Langley, BC – A new study underlines the significant impact of BC’s New Car Dealers on the economic and social fabric of British Columbia during a period in which the industry faced significant post-pandemic challenges.
The Canadian Automobile Dealers Association (CADA) and New Car Dealers Association of British Columbia (NCDA) engaged research partner MNP to establish the scope of the sector as an economic and social driver in this province. The results reflect 2022 data, during which the industry faced a micro-chip shortage, significant supply chain issues, and subsequent lack of new vehicle inventory.
Key findings include:
- New Car Dealers generate $17 billion in retail activity.
- The industry generates $286 million in direct tax revenue and $775 million in total tax revenue for all three levels of government (along with an estimated $489 million of indirect or induced revenues, meaning those occurring within British Columbia & in other parts of Canada as a result of supply chain linkages).
- The sector is responsible for almost 30,000 FTEs, including 19,000 directly.
The study compared the economic impact of new car dealers in BC with other key provincial industries and found employment generated by the industry is equivalent to:
- Employment associated with the construction of 8,940 new homes in BC.
- Fifty-seven percent of the total employment generated by the film industry in BC in 2021
- Total employment generated through the handling of 40 million containers (29 percent of container volume in 2021) at the Port of Vancouver, Canada’s largest port.
NCDA members regularly undertake construction and renovation projects at their dealerships throughout the province. It is estimated that new car dealers in BC invested approximately $142 million annually in new and existing facilities between 2018 and 2022. This generated almost $38 million in total revenue for all three levels of government. These construction and renovation projects are estimated to have generated 1,260 total FTEs consisting of 590 direct FTEs and 670 indirect and induced FTEs.
The report also provided examples of social and community contributions of BC New Car Dealers, including:
- Kelowna Toyota continued a tradition of giving to local charities by donating over $200,000 to various organizations in 2022. Past support has included $20,000 to support the first year of the Mental Health and Wellness Program and ongoing involvement with Mamas for Mamas—a national charity aiding mothers and children in need.
- OpenRoad Auto Group has taken a multi-faced approach to community support which is reflected in the creation of the OpenRoad Foundation, which focuses on environmental sustainability, community welfare and educational advancement. In 2023, the group also donated to the Volunteer Cancer Drivers Society, an organization dedicated to providing free and reliable transportation for cancer patients in need within the Greater Vancouver and Fraser Valley regions.
- Capilano Volkswagen has demonstrated a commitment to health by sponsoring the Cypress Challenge over multiple years. Their $150,000 donation has powered an event that rallies more than 600 cyclists to ascend Cypress Mountain, and in 2023, this initiative alone raised over $418,000 for pancreatic cancer research and patient care.
“The 2023 economic impact study highlights the extraordinary role and contribution of new car and truck dealers on the economy, as an employer, and as a part of the social fabric in communities across the province,” said Blair Qualey, President, and CEO of the NCDA. “Despite ongoing challenges associated with post-pandemic recovery, our members continue to rise to the challenge and demonstrate their resiliency, providing thousands of family-supporting jobs in the more than 55 communities they call home.”
The 2023 BC Economic Impact Report can be viewed here.
To view the National Economic Impact Report, visit 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 CADA: The Canadian Automobile Dealers Association is a federation of provincial and regional dealer associations, representing 3200 franchised automobile and truck dealerships that sell new cars and trucks in Canada. over These dealers collectively employ over 140,000 people across the country and represent a key sector of Canada’s economy.
About the NCDA: The New Car Dealers Association of BC (NCDA) represents over 400 new car and truck dealers throughout British Columbia who employ 30,000 British Columbians and are responsible for close to $17 billion in retail sales in the province. The Association speaks on behalf of the retail automotive industry and advocates on legal, environmental, and consumer issues relating to vehicle sales in British Columbia.