Signals Magazine, Spring 2023 Issue

IT’S YOUR JOB TO TAKE CARE OF OUR NATION’S AUTOMOTIVE NEEDS.

The Canadian Automobile Dealers Association is working with your regional and provincial associations to represent your interests at the highest levels.

To learn more about how CADA is working for you, visit CADA.ca

IT’S OUR JOB TO MAKE SURE OUR NATION TAKES CARE OF YOURS.

We’d love to hear from you!

Our vision is for member dealers and the dealer franchise system to be seen by the public as the best choice to fulfill all their automotive needs.

We are a small but dedicated and hardworking team of individuals serving all members of the New Car Dealers Association of BC. Should you have any questions, concerns or issues, or if you have any ideas for our organization to pursue, our staff is available to listen and help. Get in touch with us by phone or email at our Langley office.

Signals is THE flagship publication for the NCDA, the industry association that represents over 400 new car and truck franchised auto retailers in BC. #380–8029 199 Street, Langley, BC V2Y 0E2 Tel: 604-214-9964 // Fax: 604-214-9965 newcardealers.ca // info@newcardealers.ca

NCDA Staff

Blair Qualey President & CEO bqualey@newcardealers.ca 604-214-9964 Ext. 228

Shakira Maqbool Manager, Finance & Administration smaqbool@newcardealers.ca

Joshua Peters Manager, Member Services jpeters@newcardealers.ca

Ofir Sapoznikov Membership and Operations Coordinator info@newcardealers.ca

Roni Sapoznikov CleanBC Go Electric Vehicle Rebate Program Administrator goelectric@newcardealers.ca

Duy Le CleanBC Go Electric Vehicle Rebate Coordinator goelectric@newcardealers.ca

Vancouver International Auto Show

Eric Nicholl Executive Director enicholl@vanautoshow.ca 778-968-0440

Have a topic or story suggestion? Email us! And for article and ad submissions and rate card details, please contact: Joshua Peters | 604-214-9964 Ext. 225 jpeters@newcardealers.ca

For subscriber inquiries, please contact: info@newcardealers.ca

Janet Gairdner, Associate Group Publisher 818 Broughton Street, Victoria, BC V8W 1E4 jgairdner@blackpress.ca

Published in Canada

The contents of Signals, such as text, articles, opinions, views, graphics, images, and the selection and arrangement of information (the “Content”), are protected by copyright and other intellectual property laws under both Canadian and foreign laws. Unauthorized use of the Content may violate copyright, trademark, patent, and other laws. You must retain all copyright and other proprietary notices contained in the original Content on any copy you make of it. Disclaimer: Information contained within Signals is for general information purposes only and may not be entirely complete or accurate. Use of Signals’ content is done so at your own risk.

Canadian Publications Mail Product Sales Agreement No. 40030593.

News From the Front Seat

With the spring season upon us, I invite members to check out the latest Signals issue. We are pleased to welcome a new guest contributor, Vancouver’s well-known business news reporter Richard Dettman.

His new column kicks off with a look at how BC gets to zero with rising electric vehicle adoption. Other stories range in content from a piece on succession planning in business from our friends at MNP to understanding and preparing for cyber risk from HUB International Insurance Brokers.

BC budget focuses on affordability but misses an opportunity to tackle the luxury tax

When the BC government tabled Budget 2023 in late February, it was abundantly clear that the focus was on affordability and reducing the cost of living for British Columbians. However, the budget also contained several initiatives intended to ensure a greener and more secure future for generations to come.

This included an ongoing commitment to the CleanBC Go Electric Passenger Vehicle Rebate Program, which the NCDA is privileged to administer on behalf of the province.

More than 85,000 zero-emission vehicles (ZEVs) travel highways in this province today and the rebate program has been a contributing factor, along with increased support for charging stations. It will also continue to be a critical aspect of the province meeting its

very ambitious target of 100 per cent of all new light-duty vehicle sales in the province being ZEVs by 2035.

We were also encouraged by the commitment to create thousands of new training seats for in-demand fields because our sector, just like other industries, requires apprentice and jobs-training programs that are critical to our industry and consumers. The BC automobile industry faces a critical labour shortage, with a projected need for 20,000 workers over the next decade, so action on this front is a must for the over 400 franchise new car dealers operating in more than 50 communities across BC.

The NCDA will continue to advocate for tax policies that will put BC’s new car dealers in the strongest competitive environment possible. And we will also continue to work with government to address challenges related to the BC luxury car tax.

The levy kicks in at a $55,000 purchase price and hasn’t been adjusted for inflation in several years.

As a result, many standard vehicles of today fall under its scope, including minivans and SUVs that families rely on to shuttle their children around (and their children’s friends, sports equipment and groceries—and don’t forget the pets!), as well as pickup trucks that are required by many businesses and individuals, such as those who live and work in resource-based communities.

2022-2023 New Car Dealers Association of BC Board of Directors

“Of note, ZEV sales exceeded 17 per cent of all new light-vehicle sales in the third quarter of 2022—the highest rate in North America on a per capita basis.”

BLAIR QUALEY PRESIDENT & CEO, NCDA

Blair Qualey President & CEO NCDA

Mike Hacquard WOLFE AUTO GROUP SURREY LANGLEY

James Carter Past Chair CARTER GM N. SHORE

Joey Prevost MACCARTHY MOTORS TERRACE

Anthony Lunelli Chair KELOWNA SUBARU

Peter Sia NORTHLAND NISSAN PRINCE GEORGE

Peter Heppner Past Chair PRESTON GM LANGLEY

Peter Trzewik GAIN GROUP VANCOUVER ISLAND

Ben Lovie Vice Chair OPENROAD AUTO GROUP

Jared Williams JACK CARTER NORTH STAR CHEV BUICK GMC

Erik Jensen ROYAL BANK OF CANADA Member at Large

Justin Gebara COLUMBIA CHRYSLER RICHMOND

Darren Johnson FIRST CANADIAN FINANCIAL GROUP Member at Large

Ann Marie Clark Treasurer STEVE MARSHALL FORD LINCOLN / FAMILY FORD VANCOUVER ISLAND

Kai Hensler WEISSACH GROUP VANCOUVER

BC’s new car dealers want to be part of the solution because we realize that moving the economy in the right direction benefits everyone.

