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Auto Blog

Auto Sales Continue to Bounce Back from COVID-19

The year 2020 has been one that no one could have anticipated and continues to be a challenge for many industries. The auto industry certainly does not come out of this scratch free. As some parts of Canada went into lockdown, many industries saw massive declines in business, including a steep decline in new car sales – though we were still better off than many other industries.

Over the past few months, we have continued to see an incline in the economy, from the steep initial decline, which the Bank of Canada has termed a “v-shaped recovery”, though we are not yet operating at 100%. We are still slightly down in sales from where we were last year, but there continues to be a silver lining – something that we all need to cling to during these challenging times we’re all facing.

According to a recent study by Desrosiers Automotive Consultants, a total of 500,737 units were sold in Q3 in Canada – marking a 3.9% dip from the same quarter last year. What would once have been alarming, this seems fairly positive given the steep decline we saw in Q2. This is the first sign of recovery we have seen since the pandemic hit, so we really have something to be thankful for.

Light truck sales did incredibly well this quarter, seeing an overall 1.8% increase. A result that is unsurprising, but a good coup for the sector. Among light duty trucks, the Ford F-Series once again proved that it is a fan favourite with a 14.9% increase since last year and the continued sales leader in the category. The Toyota RAV4 also saw a sales increase of 19.8%, which helped the model to secure third place. The stand-out performer in this category was the Hyundai Kona, seeing an increase of 56.3%, giving it the seventh spot in this quarter.

As I mentioned, the growth of this quarter was not evenly distributed across all categories. Passenger vehicles were not able to keep up with light trucks, but there were still a few clear winners in the category. The Kia Forte, for example, claimed an 8.6% sales increase in the third quarter, placing it in fourth position for the quarter. And with an impressive increase of 39.2%, comes the Toyota Camry, which claimed sixth position overall. Finally, the Nissan Sentra grew 44.4% and helped the model make a rare appearance in the top ten selling passenger cars.

While these sales are not perfect and certainly not where I would have wanted to see them a year ago, a lot has changed this year and so must our perspective. With such a large dip in sales because of the restrictions of COVID-19 and impact on buying patterns earlier this year, we are finally on the road to recovery. I hope to see this continue through the year and I’m optimistic about the future of our industry.

As we head into the winter months, I also wanted to remind you to make sure to get your winter tires on. Yes, a fine is no fun, but an accident and injuries from not having winter tires would be much worse! Stay safe, calm, and most of all, be kind.

Blair Qualey is President and CEO of the New Car Dealers Association of BC. You can email him at [email protected]

Cyber Security Risks Amid Connected and Automated Vehicles

October marks Cyber Security month – a time when it is important to raise awareness about potential issues related to computers and security. The risks pertain to industries across the board, though perhaps the auto-industry is not one that quickly comes to mind. With the introduction of Autonomous Vehicles (AV), the issue of cybersecurity in the auto industry is a very real one.

At the New Car Dealers Association of BC (NCDA), we are big believers in the wonders of technology and how they can help enhance user experience. From EV’s to more fuel-efficient vehicles, the technologies we’ve seen over the last few years have been absolutely remarkable. And with that, we’re excited to see where the world of AV’s takes us. But the introduction of AV’s is not without the inherent risks that could potentially come from the technologies.

In 2019, the AV industry experienced a significant shift in the technologies and regulations, which made it increasingly more possible for Canadians and businesses to own and operate Connected and Automated Vehicles (CAV’s). AV’s and CAV’s have the very real potential of creating cybersecurity risks that we have never seen before. But the risks are not inherent to just these types of vehicles – all newer vehicles use computers and technology to enhance user experience.

In March 2020, Transport Canada published Canada’s Vehicle Cyber Security Guidance – it provides guiding principles to help ensure vehicles are cyber-safe for Canadians. Building on existing cyber security best practices, the Cyber Guidance uses a risk-based approach to help automotive industry stakeholders mitigate and manage vehicle cybersecurity risks. The guide focuses on four major principles it encourages organizations to consider.

1. Identify how to manage cyber security risks. The guide recommends that organizations develop formal governance frameworks that clearly identify roles and responsibilities related to managing cybersecurity risks. This will ensure a process is formally in place, should any issues related to cybersecurity come up.

