Automotive News Canada - April 2024 - 3

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Dealer margin on Honda vehicles typically ranges from
4.5 to eight per cent of the sticker price, sources said.
The change will see those margins trimmed by two
percentage points. PHOTO: GREG LAYSON.
Carlisle to
serve on
board for
AutoCanada
Dealers call Honda's 'unprecedented'
plan to slash margins a cash grab
The margin reduction - as much
as 44 per cent - is being framed
as a way to pay for the shift to
electric vehicles, dealers say
By DAVID KENNEDY
TORONTO BUREAU CHIEF
HONDA CANADA PLANS TO REDUCE THE
profit margin its Canadian dealers earn on sales,
equating to hundreds of dollars per vehicle, as the
automaker moves into the electric era, according to
dealers and other industry sources with knowledge
of the matter.
The margin reduction, which one industry
source called a " blatant money grab, " was done
without consultation and caught dealers off-guard.
" This is unprecedented, " said the source, who
requested anonymity. Other brands have " nibbled
around the edges " on margin on specific new
models or types of vehicles such as battery electric
vehicles but never imposed anything similar
" across the board. "
The margin reduction starts with the new Honda
Prologue EV before expanding to the company's
wider lineup for the 2025 model year.
Dealer margin on Honda vehicle sales typically
starts at 4.5 per cent of the sticker price and inches
TRANS-CANADA NEWS 5,000 KILOMETRES
OF STORIES
Port volume up 36 per cent
in 2023 to pre-pandemic levels
VANCOUVER - AUTOMOBILE
shipments into Canada through
the Port of Vancouver bounced
back strongly last year as the
auto sector shook off the effects of
the microchip shortage and saw
a surge in Tesla shipments from
China.
Vehicle imports through the Port of
Vancouver increased by more than 100,000
to 454,103 in 2023. FILE PHOTO
Imports last year totaled 454,103
vehicles, up 36 per cent from
333,617 in 2022, bringing volume
back in line with pre-pandemic
volumes, the port said in its annual
data summary. Japan led with
up to eight per cent, depending on the model, sources
said. The change will see those margins trimmed
by two percentage points, or as much as 44 per cent
on a vehicle at the low end of the margin scale. Two
points equates to $900 on a $45,000 vehicle.
Honda Canada would not confirm the details
nor address questions about the changes to margin
for its close to 250 dealers across the country. In a
statement, the company said it does not " share the
details of our business relationship with our dealers. "
" Honda
has a strong plan for the electrified
future and has been making strategic investments
that will enable us to continue to meet the needs of
our customers and create a sustainable and profitable
future for our business. "
The Canadian Automobile Dealers Association,
meanwhile, said it is deploying its " substantial
legal, financial and intellectual resources " to counter
the cuts.
The industry association that represents more
than 3,200 franchised dealerships in Canada said
the automaker's decision would " severely impact "
Honda dealers across the country.
" CADA supports cooperative and fair relations
between automobile dealers and their respective
manufacturers, in pursuit of the mutual success of
both dealers and manufacturers, " the group said in
SEE HONDA PAGE 24
214,209 vehicles, up 44 per cent, followed
by South Korea with 166,164, an 11-percent
increase.
Imports from China leapt 460 per
cent to 44,356 vehicles from 7,916 in 2022,
due in large part to shipments of the
Tesla Model 3 and Model Y electric vehicles.
Imports from the company's Giga
Shanghai plant began in spring 2023.
- Steve Mertl
Next-gen dealers embrace giving
back with a $2.5M donation
OTTAWA - AFTER DECADES OF
philanthropy and public health care
donations, Myers Automotive Group
made its largest-ever donation in early
March: $2.5 million to the Ottawa
Hospital for its Campaign to Create
Tomorrow.
Former GM executive
'brings extensive and
unparalleled OEM
experience and
strategic acumen,'
said Executive
Chair Paul Antony
By DAVID KENNEDY
TORONTO BUREAU CHIEF
DEALERSHIP GROUP
AutoCanada Inc. plans to add
two new members to its board of
directors, including
Steve Carlisle,
former president
of General Motors
North America,
as industry stalwart
Dennis
DesRosiers retires
from his seat on
the company's
governing body.
The Edmonton
dealership group
that owns 66 franchised
dealerships
in Canada and
18 in the United
States, along with
numerous collision
and repair
shops, announced
the changes
March 26.
Carlisle retired
from GM last
May at age 61
after a 41-year
Steve
Carlisle
retired from
GM last
May after
a 41-year
career
with the
automaker.
His last
post was
heading the
company's
North
American
operations.
FILE PHOTO
SEE CARLISLE PAGE 11
" This is just a means of giving back, "
said group co-owner Rob Mews.
Brothers Rob and Harry Mews
assumed management of the 17-dealership
group after the death of their father,
Hank Mews, in 2022, and vowed to continue
his philanthropic work.
Among other donations, in 2015,
Hank gave $1 million to the QueenswayCarleton
hospital for its Acute Care of
the Elderly unit, and two years ago the
group gave $1 million to the University
of Ottawa Heart Institute.
" We're so lucky to have the [health
care] system that we have in Canada,
and it's important " that everybody recognize
and support that, said Rob Mews.
- Joe Knycha
SEE TRANS-CANADA PAGE 23
03
04.24
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Automotive News Canada - April 2024

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