Automotive News Canada - October 2023 - 50

50
* OCTOBER 2023
Alpha Auto Group finalizes $842M deal for U.K.'s Lookers
The Canadian
company's acquisition
arm bought 147
new-vehicle
dealerships in the
U.K. and Ireland
By DAVID KENNEDY
T ORONTO BUREAU CHIEF
ALPHA AUTO GROUP
affiliate Global Auto Holdings
Ltd. has clinched its 504.2-million-pound
deal (Cdn $842.7 million)
to buy U.K. dealership
group Lookers plc.
The takeover formally closed
Oct. 6, the companies said in an
update to shareholders, two days
after the High Court of Justice in
England and Wales issued a final
approval, and about four months
after the initial offer was made
public June 20.
The deal hands ownership of
Lookers' 147 new-vehicle dealerships
in the U.K. and Ireland to
Global Auto Holdings (GAH), a
special-purpose acquisition company
formed to carry out the purchase.
GAH shares ownership
with Toronto-based Alpha Auto,
which was formed in 2014 and
owns 15 new-vehicle stores in
Canada and the United States.
At the time of the initial offer,
Alpha Auto Executive Chairman
Kuldeep Billan said the deal was
a " compelling opportunity " to
push into the U.K. for the longterm.
He
could not be immediately
reached for further comment.
SHAREHOLDER RESISTANCE
Despite the relatively quick
progression, the purchase was
not turbulence-free.
GAH's June offer of 120 pence
(Cdn $2) per share for Lookers
encountered shareholder resisLookers
has more than a century-long history and employs
about 6,500 people across its dealerships.
PHOTO: LOOKERS
tance over the summer, prompting
the holding company to up
the payout to 130 pence (about
$2.17) in August.
Lookers' shareholders signed
off on the deal, carried out
through a court-sanctioned
scheme of arrangement on Sept. 5.
Lookers has a more than century-long
history. It was founded
as a bicycle retailer before making
the switch to automobiles in
1910. It has been publicly traded
on the London Stock Exchange
since 1973, though its shares were
scheduled to be delisted Oct. 9 as
it transitions to private hands.
The company employs about
6,500 people in the U.K. and
Ireland, the overwhelming majority
of whom are expected to continue
in their roles post-acquisition.
In its initial bid, GAH said
" there may be some restructuring
required " in certain corporate
and support functions as Lookers
transitions away from public
ownership, but the company has
" no intention " of making other
employee or management changes.
The Lookers deal wraps up
amid a significant shakeup in the
British auto retail sector.
As of early October, a trio of
U.S.-based dealership groups
were competing to acquire
Pendragon plc, another of the
U.K.'s largest auto retail groups.
- ANC
Quebec charges ahead with chargers Court denies
Massive funding is intended to
boost the number of charging
stations to 116,000 by 2030;
plans are to add stations to
networks such as Tesla's
By LOUIS-PHILIPPE DUBÉ
MONTREAL CORRESPONDENT
QUEBEC'S RECENT PLEDGE TO
inject $514 million into the province's electric-vehicle
charging infrastructure is
designed to boost EV sales and ease automakers'
concerns over beefed-up ZEV mandates.
The industry, however, isn't ready to
uncork the champagne, said David Adams,
president of the Global Automakers of
Canada (GAC), which represents the interest
of overseas brands.
" It's a very good thing and will definitely
help, " Adams said. " We should even aim to
overbuild the infrastructure and make it as
easy to charge EVs as going to the gas station.
" Considering the many factors involved,
it is too early to tell if this is going to be
enough. "
The tougher zero-emission vehicle sales
mandates were announced in April and went
into effect in mid-September to accelerate EV
adoption. The new 2030 target stipulates that
ZEVs must make up 85 per cent of new-vehicle
sales, up from 65 per cent under the previous
rules.
HELPING AUTOMAKERS REACH TARGETS
Industry stakeholders warned that the
tougher mandate could prompt automakers to
send fewer EVs to Quebec, which could drive
up prices and keep older, more polluting cars
on the road longer.