A risk-based approach also requires organizations to adopt a documented risk management strategy to address risks to ensure safety of critical systems and personal information. Organizations should implement risk-based security controls in the chance there is a cybersecurity attack.

CAV’s pose another interesting risk – they have an increasingly non-traditional supply chain. This means ensuring that there is a security procedure in place across the entire chain. The guide suggests that all organizations work together to enhance vehicle security and engage in cyber security sharing forums – to ensure a direct line of contact.

2. Protect the vehicle ecosystem with appropriate safeguards. The guideline suggests a layered approach when it comes to cybersecurity. This includes having security controls, data security using cryptographic techniques, secure communications, secure software development, and secure updates. With a multi-layered approach, organizations can ensure that they are being as cautious as possible to protect consumers.

The guide acknowledges a concern in the area of privacy protection. The current laws will make it challenging to apply them to CAV’s, as there are a number of stakeholders that will have varying degree of responsibilities complying to Canadian privacy laws. There will be unprecedented amounts of data on passenger movements and mobilities, which raises concerns about data over-collection.

A main takeaway from this section is the emphasis on training the workforce. An effective cyber security defense requires a knowledgeable workforce to properly carry out the systems in place.

3. Detect, monitor, and respond to cybersecurity events. One of the most important ways in which to handle cybersecurity is early detection of threats. Organizations need to have measures in place to rapidly detect, monitor, and analyze potential threats and vulnerabilities. The guide also suggests that regular security audits take place to ensure all cybersecurity measures within the ecosystem are effectively working. It’s really all about prevention.

Organizations should maintain an incident management plan to conduct regular exercises to prepare for and respond to cybersecurity threats. It needs to be clear and define the steps, roles, and processes to respond to any potential threats.

4. Recover from cybersecurity events safely and quickly. Should the worst-case scenario occur, and a cybersecurity event take place, this Guidance recommends a number of steps organizations should take. This includes a post-incident analysis and system diagnostics to figure out where the vulnerabilities lie, and the lessons learned.

The Guidance recognizes that eliminating all threats when it comes to the risks with CAV’s is not feasible or realistic – there are simply too many risks in place. Instead the focus becomes on learning through periodic reviews and audits of security systems.

Though the thought of AV’s and CAV’s is exciting, it is clear that it is not without some very real concerns to cybersecurity. But we are likely about a decade away from sales to the public – so I hope to see leaps and bounds in the cyber safety of these incredible vehicles.

Blair Qualey is President and CEO of the New Car Dealers Association of BC. You can email him at [email protected]

Back to School Means Paying Greater Attention

The school year has officially begun, albeit in a much different way than ever before.

It’s especially important that drivers pay attention, especially in and around school zones where the volume of cars and traffic will be high during certain periods of the day. Don’t allow frustrations to get the better of you. Know that back to school can mean additional cars, slower traffic flow with school buses and children on roads and sidewalks – so accept it and build extra time into your schedule to get to your destination.

As a rule of thumb, reduce your speed in residential areas. For those who need a refresher, the speed limit in school zones is 30 kilometres an hour, between the hours of 8 in the morning to 5 in the evening.

Never overtake another vehicle while in a school zone, avoid any three-point turns or U-turns, and obey crossing guards. Some school zones also have flashers – so be prepared to stop and don’t block the crosswalk when making a right turn.

Give a greater amount of distance when you’re behind a school bus so that if the yellow lights start flashing, you’ll have more time to stop. Come to a complete stop when you see a bus displaying flashing red lights or extending its stop arm. Children are often not paying attention when disembarking, so be extra cautious.

If you’re a parent who drops your child off at school, there are several important safety tips to keep in mind. Finding an unloading area can be tough in a crowded school zone, but remember to never double-park. Double-parking blocks visibility for not only other vehicles, but for pedestrians as well.

Keep children out of harm’s way by loading and unloading them from the passenger seat’s side. Don’t encourage mid-block crossing if you have to unload from across the street.

Parents, whether your child rides on the school bus, takes a bike to school, walks to school, or gets dropped off, it’s never too early to teach them how to stay safe on the road. Take the time to go through safety rules with children and teens who travel to school by themselves before sending them off to school this fall – and driving safety aside, also remind them not to accept rides from strangers.

