appointed
vice-president of sales and
service.
" Rory and Cailean have
worked hard to earn these
promotions, " said Wood,
company founder.
" They have seen almost
everything you can in
the auto business and
now they'll be an important
part of our leadership
team as our industry
enters the new era of
sustainability, EVs and
self-driving cars. "
They will report to
group COO Dick Lau who
said the new positions
were created as the company
continues
to grow " and we
need more horsepower
at the executive
level. "
In the last 18
months, the company
bought
South Centre
Volkswagen,
opened Canada's
first VW satellite
dealership and
started Wood Auto
Rentals, " which
has been growing
great guns, " Lau
said.
" We're building
the new Big
4 Motors at Taza
Park on the
Honda vehicles.
" Our staff count
is now closer to
650, and with all
the changes in the
industry, Rory and
Cailean are taking
more leadership
positions, " said
Lau.
Rory, top,
and Cailean
Wood
take new
Tsuut'ina Nation
[on the western
edge of Calgary]
and planning a
second dealership
on the same site. "
He declined to name
the automaker. Wood
Automotive Group owns
seven dealerships in the
Calgary area, selling
Ford, Volkswagen and
leadership
roles at Wood
Automotive
Group.
PHOTOS: WOOD
AUTOMOTIVE
GROUP
The company
has also shuffled
dealership management
positions,
naming three new
general managers.
Justin Swinton
was named general
manager at
Okotoks FordLincoln,
Chris
Robertson took
over at Advantage
Ford and Anthony
Fowler assumed
a general manager
role at Village
Honda.
Swinton and Robertson
are longtime Wood Group
employees while Fowler
comes from Hyatt Infiniti,
which is owned by
AutoCanada. - ANC
demic, new-car sales were typically 1,500
to 1,600 vehicles for a full year, Takhar
said.
Westwind Honda in Lethbridge, Alta.,
is taking a slower approach, said General
Manager Greg Flom. The dealership
plans to erect a replacement building
within 18 months, but Honda has been
" slow-playing " the renovations, telling
him not to rush into an investment estimated
at $10 million to $12 million.
" [Honda is] telling me to proceed with
caution " because the precise needs for
the dealership are a moving target, he
said.
" Honda has been great to work with, "
Flom said. " They've been telling me to
hold off the design for now. "
Takhar: Renovations to OpenRoad
Honda in Brampton, Ont., include
an exterior facelift, more chargers,
specialized tools and diagnostic
equipment. PHOTO: OPENROAD HONDA
'FULLY ON BOARD'
OpenRoad Honda in Brampton,
Ont., planned to begin renovations in
December to be ready for the Prologue,
said General Manager Tak Takhar. The
changes include an exterior face-lift and
the addition of more chargers, specialized
tools and diagnostic equipment, he said.
" We're fully on board, " he said. " That's
the way the industry is going. I don't
mind at all. I feel good about it. "
OpenRoad is Honda's largest-volume
dealership in Canada, with about 1,200
new sales so far this year. Before the panFlom:
His
Alberta
Smaller markets - Westwind Honda
will sell about 200 new
vehicles this year - are
typically in areas that
are underserved with
chargers, Flom said.
Popular destinations
such as Calgary and
Fernie, B.C., are each
about 200 kilometres
away, he said, so range
is a concern.
dealership
plans to
build a new
store but
is taking it
slow. And
Honda's OK
with that.
SUPPLIED
PHOTO
" If you plan to go to
Calgary for a day, and
you have to plan two or
three hours to recharge,
you're not going to get
much done. "
In a small market like
his, where EV sales are
expected to grow more
slowly, Flom wants to
have a building that
can service mostly internal combustion
engine vehicles now but also be designed
with the flexibility to transition to EVs as
interest and sales grow. - ANC
- With files from David Kennedy
and Automotive News
Wood promotes sons to boost
executive-level 'horsepower'
Automotive News Canada - December 2022

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