Auto Blog

Response to Federal Climate Plan

As we entered into December, the federal government released their climate action plan, A Healthy Environment and a Health Economy. The NCDA works closely with the Province towards creating a greener future, and we’re encouraged to see these steps being taken at the federal level.

The NCDA, and our close to 400 dealers across the province, are committed in the fight against climate change. More and more auto manufacturers are investing in bringing not only more electric vehicles but also more vehicles with low carbon emissions to market, and at the dealership level we always ensure we are educating consumers on the long-term benefits of such purchases. It is important to us that we are doing our part to lower carbon emissions, and the vehicles that we sell are a huge piece of the puzzle.

Encouraging more consumers to purchase Zero Emission Vehicles (ZEVs), cannot simply be done at the sales level alone. It requires financial incentives, increased investments in charging infrastructure to alleviate range anxiety, and education tools. The NCDA was happy to see the federal government’s commitment to the cause.

According to the plan, the government will invest an additional $287 million over two years to continue the Incentives for Zero-Emission Vehicles program until March 2022. They also plan to invest an additional $150 million over three years in charging and refueling stations across Canada. Both these action items will certainly see an increase in consumer interest over the next few years and move us closer to a greener future.

This proposed plan will not only help make life more affordable for Canadians but will also create jobs for local economies. The initiatives will need more people to take them from plans into actions, so it really is a win-win situation for the sector and post-COVID recovery.

Through plans like this, we will continue to bounce back from the pandemic and look to the future. It will allow for the auto industry to further help boost local economies, one that makes up over 19% of all retail sales in the province annually ($16 billion).

BC is already doing a remarkable job when it comes to the sale of ZEVs – and it is certainly, in part, due to the government’s commitment. It is with thanks to the work of the Province that we are able to administer the widely successful CleanBC Go Electric Vehicle Rebate Program. The program offers up to $3,000 in rebates when purchasing electric vehicles in BC and $1,500 in rebates for plug-in hybrid vehicles.

The Province is also committed to offering incentives for those looking to install chargers in their homes and workplaces, another key to consumer purchases. There are also educational tools available for those making the jump, so the switch is as seamless as possible. Visit https://pluginbc.ca/ for more information.

We truly thank the federal government for taking these additional steps towards climate change and boosting the economy. As the Rt. Hon. Justin Trudeau, Prime Minister of Canada said, “Canadians don’t have to choose between clean air and good jobs.” And this action plan will only further move us in that direction.

Happy holidays, everyone and stay safe.

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

Driving in Poor Conditions

Though this year is very different than past years and with Public Health recommending British Columbians avoid non-essential travel, road conditions – no matter the distance – are sure to get worse. As we enter the winter season, it is important to be cognizant of changing driving conditions and driving in the snow.

A quick reminder for British Columbians – winter tire and chain rules are in effect on most of B.C.’s highways from October 1 to March 31. Given the unpredictability of the weather, it’s a good idea for Lower Mainland drivers to purchase some good winter tires too.

Driving in snowy or icy conditions requires more than just equipping your vehicle with snow tires, although snow tires are the most important aspect of driving in those conditions.

Driving in the snow is a simple science – it’s all about friction and traction. Snow tires have a deeper tread to cut through the slush and snow, and snow tires are constructed from softer rubber to help with traction. Lower temperatures in general affects the rubber in summer and all-season tires in a way that lowers traction. The rubber used for snow tires, on the other hand, stays soft and flexible in freezing temperatures in order to grip what’s underneath them. All-season tires have reduced traction and stopping power below seven degrees Celsius, and do not offer reliable braking or cornering on ice or cold weather conditions. Compared to M+S designated tires, snow tires offer superior braking and cornering performance on wet and rough ice, soft and hard-packed snow, along with slush. It’s worth the investment for snow tires!

Any combination of snowy, slushy or slick roads and reduced visibility means that drivers need to do more prep work and adjust their driving. Winter driving requires a lot more concentration and care as well. Use slow motions, refrain from braking quickly, and use a very soft foot on the accelerator pedal. Simply driving at a slower speed and exercising caution is one of the smartest things you can do. If you’re driving a new car with electronic traction and stability control, keep them turned on in the winter.

