Rivian R1T and the MINI Cooper Electric came out on top of J.D. Power’s most recent study, released today. The 2023 U.S. Electric Vehicle Experience (EVX) Ownership Study noted that owners’ satisfaction with their EV was likely to hinge on “traditional” factors such as quality and styling, and not EV-specific aspects, like range and charging.

“The electric vehicle landscape is changing quickly, and newer models are bringing in more mainstream, first-time EV buyers,” said Brent Gruber, executive director of the EV practice at J.D. Power. “Recent vehicle launches from both new brands and traditional automakers have had a profound effect on what factors are most important in the ownership experience. Today’s EV owners are looking for quality, reliability, driving enjoyment, safety and technology features.” 

In its first year of eligibility, the Rivian R1T ranks highest overall with a satisfaction score of 794 (on a 1,000-point scale). Owners have high levels of satisfaction with the driving enjoyment and interior/exterior styling factors. MINI Cooper Electric ranks highest in the mass market segment with a score of 782, supported by the highest satisfaction score of any EV model in the study’s highest-weighted index factor, quality and reliability. 

Following are key findings of the 2023 study: 

• Differences notable between premium and mass market segments: For a third consecutive year, owners of mass market BEVs cite infotainment as the most problematic category. Among premium BEV owners, the most problematic categories are squeaks and rattles, and exterior.
   
• Towing more satisfying for EV truck owners: New to the study this year are survey questions specific to EV trucks regarding towing. Interestingly, satisfaction is higher among EV truck owners who have used their vehicle for towing, than among owners who have not towed.  
• Changing landscape of first-time BEV owners: The study shows an increase of 11 percentage points from 2022 in the rate of first-time BEV ownership, rising to 85% from 74%.  

The 2023 study includes 10 factors (in alphabetical order): accuracy of stated battery range; availability of public charging stations; battery range; cost of ownership; driving enjoyment; ease of charging at home; interior and exterior styling; safety and technology features; service experience; and vehicle quality and reliability. 

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FIRST Robotics Canada is the recipient of $375,000 over three years from Honda Canada Foundation (HCF), to fund FIRST Robotics Competitions at the provincial and championship levels. FIRST Robotic Competition is an annual competition where high school student teams under strict rules and limited time and resources, use sophisticated technology to build and program industrial-sized robots to play an action-packed, alliance-based game on a themed field. This season’s energy theme challenges FIRST teams to “reimagine the future of sustainable energy and power their ideas forward”. 

“Honda Canada Foundation extends its partnership with FIRST Robotics Canada as we are excited to be a part of their positive influence and exceptional programming for years to come,” said Tony Facciolo, Chair of the Honda Canada Foundation. “Engineering and STEM are at the heart of our values at Honda, and we naturally feel it is important to inspire and support the next generation of innovators and problem solvers. We look forward to seeing the best in robotics built from scratch by students competing at the FIRST Robotics Competitions.”

HCF continues its support for programs that encourage education in engineering and technology with hands-on activities for children and youth interested in the fields of science.

“FIRST Robotics Canada is a leader in youth STEM opportunities, and we are excited to be back to full capacity at our events this year,” said David Ellis, President FIRST Robotics Canada. “To close the STEM skills gap, we need businesses and communities engaged and working together to help young people prepare for an ever-changing workforce. Our generous sponsors help to make the magic happen! We are thrilled to have the Honda Canada Foundation support our programs and youth for the next three years and to continue to inspire and open pathways for more kids.”

With professional mentors and sponsors, students learn engineering and problem-solving skills that they can apply to real-world situations today and in the future. 

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Century Auto Group successfully expands into Saint John market 

Investing into Saint John, New Brunswick, has been an intelligent business move for Century Auto Group, a Nova Scotia-based family-owned dealership group. Century Auto has been in operation for over 46 years, and has just acquired a second store in the capital city of N.B. The first was a Subaru store purchased in 2021, and now it has bought a Hyundai dealership, which is the company’s second Hyundai rooftop. 

Century Auto CEO Michael MacGillivray loves the Saint John market, and not just because the small city is friendly and picturesque. The two new stores there have effectively doubled the company’s revenues in the last two years.