Drivers, take extra care and caution and if you have a teen who has recently acquired a drivers’ license, take the time to sit down and reinforce some safe driving tips.

This is an exciting time for little ones, so let’s all be extra cautious to ensure their return to the classroom is a memorable one – for all the right reasons. And remember to be kind, be calm and stay safe!

Blair Qualey is President and CEO of the New Car Dealers Association of BC. You can email him at [email protected].

New Car Dealers’ Support of Students Continues

As students attending post-secondary institutions begin a new school year, there is no question it will be unlike any they have experienced before, because of the COVID-19 pandemic. However, one aspect that will not change is the level of support being provided by the New Car Dealers Association of BC to students who are pursuing a career in the automotive sector.

In addition to awards established with post-secondary schools, including Georgian College, Okanagan College, Vancouver Island University, and Coast Mountain College, support comes in the form of $10,000 in funds that are distributed via CarCareerBC and a further $55,000 in award funding that comes from interest income from an endowment fund set up through generous donations by BCs New Car Dealers, as well as fundraisers organized through the New Car Dealers Foundation of BC. And thanks to Foundation partners, Adesa Auctions and First Canadian, an additional $30,000 was raised for awards and scholarships to provide to students.

For those contemplating a career choice, imagine a job in a stable, growing industry where you get to meet new people and help them find a product that will both improve and enrich their quality of life for years to come.

There is no doubt the last several months have been tremendously challenging for many sectors, including ours. However, for those who may take pause, consider the latest report from Desrosiers Automotive that shows new light vehicle sales in August are estimated to be down only 8.9%  compared to August 2019 levels, a much better result than we have seen in recent months, and one that presents reason for optimism.

The New Car Dealers Association of BC (NCDA) represents more than 390 new car dealers that employ some 30,000 people in family supporting jobs in over 50 communities across this province. The industry also offers many opportunities for growth and career advancement. Our members are guided by industry training programs, as well as programs offered through educational organizations, to provide training for new workers.

Whether you’re just starting your career, or looking for a change, a job at a new car dealership can be both personally and financially rewarding. Dealership opportunities range from sales consultants, service technicians to accountants, marketing and administration staff – whom all share a love for engaging with people, and of course, an enthusiasm for new cars and trucks. With a wave of retirements coming in the next few years, this is a rewarding industry to consider for a career!

However, working at a new car dealer is about more than just money and career advancement. Our members and their employees are actively involved in their local communities. This includes a wide range of local charities and sports groups as well as community and service clubs, charity boards and committees. In fact, many of our members sponsor charities and organizations through cash donations and merchandise prizes.

Through our collective efforts, I have no doubt that auto companies will emerge from this experience with a renewed outlook along with a complement of enthusiastic young leaders to help carry us into the future.

Blair Qualey is President and CEO of the New Car Dealers Association of BC. You can email him at [email protected]

Safe Driving – Labour Day!

Safe Driving – Happy Labour Day Weekend

It’s that time of year when summer is coming to an end, Labour Day is upon us and that can only mean the start of the school year. Though the school year is still uncertain, it will definitely look different this year. Even still, it is never a bad time for a reminder about safe driving.

While you are stuck in traffic, reminiscing about the peaceful mornings and barbeques that are now behind you, don’t let frustrations run high or lead to hasty driving. If anything, it’s a time to exercise extra caution because it means additional cars, school buses, children and teenagers on the roads and sidewalks.

  • Be on the lookout for pedestrians and cyclists at intersections, because they have a tendency to dart in or out of walkways, without first observing approaching traffic.
  • Don’t roll through an intersection or a stop sign. Come to a complete stop and observe both ways before proceeding.
  • Be aware of kids on bikes before making turns, check your mirrors before opening doors and keep your eyes where they belong – on the road. In school or not, kids will still be biking around!
  • Put down your phone. This issue continues to remain a major contributor to accidents simply because a driver has taken his focus away from his or her primary responsibility – driving.
  • Give yourself additional time to get to your destination. Speeding is often the cause of accidents so put yourself in a position to drop off kids or get to work in a timely way.
  • Be a good role model for your kids when driving. They observe actions and behaviours and the last thing you want is for them to believe poor, careless or aggressive driving is acceptable.
  • If you have a teen who has recently acquired a drivers’ license, take the time to sit down and reinforce some of these safe driving tips.

