Thank you.
I'm here today wearing two distinct but complementary hats: I am a local new car and truck dealer in Saskatchewan and I recently served as the national chair of the Canadian Automobile Dealers Association, or CADA, during the pandemic crisis. These dual roles have given me unique insight into the challenges facing dealers nationally and locally.
As a starting point, it is important to recognize that Canada is fortunate to have a network of over 3,500 franchised automobile dealers who sell and service new cars and trucks in virtually every community across Canada. Dealerships are not owned by factories. Each dealer invests “all in” in a locally run business that services their community. Our dealers literally keep Canada rolling, and it is important to note that governments across Canada recognized the essential service our members provide by keeping our operations open during the pandemic. Most members of this committee will know that our dealers represent a vital sector of the Canadian economy, but may not know that we proudly employ 150,000 Canadians in well-paying jobs that build communities.
Given the broad mandate of the committee’s study, I will focus my remarks on three issues.
First, regarding worldwide supply chain issues, the Canadian retail auto industry continues to be highly impacted. Given the highly integrated nature of the global supply chain and the microchip shortage, dealers and consumers in Canada are facing severe inventory shortages. It will take a long time for the auto supply chain to improve and it is important that the federal government is paying attention to factors that could stall this critical sector of consumer need. Vehicles have been delayed and auto parts shortages have impacted consumers across Canada. Now is not the time for new policy measures that hamper economic recovery in our small business sector.
Second, there has been recent attention paid to the issue of the consumer's right to repair. It appears some are trying to leverage consumer outrage over cellphones and washing machines into competition legislation for vehicles in Canada. From the ground, I can tell you this makes little sense as a practical matter. Cars and trucks in my province are being repaired and we never hear consumer complaints about the lack of access. In fact, vehicle consumers in Canada have been protected by a national voluntary agreement on right to repair since 2009. I would invite committee members to learn more about the Canadian Automotive Service Information Standard, or CASIS. The agreement ensures that manufacturers share service and repair information with the automotive aftermarket industry to maintain an open, fair and competitive repair industry for the benefit of all stakeholders and consumers.
Third, Canada has set bold targets for a future where electric and other zero-emission vehicles, otherwise known as ZEVs, have replaced internal combustion engine vehicles by 2035. The transition to 100% ZEV sales will be a massive societal transition that will require government leadership and programs, as well as a shift in societal barriers. Again, I can tell you from the ground that this vision of 100% electric by 2035 will be really tough to achieve.
On the positive side, the public should be encouraged by the impressive lineup of all-new ZEVs that will be introduced in the next couple of years. Leveraging the existing Canadian dealer network will be vital for the speedy adoption of ZEVs by Canadians. As with any new and unfamiliar technology, Canadian consumers will need to be educated about owning and operating ZEVs. Customers will also need the comfort of a reliable, Canada-wide network of qualified service technicians to service their new ZEVs in one of the world’s harshest winter climates. This includes performing valuable safety functions, such as recalls. Clearly, for Canada to achieve the target of all new light-duty car and passenger truck sales being zero-emission by 2035, more ambitious government action is required to enhance consumer incentives, invest in charging infrastructure, and create an electric vehicle battery supply chain.
In closing, I'll say that Canada’s franchised car dealers look forward to playing a leading role in bringing in the next exciting chapter in Canada’s proud automotive history. Dealers will do what they have done for the last century, which is selling and servicing automobiles that provide Canadians with reliable and affordable private transportation. Canada is a vast northern country, and our success economically and as a society depends on a working automotive transportation network.
Thank you very much.