So far the new Hyundai store’s transition has been going well, thanks to a strong team that was already in place from the previous ownership. “There’s a great team in place, and they’re all still with us,” said MacGillivray. “The team has been led by Alex Halassy and he’s going to continue to lead it for us. When you bring a new dealership team into the fold and the whole team’s great, it’s a pretty cool feeling.”

BRITISH COLUMBIA

OpenRoad and Dilawri join forces to open Destination Porsche in Richmond Auto Mall

BC’s first Porsche Centre following the brand architecture concept, Destination Porsche, has opened in Richmond Auto Mall. Originally announced in 2016, the new flagship location is a partnership between OpenRoad Auto Group and Dilawri Group of Companies.

The 75,000 square foot state-of-the-art dealership features three levels including a spacious new and pre-used vehicle showroom, custom guest amenities, a special delivery area, and 15 cutting-edge service bays.  The dealership becomes BC’s first Porsche Centre to follow the brand’s new corporate architecture concept, Destination Porsche, and reflects the brand’s heritage and innovation, and is designed to become a gathering place for the Porsche community.

Porsche Centre Richmond is the second Porsche dealership for both automotive groups. OpenRoad currently has Porsche Centre Langley in the Langley Auto Collection in its portfolio, while Dilawri operates Porsche Centre Vancouver. Porsche Centre Richmond is located at 13171 Smallwood Place in the Richmond Auto Mall.

ONTARIO

AutoCanada Inc. a multi-location North American automobile dealership group, has revealed that it has acquired Sterling Honda located in Hamilton, Ontario.

“We’re excited about the addition of this high-quality dealership, expanding AutoCanada’s footprint in the attractive Hamilton market while adding brand diversity within our overall portfolio,” said Executive Chairman, Paul Antony. “Notably, the acquisition expands our relationship with Honda, bringing a fourth Honda store into our dealership portfolio and represents our fifth dealership in Hamilton. The acquisition will provide growth opportunities as we integrate it with our strong portfolio of dealerships.” 

Sterling Honda is a well-established business in the Hamilton community, operating out of a recently re-imaged 27,000 square foot facility with 16 mechanical bays and has a track record of delivering top-tier customer satisfaction. Apart from continuing to strengthen the dealership’s performance, the acquisition unlocks additional growth opportunities, including the potential to expand the dealership’s used to new retail units ratio and drive F&I growth.

QUEBEC

Templeton Marsh Mergers and Acquisitions brokered the sale of four dealerships owned by Le Groupe Lachapelle to Groupe Olivier—a move that could be one of the largest in Quebec’s automotive history, according to Templeton Marsh Co-founder and Managing Partner Samir Akhavan.

“Quebec is a bit of a newcomer to the automotive consolidation business,” said Akhavan. “Things that happened in Ontario or Western Canada three or four years ago are starting to happen in Quebec, in terms of mergers and acquisitions activity.”

Lachapelle has been in business for more than 29 years and operated one of the largest Honda dealerships in Canada. Akhavan said he stayed in touch with Lachapelle, a second-generation dealer, who told him he and his family decided last year it was the right time to sell his dealership group. Lachapelle asked him to be his agent.

The four dealerships are Hamel Honda, Honda Ste-Rose Honda, Mazda de Laval, and Chomedey Toyota. He said in a “regular” year the stores collectively sell 10,000 new and used cars.

NOVA SCOTIA

Veteran N.S. dealer Al MacPhee celebrates 80th birthday, still loves the business

Having just turned 80 and still putting in 60 hours a week at his dealership, Al MacPhee could be nearing the point where he stops working full-time. MacPhee, who has been in the automotive industry for 60 years and will celebrate his 40th year owning and operating a dealership in 2023, said there is a succession plan in place for his son, Andrew, to take over the family-owned MacPhee Ford in Dartmouth, N.S. Andrew is listed as the Dealer Principal.