ICBC has a list of useful tips for students and drivers at: www.icbc.com/driver-licensing/driving-guides/ so give it a read and exercise caution during this busy period because one momentary lapse in judgement can have severe consequences.

It’s been – and will continue to be – a strange year for everyone. But it’s always important to practice safe and cautious driving, so needless accidents don’t happen.

Stay safe readers!

Blair Qualey is President and CEO of the New Car Dealers Association of BC. You can email him at [email protected].

Driving Etiquette

As we approach the final days of August and families prepare for their final road trip of the summer, it’s an opportune time to remind drivers that the rules of the road apply to every one of us.

It goes without saying that all drivers should obey the law but applying common sense and displaying a level of common courtesy are also key factors that can help keep everyone who occupies our roads and highways safe. It is in this spirit that I have prepared the following short list of driving actions that we should all be conscious of:

1. Speeding is the leading cause of accidents. Plan your trip by giving yourself plenty of time to get from point A to B, and build in time for breaks.

2. Don’t tailgate. It’s dangerous and anxiety-inducing so back off and drive at a safe distance. Likewise, give motorcycles lots of extra space because a rear-end accident can prove fatal for a motorcyclist.

3. Use the zipper method. When merging into traffic, use the zipper method to help ease congestion and driver frustrations, by combining the two lanes in a zipper like left-right-left-right.

4. Don’t Hold Up Traffic by very slowly passing other Vehicles. Pass only when you have enough speed to do so quickly and safely.

5. Stay in the right lane except when passing. No one loves being held up on the highway because another driver is camped out in the left lane doing exactly the speed limit. Move over to the right or middle lane and let faster traffic get by. Plus it’s the law in BC!

6. Use your turn signal. The turn signal is to let other drivers know in advance that you plan to merge or turn – so use it.

7. Pull Over for Emergency Vehicles Ambulances, fire trucks, and police cars have ear-piercingly loud sirens and bright flashing lights. Don’t be one of those drivers who pretend not to notice. Get out of the way.

8. Yield to pedestrians. This should go without saying, but be watchful and let pedestrians cross.

9. Make room for cyclists. Give them space on the road, even if that means waiting to drive around them until oncoming traffic subsides.

10. Curb Your Road Rage. We all have places to go and mistakes happen, so take a deep breath. At the same time, thank helpful drivers in traffic with a wave. That sort of recognition shows goodwill and might encourage them to be more courteous in the future.

There are obviously other actions that have legal and serious safety implications and are absolute no-no’s for drivers. Don’t drive after consuming drugs or alcohol. Don’t use your electronic device or phone when behind the wheel. And, don’t ever leave kids or pets unattended inside a hot vehicle.

As we approach the Labour Day Weekend, there are areas of the province that remain hot spots for fire activity so please don’t carelessly discard cigarettes. Check your route ahead for areas with possible construction or fire fighting activity. DriveBC is a helpful resource (https://www.drivebc.ca/).

Let’s be calm, considerate and enjoy the last gasp of summer by enjoying the road – spending quality time with friends and family, and most importantly, staying safe.

Blair Qualey is President and CEO of the New Car Dealers Association of BC. You can email him at [email protected]

Protecting Your Vehicle from the Summer Heat

During the hot summer days, we take steps to protect ourselves from the heat and the negative effects of exposure to the sun. In the same manner, the hot summer weather can take a toll on your car or truck, from the paint right down to the tires, unless you take steps to protect your vehicle.

Much like we protect our skin by applying sunscreen and avoiding too much direct sunlight, the body paint of a vehicle is what suffers the most, if subjected to extended UV exposure. So, park under cover or in shade, when possible, during the daytime heat of the summer months. Additionally, using wax and polish with UV protection can help reduce damage. With leather vehicles, regular cleaning and conditioning of the leather adds further protection from UV damage and if you have cloth seats, a variety of fabric guard products are available. Window tinting can also be helpful in keeping your vehicle cooler as well as blocking UV rays.

Investing in sunshades is a great option to keep you cooler when you get behind the wheel and also protects your dash and other areas of your interior from sun damage. Likewise, a good trick for cooling your car faster during an unbearably hot day is to roll down the windows and wait a few minutes, so that the car’s interior temperature is the same as outside, and then switch the AC on. This technique significantly reduces the amount of time taken by the AC to cool the cabin.