Store snow shovels and kitty litter , for traction, in your trunk in case you need to dig yourself (or your neighbour) out. Flares, flashlights, blankets and a snow scraper are also useful items to have on-hand. Check your antifreeze levels and consider investing in heavy-duty snow wipers to help with visibility.

Drivers who don’t slow down or adjust for conditions are always a top concern for others sharing the road. Both stopping and turning are actions that take a lot longer, so keep a longer follow distance and remember to slow down.

Also remember to check your battery – there is nothing worse than trying to start your car’s engine and hearing your engine struggle to start.

And please – as always – stay safe and do not drink and drive. Stay local and in your household bubble!

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

Province Doubles Rebates for EV Charging Stations

In the last several years, British Columbia has assumed a leadership role with respect to the sale of electric vehicles, with more EV sales per capita than any other province. This is in large part due to a successful partnership between the Province of BC and the New Car Dealers of BC – most notably based on electric vehicle rebates through the CleanBC Go Electric Program.

However, there are other key investment and policy decisions that influence consumers, including the planning and development of charging stations that will make EV charging convenient and more readily available wherever British Columbians live, work and travel.

Last week, we were pleased to see the first order of business for the new Minister of Energy, Mines and Low Carbon Innovation was to announce that British Columbians can now receive double the amount per rebate to buy and install EV charging stations at their home or at work. The rebates will be offered through CleanBC’s Go Electric EV charger rebate program.

To help with the up-front costs that come with purchasing EVs, customers can access double the previous charging station rebates available. Homeowners can get a rebate of up to 50% of purchase and installation costs for an eligible EV charger to a maximum of $700. Workplaces and residents living in condos or apartments that purchase and install chargers can receive a rebate of up to 50% of costs to a maximum of $4,000. Applications are now open.

The province is also offering added support for those looking to make the switch. Consumers are eligible for up to five hours of free support services from an EV charging station advisor to help them move from the simple idea to actual installation.

This is a positive step as the province continues to transition to electric vehicles over the coming years to reach its ultimate target of all new light duty vehicles purchased being electric, by 2040.

The charging of EVs – and more specifically, convenient access to charging stations remains a concern for consumers – but incentives such as the one announced are another significant step that can make the decision to purchase EVs easier than ever. Another positive benefit is that it will also support additional work for electricians and other trades.

I am impressed by the work of our province’s dealers, their Association the NCDA, and the BC government to move towards its goal of a fleet of clean energy vehicles. With the current rebates in place, BC reached its goal of 10% of new light duty vehicles sold being EVs, six years ahead of time (yes you read that correctly, six years ahead of time!) – the goal was 2025 and BC surpassed this number late last year.

The new rebates put in place by the province, will only continue to encourage consumers to purchase electric vehicles and I’m excited to see what the future of transportation in the province looks like.

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

BC’s New Car Dealers Welcome New Government

BC’s New Car Dealers Continue to Forge Strong Relationships with Government

Last week, the new BC government Cabinet was officially sworn in, and each one of our elected officials should be congratulated for their respective appointments. All British Columbians, regardless of political persuasion, should thank Members for their commitment to public service.

Over the next four years, BC New Car Dealers look forward to working with government and Ministers on several important fronts, acquainting our association with newly assigned ministers and continuing to forge a strong relationship with those we have worked with over the years.

The Honourable Selina Robinson was sworn in as the Minister of Finance, the Honourable Ravi Kahlon as Minister of Jobs, Economic Recovery and Innovation, the Honourable George Heyman as Minister responsible for the Environment, the Honourable Bruce Ralston as Minister of Energy, Mines and Low Carbon Innovation, and the Honourable Mike Farnworth, Minister of Public Safety and Solicitor General, now assumes responsibility for ICBC.

At the NCDA, we have been incredibly fortunate to have established a very positive and collaborative working relationship with key Ministers in BC. We have worked together to create programs that benefit the entire province, and our partnership has produced tangible results that have benefited the environment and the economy.

It is with thanks to the work of the Province that we are able to facilitate the widely successful CleanBC Go Electric Vehicle Rebate Program. The program offers as much as $3,000 in rebates when purchasing electric vehicles in BC. The incentives offered, making purchasing an EV much more affordable for consumers and has certainly increased buyers.