He has had a celebrated career in the car business beyond just owning a dealership. He is a Past Chairman of the Canadian Automobile Dealers Association, Past President of the Nova Scotia Dealers Association and Halifax/Dartmouth Dealers Association. He has also served on almost every General Motors Advisory Board and Communication Team. 

He is known for his philanthropy, donating all he earns on a yearly basis to charity. He and his wife, Mary, are involved in the MacPhee Centre for Creative Learning, a non-profit charitable organization which provides an alternative education model for youth in marginalized and disadvantaged circumstances.

ALBERTA

FortisAlberta and Optiwatt seek EV owners for pilot charging program

FortisAlberta in conjunction with Electric Vehicle smart charging app developer Optiwatt is looking for up to 600 customers who drive an EV to participate in a pilot program.

FortisAlberta, the electricity distributor to more than 240 Alberta communities, is looking to monitor EV owners’ charging habits, data that is essential to understanding and managing increased electricity demands.

The pilot project is the first of its kind in rural Alberta and is approved by the Alberta Utilities Commission. There are about 5,600 EVs registered in Alberta.

Participants in the program will receive incentives to take part. Charging data will be implemented and analyzed over the course of 2023 to understand the impacts of charging on system demand, including how managed charging can limit cost and optimize the grid.

The post Cross-Canada snapshot appeared first on Canadian Auto Dealer.

Is this name familiar to you? Perhaps you saw her at the last Auto Show? Yes, she’s back! After leaving the automotive world for a few years to invest in the restaurant business, Marie-Eve is back in the publishing and marketing realm for Universus Media Group. It should be said that the automotive world is never far away…

With a Bachelor’s degree in Communications from Laval University and several years of experience in the automotive industry as a journalist, columnist and editor, Marie-Eve is returning to Universus as Marketing Coordinator. She will be working for Affaires automobiles and Canadian auto dealer magazines, among others. Welcome back to the team, Marie-Eve!

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On Thursday  J.D. Power released the annual 2023 U.S. Vehicle Dependability Study and reported a slight improvement over last year, with an industry average of 186 problems per 100 (PP100) vehicles. This is an improvement of 6 PP100 from the last report in 2022. The study examines “how 2020 model-year vehicles are currently performing in terms of quality, component replacement and appeal—including those vehicles with new technology—and helps automotive manufacturers design and build better vehicles to stand the test of time and promote higher resale value.” A lower PP100 indicates higher performance.

Mass market brands lead the improvement in performance with 182 PP100, 8 PP100 lower than a year ago and 23 PP100 lower than for premium brands (205 PP100). A driving force for the dependability disparity between the two segments is new technology introduced in vehicles. Premium brands usually have more technology, which increases complexity and the inherent likelihood of additional problems. “It is typical in the automotive industry to roll out concepts and features by putting them in premium vehicles first,” said Frank Hanley, senior director of auto benchmarking at J.D. Power.

The three-year-old vehicles measured in this year’s study were first examined in the 2020 U.S. Initial Quality Study. Six of the 10 highest-ranked brands in the 2020 IQS are among the 10 highest-ranked brands in this year’s VDS. Starter battery failures, outdated maps, Android Auto/Apple Car Play and voice recognition problems are the predominant complaints.

The study was redesigned in 2022 to include features and technology that are available in current vehicles. It now covers 184 specific problem areas across nine major vehicle categories: climate; driving assistance; driving experience; exterior; features/controls/displays; infotainment; interior; powertrain; and seats.

Following are key findings of the 2023 study:

• Infotainment systems continue to be most problematic: The infotainment category continues to be the most problematic with an average of 49.9 PP100—almost twice as many problems as the next-highest category, which is exterior.
• Tie for the most dependable model: The Toyota C-HR and Lexus RX are the highest-ranked models in the study, each with 111 PP100. Both models show improvement in eight of the nine problem categories from a year ago.
• Biggest problem solvers: The top three brands with the greatest improvement in the number of problems are Ram (77 PP100 improvement), Volvo (41 PP100 improvement) and Nissan (35 PP100 improvement).
• Tesla officially included for the first time: Tesla is included in the industry VDS calculation this year for the first time, with a score of 242 PP100. Highest-Ranked Brands

Lexus ranks highest overall in vehicle dependability, with a score of 133 PP100. Other premium brands ranking high for vehicle dependability include Genesis (144 PP100), Cadillac (173 PP100) and BMW (184 PP100).