To that end, the NCDA will continue to advocate policy and funding decisions that help encourage consumer spending and supporting jobs, and incentivizing consumers through EV and charging equipment rebates. Government support in skills-training will also be central to the future success of our sector and the broader economy, as well as in the lives of a new generation of young people who are exploring career opportunities.

2022 ZEV program highlights

The NCDA has proudly administered the CleanBC Go Electric Vehicle Rebate Program since its inception in 2011. Despite ongoing supply-chain issues, more than 9,600 rebate transactions were processed in 2022.

Of note, ZEV sales exceeded 17 per cent of all new light-vehicle sales in the third quarter of 2022—the highest rate in North America on a per capita basis. Record investments were made to create more charging capacity across BC, including the introduction of Level 3 Fast Chargers. This brings the total number of charging stations to more than 3,000, including over 750 fast-charging stations. A total of 47 new eligible vehicles were added to the program in 2022, and Green Star Dealer Awards were presented to 10 dealer recip-

ients, recognizing their outstanding work in the sale of clean-energy vehicles.

NCDA Day at the BC Parliament Buildings

The New Car Dealers Association of BC will celebrate the progress of zero-emission vehicle adoption in this province with the return of this popular event at the BC Parliament Buildings in Victoria on Monday, May 8.

The event will showcase many of the newest battery electric and plug-in vehicle models and provide government leaders and the public an opportunity to see the latest that the industry has to offer.

The NCDA will also be presenting Green Star Dealer Awards to recognize local dealers who have recorded the highest number of zero-emission vehicle sales, across all brands.

BC dealers join national colleagues for meetings with federal MPs in Ottawa

On April 19 and 20, members of the Canadian Automobile Dealers Association’s board of directors, along with the provincial association executives, attended meetings and hosted a reception with federal members of parliament (MPs) in Ottawa. The event provided the opportunity for MPs to meet with dealers and discuss areas of interest, including issues around the federal luxury tax.

NCDA and CADA board member Kai Hensler

(Weissach Group) and Ann Marie Clark (Steve Marshal and Family Ford) joined me in representing BC dealers. Watch for more details in the coming weeks.

NCDA and foundation annual meetings set for Kelowna

On May 30 at the Eldorado Resort in Kelowna, the NCDA will host members for in-person and virtual annual general meetings for both the association and the foundation.

In 2022, the AGM was held in Victoria, during which the board discussed a goal to have the AGM hosted in a different location around the province each year. Members will be able to join in person or virtually as we provide updates on the latest developments with the association and foundation, approve 2022 financial statements, vote in new board members, and celebrate and thank those who are leaving the board for their service.

Details of the meetings will be shared in the coming weeks.

See you on the road ahead.

Sincerely,

Blair Qualey, President and CEO New Car Dealers Association of BC bqualey@newcardealers.ca

2022-2023 New Car Dealers Foundation of BC Board of Directors

Heather Headley Past Chair PACIFIC HONDA N. VANCOUVER

David Jukes FIRST CANADIAN FINANCIAL GROUP

Marnie Carter Founding Chair CARTER AUTO FAMILY

Moray Keith DUECK AUTO GROUP VANCOUVER/RICHMOND

Anthony Lunelli Chair & Treasurer KELOWNA SUBARU

John MacDonald ADESA RICHMOND

Blair Qualey President & CEO NCDA

Joey Prevost MACCARTHY MOTORS TERRACE

James Carter CARTER GM N. SHORE

Sharon Rupal OPENROAD LEXUS PORT MOODY

Amanda Chrinko WESTWOOD HONDA COQUITLAM

Peter Sia NORTHLAND NISSAN PRINCE GEORGE

Ryan Jones MARV JONES HONDA MAPLE RIDGE

John Wynia Vice Chair HARBOURVIEW VW VANCOUVER ISLAND

Welcome to Our New Members

LEGACY FORD FERNIE

Legacy Ford Fernie is a full-service Ford dealership serving the Fernie area. Formerly known as Fernie Ford, Legacy Ford Fernie was first established in 2006. See more about the dealership online at: legacyfordfernie.ca.

PORSCHE CENTRE RICHMOND

Porsche Centre Richmond is a new, fullservice dealership serving customers in the Lower Mainland. Located at 13171 Smallwood PIace, Richmond, the dealership is a state-of-the-art facility designed to meet the needs of Porsche customers. See more about the dealership online at dealer. porsche.com/ca/richmond/en-CA

TEKION

Thanks

Tekion has built a business application that’s simple and fun to use, yet powerful enough to run complex businesses at global scale. Tekion’s flagship platform, Automotive Retail Cloud, is built using the most modern technology stack available. Tekion is constantly innovating and inventing new technology along the way to overcome barriers and solve big problems, all while having a blast doing it! Visit tekion.com to learn more or contact: Connor McCardle, solutions manager-Canada at 647-972-4920 or cmccardle@tekion.com

Car-Career Focus

What are car-career grants?

CarCareerBC Education Grants range in value from $500 to $2,500 and can be used as tuition credit or put towards the purchase of new tools. (Grant funding is made to the post-secondary school with restricted use for tuition or to an approved tool supplier).

The New Car Dealers Foundation of BC awards CarCareerBC Education Grants to eligible students in the province who wish to pursue post-secondary education or training leading to a career in the automotive industry. This may include but is not limited to:

• service or repair training

• business degree

• marketing diploma, etc.

