J.D. Power has launched its J.D. Power Dealer of Excellence Program in Canada, and sweeping the inaugural list of honorees is the Dilawri Group, whose Markham Honda, Dixie Mazda, Acura North Toronto, Volkswagen de Sources and Audi Queensway stores were recognized.
The program has been in the U.S. since 2016. It is designed to spotlight “the commitment and dedication select retailers provide to their customers with a purchase experience that meets today’s customer expectations,” J.D. Power said in a news release.
“Vehicle buyers in Canada now have access to an incredible tool in their car search, giving them peace of mind that the dealer they’ve chosen will take care of them,” said J.D. Ney, automotive practice lead at J.D. Power Canada, in a news release. “Certified dealers will benefit by leveraging the J.D. Power brand and promoting their dealership’s commitment to an outstanding customer experience.”
To qualify, dealers are required to pass an in-store sales process verification. They must also meet or exceed sales best practices from J.D. Power, which include “professional customer communication, an efficient online-to-showroom transition, standard processes for addressing customer issues through feedback and presence of digital retail tools,” the company said.
AutoCanada, the only publicly traded dealer group based in Canada, first forayed into the U.S. in 2018, when it bought the Grossinger Auto Group in Illinois.
This acquisition added eight dealerships to the group’s linkup in Metro Chicago, plus another six luxury brand dealerships in an auto mall in nearby Bloomington/Normal, Ill.
Now, with a new management team at the helm, the dealer group …
Read more
When Roger Penske, Rick Hendrick and the late Bruton Smith are mentioned, you might just quickly think of auto racing as fast as vehicle retailing.
Holand Automotive Group president and chief executive officer Gad Bitton now is on a similar journey, announcing on Friday the acquisition of Circuit Mont-Tremblant, a 4.26-kilometer track in Montreal.
Holand Automotive Group features multiple dealerships of luxury and exotic vehicles in Montreal, Laval, Quebec City and Lévis as well as West Palm Beach, Fla. The group also has numerous real estate properties in Montreal and Quebec City.
The acquisition of the world-class racetrack will allow the automotive group to enhance its offering of exclusive experiences and events for drivers of Ferrari, Rolls-Royce Motor Cars, Lamborghini, Maserati, the all-electric Rimac hypercar, BMW and MINI vehicles.
This transaction comes shortly after Ferrari Quebec and Maserati Montreal, two of the automotive group’s flagship dealerships, hosted highly popular track days for their customers at the venue.
A frequent client of Circuit Mont-Tremblant himself for more than 20 years, Bitton has fond memories of the where he drove his Ferrari 360 as a founding member of the Circuit Mont-Tremblant Club.
“It was important to me that an automotive institution of such historical value remain in the hands of a Canadian company,” Bitton said in a news release.
Vincent Loughran, manager of Circuit Mont-Tremblant, remains in position and welcomes the arrival of such an invested owner. Holand Automotive Group already has ambitious plans to develop and embellish this site, ideally suited to competitions and automotive elegance contests, to attract a highly desirable clientele to the region.
“We will create a state-of-the-art circuit designed for an industry experiencing a revolution,” Bitton said. “With the electrification of prestige brands and the end of new gas-powered sales in Quebec by 2030, our vision will meet local standards and regulations.”
Policaro Automotive is continuing its quest to "redefine the automotive retail experience," this time through premium service offerings and new franchises for its customers to shop.
In July, the dealer group broke ground on a new Porsche store in Kitchener-Waterloo. The store, set to be located at 1705 Victoria Street North in Waterloo, is Policaro’s second Porsche franchise. The Policaro Group also broke grown on BMW Etobicoke this summer.
And in early 2022, the dealer group plans to break ground on another full-service Porsche facility with the launch of Porsche Center Niagra.
"For more than 40 years, the Policaro Group has proudly served Southern Ontario. Our dealerships are among Canada's most recognized. As we prepare to expand our operations with new locations early next year, we are proud to innovate and complement our dealerships with enhanced premium services," chief executive officer Francesco Policaro said in a news release. "We are providing automotive enthusiasts an unrivalled and customized experience."
As for these new services the dealer group is focusing on perfecting for its luxury customers:
- Policaro Leasing, providing bespoke and flexible leasing services: Policaro Leasing sets up with customers a dedicated point-of-contact that includes bespoke and flexible leasing services. Policaro also provides the option a fully digital leasing experience where the entire process can be completed online.
- Policaro Performance, a premium vehicle customization division: This division of the dealer group provides customers with the ability to enhance and upgrade their vehicles for optimal performance. Policaro Performance's white glove service is "personalized to suit customers' needs and enhance their vehicle's performance," the dealer group said.
- Policaro Access, an enhanced service, sales and delivery experience with in-store and online vehicle purchase and consultation options: This experience includes flexible in-store and online vehicle purchase and consultation options. Additionally, at-home vehicle delivery to a customer's door and more convenient servicing options throughout vehicle ownership are key.