Kia (152 PP100) ranks highest in the mass market segment for a third consecutive year, followed by Buick (159 PP100), Chevrolet (162 PP100), Mitsubishi (167 PP100) and Toyota (168 PP100).

J.D. Power analysis shows that vehicle residual values can be significantly affected by long-term quality.

“The used-vehicle market has helped sustain dealers’ profitability in the past couple of years, but they need to know which vehicles to have on their lots,” said Jonathan Banks, vice president and general manager of vehicle valuations at J.D. Power. “Having vehicles with strong dependability scores will nurture a positive brand perception and drive foot traffic.”

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Growth in the automotive cybersecurity market is “expected to be driven by the increasing use of electronics per vehicle, the growing number of connected vehicles, rising cyber threats owing to the increase in data and connectivity of vehicles, and rising sales of electric vehicles,” according to a recent report from Research and Markets.

The industry was valued at $2.76 billion in 2022, and it is expected to grow at a CAGR of 22.97% and reach $17.73 billion by 2031.

“The automotive cybersecurity market is still in a nascent phase,” said the report. Rapid advancements in connected and autonomous vehicles, and the growing number of electronic control units (ECUs) in electric vehicles are majorly responsible for the rapid growth of this market.

This growth is expected to be driven by the fact that solution providers are increasingly partnering with other key stakeholders in the automotive cybersecurity ecosystem to expand their global footprint. Moreover, the rising number of cyber-attacks is increasingly impacting automotive original equipment manufacturers (OEMs), resulting in significant financial losses, leading OEMs to work on automotive cybersecurity solutions in-house to provide an extra or added layer of vehicle security for their offerings.

With increased adoption of connected vehicles being anticipated during the forecast period, the competition among established and emerging companies in the automotive cybersecurity solutions market is likely to continue growing to maintain leading market positions in the automotive cybersecurity industry.

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Dealer Image Pro, a company which provides professional photo, video, and interactive 360º software for automotive dealerships has partnered with Ecologi, the market leader in collective climate action, to plant one tree for every 50 vehicles it photographs through its automotive dealership customers located in the U.S., Canada, Mexico, UAE, and Oman.

Since 2019, Ecologi has partnered with many businesses across different industries to help tackle the global climate crisis by planting millions of trees around the world each month. As of October 2022, Ecologi has planted over 50 million trees and the environmental organization remains committed to planting 1.7 billion trees by 2030.

Dealer Image Pro Director of Operations Louis Norman III recently visited Borneo, Indonesia and saw how palm oil farming was contributing to the region’s high deforestation rate, he saw the fundamental need for successful conservation efforts in the automotive industry, which prompted Dealer Image Pro to take action in their home state of California, especially as millions of California trees are dying due to drought.

Through Dealer Image Pro’s Autoport vehicle inventory dashboard, an integrated application programming interface (API) from Ecologi will be displayed for the company’s dealership customers to see how many trees they helped plant just from Dealer Image Pro photographing their used or new vehicles. Dealer Image Pro’s dealership customers will also have the option to take their own initiative and plant more trees with Autoport or by visiting www.ecologi.com/dealerimagepro.

“Peter, CEO of Dealer Image Pro, took his family to Borneo on a four-day river cruise on a wooden houseboat through the Borneo Jungle a few years back. The world’s oldest living rainforest,” said Norman. “Being a photographer, I knew I had to make the trip myself once things opened up after COVID. After learning about how much effort the people of Indonesia have taken to save the last of the wild Orangutan and the world’s oldest rainforest, I knew there had to be something we could do coming from the Auto Industry, even if we start small.”

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From the moment we touched down in Dallas, The NADA Show was a flurry of activity for the Canadian auto dealer team. With a full schedule of exciting speakers and professional and social events, the convention had something for everyone in the auto industry.

