Automotive News Canada - March 2023 - 28

28
* MARCH 2023
Cox wields axe as it reviews Canadian operations
Job cuts tied to
consolidation
of Canada, U.S.
operations into a
North American unit
By DAVID KENNEDY
T ORONTO BUREAU CHIEF
COX AUTOMOTIVE IS LAYING
off 80 staff in Canada and closing
its Manheim Edmonton
auction operation as it reevaluates
its Canadian footprint following
the sale of much of its
software business in the country
late last year.
Matt Trapp, Cox's regional
vice-president for the eastern
United States and Canada,
said the company has spent the
past few months assessing its
long-term strategy for Canada,
and changes in the local wholesale
market mean Manheim
Edmonton no longer fits Cox's
growth plan.
" It's never easy when we
make these decisions. ...
Unfortunately, Edmonton is
not going to be a part of that
plan going forward, " he told
Automotive News Canada
March 15.
THE WEST TAKES A BIG HIT
The Edmonton location will
cease most operations by the
end of the month. Cox said
the last public auction will
take place March 25, and the
final physical commercial sale
March 30.
About 40 staff will be laid off
in the Alberta capital because
of the closure. Cox will maintain
a " skeleton crew " of six in
Western Canada to continue
serving customers in the region.
" We still
have a responsibility
to our
clients who are
on the ground
and clients that
are operating
in that area.
And we still
have our digital
resources
which we
can provide to
them, " Trapp
said.
on North America as a whole,
as opposed to Canada and the
United States as separate markets.
Staff
were informed of the
layoffs March 15.
Trapp: " It's
never easy
when we
make these
decisions. "
SUPPLIED
PHOTO
About 40 other Cox employees,
mostly in support and sales
roles, will be laid off across
the company's other Canadian
offices in Vancouver; Milton,
Ont.; Saint-Eustache, Que.;
Moncton, N.B.; and Halifax as
part of the move.
Trapp said many of these
additional job losses are tied
to company efforts to refocus
For CIAS, crowds are driving
cars instead of just looking
CONTINUED FROM PAGE 3
Campbell called Camp Jeep " a true interactive
spectacle, " adding that social media
hits from that feature alone " drove millions
of impressions. " It was the first time that
Stellantis has brought the indoor off-road
event to Canada.
With burgeoning public interest in EVs,
the Electric City feature and indoor EV test
track were popular, Campbell said.
" But, " he added, " it takes a hundred points
of light in a show to make it successful, so it's
really hard to single any one feature out. "
Concept vehicles were also fan favourites,
Campbell said, citing the Buick Wildcat,
Hyundai RN22e and N Vision 74, and
Project Arrow from the Automotive Parts
Manufacturers' Association. The life-size
Lamborghini constructed with 400,000 Lego
pieces also was a huge draw.
'A TACTILE, SENSORY EXPERIENCE'
Participating automakers interviewed by
Automotive News Canada said they were generally
pleased with the show.
It " demonstrated that there is still
strong demand for auto shows and ways
for Canadians to get out as a family, " said
Christine Smith, Hyundai Canada's director
of marketing.
" Auto shows remain a great way for
us to have a different conversation with
Canadians, both the customer and those
exploring Hyundai for the first time. "
Hyundai, Smith said, has undergone a
major transformation in the past three years,
with more than half of its lineup now electric
or electrified.
" We jumped at the opportunity to demonstrate
Hyundai's evolution directly to
Canadians. "
Vehicles remain " a tactile, sensory experience,
and auto shows provide a great way to
explore that experience in a low-pressure and
fun environment, " Smith said. She looks forward
to working with the shows " at a national
level as well as with the smaller regional
shows in partnership with our dealer network. "
TO
GO ON, THE SHOW MUST CHANGE
Continuing to innovate to keep the experiences
interesting and engaging will be critical,
Smith said.
The high attendance figures helped " validate
our investment into the Stellantis
Canada stand as well as the Camp Jeep activation, "
said Jason Stoicevitch, Stellantis
North America's president of Canadian operations.
Camp
Jeep drew ridership numbers similar
to those seen at auto shows in Detroit and
Los Angeles, Stoicevitch said.
" As always, we continue to evaluate
opportunities that help maximize consumer
exposure to our full line of products, " he said.
" No decisions have been made about commitments
beyond 2023 at this time. "
While Campbell agreed that the show
must change with the times, " we have a good
opportunity to bring many of the missing
OEMs back for 2024.