And the group also announced Motion Endeavours, its luxury vehicle and super sports cars division, will be changing locations. Motion Endeavours, one of the country's top retailers of luxury vehicles and super sports cars, will relocate to 191 Wyecroft Road in Oakville, Ontario.
"At Policaro Group, we take every moment to redefine our community's automotive experience through outstanding customer service, cutting edge technology, and a passion for everything we do," said Policaro. "Our premium and diversified service offerings reflect our passion to innovate and deliver an exceptional experience for our customers."
Lithia & Driveway has expanded into Canada.
The U.S. retailer, which is publicly traded on the NYSE, announced Tuesday it has purchased Toronto-based Pfaff Automotive Partners, representing Lithia’s first-ever acquisition outside of the U.S.
Lithia, which is based in Oregon and has 263 stores in 24 U.S. states, is buying Pfaff’s leasing business, as well.
The acquisition means Lithia is the only publicly traded U.S. dealer group with new-car stores in Canada.
(Michigan-based Penske Automotive Group has commercial vehicle and parts locations in Canada. Edmonton-based AutoCanada, which is publicly traded on the Toronto Stock Exchange, has 14 franchises and 12 brands in Illinois under its Leader Automotive Group brand).
Pfaff has locations throughout the Greater Toronto area, Vancouver and Calgary. Those stores are projected to generate annualized revenues of more than $1 billion (USD).
“Canada has been our top target for growth outside of the United States with its similar business practices and a market opportunity of 5 million new and used cars sold annually,” Lithia president and chief executive Bryan DeBoer said in a news release.
“Beyond its size, Pfaff has an excellent management team, and its locations provide an ideal hub for further expansion. Pfaff offers a customer-friendly experience with its best price first approach and captive in-house leasing option,” DeBoer said.
“This simple, transparent experience perfectly aligns with our technology-enabled online offerings. We warmly welcome Chris Pfaff and the entire Pfaff team to the Lithia & Driveway family.”
Chris Pfaff will remain as president and CEO of the group, which will retain the Pfaff brand. His father Hans Pfaff launched the group in 1964.
“This partnership is borne out of a relationship that spans five years, and we are confident that the cultural alignment between our organizations makes this the perfect launch point for Lithia & Driveway in Canada," Chris Pfaff said in the release.
“Currently, there is no nation-wide, e-commerce player in Canada, which is why we believe this partnership will deliver a first-mover advantage in acquiring additional locations and deploying LAD's innovative, digital platforms across this country,” he said.
While it was a tough close to the first quarter and rough start to the second, AutoCanada’s retail used-vehicle sales in Canada made significant improvement in May before a major spike in June.
A graph included in the retailer’s earnings release that details year-over-year change in Canadian retail vehicle unit sales shows that used sales for AutoCanada were up 16% for the first two months of the year.
And for the first 15 days of March, they were up 4%. In the back half of March, used retail sales fell 44%.
April’s retail used sales were down 39%. However, that gap closed to 2% for May, and then used retail sales jumped 46% in June for AutoCanada.
Looking at the highlights of the Canadian operation for AutoCanada in the second quarter, the used-to-new retail unit ratio was at 1.00, compared to 0.73 in Q2 2019.
It was also the second straight quarter AutoCanada had a used-to-new ratio of 1.0 or higher, the company said.
AutoCanada also had a 0.7% uptick in same-store used retail sales for the quarter in Canada.
Next up, looking at consolidated operational data, AutoCanada moved 7,228 total used retail units in the second quarter (6,535 in Canada, 693 in the U.S.), down from 7,249 in Q2 of 2019.
It moved 6,123 same-store used retail units, compared to 6,080 a year earlier.
Offering some overall commentary on the quarter, AutoCanada executive chairman Paul Antony said: “AutoCanada achieved a number of significant milestones in the second quarter, advancing our strategic priorities and continuing to execute on our Go Forward Plan while substantially strengthening our balance sheet, reducing net debt and increasing free cash flow in spite of COVID-19.
“Very early on in the COVID-19 pandemic, we took decisive actions, implementing a range of measures in response to the crisis that have enhanced our resiliency and positioned the company for industry-leading performance that will drive growth and competitive differentiation going forward. Our cost-reduction measures have resulted in structural cost savings of approximately $10 million,” he said.
“I'm extremely proud of our people, who have worked hard and delivered excellent performance, continuing to prove our complete business model under challenging conditions. We remain confident that AutoCanada's resilient business model, transformed platform and strengthened balance sheet position us to emerge from this period even stronger and with momentum.”
Effective Aug. 12, AutoCanada will have a new chief financial officer.
The North American multi-location dealership group currently operating 65 franchised dealerships, comprised of 27 brands, in eight provinces in Canada as well as a group in Illinois, appointed Mike Borys as CFO.
AutoCanada highlighted that Borys is a chartered accountant with more than 20 years of experience as CFO for both public and private enterprises. He joins AutoCanada from PTW Energy Services, an electrical and instrumentation provider, where he served as CFO since 2017.
