Industry Committee on Oct. 31st, 2022

[Sylvain Séguin]

Yes, definitely.

Today, only 30% of the vehicles we repair in our network are equipped with advanced driver assistance systems, called ADAS.

There are going to be more and more electric vehicles, and the new technologies involved will engender huge costs to the networks, for safety, equipment and training. Furthermore, the networks are not yet ready to meet demand. There is already a significant shortage of labour and equipment. The investments, certifications and training required will, in the very near future, further limit capacity and increase costs and turnaround time.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

As a result, could an industry like yours be threatened by the increasingly sophisticated systems being used by vehicle manufacturers?

[Sylvain Séguin]

The profitability of independent repair shops and entrepreneurs, whether in regional communities or in big cities, is truly overstretched.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

You've anticipated my next question, which is about finding services in the regions. What happens if no one in a particular region is authorized to do repairs?

[Sylvain Séguin]

Having to take vehicles to a location where there are certified repair shops would lead to transportation costs that our industry would certainly not survive, not to mention the harm to the environment.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

I am going to get my colleague, Mr. Généreux, to smile by saying that I own an electronic vehicle and I receive all kinds of information on my telephone about using it, as well as a monthly report. I also receive alerts telling me when such and such a repair needs to be done. According to the current provisions of the Copyright Act, you could never get access to that sort of data.

Could a bill like the one we are studying at the moment open the door to stronger competition and better service quality, particularly in regional communities?

[Sylvain Séguin]

Yes, of course.

It's extremely important for us to have access to all the data we need to repair vehicles. What you referred to is of more concern to the manufacturers. But if the repair shops had access to the data, the quality of services available to consumers would definitely improve.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Your answer leads me to wonder about the consumer's point of view. When the auto industry protect its data, customers will may well have to pay more, because the dealerships are creating a form of monopoly, and the consumer will end up with a bigger invoice. Am I wrong?

[Sylvain Séguin]

You're absolutely right. It something that has already happened.

I'll give you an example. Without enough certified repair shops to repair all makes of vehicles there are additional delays. When a person has a car accident, the insurance company may offer them a courtesy or rental car, but only for a specified maximum period. Today, what often happens is that this period is too short, and the consumer has no choice but to pay for a replacement vehicle.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

What about emergency vehicles, like the ones used by firefighters? Could the inability to find a replacement part needed to make a repair create a problem in terms of safety, particularly in regional communities?

[Sylvain Séguin]

Definitely. If an ambulance needs to be repaired, but there are no manufacturers or certified repair shops in the region, it will lead to transportation delays and additional costs.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Bills can always be improved. Do you feel there are some aspects of the bill that should be amended or improved? If our goal is to protect the consumer, then we should take special care to ensure that the application of the bill would allow competition to develop.

[Sylvain Séguin]

Absolutely. We believe that it's essential to have trained and certified technicians to repair vehicles. What we want is access to the information we need to properly train our members and our franchisees.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

What do you say to industry people who argue that this could have an impact on safety and the environment?

[Sylvain Séguin]

I'm much more worried about safety now, when we don't have access to the data. These days, manufacturers don't have the capacity needed to repair all their all their vehicles. This means that independent shops are repairing vehicles without having access to crucial data. I believe that safety is more jeopardized now than it would be if we had access to the right information.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

That's even more so when there is a labour shortage.

Thank you very much, Mr. Séguin.

[Sylvain Séguin]

Thank you very much.

[The Chair, Liberal, Joël Lightbound]

Thank you very much, Mr. Lemire.

I'm giving the floor to Mr. Masse now, for six minutes.

[Brian Masse, NDP, Windsor West, ON]

Thank you, Mr. Chair, and thanks to our witnesses.

It's good to see you, Mr. Adams, even though I'm virtual. We've known each other for a long time.

I want to ask this question, starting with your association: Do all of the participants in your association share the same information and provide the same access in Canada as they do the United States, the European Union and Asia? Does, for example, Honda provide identically the same things in Canada as it does as in the United States, Asia and the European Union?

[David Adams]

I can't speak with regard to Asia or the European Union. I can speak with regard to the United States, though, and my understanding is that yes, that's the case.

[Brian Masse, NDP, Windsor West, ON]

Here's what I get. I get a lot of questions from dealers and so forth. Maybe I'll go to Mr. Drury with that, because we do have the CASIS agreement, and I'll come back to Mr. Adams and Ms. Baker on that later.

You say it's a solution in search of a problem. However, we have three major political parties with legislation that deals with the aftermarket. Why do you think this is coming to us, and why do you think so much concern has been raised in Parliament about this if you think there is no problem whatsoever? Is it that we've been duped?

[Craig Drury]

No, I don't think you've been duped. I do think that in some situations, we as dealers could do better in terms of dealing with machines that are down in rural areas, for example.

I know that in our business, more than half of the parts that we sell go directly to the customer for them to put on themselves, as an example. We are supporting—

[Brian Masse, NDP, Windsor West, ON]

But you're saying it's a solution in search of a problem. I'd like to know what you think has brought you to this table here if there is no problem whatsoever, and why three major political parties have bills to deal with this issue.

[Craig Drury]

There are two things. First of all, we do support the right to repair. We are supporting our customers with the information and parts to repair machines themselves. That's number one.

Number two is where the problem that comes is in the unintended consequences of allowing our customers certain access to the machines—

[Brian Masse, NDP, Windsor West, ON]

I understand that position, but that doesn't explain why we're here. I understand the position you submitted, but I think that it's a pretty difficult thing to accept at Parliament Hill when you say that it's a solution in search of a problem. We're here for a reason.

I'm going to go back to the CASIS example, then.

Mr. Adams, what are the consequences if you have a member who does not want to comply with CASIS? Can you confirm that every single one of your members complies in the same way?