" The experience of the show proves to us
that this is still a great showcase for everybody
that wants to come into the industry, "
he said, adding that the auto show is also a
product showcase " because you got a lot of
hungry consumers that really want to experience
it and touch it, especially when it's so
difficult to find those new products you can't
find in showrooms. "
An in-person survey of about 1,500 consumers
over six days found that 76 per cent
were likely or very likely to return next year,
Campbell said.
A survey of about 1,500 showgoers over
six days found that 76 per cent were likely
or very likely to return next year, said CIAS
General Manager Jason Campbell.
PHOTO: CIAS
" So, that being the case, together with
new car buyers entering the market, as there
are each year, " he said, " I think we can be
very happy with the prospects for 2024 and
beyond. " - ANC
FOCUS ON MONTREAL, TORONTO
The restructuring follows
significant Cox divestitures in
Canada late last year.
In November, the Atlantabased
company announced
it would sell a series of its
Canadian digital properties,
including dealer.com, Kelley
Blue Book and several dealership-focused
software brands to
the Canadian division of Trader
Corp.
Trapp took on oversight
of the company's remaining
Canadian business in
December, following the sale.
He said despite the Edmonton
closure, Cox remains committed
to its Canadian operations.
" We came in, we did our
initial assessment and we're
making these changes today to
put ourselves on that path for
growth. "
The company has " aggressive "
plans to boost business
at its flagship locations in the
Toronto and Montreal areas,
and is investing accordingly,
Trapp added. Cox recently spent
about $700,000 on physical and
digital upgrades at the two facilities,
the company said.
Following the layoffs, Cox
will employ about 400 staff in
Canada across its Manheim
auction business, its NextGear
financing arm and its vAuto
inventory management software
business. The company
said the changes in Canada will
have no impact on its business
or clients in other markets.
- ANC
Two-thirds of enrolled Ford
dealers pick the costlier EV plan
CONTINUED FROM PAGE 3
Certified. Elite offered dealers full
access to sales and service of Ford
EVs while Certified offers " full-service
capability, limited sales and a
lower investment cost, " Ford said in
a statement.
The fee is for charging-station
installations, technician training
and specialized service equipment.
THREE DEADLINE EXTENSIONS
After resistance from an undisclosed
number of dealers - including
retaining Toronto lawyer Shaun
Laubman - the Dec. 16 deadline was
pushed to Dec. 31, then Jan. 31, 2023,
then Feb. 24.
Dealers opposed to making the
required investments have cited
slow EV sales, particularly in rural
areas.
After the Feb. 24 deadline, Ford
announced that 338 dealers - 83 per
cent - had signed onto the program,
with 226 opting for Elite and 112
choosing Certified.
" We are pleased to see that the
enrolled dealers will provide a
robust national network that will
better serve our existing and future
EV customers, " Joakim said in an
email. " Ford of Canada is committed
to continuing to work closely with
our dealers to deliver the Model e
program as we consider our dealer
network to be a competitive advantage
as we play to win in the BEV
space. "
Citing ongoing discussions,
Scott Campbell, dealer principal
of Mid-Town Ford in Winnipeg,
and a director of the Ford Dealer
Roundtable Association, which has
been involved in the negotiations,
declined comment.
" As we are still in active discussions,
I am not at a comfort level to
discuss what transpired and how we
got to the 83 per cent enrolment level
until we finish the discussions, "
Campbell wrote in an email. " We
are meeting face-to-face at the end
of March to have some more discussions. "
Steve
Chipman, president of
To sell the Mach-E electric vehicle,
pictured, Ford dealers must pay
to enrol in one of two Model e
certification programs. After the
Feb. 24 deadline, Ford announced
that 338 dealers had signed on.
FILE PHOTO
Birchwood Automotive Group,
which owns four Ford dealerships
including Winnipeg's Birchwood
Ford, largely deferred comments to
Campbell but did strike an optimistic
note.
DIFFERENT STORES, DIFFERENT PLANS
" The concern was really for the
smaller dealers, " he said. " Ford had
to listen and be
more flexible, and
in my opinion they
were. "
Chipman:
" Ford had to
listen and be
more flexible,
and in my
opinion they
were. "
FILE PHOTO
Chipman's three
other Ford stores
are in smaller centres.
Before the
Feb. 24 deadline,
Chipman said he
was waiting for
final details to make
a decision. After
the deadline passed,
he said Birchwood
Ford had enrolled.
Calgary's
Marlborough Ford
has also signed up
for the Elite certification, managing
partner Brent Walker said. He
said it was always in the plans, given
construction at the dealership's new
location in northeast Calgary, but " if
we were not building a new store, I
do not believe we would be investing
that kind of money. " - ANC
- With files from Doug Firby
http://www.dealer.com
Automotive News Canada - March 2023

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