The heat in the summer is bound to double the temperature under the hood of your car which is one of the most common causes for a vehicle to break down. Giving your coolants a routine checkup and being aware of the fluid levels can prevent this. However, remember NEVER open the radiator cap or coolant tank lid when the engine is hot!
Excess heat can reduce battery life and lead to overcharging which can dramatically shorten the lifespan of your battery. In order to avoid this damage, regularly detach the cables and wipe off the terminals – and make sure the battery is strapped down tightly and all connections are secure. If you still suspect your battery is being overcharged or not holding a charge, take it to your dealer where they can run a quick battery inspection.

As the outside temperature climbs, the air in your vehicle tires expands, so check your tire pressure on a regular basis when the tires are at a normal temperature. The recommended tire pressure should be noted in your owner’s manual.
And finally, if you and your family are embarking on a summer road-trip you may want to schedule a service appointment with your new car dealership. It will ensure any potential problems are identified and addressed in advance, giving you peace of mind so you can simply enjoy your travels, wherever they may take you.

Blair Qualey is President and CEO of the New Car Dealers Association of BC. You can email him at [email protected]

BC Government Announces New Incentive Program for Businesses

British Columbia continues to have a leadership role in electric vehicle (EV) sales. It is the result of a positive partnership between new car dealers and the province, one that has collectively encouraged and supported increasing adoption of EVs among consumers.

As of late last year, there were 30,000 EV’s on the road in the province and I expect to see this number continue to increase over the coming years, as more and more consumers are looking to go green.

Through the CleanBC Go Electric Vehicle Rebate Program (formerly CEVforBC), the NCDA has worked with the government to create incentives and competition between dealerships across the province to determine who can reach the highest level of sales of clean energy vehicles, across all brands. The focal point of the partnership is the CleanBC Go Electric Vehicle Rebate Program which provides a point of sale purchase incentive on new clean energy vehicles – and is successfully administered by the NCDA and its members.

Much of this increase in purchasing of EV’s in the province can be attributed to the great incentive programs we have adopted through CleanBC. These incentive programs have now been widened to include more BC businesses that may want to go green.

Last week the government sent out a news release encouraging more businesses to continue the fight to a greener province and encouraged them to go electric with their vehicle fleets, as they announced an additional $2 million in funding through the CleanBC Speciality-Use Vehicle Incentive.

Through the program, government is making cleaner options more affordable and aim to increase the use of EV’s in how people get around not only personally, but with their businesses.

Eligible specialty-use vehicles include electric passenger buses, airport and port service vehicles, motorcycles, low-speed utility trucks, and heavy-duty transport trucks. Rebates range from $1,700 to $50,000 per vehicle and are available for businesses, local and regional governments, and non-profit organizations that are purchasing five or fewer vehicles.

It is a fantastic move by CleanBC to further incentivize consumers and businesses to take a step in the right direction and work towards a cleaner future. The program supports businesses and fleets in adopting specialty-use electric vehicles.

One of the most notable businesses that has already taken part in the incentive program is Harbour Seaplanes, who have purchased a fully electric, zero-emission passenger shuttle bus to use to drop off and pick passengers up around Vancouver. It’s a great step in the right direction and I hope to see more companies follow suite!

Stay safe and be kind, everyone!

Blair Qualey is President and CEO of the New Car Dealers Association of BC. You can email him at [email protected].

Summer Safe Driving Tips

The weather in BC is finally heating up and for many drivers that means getting out and about to enjoy the glorious summer we have here in B.C.

But before you get your car revved up for some summer fun, you should familiarize yourself with a few preventative measures to keep it from overheating. By this I’m not referring to the engine, but rather the inside of the vehicle, which can feel like an oven after sitting in the sun for long periods of time.

If you don’t have access to a garage when parking your vehicle for the day, or even a few hours, try to find a shady area. It may mean walking a bit further to your destination but getting into a car that has been sitting in hot weather can sometimes feel like you’re being cooked alive.