Considering a career? Or a new career? BC’s new car dealers are hiring! 2023 CarCareerBC Education Grant applications will open June 1, 2023. More information at: https://newcardealersfoundation.ca/education-and-careers/carcareerbc-education-grant/

The Salesperson of the Year Awards are a prestigious honour and offer a high level of distinction within British Columbia’s automotive industry. Learn more here

Congratulations to the Winners

AUDI

Francis Tan, of Audi Downtown Vancouver

GM

Amarjit Sarai, of Go North Surrey

Chevrolet Buick GMC

HONDA

Leo Chang, of OpenRoad Honda Burnaby

HYUNDAI

Asher Stephen, of Langley Hyundai

INFINITI

Spencer Morrey, of Morrey Infiniti of Burnaby

KIA

Zohreh Layegh, of Applewood Kia

LEXUS

Stacy Yang, of OpenRoad Lexus Richmond

MAZDA

Leo Liu, of Signature Mazda MERCEDES-BENZ

Patrick Ng, of Mercedes-Benz Richmond

MITSUBISHI

Dave Berry, of Wolfe Mitsubishi

NISSAN

Joel Motiuk, of Morrey Nissan Burnaby

STELLANTIS (FCA-JEEP-CHRYSLERDODGE-FIAT-ALPHA ROMEO)

Stacey Fabiano, of Cranbrook Dodge

TOYOTA

Kalim Mohiuddin, of West Coast Toyota

VOLKSWAGEN

Kirandeep Wander, of Hub City Volkswagen

VOLVO

Anna Zhu, of Volvo of Vancouver

Congratulations to automotive foundation student Stephanie Blue for receiving a CarCareerBC Education Grant from the New Car Dealers Foundation of BC, in partnership with Coast Mountain College.

Awards for the 2021 sales year were presented at the Chairman’s Tour in Richmond in December.

Patrick Ng, of Mercedes-Benz Richmond as the Salesperson of the Year recipient for Mercedes-Benz, with the NCDA’s Joshua Peters.

NCDA Attends Throne Speech, BC Budget Drop

Continues to advocate on behalf of BC’s new car dealers

Start your engines—the BC Legislature’s spring session is in full swing and it’s a busy period for the NCDA’s government relations efforts.

In early February, the parliamentary session began as Lieutenant Governor Janet Austin presented the Throne Speech on behalf of Premier David Eby’s government. The speech outlined the government’s agenda for the coming year, with a focus on increased spending for health care, public safety, affordability and the environment. It also foreshadowed the government’s plan to introduce approximately 25 bills over the course of the spring session.

A week after the Throne Speech, Minister of Finance Katrine Conroy introduced the 2023 provincial budget—her first as the newly appointed minister. The budget outlines

plans to spend money to support British Columbians amid global inflation and an anticipated recession, and includes a $4.2-billion forecasted deficit.

NCDA President and CEO Blair Qualey was invited to attend both the Throne Speech and the 2023 provincial budget lockup, where he participated in the technical briefings and got an inside look into the budget before it was presented to the public in the legislature. Qualey then attended the post-budget reception with Minister Conroy, Premier Eby, the government caucus and opposition MLAs in the Rotunda of the BC Parliament.

Important funding in Budget 2023

The budget confirmed the CleanBC Go Electric rebate program for light duty vehicles (administered by the NCDA) and additional

NCDA President and CEO Blair Qualey with Premier David Eby.

Blair Qualey with Delta North MLA Ravi Kahlon, Minister of Housing.

funding of $44 million to support BC’s transition to a zero-emission economy—$40 million of which is dedicated to the CleanBC Go Electric Commercial Vehicle Pilots Program (CVP). Other budget updates included ICBC forecasting a break-even position and a clarification by the Province that the PST and the federal luxury tax will both be calculated on the total price of vehicles (not including each other).

Legislature news

After hearing concerns from dealer members across BC regarding the threshold of the provincial luxury tax on vehicles, the NCDA is responding with several trips to Victoria to advocate for the threshold to be raised. We believe the change is required to reflect

cerns about the income testing criteria as part of the CleanBC Go Electric rebate program. We communicated to the Minister the negative impact it has had on applications for EV rebates, especially during a challenging time with electric vehicle supply.

The NCDA will be back to Victoria on May 8 to host its annual electric vehicle event in front of the Parliament Buildings. In addition to displaying a range of the latest EV models, the NCDA will also profile some family vehicles as examples of those that trigger the provincial luxury tax. We remain focused on educating MLAs that the current threshold of $55,000 must be addressed to tackle affordability challenges affecting BC families when purchasing a vehicle that meets their needs.

The NCDA’s government outreach contin-

THE LEADING NAME IN APPEARANCE PROTECTION

Sales, Charging Stations and Cellular Upgrades

What’s happening around BC

Update on provincial sales for February 2023

At the provincial level, the growth in new light vehicle sales for Canada in February was driven in large part by Ontario. The province saw monthly sales increase by an estimated 10.4 per cent over February 2022, adding close to 4,000 units to the sales total.

In percentage terms, Manitoba also saw significant growth for the month with an estimated 15.4 per cent increase. Following at a distance, New Brunswick secured a 4.6 per cent increase for the month. While no large decreases were noted for the month, British Columbia saw sales dip 0.9 per cent with Nova Scotia seeing a similar performance with its one per cent decline.

For the first two months of 2023 combined, Ontario and Manitoba remained the standout performers. While most of the country saw new light vehicle sales at or just slightly above the levels seen last February, it was Ontario that created significant growth from a volume perspective and set the tone for the broader market. Source: DesRosiers

Getting charged up

Retail company 7-Eleven announced plans for an electric vehicle charging network called 7Charge, with the goal of making it one of the largest in North America.

“The plan includes DC fast-charging stations at 7-Eleven locations

in the US and, eventually, Canada, with access via a proprietary app,” according to the website Green Car Reports.

Green Car Reports also noted that 7-Eleven’s EV charging network is already available at some of its stores in Florida, California, Colorado and Texas. Read the story here: www.greencarreports. com/news/1139070_7-eleven-wants-its-ev-charging-network-to-beamong-the-largest

Cellular expansion

We’re happy to report cell coverage is improving along many sections of highways throughout BC.

The province is investing $75 million through the Connecting British Columbia program, administered by Northern Development Initiative Trust, to help fund projects that will expand cellular to at least another 550 kilometres of highway by 2027.

“Access to cellular coverage is important when on the road, especially when travelling through remote and rural areas,” said Lisa Beare, Minister of Citizens’ Services. “With the province’s investment in new cellular infrastructure, we’re making it possible for more people to stay connected to their loved ones while travelling and have access to emergency 911 and other services via mobile connectivity.”

Story details here: news.gov.bc.ca/releases/2023CITZ0007-000360

THE KEY TO A BETTER BOTTOM LINE

Are Cyberthreats Keeping You Up at Night?