Josée Guimond, a spokesperson for
Quebec's environment ministry, said the
tougher ZEV mandate and $514-million cash
infusion for charging infrastructure would
help automakers reach their targets.
" The tightening of the ZEV standard was
intended, among other things, to support the
raising of government electrification targets
from 1.6 million to two million light electric
vehicles by 2030, " Guimond told Automotive
News Canada.
" The Electric Vehicle Charging Strategy
aims to ensure the availability of charging
infrastructure for these vehicles.
" These two tools are, therefore, complementary
levers that will enable Quebec to
By ERIC FREEDMAN
LEGAL CORRESPONDENT
MAZDA CANADA IS NOT
entitled to a refund of customs
duties it paid on imported
parts that were defective, a
Federal Court judge has ruled.
The decision by Justice
Mandy Aylen upheld the
Canada Border Services
Quebec " is positioning itself as a player in a more diverse charging ecosystem, "
and intends to install most of its new charging stations on other networks: Flo,
ChargePoint, Petro-Canada, Electrify Canada and Tesla, for example.
PHOTO: GREG LAYSON
achieve its transportation electrification
objectives. "
The new funding would boost the number
of charging stations to 116,000 by 2030, according
to the province. Currently, Quebec has
about 9,200 public charging stations, representing
39 per cent of Canada's public network.
The
government predicts a ratio of one
public charging station per 16 EVs by 2030.
But this ratio could change as the market
evolves, Guimond said.
GRID MUST GIRD FOR GROWTH
More infrastructure demands more
resources, and the power grid's reliability is
key to gaining EV buyers' trust, said Adams.
" Being able to charge at more places is one
thing, but providing uptime is another, " he
said. " The infrastructure's reliability has to
follow. "
The province's grid will be able to meet
increasing demand, said Jonathan Côté, a
THE PRIORITIES
$514-million funding breakdown:
* Public chargers: $265 million
* Multi-dwelling retrofitting: $108 million
* Heavy transport: $35 million
* Tourism sites: $4 million
Source: Quebec government
spokesperson for Hydro-Quebec. " The arrival
of electric vehicles on Quebec roads is a gradual
process, and we're keeping pace with this
new demand. "
The government, he said, plans to install
most of the new charging
stations on other networks,
including Tesla,
Flo, ChargePoint, CoucheTard,
IGA, Petro-Canada,
Electrify Canada and
EVduty.
Côté: HydroQuebec
is
" keeping pace
with this new
demand " for
EV charging
infrastructure.
SUPPLIED PHOTO
The province " is positioning
itself as a player in
a more diverse charging
ecosystem, which is desirable
if electrification targets
are to be met, " Côté
said.
For auto retailers,
the government's strategy
will address prospective
consumers' worries
about charging availability,
said Hugo Jeanson, a
sales representative at Bourgeois Chevrolet
in Rawdon, about 80 kilometres north of
Montreal.
" The first thing people ask themselves
when shopping for an EV is: 'Where will I be
able to recharge it?' " said Jeanson, whose
dealership sold the first Chevrolet Bolt EV in
the province in 2017.
" Potential buyers will notice the multiplication
of charging stations, which will alleviate
their concerns and just might be enough
to entice them to make the switch. " - ANC
Agency's
(CBSA)
denial of
the automaker's
refund
request.
Aylen
said
it was
reasonable for CBSA to conclude
that Mazda Canada did
not meet all the requirements
for a refund by proving that
the defective parts had been
destroyed or exported.
The company did present
evidence of its " general policy
of destroying defective parts
related to warranty claims and
the dealers' adherence to that
policy, " as well as evidence
that Mazda Japan had given
credit to Mazda Canada for
those parts, she said in a Sept.
13 decision.
However, the company provided
CBSA with only " generalized
information " despite
" numerous opportunities "
to show the specific defective
parts had been destroyed,
Aylen said.
A CBSA spokesperson said
the agency is pleased with the
decision but is prohibited from
disclosing such information
as the amount of the refund
requested or the specific shipments
of parts involved.
A lawyer for Mazda Canada
declined to comment on the
case. - ANC
automaker
duty refund on
defective parts
Automotive News Canada - October 2023

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