This year’s show featured over 500 exhibitors, and more than 100 sessions in various formats, from workshops to more intimate roundtable discussions. The event kicked off in high gear on Thursday evening at country music mecca Gilley’s, with the NADA Show Roundup welcome reception featuring Grammy Award-winning country music superstar Brad Paisley. Denim and cowboy attire abounded in the appreciative crowd, some of whom even participated in the mechanical bull riding outside (not us though ).

Friday morning was the opening of the Expo and the Main Stage, where distinguished speakers like former Ambassador to the United Nations Nikki Haley and NADA Chairman Michael Alford spoke before the TIME Dealer of the Year, Gary Rome, was announced.

The Canadian auto dealer team was extremely busy over the next two days, and managed to sit down with over 20 different companies for interviews, as well as stop by countless other booths to see what was new and exciting in the automotive world. We talked with many DMS providers, including CDK Global, who talked about their new partnership with Hyundai; 360.AGENCY, whose President Louis-Yves Cloutier took some time with us to shoot a video and talk all about the exciting brand-new DRX 360 consolidated product, which was announced live on Facebook at the show.

We also sat down at the huge Tekion booth, where Pieter Van Der Griend told us about their new vehicle locator, and how Tekion is poised to become one of the first global DMSs. At the Reynolds and Reynolds booth we heard about the company’s huge progress this year and their new branding, reflecting their renewed commitment to providing their customers with the most modern and efficient service. At family-owned PBS, Kevin Preston talked about the success of their under-the-radar approach, and their record-breaking year for new installations (and he invited us to an exceptionally fun cocktail party).

Rounding up the DMS providers we saw, at the Calgary-based company Quorum’s booth, we talked about the modularity of their product and how it is standalone, but can also be perfectly integrated into existing systems. We also saw the Keyloop team out and about, who were there to meet with customers and talk all about their exciting new expansion, including the acquisition of Rapid RTC and Serti.

For a quick look at some of the other auto service and equipment providers we met with, be sure to read Friday’s edition of eNews!

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For the second year in a row, Toyota and Lexus are the top make-level performing brands in their respective segments, according to the J.D. Power 2023 Canada ALG Residual Value Awards, which were announced today.

“Lexus continues its solid, consistent performance and has a reputation for long term durability and quality which has always had a positive contribution to residual values,” said Eric Lyman, vice president of ALG. “Historically, Toyota was the producer of fuel-efficient passenger cars and has now migrated into what are utility vehicles and trucks. Toyota’s success during the past 10 years in those categories has been

consistent year after year, and it’s reflected in its residual values, as well.”

ALG is the division of J.D. Power known as “the industry benchmark of automotive residual value projections”. The J.D. Power Canada ALG Residual Value Awards are the automotive leasing industry standard when it comes to recognizing the vehicle segments that are projected to hold the highest percentage of the manufacturer’s suggested retail price (MSRP) after a four-year period for mass market vehicles, and after a three-year period for premium vehicles.

The 2023 J.D. Power Canada ALG Residual Value Awards aim to be a vital consideration for vehicle shoppers when assessing the total cost of ownership for a particular vehicle whether the vehicle is financed, leased or purchased with cash. According to J.D. Power “This year’s recipients have shown strong forecasted value in their competitive segments in the Canadian market for the mass market and premium segments”.

For 2023, 15 different brands won awards in 29 segments. The award process consists of evaluating 272 model lines through analysis of used-vehicle performance, brand outlook and product competitiveness. Eligibility for a brand award requires a manufacturer to have model entries in at least four different segments. To account for differences across trim levels, model averages are weighted based on percentage share relative to the entire model line.

Model-Level Residual Value Awards

Toyota has the most model-level awards with seven. GMC and Lexus each have three awards. The brands with multiple awards are:

• Toyota: Camry, Venza, Highlander, 4Runner, Tundra, Corolla Cross and Sienna
• GMC: Yukon, Canyon and Savana
• Lexus: IS, LX and UX
• Cadillac: CT5, LYRIQ
• Chevrolet: Corvette, Silverado 2500 HD
• Kia: Rio, EV6
• Mercedes-Benz: A-Class, AMG GT 4-Door

Noteworthy is the Cadillac LYRIQ winning the premium EV segment award, in its inaugural year, against Mercedes-Benz. Nissan’s all-new Z also wins an award in the premium compact sport car segment.