Vehicle thefts and infrastructure threats

BY BRUCE CAMERON, SIGNALS COLUMNIST

From sophisticated theft of sensitive financial records to cars being stolen via captured radio frequencies, cybersecurity threats are everywhere these days.

Car thefts today rarely involve the old smash and grab technique. Vehicle theft is mostly silent, aided by the stealthy capture of radio frequency signals sent between the vehicle and the car fob. And it’s a growing problem in Canada, especially in major cities.

Équité Association is a member-funded organization that tracks vehicle thefts and encourages steps be taken to prevent them. In a media release in November 2022, Bryan Gast, Équité’s vice president of investigative services, pointed out that “Canadian property and casualty insurers are invested in finding solutions to the complex problem of auto theft and in helping to create safer communities for all Canadians.”

The solution may be quite simple, however, in the creation of a $6 key fob “purse” that blocks radio frequencies from being intercepted. In February 2023, Brampton, Ontario’s Mayor Patrick Brown, fed up with the city’s high vehicle theft statistics, promoted the distribution of thousands of Faraday bags to residents in the city, stating that a Faraday bag “is a $6 item that can protect a $60,000 car from being stolen in less than 60 seconds.”

Faraday is a Michigan-based company that makes numerous sophisticated enclosures and customized solutions to prevent digital hacking and protect against electromagnetic pulse (EMPs), a disruptive force that incapacitates computer systems. But Faraday bags may be the cheapest, most easily obtained protection on the market for the common problem of car theft via radio frequencies.

If the solution is that simple, it is baffling

According to the US-based Security magazine, one in seven auto dealerships (15 per cent) experienced a cybersecurity incident in the past year. The bulk of these attacks were “phishing” incidents, carried out via email and designed to bypass firewalls and infect critical systems.

why certain original equipment manufacturer (OEMs) did not move more quickly to curb thefts carried out via intercepted radio frequencies.

For more complex security threats to data infrastructure and communications functions that lie at the heart of the vehicle dealership network, simple solutions fall far short.

One Canadian firm that specializes in creating customized solutions, founded by a CSIS veteran with extensive cybersecurity experience, is the Kirsch Group. Founder Andrew Kirsch explains that he has gathered a team with “unique skills drawn from extensive and diverse intelligence, military, law enforcement and corporate security backgrounds to address the growing cyber risks all around us.”

How much of a threat exists for vehicle dealerships in BC? It depends on the infrastructure and precautions in place and the diligence of the employees and contractors retained to keep up with constantly changing modes of attack. According to the USbased Security magazine, one in seven auto dealerships (15 per cent) experienced a cybersecurity incident in the past year. The

bulk of these attacks were “phishing” incidents, carried out via email and designed to bypass firewalls and infect critical systems.

Highlights from the CDK Global Inc. report 2022 State of Cybersecurity in Dealerships found that “nearly 60 per cent of dealers plan to prioritize upgraded investments in cybersecurity infrastructure.” Common steps being taken include installing anti-virus and malware protection, taking cybersecurity measures to combat email phishing and ransomware, and securing endpoint devices.

One often overlooked element in developing a plan to deal with cyberthreats is employee training. Lack of employee awareness, theft of business data and stolen or weak passwords tend to be at the root of many attacks.

Dealerships in America are preparing for the possibility of increased attacks to their infrastructure by hiring cybersecurity experts and educating staff on detecting potential cyberthreats. Given the integration of the American and Canadian economies, heightened cybersecurity threats are coming. Are you prepared?

Efficient Yet Stylish and Luxurious

Get revved up over these 2023 offerings

The auto industry continues its major shift towards electrification, with more and more automakers introducing new electric models. As the technology continues to improve, these vehicles are becoming increasingly efficient yet stylish, providing an eco-friendly alternative to traditional petrol-powered cars.

2023 Honda CR-V

The sixth-generation 2023 Honda CR-V is one of the best examples of a well-rounded vehicle. Totally redesigned for 2023, it looks to compete with the latest in the compact SUV segment with its 2.7-inch greater length and new technology.

2023 F-150 Raptor R

The third-generation Ford F-150 Raptor R is a monster-sized pickup truck that truly lives up to its name. The ultimate new powerhouse is the new “Raptor R” V8 with 250 hp more than the base Raptor for a total 700 hp / 640 lb-ft of torque from a 5.2L supercharged V8 shared with the Mustang Shelby GT500.

Despite the Raptor’s rugged and aggressive exterior design—certain to turn heads wherever it goes—the cabin is spacious and surprisingly comfortable with plenty of modern features/technology to keep occupants connected and entertained. Off the beaten path, the Raptor R rises above the competition with up to 13 inches of ground clearance, thanks to its FOX shocks, 37-inch beadlock capable wheels and advanced Terrain Management System. The combination of powertrain performance and suspension tech makes it an absolute pleasure to drive through any terrain imaginable. Overall, the F-150 Raptor R is a top-of-the-line pickup truck that delivers excellent performance, style, and comfort on and off the pavement. Prices start at $146,005.

A re-tuned 190 hp, 1.5L turbo 4-cylinder and CVT combination is the base configuration, with an even more efficient optional 204 hp hybrid powertrain. Both can be paired with front- or all-wheel drive. Performance is fine for the segment but not exceptionally quick. On the inside, you’ll find a handsome new interior lifted mostly from the latest Civic, complete with a honeycomb-textured accent and a seven-inch infotainment system. The spacious new interior allows plenty of room for passengers and luggage, along with additional storage cubbies and an adjustable load floor. The stiffened new chassis and reinforced suspension results in ride and steering that’s light and accurate, although the handling is still not as fun to drive as some competitors. Overall, the 2023 CR-V checks all the boxes for any daily driver, delivering reliability, comfort and capability in one package. Pricing starts at $36,315.

2023 GMC Sierra AT4X

The 2023 GMC Sierra AT4X pickup truck is a formidable upgrade to the AT4 line. Its bold exterior styling features a winch-capable steel front bumper as well as widened fenders and boron skid plates for extra protection. Its rugged design and impressive offroad capabilities are built for adventure seekers who demand power and capability, with premium amenities. Under the hood, the AT4X is powered by a 6.2-liter V8 engine that produces 420 hp and 495 lb-ft of torque, paired with a 10-speed gearbox. It also features a unique suspension system with Multimatic DSSV shocks and a two-speed transfer case with front/rear e-lockers not offered on any competitor. Inside, the AT4X boasts a new premium cabin with leather-trimmed heated/ventilated seats, a massive new 13.4-inch infotainment system, and a premium Bose sound system. Also included are lane departure warning, automatic emergency braking, and adaptive cruise control.