Through Budget 2020, the Province invested an additional $20 million in point-of-purchase rebates to make EVs even more affordable, helping British Columbians choose cleaner transport options. We have already surpassed the provincial target of 10% of new light-duty vehicle sales consisting of EV’s by 2025 – a whopping six years early – and I appreciate the work we’ve been able to do on this with the Province. With continued effort and focus, we will continue to work toward achieving other future targets.

We very much look forward to working with the Province to continue growing opportunities and training in a number of disciplines in order to meet future demand. The BC auto industry provides more than 30,000 family supporting jobs in the province and over the next decade, it is anticipated that thousands of openings will occur as the current workforce ages and moves closer to retirement.

Certainly, one area of focus is that of auto technicians who are required to meet the increasing sales of more and more technologically advanced vehicles, including electric ones. A wide range of skillsets will be required to meet the evolving needs of the sector, while also establishing our industry’s future leaders.

I began this column by recognizing BC’s newly minted cabinet and their commitment to public service and I think it’s only fitting that I conclude by expressing our sincere thanks and gratitude to former Finance Minister Carole James for her many years of public service, and the thoughtful and respectful manner in which she has always conducted herself. In a new role as special advisor to the Premier, I know Ms. James will continue to make a valuable contribution to the province.

And, as always, stay safe, calm, and be kind to one another.

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

Holiday Gift Giving

With the holiday season fast approaching, you may be pondering what to get that special auto enthusiast. The good news is, there are many gift options available to suit any budget and personality. And even though the holiday season may look a little different this year, these still make good gifts for the auto lover in your life.

Let’s start with items for those who have specific interests. If that special someone is a music lover, perhaps a new sound system is the way to go? Those who are more active might appreciate a bike or ski rack for the car, or even a carrier top and roof racks for other recreational gear. There are several interesting gift ideas that could help dress up a vehicle, ranging from custom fitted seat covers to custom floor mats. Likewise, drivers who like vehicle or sports paraphernalia might enjoy a license plate frame, a dashboard ornament, or a key chain featuring one of their favourite retail brand or sports team. Or even a diecast toy car to match their ride.

On the practical side, you can’t go wrong with a car care kit, which can typically be found at your local automotive retail outlet – or you can put together a gift basket yourself. Packages can contain car wash fluid, glass cleaner, wax, polish, sealant, detailer spray, interior cleaner, tire shine and everything in between.

For car lovers who like to baby their vehicles, many dealerships offer auto “spa packages” for interior and exterior detailing services. All car lovers look forward to cruising in a shiny car in the Spring months, so check the websites of your local dealerships for special promotions or gift cards.

Gift cards can pay for a maintenance or detailing appointment at the person’s favourite new car dealer or some sessions at the neighbourhood car wash. They’re also a smart gift for those who are tricky to please, as the person can pick out their own vehicle accessories or add-ons at their favourite auto parts store or website.

Another practical option is a dash cam which can provide peace of mind if you’re in an accident. An emergency kit is always a good option. These include everything from jumper cables and a flashlight, to flares, candles, matches and blanket – should a driver be unlucky enough to get stranded in their vehicle. You hope they will never need to use them, but these items could come in handy someday.

And remember – this has been a challenging year for so many and small businesses are truly suffering. When shopping this holiday season, please remember to shop local and shop early when you can. One final note, as we head into the holiday season, please be safe and celebrate responsibly, keeping in mind the latest public health orders in place.

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

Post BC Election – Thanks to Candidates

With the 2020 provincial election wrapped up, I wanted to take a moment to congratulate all of the candidates recently elected to serve. Congratulations to Premier-elect John Horgan and his colleagues on securing a majority government. I would also like to take this opportunity to thank the Honourable Carole James for her many years of service to British Columbia, most recently as Finance Minister. She has always been open to listening to our sector and provided a very steady hand on the financial wheel over the past four years. I am grateful for her work and support.

The Legislative Assembly has a substantial contingent of new MLAs with local government experience. The next Legislature will include 33 MLAs that have served as a Mayor, Councillor, Area Director or Islands Trustee representing 38% of the 87 electoral districts in B.C. – one of the highest percentages in recent elections.

