Automotive News Canada - December 2023 - S30

FROM THE
APRIL
EDITION
30
Stealing
tests
dealers'
mettle
From sophisticated
security to proactive
parking, they're fighting
thieves and protecting
catalytic converters
By KELLY TAYLOR
WINNIPEG CORRESPONDENT
DEALERS ACROSS CANADA ARE
taking measures to combat theft, whether
it's locking customer cars inside at night,
strategically parking vehicles to
deter catalytic-converter theft or
installing expensive camera systems
to assist security staff.
At the Scottsville Group, which
owns three stores in Red Deer,
Alta., and one in Cranbrook, B.C.,
Dealer Principal Garrett Scott said
theft was a $75,000-a-year problem
until his new security protocols
were put in place.
Over the past five years, Scott
has been installing a high-tech
camera system in all his Red
Deer lots that detects motion and
directs the resulting video to a
security guard stationed in a car.
The system allows the guard to
dismiss inconsequential motion,
such as a fluttering shopping bag,
but also allows the guard to drive
quickly to the scene should an
actual interloper be detected.
" The cameras themselves
were not an effective deterrent, "
Scott said. " But since our security
guard had that kind of tool, we
have had very few incidents. "
Scott estimated that the system cost
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$500,000 by the time it was complete.
Incidents have been few, he said,
restricted to occasional smash-and-grab
thefts from customer vehicles. " We spend
good money on security,so it's paying off. "
A prime loss was fuel, he said. " They
would lay under a vehicle, drill a hole in
the tank and then leave. "
When confronted, trespassers
have tried all sorts
of stories, he said, such as
pretending to be an employee
attempting to work after
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access more difficult.
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" It's certainly not anything that's
new. It's escalated in the last two or three
years. "
Insurance companies are sounding
the alarm. In June, Allstate Insurance Co.
of Canada reported that in 2022, claims
increased 60 per cent over 2021 and were
up 1,710 per cent since 2018. In Winnipeg,
police reported 351 thefts in April 2022
alone, while Calgary police reported 3,174
thefts from January to November of 2022.
It's a problem that has captured the
attention of the Motor Vehicle
Retailers of Ontario (MVRO)
- representing franchised
auto dealers in the province -
which is making recommendations
to the Ontario Ministry of
Transportation.
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Scott:
Scottsville
Group
spent about
$500,000 on
a security
system
at its four
dealerships
to combat a
theft problem
that was
costing
$75,000
a year.
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PHOTO
" Damaged cars needing repairs
and the resultant higher insurance
premiums are becoming
major problems for new-car retailers, "
said Frank Notte, director of
government relations at MVRO.
" We believe that working together
with government, law enforcement
and other auto sector stakeholders
can put an end to this costly
crime that affects everyone. "
Catalytic converters are in
demand because the precious metals
within - palladium, platinum
and rhodium - are valuable.
Steps that Crosby has taken
to help mitigate the risk include
beefing up security patrols. And
since the vehicles most often hit
are trucks and SUVs that are
easier to slide under, he'll park sedans
on each side of those vehicles to make
Audis are the most theft-resistant,
Crosby said, as they typically have underchassis
covers that make it difficult to
get to the catalytic converter. Aside from
Audi of Kitchener-Waterloo, he operates
Crosby Volkswagen in Kitchener,
Volkswagen Waterloo in Waterloo and
Listowel Honda in Listowel.
CUSTOMER CARS ARE PARKED INSIDE
Crosby estimates the cost of replacing
a converter starts with the price of the
converter itself, ranging from about $800
to $1,500, not including labour. But since
the thieves aren't exactly meticulous, he
said, there's often peripheral damage that
requires repair or parts replacement.
While it's a big enough problem when
it hits his inventory,
Crosby is careful to
ensure that his customers
aren't targeted when
their cars are in overnight
for service. Those
vehicles are parked
inside.
Crosby:
As lot
inventories
rise, so might
the incidents
of catalytic
converter
theft.
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" It's just not the kind
of news you want to be
sharing with customers, "
he said.
The worst situations,
he said, occurred during
the COVID-19 pandemic,
when he would have a
new car ready to sell but
then discovered it needed
a catalytic converter,
which was sometimes
back-ordered for months.
Repairs have become quicker since
parts supplies have begun to stabilize
since the pandemic, Crosby said.
He thinks that as inventory levels
begin to normalize, the thefts could grow.
" It could become a larger issue as more
vehicles become available and dealers
have more sitting on their lot, " he said.
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hours, or trying to convince the security
guard that they themselves were performing
security duties.
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CATALYTIC CRIME
FROM THE
At Crosby Automotive Group, which
owns four dealerships in southern
Ontario, catalytic-converter thefts have
been a problem, said Dealer Principal
Michael Crosby. He estimates that over
four years, he has lost $50,000 to $60,000 to
converter thieves.
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Automotive News Canada - December 2023

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