The 2023 Sierra AT4X is a top-notch option for those who want a truck that can handle any terrain while still providing comfort and style. Pricing starts at $101,547.

2023 Hyundai Ioniq 6

Hyundai is going head-to-head with the popular Tesla Model 3 with its new 2023 Ioniq 6. With many components shared with the award-winning Ioniq 5 crossover, the Ioniq 6 is the futuristic four-door-sedan version. Its eye-catching shape is even more aerodynamic than the latest Prius.

With a noticeably more luxurious interior than the Model 3, the Ioniq 6 is loaded with all of Hyundai’s latest hits, including a 12.3-inch digital cluster, a 12.3-inch infotainment screen and all the latest cabin and active safety tech. The interior is minimalistic yet modern, offering seating for five. The aerodynamic rear-end design does compromise cargo space somewhat, but there is a frunk along with folding rear seats. Both single- and dual-motor versions are available with power ranging from 149 hp to 320 hp. The most efficient RWD long-range model is rated for a whopping 581 kilometres on a single charge. Battery options are similar to the Ioniq 5, with a range-topping 77.4 kWh long-range battery pack that can charge from 10 to 80 per cent in as little as 18 minutes. Overall, the Ioniq 6’s range, performance, and features make it a top new contender in the EV market. Pricing starts at $54,999 for the RWD Long Range and $57,999 for the Dual Motor AWD Long Range.

2023 Toyota Corolla Cross

The 2023 Corolla Cross is a new addition to Toyota’s lineup of compact SUVs. It’s a great choice for those looking for a reliable and efficient small SUV with all-wheel drive. The Corolla Cross features a 169 hp 2.0L 4-cylinder engine and a well-tuned CVT, great for both city commuting and long drives. Power is surprisingly more than adequate.

Inside, the Corolla Cross features a spacious, modern and comfortable cabin with a good amount of legroom/headroom despite its compact dimensions. Toyota’s user-friendly eight-inch infotainment system does the job well, and there’s even an optional wireless charging pad. Advanced safety features, including automatic emergency braking, adaptive cruise control and lane departure warning, are available. Overall, the 2023 Corolla Cross is an excellent choice for those looking for a practical and stylish compact SUV backed by Toyota’s reputation. Its fuel efficiency, safety features and spacious cabin make it an ideal option for families and commuters alike. A new hybrid model is upcoming soon. Pricing starts at $28,835.

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Content and images courtesy of Andrew Ling.

ICBC Invests in Road Improvements

Taking steps to make BC a safer place to drive

For the past 30 years, ICBC’s road improvement program has championed innovations in road safety and invested over $200 million in more than 7,500 projects. Fewer crashes means fewer injuries and fewer wrecked cars—and fewer insurance claims.

A recent evaluation concluded that every $1 spent on road improvements across BC results in an average of $4.70 in savings.

The evaluation also concluded that ICBC’s road improvement projects have reduced severe crashes—those resulting in serious injuries or fatalities—by an average of 24 per cent, and reduced property damage claims by 15 per cent.

When ICBC launched the road improvement program in 1990, it was the first of its kind in North America, and it became the model for other programs, including State Farm’s Dangerous Intersections program in the US and AAA Michigan’s Road Improvement Demonstration Program. In its initial decade of operation (1990 to 2000), ICBC road improvement program helped co-fund a broad range of projects, including interventions such as rumble strips, signals, barrier installations and intersection redesign.

ICBC also looked at improving visibility on BC roads by upgrading with highly reflective road signs and stop signs. ICBC championed two innovations in the second decade (2000 to 2010): modern roundabouts and road safety audits.

To date, ICBC has participated in development of approximately 100 roundabouts throughout BC, undertaking studies and audits of roundabout designs. Roundabouts are effective at reducing the frequency and severity of intersection crashes.

Vehicles aren’t forced to stop at roundabouts, so they also reduce

delays, congestion, noise, fuel consumption and emissions.

Road safety audits are used to evaluate safety concerns and identify improvements at the design stage of a project to ensure safety issues are fully considered before construction begins. In the last 13 years, ICBC has continued to work on improving highcrash and high-risk locations.

This includes undertaking a multi-disciplinary approach on highrisk corridors such as Highway 3 from Princeton to Hope, working with municipal partners to review sign and pavement markings for upgrades to best practices, expanding the roundabout program to new communities, and completing numerous road safety audits.

ICBC also currently participates in approximately 30 traffic safety committees throughout BC to provide technical road safety engineering expertise and collaborate with a wide range of provincial and local road safety stakeholders. ICBC’s Road Improvement Program has won numerous awards, including the Prince Michael International Road Safety Award from RoadSafe in 2002, the Transportation Association of Canada (TAC) Decade of Action Road Safety Award in 2015, and the TAC Educational Achievement Award in 2021.

ICBC’s road safety investments focus on the systemic causes of crashes—drivers, roads and vehicles—and support programs that are proven to prevent crashes for a safer BC. As new tools and technologies become available to make roads even safer, ICBC will continue to study and, where appropriate, implement emerging improvements that show promising benefits for road safety.

For more information, visit icbc.com

Spring Update and Industry Survey Findings

News from the Vehicle Sales Authority

timeliness of our licensing process. That number moves to 88 per cent for first-time salesperson applicants, and 88 per cent for first-time dealer applicants.

BY IAN CHRISTMAN, JD, MBA, PRESIDENT, VEHICLE SALES AUTHORITY OF BRITISH COLUMBIA

In January, the Vehicle Sales Authority (VSA) worked with Angus Reid to conduct a survey asking industry personnel about the services we provide. I want to highlight some of the survey’s findings and the feedback we received, and speak to what we are doing this coming year to respond.

When asked about the content of bulletins and other communications, 53 per cent of respondents said they were “useful,” with 31 per cent saying they were “somewhat useful.”