The New Car Dealers of BC and local government work closely together on a number of issues that affect the local economy and the more than 30,000 people employed directly or indirectly by our members. I am proud of the partnership we have formed and look forward to working with those newly elected over the next four years.

The New Car Dealers are an important piece of the BC economy as we represent over 390 small businesses in 55 communities across the province. Our members generate about $16 billion in economic activity and account for 19% of total retail sales in the province. Our sector is also one that has seen a relatively quick bounce back since the devastating impact from COVID-19 earlier this year. BC’s New Car Dealers will play an important role in the COVID-19 recovery process. Dealers are a key driver in local and provincial economies, and it’s important we continue to work together to create positive economic growth in our province.

The partnership between BC’s New Car Dealers and government has been a productive one by making EVs more affordable through the CleanBC Go Electric Program; making policy and investment decisions that support a broader fast-charging network, and; ongoing education and public awareness for consumers and car dealers to ensure there is an understanding of the latest EV offerings and EV-related developments. The rebate program allows for EV’s to be more accessible, as we inch further to goals for even more EV’s on roads the province.

Another issue that we continue to work on with government is the issue of what constitutes a luxury vehicle. The luxury vehicle tax impacts many working men and women – particularly in rural and resource-dependent communities across the province. A pickup truck is a part of how many maintain their livelihood, yet a luxury tax is placed on all vehicles at the $55,000 and higher price-point. When the figure was established a number of years ago, it likely reflected the cost of what most would consider a high-end vehicle. But with new technology and inflation, all vehicle prices have risen. Seems strange to me you have to pay luxury tax on a $65,000 pick up truck but not on an $80,000 watch!

We also look forward to working with the new government on new issues that arise – most recently the proposed mobility tax in the City of Vancouver. While we recognize the need to address climate change – and have done so with a decade long support of the CleanBC Go Electric Program – the mobility tax is not reasonable for a city as expensive as Vancouver. In an ideal world we could all walk and cycle to work, but while those options are available to many around Greater Vancouver, others rely on their vehicles to get to and from their jobs. During COVID-19, people are driving more because they value their own personal space, and this shouldn’t come at a higher price.

Clearly, these issues require ongoing dialogue and collaboration with government. It’s a partnership that has proven productive and of benefit to members and consumers alike, and it’s one we will continue to support and contribute to. I look forward to working with the newly elected MLAs on continuing to strengthen our relationship and provide important input from our members. The NCDA is committed to working with the new government to help enable a strong economy, of which dealers are a powerful, driving force.

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

Electric Vehicles and COVID-19

It should come as no surprise to anyone that 2020 has been a remarkably challenging year for the automotive industry, just as it has been for so many sectors. Not only were new car sales significantly hit hard after COVID-19 arrived in BC, but one of the resulting effects of the pandemic was the postponement of our beloved Vancouver International Auto Show to ensure the health and safety of our community.

From there, we saw sales numbers take a sharp decline in BC. In Q2, total new light vehicle sales declined by 45% compared to 2019. But as we concluded Q3, things began to take a more positive turn, with light vehicle sales down just 3.9% compared to the same period a year previous – an outstanding improvement from what we were seeing earlier in the year.

As you know, I am proud of the work we have done in BC over the past decade to increase EV sales. At the end of last year, 10% of all light vehicle sales in BC were zero-emission vehicles – which brought the total number of EV’s on BC’s roads to more than 39,000. As of the end of 2019, BC also hit a huge landmark having the highest per capita EV sales in North America.

I believe much of this increase can be attributed to the CleanBC Program, which provides a point of sale purchase rebate of up to $3,000 from the Provincial Government and is administered by the New Car Dealers Association of BC. The CleanBC rebate applications almost doubled in 2019, surpassing 2018’s record number of applications.

So, do we need to be concerned about how the pandemic will affect our efforts on the EV front? If we look at how the pandemic is affecting EV demand globally, I don’t think we need to be overly worried about long term impact on the EV sector.