I know it may seem like a good idea to leave the windows rolled down to air out your vehicle as you go to run a quick errand, but it’s important to always lock your vehicle doors and close the windows, even if you’re gone for just a couple of minutes. A couple of minutes is all it takes for theft to occur. Instead, utilize the window visors to block the sun’s rays. If you’re looking for even more protection, buy a sunshade to cover your window. They’re relatively inexpensive and you can find ones to block not only the front windshield, but also the side and back windows, for good measure.

If you want to avoid that feeling of a hot seat when you get back into your car – especially ones with vinyl or leather interiors – consider throwing a towel or blanket across them while you’re away. Another trick is to place a small towel on the steering wheel, which will keep your hands from having to grasp a hot surface when you’re ready to drive off.

It’s also a good idea to keep precious items in the car out of the sun, such as electronic devices or food items that could easily melt and potentially stain the interior. Consider placing these items in the trunk or take them with you when you leave the vehicle.

Plan ahead to have some extra water in the car with you at all times, especially in the summer months. The hydration could come in handy in the event of a breakdown or any other unexpected event on the road.

Finally, make sure not to leave any pets in a heated car (or kids, but that should really go without saying). Every summer there are heartbreaking stories of animals left unattended in stuffy, overheated cars with the windows rolled up. When you take your pet to the beach, and want to stop for coffee or lunch along the way, be sure to take him with you even if it’s “just for a minute.” Even with the windows cracked, temperatures in a hot car can multiply in just a few minutes, which is the same amount of time it would take for you to tie his leash up outside in a shady area.

As always, have fun, stay cool and be safe!

Blair Qualey is President and CEO of the New Car Dealers Association of BC. You can email him at [email protected].

Wild Swings in Vehicle Sales

The latest national new vehicle sales report by DesRosiers Automotive Consultants provide both some encouraging news, but also underlines some of the challenges the automotive sector faces as it continues to navigate its way through the COVID-19 pandemic.

The latest vehicle sales report reveals that June saw both a relative improvement in the national sales picture but some wild swings in provincial performances.

While total year to date national sales are down 34.2 percent from last year, BC sales are slightly better off, down about 33 percent– but given the significant hit the sector took when the pandemic emerged, the results are encouraging. It’s an upward trend we hope to see continue over the next several months.

The online publication Driving.ca recently released a list of Canada’s top ten best-selling vehicles. The results show that even a pandemic does not slow the sale of pickup trucks, SUVs and Crossover Utility Vehicles in this country. According DesRosiers Automotive Consultants, large pickups actually accounted for 19.1 percent of total light vehicle sales in the second quarter of 2019 and this grew to 23.1 percent amidst the lockdowns of the second quarter of 2020. Small pickups presented a perhaps even more remarkable story with their share rising from 2.1 percent to 3.5 percent.

Each of Canada’s four top-selling vehicles in the first half of the year were full size pickup trucks. This is a departure from the pre-recession era of 2008 when compact cars were the top selling models in the market. Full-size pickup trucks are actually on track to sell more than 100,000 extra units than in 2009.

In the first half of 2020, out of Canada’s 10 best-selling vehicles only two were cars. Let’s take a look at some of the vehicles that make this year’s top ten list. The Honda CR-V sold 17,661 units in the first half of 2020. This vehicle is a testament to the popularity of vehicles that are built in Canada. The Honda CR-V is one of the best-selling Honda vehicles, known for its well-balanced ride and capable powertrain.

The Toyota Rav4 is another clear favourite amongst Canadian consumers, which managed to sell 20,596 units so far this year. This puts the vehicle on a clear track towards a fifth consecutive year as Canada’s top-selling SUV/crossover.

The vehicles in the top four spots are all excellent pickup trucks, with the Ford F-Series taking the leading spot. They sold 56,466 units – down just 25 percent, compared to the vehicle in the tenth spot being down 51 percent. The vehicle is still on track for a calendar year in excess of 100,000 sales – a feat no other vehicle line has accomplished in Canada. 2020 is on track to be the 12th consecutive year in which the F-Series snagged the number one position.

It is likely that the COVID economic recovery process is going to take time and will be gradual. A number of auto makers are adjusting and providing various ways to help reduce any buying anxiety consumers may be experiencing. It comes in the form of purchase incentives, payment relief or lease payment extensions – make sure to do some research to establish what particular purchase arrangements may work best for you.

Blair Qualey is President and CEO of the New Car Dealers Association of BC. You can email him at [email protected]