Respondents asked for more information on industry trends (such as retail and wholesale prices), consumer and legal information, and enforcement action.

In April, we are launching our new website. Access to industry information and existing guidance documents will be easier. We will look at creating a resource page where we can link you to more industry-specific information on trends. We will be re-introduc-

ing our quarterly compliance report with the first edition coming in July. We are launching My Self Help, which allows consumers to ask some key questions and get information about their rights and how they can go back to the dealer to resolve their concerns. Industry can also use My Self Help to understand a consumer’s rights by answering those same questions.

Seventy per cent of respondents said they had called or would call the VSA for best-practice advice. To increase our ability to provide that advice, we are re-allocating resources to add an industry standards officer.

We are also reviewing and updating our existing guidance documents for industry. We are looking to create short videos with guidance information. We will be conducting additional training of our industry standards officers to ensure they are focusing on education and industry support to prevent problems from occurring.

Making sure a transaction goes well from the start leads to a better buying experience for consumers, and repeat customers for you.

About 77 per cent surveyed were either satisfied or somewhat satisfied with the

This coming year we are conducting a process mapping exercise of our licensing processes to look for efficiencies, including ways to automate and speed up our processes. We have a goal this coming year of reducing the time to process licensing requests by five per cent.

What else is new for 2023?

We are reviewing all our regulatory processes to ensure they meet the current best-practice standards called “Right Touch Regulation.” We will be working with Harry Cayton, who has reviewed the BC College of Dentists, the Law Society of BC and others in this province, Canada and elsewhere against these standards.

We want to ensure we are delivering on the mandate set by government “to maintain and enhance consumer protection and consumer confidence within the motor dealer industry,” which must be balanced against imposing too stringent a regulatory burden on industry. That balancing is the cornerstone of “Right Touch Regulation.”

Our annual business plan for the fiscal year ending March 31, 2024 highlights many other things that we are doing to improve our services, operate under current best practices, and “enhance consumer protection and consumer confidence within the motor dealer industry.” You can find it all on our new website at vsabc.ca.

Seventy per cent of respondents said they had called or would call the VSA for bestpractice advice.

Getting to Zero: Meeting the Mandates

Motoring towards a net-zero future

BY RICHARD DETTMAN, SIGNALS COLUMNIST

Zero is usually a negative thing, like zero-sum game or scoring zero on a test. But the zero-emission vehicle (ZEV) is a positive thing, an important player in reducing carbon emissions. Governments, industry and buyers are placing big bets on it. But while EV progress is faster than forecasted, a promising future never arrives problem-free. EVs are in short supply, prices for battery materials have soared, automakers are scrambling to add capacity, and supply chains are only now recovering.

Yet Canadian ZEV sales rose sharply in 2022 despite an overall decline.

According to S&P Global Mobility—which provides automotive data, analysis and insights—one in 11 new vehicle registrations last year in Canada were ZEVs, while total sales of light vehicles fell 9.7 per cent. Impressive as an overall 8.9 per cent share is, British Columbia’s is even more impressive at 18.1 per cent. The Vancouver Census Metropolitan Area (CMA) is the leading buyer of electric autos at 22.5 per cent, with S&P Global noting that the Vancouver, Montreal and Toronto CMAs acquired 58 per cent of Canada’s ZEVs.

At this rate BC’s target of 26 per cent ZEVs by 2026 will be met or exceeded, even though it was sharply increased in 2021. Getting to 90 per cent by 2030, more than triple the BC government’s earlier goal, would require a huge increase in the supply of ZEVs. So will matching the federal target of every new vehicle being electrified by 2035. But don’t bet against it.

Anecdotally, I sense a shift in public attitudes, with fewer questions about EV range. Today the chatter is “where will I plug in?” To that end, BC Hydro is adding charging stations as the government plans to complete BC’s Electric Highway by 2024. Its target is 10,000 stations by 2030.

The private sector is also stepping up, sometimes with government help. In addition to chargers at gas stations there’s opportunity at highway service centres, where people can charge a vehicle and get coffee and a bite to eat. Some municipalities now require or incentivize developers to put chargers in new residential and commercial projects. And provincial assistance of up to $137,000 to wire an entire complex for chargers, or up to $14,000 for standalone units, could also help alleviate “plug anxiety.”

My wife and I know EVs firsthand, having had a battery electric vehicle (BEV) since 2018. It’s definitely different from owning an internal combustion engine (ICE) vehicle. Tire wear is faster due to the EV’s heavier weight and instant torque. We might go for quieter, higher-performance tires as replacements. Surprisingly, service reminders from the dealership would have been appreciated because the car just runs and runs.

And looking back to the “ancient EV time” of 2018, I wish we’d been offered mechanical breakdown insurance (extended warranty), if only to have the information. BEVs have far fewer parts than ICE vehicles, and failure rates are low, but replacing certain key components can run into five figures.

Our buying decision was influenced by the government rebates, an important driver of EV sales overall. Just look at the much higher totals in BC and Quebec versus Ontario, which offers no incentive.

Subsidies are still important today even as the severe shortage of electrified product gradually eases. That’s because of the continuing and substantial price gap between EVs and comparable ICE vehicles. When the spread is narrowed, the choice for most people is obvious. And many more of us will be motoring toward a net-zero future.

About Richard: “From the business centre, I’m Richard Dettman.” Radio listeners and TV viewers might recall the voice of Richard Dettman. His career in BC radio and TV news spanned more than 45 years before he retired in late 2020 after nearly 17 years as business editor of CityNews Vancouver (previously NEWS 1130). During that time, he also did business reports for CityNews TV (previously City TV) and Global News BC. In 2022 he was given a Lifetime Achievement Award (West Region) by the RTDNA industry group. Currently he enjoys hosting and producing car reviews for the Family Wheels channel on YouTube.

Selling a Dealership and Blue-Sky Value

The many questions a seller needs to consider

Listed below are a series of items that you, as the seller, must address before you go to market.

• What brand do you represent and what is the future direction of that brand?

• Is your dealership fully aligned with the future direction of the brand you represent?

• How does your dealership perform vis-avis the brand’s regional market share?

• What is your pump-in / pump-out relationship?

• What is the geographic location of your brand’s other store(s) in your market?