According to a study by McKinsey & Company, an global auto slowdown won’t hurt overall EV demand. For many countries, consumer demand for EVs has remained much more stable than demand for other vehicles during the crisis. While the overall number of sales has declined in China and Europe, the market share for EVs has risen.

In contrast, the United States has seen consumer demand drop. Globally, EV manufacturers that offer online sales have seen particularly high demand, as the lockdowns have inhibited in dealership shopping. And though in BC dealerships have remained open, businesses have adapted in these times.

But we cannot take this information at face value. There are many factors beyond the pandemic that can be attributed to the United States experiencing a difference in demand. For example, as of June 2020 the United States offered no incentives to purchasing EV’s, while China offers a $2,000 incentive and many countries in Europe offer an incentive of $10,100. I am much more inclined to believe that BC would follow a model alongside China and Europe because of our similar incentive programs.

Another factor to consider is charging stations. As we know too well, one of the main considerations for consumers purchasing EV’s is related to range-anxiety or concern that they will run out of battery. By ensuring there are ample charging stations, we are able to wade off consumer concerns and make the EV model more accessible. In 2019 China installed 250 new public charging stations, Europe installed 45, and the United States added 26. In BC alone, 26 new Level 3 fast chargers were added in 2019.

While this is not a perfect model to predict the trajectory of EV sales in BC in the future, it is one that gives me immense hope. As sales continue to climb, it is important to remember the benefits of purchasing EV’s.

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

Preventing Vehicle Theft

As we begin to enter the holiday season, many automobile owners will increasingly find themselves frequenting parking lots as they canvas local retailers for that perfect gift for a loved one.

However, this is also a time of year when the potential thief has eyes on motorists who leave parcels and packages in plain sight, turning themselves into easy targets.

The Integrated Municipal Provincial Auto Crime Team (IMPACT), the Province of British Columbia, and ICBC, encourages drivers to protect themselves with the slogan, “Check Your Doors Before They Do”. It’s something that’s important to do always, but especially as we approach the holiday season.

According to ICBC, there was a 7.6 percent increase in auto theft across British Columbia in 2019.

Theft of items is a mostly preventable crime and there are some steps you can take to stop thieves from breaking into your car. Though some may be obvious, it is worth keeping in mind. Here are some of ICBC’s top tips to prevent auto break-ins:

  • Keep valuables, gifts and parcels out of sight in the trunk and don’t leave them in the vehicle for long periods of time. Even items such as loose change and pop cans can tempt thieves.
  • While shopping, try not to unload gifts in your vehicle and then leave it unattended in the same parking spot.
  • Park in well-lit areas and use parking lots frequented by others.
  • Always lock your doors and close your windows, even if you’re away from your vehicle for just a minute. Remove any garage door openers from your vehicle.
  • Keep your keys secure at all times. Don’t leave your keys unguarded — even at a restaurant or the gym. Treat your keys like cash.

While criminals often target vehicles for smartphones, personal electronics, sunglasses, and cash, they are especially targeting vehicles that leave any holiday items in sight. They also may be looking for items such as garage door openers and any personal items or documents that may make you a target for theft further down the road.

The best way to combat these threats is to always make sure to remove any valuables or personal items in your vehicle and never leave anything in plain sight that may make your vehicle an easy target. In situations where you may be forced to park your vehicle in a less than ideal location, take the garage remote with you and make a copy of your vehicle registration and black out your home address in the copy you keep in your glove compartment. Keep the original with your address in a safe place at home. Google Maps also has a handy ‘remember my parking location’ feature.

ICBC recommends the 9 pm routine, which encourages vehicle owners to check on their vehicle each night at 9 pm to ensure it is safe and secure and all measures have been made to avoid being an auto crime victim.

To prevent heartbreak this holiday season – and in the future – it’s important to be diligent and remember these easy steps, so you aren’t an easy target.

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

OPED: City of Vancouver Out of Touch With Reality

On Tuesday, Vancouver City Council Members will consider a report prepared by City staff on a proposed climate action plan with a price tag of $500 million. The report suggests that mobility pricing – in other words, the establishment of a toll on vehicles making their way to the downtown core, would be the primary source of funding.

