Automotive News Canada - March 2023 - 17

* MARCH 2023
17
CONGRESS
Ready for EVs? Far from it
Dealers need government
to do more than just say,
'Here's the mandate, go
do it,' group CEO says
By SAMI HAJ-ASSAAD
T ORONTO CORRESPONDENT
WITH THE FEDERAL MANDATE FOR
zero-emission vehicles approaching,
Ottawa must accelerate efforts to educate
car buyers and ensure that the country
is equipped with a robust network
of charging infrastructure for electric
vehicles, a panel of industry
executives says.
HOST
Jeff
Melnychuk
Editor-in-chief
" EVs are great, we all
want to help the environment,
but we need the
government to do more
than just say, 'Here's the
mandate, go do it,' " said
Steve Chipman, CEO of
the 18-store Birchwood
Automotive Group based in Winnipeg.
An education program on ZEVs and
charging systems, spearheaded by government,
would help boost sales, he said.
" The charging system is all goofed
up. I just learned that in some streets,
you can't even install Level 2 chargers
because the grid won't
take them. Then, customers
have to learn
about the different
charge rates and what
cars support which
speeds.
" The customers
might not know a lot,
but they know less
than I do, which is why
they're asking me. The
government has to get
better at educating people
about what these
EVs are all about, " said
Chipman.
The panel, which
focused on the industry's
EV readiness,
included Laura
Zanchin, executive
vice-president at
the 38-store Zanchin
Automotive Group
based in Toronto;
Nissan Canada CEO
Steve Milette; and
Hyundai Canada CEO
Don Romano.
The proposed regulations
would require
that by 2026, at least 20
per cent of new vehicles
sold in Canada be
ZEVs. That would rise
to at least 60 per cent
Members of the Automotive News Canada Congress EV-readiness panel cited
insufficient and unreliable charging infrastructure as a critical hurdle that must be
overcome should the federal government enact a ZEV sales mandate.
SESSION 3
OEM/EV readiness
steep learning curve, Zanchin said.
" When it comes to servicing, whenever
there's an issue, it feels like we're
doing something for the first time. " She
cited an instance in which one of her
stores had to replace an EV battery.
" We needed a forklift [to get the battery
out of the vehicle],
then we needed to house
the battery in a special
box, then we had to
store it in a special way
and location.
Steve
Chipman
CEO, Birchwood
Automotive
Group
Steve Milette
CEO, Nissan
Canada
" So it's a snowball
effect, and we're ready
to take it on. [But]
there's got to be a lot of
conversations going. "
Zanchin said that
retailers are left having
to resolve customers'
questions and complaints.
" All of these
issues are trouble, " she
said. " A slower pace [for
the ZEV mandate] would
be helpful. "
Don Romano
CEO, Hyundai
Canada
Laura
Zanchin
Executive
vice-president,
Zanchin
Automotive
Group
by 2030 and 100 per cent by 2035.
'SO NOT READY'
Zanchin suggested the government
pump the brakes on its timeline.
" We have to pull the reins a little bit
back because we are so not ready on an
infrastructure level. "
While EV adoption is increasing, servicing
cars and customers comes with a
BROKEN CHARGERS
Nissan's Milette and
Hyundai's Romano said
they're committed to
helping their dealers
gear up for the mandate,
but they echoed concerns
about the unreliable
state of charging
infrastructure.
" We are still not
ready in Canada for
long-distance EV motoring, "
Milette said, adding
that it's not uncommon
for drivers to
encounter broken public chargers.
" Every time I take a long trip, I've
found a charger that doesn't work, " he
said. " We're so used to today's method of
going in [to a gasoline station] and filling
up, and we don't want to line up for
the fast chargers. This [issue] is priority
No. 1. "
Said Romano: " There aren't too many
good chargers from Toronto to Ottawa
Chipman: " The
government has
to get better
at educating
people about
what these EVs
are all about. "
Zanchin: " We have
to pull the reins
a little bit back
because we are
so not ready on
an infrastructure
level. "
or to Montreal. So, the cart is before the
horse. The infrastructure should be coming
first before we mandate that 100 per
cent of cars be EVs by 2035. "
Romano also called on Ottawa to
impose standards on manufacturers and
distributors of EV chargers.
" The government should have regulations
for the infrastructure, maybe issue
penalties for nonworking chargers or
have a standard for them to be fixed in a
specific time limit, " he said.
In addition, gasoline stations should
be required to install chargers, he said.
" Why not? It takes a village - let's all
contribute. "
Milette and Romano were confident,
however, that their companies and dealer
networks would be EV-ready.
" My job is to make sure that if that
is the policy, regardless of government
changes, I'm ready, I'm there and my
network is there, " said Milette.
Aside from grappling with ZEV regulations,
automakers will have to find
ways to ensure that EVs are affordable,
said Romano.
" One thing I've learned in this business
over 40 years, if you build them,
you've got to figure out how to sell
them. " - ANC
Nissan eyes
Canada to
build out
its EV future
North America leader says
the automaker is sourcing
supply 'closer to where we
produce' for stability
By SAMI HAJ-ASSAAD
T ORONTO CORRESPONDENT
NISSAN IS CONSIDERING CANADA AS
a place to invest in an electric-vehicle
supply chain, the chairperson of Nissan
Americas told the
2023 Automotive News
Canada Congress.
" Canada is Nissan's
fifth-largest market,
and we're fully committed
to the country, "
said keynote speaker
Jérémie Papin.
" We have many
options if we're looking
to regionalize the
supply chain, and
Canada is a good place
to assemble battery
packs and also source
materials. "
SESSION 4
Guest
speaker
The automaker is
looking to bolster and
regionalize its entire
supply chain, especially
after recent disrupJérémie
Papin
Chairperson
of
Nissan Americas
tions that delayed the delivery of new cars
and parts, Papin said.
" There are so many difficulties and tensions
in the supply chain, which speaks
to our need to build regionalized, North
American-centric supply chains, " he said.
" We've done better at duplicating our
sourcing of materials. We are now sourcing
closer to where we produce, which
results in a more stable supply chain. "
'PLENTY TO OFFER' HERE
Canada, Papin said, " has plenty to offer
when we look at how to build that supply
chain and how to get involved. "
Over the past year, Ontario and Quebec
have drawn billions in EV investments.
Stellantis and LG Energy Solution, for
example, last year announced
plans to build a $5-billion
battery plant in Windsor,
Ont., while Volkswagen has
announced Canada as the
location for its first North
American battery plant.
In Bécancour, Que., a
$500-million cathode production
plant is being constructed
by a joint venture between General Motors
and Posco Chemical. The plant will supply
battery materials for use in future GM
electric vehicles.
Nissan has three vehicle assembly
plants in Mexico and two in the United
States, Papin said. " If I project five to six
years out, I don't see the need for another
plant, but there are other ways to grow
plenty in Canada and elsewhere. "
CANADA IS STILL A CONTENDER
While the U.S. Inflation Reduction Act
(IRA) offers hefty incentives for battery
supply-chain investments south of the border,
it would not dissuade Nissan from putting
down roots in Canada, Papin said.
CONTINUED ON NEXT PAGE
HOST
Jeff
Melnychuk
Editor-in-chief
Automotive News Canada - March 2023

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