• Are their retirements on the horizon?

• Does your technician training comply with your brand’s policies?

• What is your effective door rate?

• Is your shop flat rate?

• Do you own your real estate or lease it from an independent landlord?

• What is the term and how many renewals are remaining?

• How are rents structured?

• Do your operating statements tell the complete picture of your profitability, or do they contain items that need explanation to a purchaser?

• Is your primary market area growing?

Over the past few decades, I have been fortunate to have had the opportunity to, in some way, be involved with several dealership purchase and sale transactions.

The question I get asked most often from sellers centres around the value of goodwill or “blue sky.”

(Blue-sky value measures the entire intangible value of the dealership, including goodwill. The value of the dealership’s tangible assets is added to blue-sky value to determine enterprise value.)

Naturally as the seller you want to have a good indication of what your dealership is worth. Sellers often focus on the “multiple.” And, although knowing the range of multiples is a good indicator, the true goodwill of your store can only be calculated once you and the purchaser have an agreement. Up to then, it’s guesswork and wishful thinking.

• Is your facility fully image compliant or is there a renovation or relocation in your dealership’s future?

• What possible conditions could the brand impose on a buyer of your store in their letter of commitment?

• Roughly what additional investment might the purchaser be required to make and over what time frame?

• What is your dealership’s new to used vehicle sales ratio?

• What is your average used vehicle stock in terms of days in inventory?

• Do you own your used inventory or is it financed via floor plan?

• What is your vehicle reconditioning per retail used vehicle sold?

• How large is your service facility in terms of bays and technicians?

• What is your service technician turnover?

• What is the range in age of your service technicians?

• Are there any open points from competing brands?

• How seasoned is your leadership team?

• Will this be a turnkey acquisition for the purchaser, or will they have to insert their own management?

• What is your CSI in comparison to your brand’s regional average?

• Finally, how do you want your loyal staff to be treated by the purchaser?

In the next edition of Signals, we’ll delve a little further into all of this. In the meantime, give some thought to the questions above.

Chuck Seguin is the President of Seguin Advisory Services, a consultancy dedicated to helping automotive retailers achieve success through providing confidential independent points of view and services designed to address multiple decisions facing dealer principals. He can be reached at (416)-565-9493 / cs@seguinadvisory.ca

FIRST OF TWO PARTS BY CHUCK SEGUIN

Changes to Paying the Piper?

New Commercial Liens Act will streamline legislation

BY RAMANJEET (RJ) SOHAL, ARTICLED STUDENT, AND MATTHEW WANSINK, SENIOR COUNSEL

A lien is a way to obtain an interest in another person’s property to secure repayment of a debt. For example, when a vehicle is taken into a dealership for service or repairs, and the customer does not pay the bill, the dealership can use the Repairers Lien Act (“RLA”) to recover the debt.

The RLA, however, is being replaced. Is this a good thing or bad thing? What should dealerships in BC be aware of?

Repairers Lien Act

The RLA can be an important part of a dealership’s efforts to recover money in the event a customer does not pay the bill for repair and related services. The RLA allows a dealership to claim a lien on the vehicle while keeping possession of it or releasing it to the customer. The customer will be required to either pay the bill to have the lien removed, or the dealership can sell the vehicle to recover its money.

Under the RLA, dealerships must follow a very specific procedure to ensure a lien is properly registered and the money is properly recovered. There are different steps to follow when the dealership keeps possession of the vehicle versus when the vehicle is released to the customer before the bill is paid.

The rules can get confusing and overwhelming. Failure to strictly follow the procedure can result in an invalid lien.

Commercial Liens Act

Currently, there are different rules for repair, storage and transportation liens. The Commercial Liens Act (“CLA”) will modernize BC lien laws, by providing one set of rules for all liens, with the intention of making it easier for service providers to recover debts.

The CLA will create a single type of lien on goods for the services that have been provided with respect to those particular goods. Now, a dealership that is unpaid for repairs on a vehicle will register the same type of lien and follow the same process as a truck driver who was unpaid for transporting goods.

The CLA will apply to the following services:

• provision of labour or materials for the purposes of restoring, improving or maintaining the condition or properties of goods;

• storing goods;

• transporting, carrying or towing goods; and

• salvaging goods.

Under the CLA, a lien will secure the amount agreed to between the parties or, if no amount was agreed to, the market value for the services provided.

Changes

Changes brought by the CLA will make it easier for dealerships to maintain liens to secure payment by:

• creating a lien for services as soon as the services begin;

• establishing clear rules for the amount secured by a lien;

• removing the requirement for possession of a vehicle; and

• giving dealerships a more simplified process to return a vehicle to the customer by obtaining a signed authorization for services or a signed acknowledgment for payment and registering the lien in the Personal Property Registry (“PPR”).

The CLA will also streamline the process for selling liened goods. Instead of different methods of sale that depend on how the lien arises, the CLA provides that liened goods may be sold by private sale, by public sale (including public auction or closed tender), as a whole or in commercial units or parts, and by lease (if the owner consents in writing).

Consolidation of the Law

The CLA will be an adaptation of the model Uniform Liens Act prepared by the Uniform Law Conference of Canada, which has already been enacted in Saskatchewan. The goal of these modern reforms is to have one set of lien rules throughout Canada. Importantly for dealerships with operations in multiple provinces, they would not have to keep track of different rules for each province as is currently the case. Dealerships should also be aware that the Warehouse Lien Act, another piece of legislation that they may occasionally come across, will be replaced with the CLA.

Under the current various lien legislations, valid liens may have limited scope and can be easily lost; and integration of the current lien legislation with BC’s Personal Property Security Act is either inadequate or non-existent.

Hopefully, a consistent approach to procedures and enforcement measures for similar types of liens, as is the intent with the CLA, will make it easier and more efficient for dealerships to recover debts.

When is it coming?

The CLA has not yet come into force. Dealerships should be prepared to see it enacted this year or in early 2024. The delay arises from required changes to the PPR regulations, as commercial liens will be a new type of registration in the registry. Until the CLA comes into force, the Repairers Lien Act remains in effect.

The above are only a few of the many changes contained in the proposed CLA. The CLA will bring, among other things, new responsibilities, procedures, notice periods and deadlines.