City staff suggest mobility pricing is a “game changer” and could rake in tens of millions of dollars each year. However, what it more accurately reflects is a City staff that is clearly out of touch with the transportation realities of today and the significant financial challenges that many Lower Mainland families are facing.

While City staff will suggest Vancouver has a high proportion of people who walk, roll and cycle – what they fail to recognize is that many people who work in the downtown core each day, commute from the suburbs – from areas where transit simply isn’t available or isn’t an option.

In an ideal world, walking and cycling would be modes of transportation that we could all rely on, but that’s not reality. Many people require vehicles to support their livelihood and put food on the table for their families, just as families also require vehicles to move their children to daycare, school or any number of activities.

In an ideal world, transit would serve all areas of the region and provide an opportunity for people to leave their cars at home, but that’s not the reality either, at least not at this point.

We live in the most beautiful region in the world, but it’s also one of the most expensive and where affordability is a significant issue for many working people. And at a time when working families and businesses have been so dramatically impacted by COVID-19, adding another tax to the layer upon layer they already face would be a tough proposition for those who are already struggling to make ends meet.

We all recognize the need to address climate change. It’s a serious issue and requires serious debate – but discussion and decision-making needs to be centred in reality.

New Car Dealers fully appreciate and support efforts to reduce carbon emissions. In fact, British Columbia’s leadership role in transitioning consumers to electric vehicle (EV) sales is the result of a positive partnership with the province. It’s a partnership that has led to increasing adoption of EVs among consumers, while helping to create expanded access to key infrastructure, such as fast charging stations.

I reference the province’s leadership role because it is largely based on thoughtful decision-making and the realities facing British Columbians, and that is what we hope to see from City Council  – reasoned, logical and thoughtful discussion and an ultimate decision that is based in reality.

Blair Qualey
President and CEO
New Car Dealers Association of BC

The OPED appeared in The Province on Nov 3 here.

Winter Driving and Road Rage

With winter arriving in the form of darker hours and adverse conditions across British Columbia, it’s a good time to take a moment and remember that, despite the fact that as Canadians we should be used to harsh driving conditions, this is the time of year when more accidents happen. This is due in large part to a combination of wet or snowy conditions and driver error.

Police departments and insurance organizations such as ICBC are quick to remind drivers across BC that discourteous driving is leading to more and more cases of road rage, and at a time of year when accidents naturally spike due to driving conditions, and the ongoing stress related to the COVID-19 Pandemic, it’s important to remind ourselves that getting angry on the road endangers both yourself and other drivers around you.

Feelings of frustration can lead to aggressive driving behaviours like speeding, tailgating, or cutting off other cars. At the extreme end of the spectrum, anger can escalate to road rage, with acts of violence in response to other people’s driving.

As we move into the season that has the worst driving conditions of the year, it is important to be a courteous driver yourself, and not to fly off the handle. Aggressive driving is a serious issue and much more common than you might think.

Repeated anger episodes can actually stress out your mind and body too. Getting mad triggers your brain to release adrenaline and cortisol. These stress hormones increase your heart rate, breathing rate, and blood pressure.

Remember, everyone is human and makes mistakes, including yourself and the driver that’s been tailgating you. If you’re cut off by a car, maybe the driver is running late, has their mind on something else, or honestly just didn’t see you. It doesn’t make it right, but retaliating isn’t ok either. It’s not worth an accident!

When you do get stressed on the road, it may be a good idea to pull over, take a deep breath or two and pause for a moment to collect yourself.

During BC’s rainy and snowy season, drivers need to stay especially focused, leave enough space for your vehicle (recommended 3 seconds following distance or more) and be aware of your surroundings. Use your lights and turning signals correctly to make yourself as visible as possible. Please stay off your phone unless hands free. It’s the law!

Most of all, avoid aggressive drivers. If someone yells or gestures at you, ignore them. If there is an aggressive driving incident, stay a safe distance away and report the driver immediately to police.

With thousands of cars on the road and poor seasonal conditions, driving is sometimes going to be stressful; however, don’t let a stressful commute affect the health and safety of yourself or those around you. Together, we can help reduce accident statistics.

And as we’ve heard from our Provincial Health Officer, Dr. Henry, let’s remember to be kind, be calm and be safe, even when it comes to our driving!

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

 

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]