Automotive News Canada - March 2024 - 13

* MARCH 2024
13
CONGRESS
to zero
age sales requirements for ZEVs: They must make
up 20 per cent of new light-duty-vehicle sales by
2026, 60 per cent by 2030 and 100 per cent by 2035.
Automakers failing to hit the sales targets
face penalties of $20,000 per vehicle.
Beatty
did not directly address
whether Toyota would meet the government's
2026 targets but stressed
that the company has more battery-electric
and plug-in hybrid vehicles
- which also qualify as ZEVs if
they have large enough battery packs
- on the way.
HOST
Jeff
Melnychuk
Editor-in-chief
But the affordability of those and other ZEVs is
top of mind for cash-strapped consumers. Other
ZEV adoption concerns, such as charging infrastructure
and range anxiety, have been superseded
by cost, said J.D. Ney, the Canadian auto practice
lead for J.D. Power.
" They remain very expensive vehicles in this
market, " he said.
SELL THE SAVINGS
Yet the mismatch between the upfront cost of
ZEVs and internal-combustion-engine vehicles
is less of a factor when comparing the total cost
of ownership, said Elias El-Achhab, COO of Kia
Canada Inc.
Savings yielded from powering a vehicle with
electricity versus gasoline add up quickly, and it
is well known throughout the industry, El-Achhab
said, that vehicle buyers are mainly focused on their
monthly payment.
That means if automakers and dealers can highlight
the operational savings that ZEVs offer, consumers
might be more open-minded about buying
them.
" There's a lot of lack of education or miseducation
about EVs " and " we have to do a better job "
of getting more data-driven information
across to consumers, El-Achhab said.
In addition, many automakers have
concentrated on first bringing out higher-cost
ZEVs to showcase the full capabilities
of their technologies, he said.
El-Achhab pointed to the Kia EV9 electric
crossover, which starts at $63,294, including
$3,049 for delivery.
" That's not going to be the affordable
EV for everybody, " El-Achhab said.
With the EV9 set as the brand's " ceiling, "
three other models are scheduled to
launch with lower price tags, he said.
But while ZEV sales growth continued
through much of 2023 - the category
made up a record 12.1 per cent of Canadian
sales in the third quarter, according to the
latest data from Statistics Canada - the
momentum isn't uniform.
Demand, Ney said, fluctuates significantly
based on segment and brand.
Buyers of $200,000 BEVs have become
scarcer, but more affordable ZEVs in popular
segments are still " flying " off lots, he
said.
LIGHTNING STRIKES, THEN STRIKES OUT
Shahin Alizadeh, president of
Toronto's Downtown AutoGroup, has
seen this issue play out at the store level.
He pointed to the Ford F-150 Lightning
electric pickup as a model that has proven
to be " a much tougher challenge " to
sell than first expected.
The Automotive News Canada
Congress EV-outlook panel
cited buyer miseducation and
affordability as critical hurdles to
meet the new federal government
ZEV sales mandate.
" To try to force-feed Lightning into the
F-Series market has been an impossible
task, " said Alizadeh, whose group represents
nine automotive brands.
While they were in high demand for a
few months after launch, they're building
up and languishing on lots, he said.
And as the federal mandate forces automakers
to sell more ZEVs to avoid being
penalized, Alizadeh said, dealers can't be
expected to take inventory that consumers
aren't interested in buying.
" The industry's no longer prepared to
absorb those types of business relationships
where we just say, 'OK, here's 300
cars; and Bob's your uncle, so go and sell
them.'
" To me, that's just going to create more
friction between the retail network and
the OEMs if the supply and the inventory
levels aren't aligned, " Alizadeh said.
Toyota Canada's Beatty acknowledged
that the automaker-dealer dynamic could
be put to the test with the new ZEV rules,
but he's also skeptical that the mandate
will be the final word.
" California is often held out as being
the example here in North America of
how to get this done, " he said, " but people
tend to forget that California changed
their strategies multiple times.
" They came up against deadlines,
they discovered it wasn't working, they
changed it, they became more sophisticated,
and I expect that's what's going to
happen here in Canada as well. " - ANC
Accelerate Auto's inaugural Black Automotive Professional Awards were
presented Feb. 15 at the Automotive News Canada Congress by Edith Pencil,
left, director of employee services at Ontario dealership group Performance
Auto Group. The recipients, left to right: Mark Donaldson, CEO, Quantuity
Analytics; Dwain Samuels, director of sales, data licensing, Canadian Black
Book; Yolanda Biswah, president, Canadian Black Book; and Shannon Miller,
project lead, strategic partnerships, Ontario Centre of Innovation.
Industry leaders,
in words and deeds
Accelerate Auto
recognizes Black
leaders for their work
and their commitment
to championing diversity
By GRACE MACALUSO
MANAGING EDITOR
A CEO WHO DEVELOPED
technology that has " transformed "
air-brake inspections is among four
recipients of the inaugural Black
Automotive Professional Awards.
Launched by Accelerate Auto, a
not-for-profit group aimed at boosting
Black representation within Canada's
auto industry, the awards were presented
Feb. 15 at the Automotive News
Canada Congress in Toronto.
Mark Donaldson, CEO of Quantuity
Analytics, based in Mississauga, Ont.,
received the Emerging Leader Award.
" His IoT [Internet of Things]
AI smart sensor has transformed
air-brake inspections, surpassing
Ontario's regulatory standards, "
Accelerate Auto said in a statement.
Donaldson also was cited for " his
commitment to community involvement,
including mentoring BIPOC
[Black, Indigenous and people of
colour] students and contributing
to the Canadian Black Chamber of
Commerce. "
The awards " spotlight and celebrate
outstanding individuals within the
industry by recognizing their exceptional
contributions as Black professionals, "
according to Accelerate Auto.
* Dwain Samuels, director of sales,
data licensing at Canadian Black
Book (CBB), received the Leadership
Excellence Award.
" His impact extends across the
Canadian automobile industry, leading
in used-vehicle market evaluation, "
Accelerate Auto said. " Dwain's
continuous excellence is evident
through his weekly market analysis
and recent Harvard Business
Publishing Corporate Learning certification,
making him a true leader par
excellence. "
* CBB President Yolanda Biswah
received the Women's Leadership
Award and was praised as " a trailblazer
in fostering leadership and championing
diversity in the automotive
industry. "
Biswah, who in 2022 was named
a Notable Champion of Diversity by
Automotive News Canada, " is an
active volunteer for Accelerate Auto,
spearheading CBB's support. " She
also has hosted international students,
volunteered with the Boys and
Girls Club and mentored Black youth
through Accelerate Auto's Mentorship
Program.
* Shannon Miller, project lead, strategic
partnerships at Ontario Centre of
Innovation (OCI), received the Young
Professional Award. Miller " stands
out as a strategic force in the automotive
industry, " said Accelerate Auto.
" From her former role as a program
officer at the Trillium Network for
Advanced Manufacturing, she has led
impactful initiatives, fostering student
development and professional upskilling
in mobility innovation. "
Miller was cited for leading OCI's
critical-minerals talent strategy
and the Ontario Vehicle Innovation
Network's regional training centres.
- ANC
Automotive News Canada - March 2024

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