For immediate release
Prince George, BC – A new study entitled The Economic Impacts of Members of the New Car Dealers Association of BC was released today at the BC Chamber of Commerce AGM and Conference, outlining just how important the auto industry is to the provincial economy and the more than 55 communities where new car dealers operate.
Key findings of the MNP LLP study include the fact that the New Car Dealers sector generates $15.6 billion in retail activity – $260 million of direct tax revenue and $610 million of total tax revenue for all three levels of government – along with an estimated $1.2 billion in total tax revenue to all levels of government when factoring in the federal and provincial sales taxes paid by consumers on purchases of new cars.
On the employment front, the study finds the sector is responsible for almost 27,000 FTEs of total employment in BC, including 18,000 FTEs at the direct level.
Aside from operational expenditures, NCDA members regularly undertake construction and renovation projects at their dealerships throughout the province. Between 2019 and 2023 annual spending on construction and renovations by new car dealers was estimated to be approximately $33 million, generating $4.3 million of direct tax revenue and $8 million of total tax revenue for all three levels of government. These construction and renovation projects are estimated to have generated an additional 240 FTEs of total employment in BC including 130 FTEs at the direct level.
The study also compared the economic impact of new car dealers in BC with other key provincial industries and found that employment generated by dealerships is equivalent to the employment associated with the construction of between 9,000 and 9,500 new homes in BC, or to the total employment supported by the filming of between 20 to 25 full season, high-end television series or equivalent to the total employment generated through the handling of 2.9 million containers at the Port of Prince Rupert, or approximately 340 percent of the average annual volume of containers handled at the Port.
The report also highlights other contributions that are not readily quantifiable. This includes the maintenance of essential service fleet vehicles to ensure first responders, tow trucks, transportation providers and delivery services can continue to provide important services.
Another significant contribution is the role that new car dealers play in administering the CleanBC Go Electric vehicle purchase rebate program on behalf of the Province of BC. More than 50,000 rebate transactions have occurred through the program and BC has taken a leadership role in zero emission vehicle (ZEV) adoption in North America. Despite the pandemic and supply chain issues, more than 18,000 rebate transactions were processed last year. Today, there are more than 70,000 ZEVs travelling our highways and in the first quarter of 2022, more than 17% of new vehicle sales were zero emission vehicles.
“The MNP study was conducted during a period that proved to be challenging in many ways, because of the pandemic, a microchip shortage that impacted production and inventory, and supply chain issues,” said Blair Qualey, President, and CEO of the New Car Dealers Association. “Our members rose to the challenge and continue to demonstrate the significant role they play as an economic driver, supporting investment and employment provincially, in the more than 55 communities that dealers call home.”
The Economic Impacts of Members of the New Car Dealers Association of BC can be viewed here.
About MNP: For over 60 years, MNP has proudly served and responded to the needs of clients in the public, private and not-for-profit sectors. Today, MNP is the fifth largest Chartered Professional Accountancy and business consulting firm in Canada and is the only major accounting and business consulting firm with its head office located in Western Canada. MNP has more than 117 locations and over 7,100 team members across the country.
About the New Car Dealers Association of BC: The NCDA is the provincial industry association that represents over 400 new car and truck dealers throughout British Columbia. Members of the Association provide 27,000 family supporting jobs for British Columbians and are responsible for $15.6 billion in retail activity. The Association speaks on behalf of the retail new automotive industry to the public, media, and government, and deals primarily with the legal, environmental, and consumer issues relating to new vehicle sales in BC.