Numerous variables affect the actual residual value of a vehicle over a multi-year lease term. Examples include mileage, quality/reliability, options and feature sets and macroeconomic environment. The combination of J.D. Power insights and data with the deep experience of ALG in residual values allows for even more accurate end-of-lease forecasting capabilities.

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All provinces in Canada reported declining sales figures for 2022, according to the latest sales report from DesRosiers. Within the 9.1% national new light vehicle sales decrease from reporting manufacturers for 2022, all provinces noted sales decreases compared to the previous year.

“For 2022, getting vehicles on to lots and keys into consumers’ hands were significant challenges felt in all provinces” said Andrew King, Managing Partner at DAC. “While all of the provinces showed declines, the disparity between them of nearly twelve percentage points showed differences in both regional conditions and in vehicle distribution.”

The largest decrease in percentage terms was noted by Nova Scotia at 16 per cent, with Newfoundland right behind with a decrease of 15.7%. At the other end of the spectrum, Saskatchewan recorded a mere 4.1% decline over the previous year, with Ontario similarly noting a 6.5% decline; the two provinces outperformed the national average by a fair margin.

The only other province to outperform the national market—albeit moderately—was Alberta with an 8.4% sales decrease for the year. Overall, a total of 1.49 million new light vehicles were sold across Canada among reporting manufacturers, down from the 1.64 million units sold in 2021.

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The National Automobile Dealers Association is back for 2023, this time in Dallas, Texas, and the Canadian auto dealer team is there! We are excited for the return to form, and will be taking in all of the many dynamic industry speakers as well as other inspirational people talking about how those in the industry can become empowered to move the auto business forward and embrace the challenges of the future. We have a packed schedule of meetings with suppliers, and other important players in the industry. Watch Wednesday’s eNews and the March issue of Canadian auto dealer magazine for a complete rundown of all the interesting things we saw and experienced.

We’re especially looking forward to seeing Nav Bhatia, otherwise known as the Toronto Raptors Superfan, who has an interesting and inspiring story of immigrating to Canada, becoming the number-one car salesman at Hyundai in North America and owner of two dealerships, and using professional basketball to change perceptions and encourage integration.

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This spring, Yokohama Tire (Canada) Inc. is taking steps to improve its tire-storage and delivery capabilities across the country. The two eastward warehouse moves are aimed at creating greater efficiencies in operations to reach Yokohama dealers and customers across Canada, by moving its two warehouses to strategic new locations in spring 2023.

“At Yokohama, we want to reduce the times it takes to get our tires to where they are needed at different times of the year,” said Diana Colosimo, Brand Development Manager for Yokohama Tire (Canada) Inc. “The relocation of our two primary distribution facilities to locations ideal for transportation logistics will allow us to reach our dealers and customers more quickly, and improve the trust they have in us.”

In April 2023, Yokohama Tire (Canada) Inc. will open its new 100,000-square-foot facility in Edmonton, Alberta, in order to better serve large volume customers across the prairies and territories. It marks a relocation of the existing Langley, B.C. facility, which will shut down by the end of April 2023.

The following month, the warehouse currently residing in Brampton, Ontario will move farther east to relocate into a new 190,000-square-foot facility in Laval, Quebec, to supply customers more quickly in the Maritimes, northern and eastern Quebec and Newfoundland and Labrador. The Laval warehouse is expected to be up and running May 1, 2023, with the Brampton facility shutting down May 31, 2023.

The increased floor space at both new warehouses will support future growth and improve flexibility to deal with Canada’s tire seasonality expectations, and both are strategically located close to highway, railway and airway routes to keep tires moving to customers.

According to Yokohama, “Both the new Edmonton and Laval warehouses are built to the highest standards for floor-space efficiencies and with enhanced security, optimal to the business of storing and moving tires in and out, as well as allowing for future improvements in logistics and automation”.

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