Prior to that post, Borys was CFO at Newalta, an engineered environmental solutions provider, from 2008 to 2016, The Brick Group Income Fund, a furniture retailer, from 2005 to 2008, and Famous Players, a movie theatre operator, from 2002 to 2005.
Borys also worked in the restaurant industry for a 10-year period and progressed to CFO of Tricon Canada, a division of Pepsico, the franchisor and operator of the KFC, Pizza Hut and Taco Bell franchises.
“We are very excited to welcome Mike as our CFO,” AutoCanada executive chair Paul Antony said in a news release. “We are pleased to add such a highly seasoned executive to our team.
“Mike’s proven track record and extensive finance and management experience will be instrumental in assisting us to continue to execute on our go forward plan in Canada and the U.S.,” Antony added.
The Dilawri Group is leveraging technology in an effort to have a single tool to manage, develop and grow their employees.
The group operating 72 franchises and employing more than 4,000 individuals recently chose HR4 as its exclusive HR and employee engagement software partner.
According to a news release, Dilawri is on a mission to heighten its employee experience in order to attract, retain and grow their team.
“We have always focused on creating a culture that puts people first — our employees, our customers, and our community,” co-principal director Kap Dilawri said.
“In order to deliver on this philosophy, we continue to implement progressive solutions to provide the right processes, habits, and culture that fosters connectivity and innovation for our employees,” Dilawri continued. “We are excited to partner with HR4 and take our human resources to the next level.”
HR4 founder and chief executive officer Heather Macpherson added, “Working with Dilawri is a testament to HR4 and our team’s ability to deliver high-quality service and software to Canada’s largest automotive group. We are thrilled to call them our partner.”
Using the Vin-UP hardware/software program, auto dealerships offer their service customers an “Instant Vehicle Valuation Coupon.” The coupon indicates that the store wants to purchase the vehicle and provides a cash price. VIP says its program helps auto dealers generate more business through their service bay.
Now, CARFAX Canada is providing the trade-in values for the Vin-UP Service Lane Offer Coupon Program.
The system uses CARFAX Canada’s valuation capabilities to generate the cash price offer. To ensure the offer is fair, the system considers billions of pieces of information, according to CARFAX Canada and Vin-UP.
The holder of each coupon receives a phone call from Vin-UP’s call center partner, FollowPro. During that call, FollowPro reinforces the purchase offer and sets an appointment with the customer for a final cash offer.
CARFAX and Vin-UP note that dealers pay only for “kept” appointments. Each dealer’s porter staff operates the Vin-UP scanners, and that causes no interruption in service operations, according to CARFAX Canada and Vin-UP.
“We’re proud to provide an industry innovator like Vin-UP with our valuation capabilities,” CARFAX Canada vice president of automotive sales Shawn Vording said in a news release.
Vording continued, “With proven success in over 1,000 customers and partners leveraging our valuation data to drive more business, we’re confident we can help Vin-Up’s dealer customers win more trades.”
President of Vin-UP parent company MSS Auto, Bruno Lucarelli, said the CARFAX Canada-powered valuations will help VIN-UP’s dealer partners increase their downstream revenue and buy more quality pre-owned customer vehicles while also upgrading their customers into new vehicles.
“We are very excited about improving the accuracy of the valuations we are offering on the Vin-UP Program,” Lucarelli said.
Vice president of Montreal-based FollowPro Call Center, Danny Forget, said the Vin-UP program helps reduce dealer partners’ pre-owned vehicle acquisition cost.
“The addition of CARFAX Canada’s valuations will significantly increase service-to-sales transactions for our client stores,” Forget said.
More than 80 percent of used-car shoppers who are familiar with CARFAX Canada believe that the brand helps build confidence in their vehicle choice, according to a 2018 CARFAX Canada brand awareness survey.
With that in mind, the company is now using the CARFAX Canada brand to help dealers attract customers. The company recently launched its CARFAX Canada Advantage Dealer program as a way for dealers to show transparency and set themselves apart from the competition.
Advantage dealers provide a CARFAX Canada Vehicle History Report on every car they sell, and the company says that helps dealers build credibility with their customers.
The program provides another feature that the company says help dealers drive trust and confidence with consumers, and that is exclusive dealer access to free digital assets and enhanced point-of-purchase materials for their websites and dealerships.
“We’re thrilled to be a part of the Advantage program, because we’re a full disclosure dealership,” Chris Degraw, sales manager at Honda House in Chatham, Ontario, said in a news release. “Our customers expect to see a history report on every used car, so we don’t wait for them to ask—we volunteer it upfront. The CARFAX Canada name helps provide third-party assurance to our customers that they’re working with someone they can trust, which is really important to us.”
CARFAX Canada vice president of automotive sales Shawn Vording added, “In the used-car industry, transparency is proven to drive sales.”
Vording also noted that research from the summer 2018 edition of CARFAX Canada Driving Insights shows that Canadians would rather purchase a car with history information available over one that does not have it available.
“The Advantage Dealer program elevates dealers who have a subscription to access unlimited CARFAX Canada vehicle history reports and are committed to running a report on every used vehicle they sell,” Vording said.