Should you have any questions about how this new legislation will affect your business, or general questions about commercial liens, please do not hesitate to contact Clyde & Co Canada LLP.

Top 10 Paid Out Vehicles - 2022

Total rebates paid out in 2022 (by unit and dollar amount):

• The annual total (January to December 2022) is 9,693 units, totaling $25,099,003

• Average amount per rebate paid out during the program: $3,216

Latest EV Industry News

• VW announced in March its first battery plant outside of Europe. Canada, which is home to a large mining sector for minerals, including lithium, nickel and cobalt, has been successful in attracting VW to build a new battery plant here.

• Canada Post unveiled its first fleet of battery-electric delivery vehicles in Nanaimo as part of its efforts to electrify its national fleet by 2040.

New Eligible Vehicles Added to the Program

• 2023 Hyundai Tucson (PHEV, 1 trim)

• 2023 Toyota Mirai (FCEV, 1 trim)

• 2023 Hyundai Ioniq 6 (BEV, 1 trim)

• 2024 Lexus NX450h+ (PHEV, 1 trim)

• 2024 Mini Cooper SE (BEV, 1 trim)

Important Application Guidelines for Dealers

For program rules, clarifications and more, review our Dealer’s Manual documents, including New System – Dealer’s Instructions and New Rules – Clarifications. newcardealersgoelectric.ca/dealers/dealersmanual/

Individuals MUST apply online and receive their pre-approval (by email) for the rebate before they take delivery of their vehicle, in order to be eligible for the rebate.

Dealers: DO NOT provide the CleanBC Go Electric Passenger Vehicle Rebate to individuals who are not pre-approved through income testing by the BC government beforehand. Providing the rebate on a post-delivery basis (retroactively) is NOT allowed.

For most frequently asked questions, visit: newcardealersgoelectric. ca/about-the-program/frequently-asked-questions/

Passing a Family-Owned Dealership on to the Next Generation

Lots to consider as you follow a road map to success

For many family-owned dealerships, passing the business to the next generation is a major concern. Without proper planning, the dealership may not survive past the current generation. That’s why it’s crucial to have in place a succession plan that takes into account your goals, your family’s goals, financial needs and future prospects.

In this article, we’ll explore some key strategies for creating a successful roadmap for passing a family dealership to the next generation.

Developing a comprehensive succession plan

First and foremost, it’s essential to develop a comprehensive succession plan that includes

a family business strategy, detailed financial planning and open communication with all family members involved in the business. This plan should be created early on, as succession planning can take several years to implement.

A timeline for the process should consider key milestones and potential obstacles.

This succession strategy should address questions such as who will take over the business, how leadership roles will be assigned and what the family’s long-term goals for the business are. It should also consider potential conflicts or challenges that may arise during the transition process.

Detailed financial planning is another critical aspect, including forecasting future revenues and expenses, creating an estate

plan and assessing the tax implications of the transition. By doing so, families can ensure that the dealership’s assets are protected and that they are maximizing their financial opportunities.

Identifying and preparing potential successors

One of the most critical aspects of succession planning is identifying and grooming potential successors within the family. This includes providing training and mentorship opportunities and encouraging family members to gain outside experience in the industry so they can bring fresh perspectives and ideas back to the dealership.

Start by identifying potential successors

based on skills, interests and values. Not everyone can hold the title of dealer principal or president. However, providing the appropriate training and mentorship opportunities can help successors develop the necessary leadership skills.

Minimizing tax burdens

Another crucial factor to consider when creating a succession plan is the potential tax implications. There are several strategies that can be used to minimize tax burdens and protect the dealership’s assets—such as a family trust, which can help to protect assets and minimize estate taxes.

Families may also want to utilize life insurance policies to provide liquidity in case of unex-

pected events. Additionally, there are various tax incentives available for family-owned businesses, such as the lifetime capital gains exemption, which can help reduce tax burdens.

Seeking outside expertise

It is important to look for outside expertise when developing a succession plan. This may include consulting with financial and legal professionals who specialize in succession planning for family-owned businesses.

Succession is a family matter which impacts both you and your loved ones. Family office practitioners bring knowledge and experience to help families navigate the complex legal and financial issues involved in passing the dealership to the next generation.

LEADERS IN EMPLOYMENT LAW

Canadian Legal Lexpert Directory 2023

Canadian Legal Lexpert Directory 2023

Chris Drinovz is recognized as a Vancouver Leading Lawyer in the Employment LawEmployer category of the prestigious Canadian Legal Lexpert Directory.

Chris Drinovz is recognized as a Vancouver Leading Lawyer in the Employment LawEmployer category of the prestigious Canadian Legal Lexpert Directory.

We thank our clients for their ongoing trust and support.

We thank our clients for their ongoing trust and support.

KSW Lawyers

Christopher Drinovz cdrinovz@kswlawyers.ca | 604-507-6192

Surrey Office

Conclusion

Passing a family-owned dealership to the next generation requires careful planning and consideration. By developing a comprehensive succession plan that includes seeking outside expertise, families can ensure a smooth transition and a successful future for their dealerships. The key is to start the planning process early and to remain flexible and open to new ideas and opportunities along the way.

To learn more, contact Kerry Smith, CPA, CA, TEP, National Leader, Family Office Services at Kerry.Smith@mnp.ca or 778.374.2189.

Michael Weiler mweiler@kswlawyers.ca | 604-336-7423

South Surrey Office

Abbotsford Office

#220 - 7565 132 Street

Surrey Office

Surrey, BC V3W 1K5

#220 - 7565 132 Street

Surrey, BC V3W 1K5

#206 - 15300 Croydon Drive

South Surrey Office

South Surrey, BC V3Z 0Z5

#206 - 15300 Croydon Drive

South Surrey, BC V3Z 0Z5

Abbotsford Office

#307 - 32615 South Fraser Way

#307 - 32615 South Fraser Way

Abbotsford, BC V2T 1X8

Abbotsford, BC V2T 1X8

It’s crucial to have in place a succession plan that takes into account your goals, your family’s goals, financial needs and future prospects.

BC Supreme Court Rules in Favour of Employers on Termination Clause Language Employers advised to review and update employment agreements

BY CHRIS DRINOVZ, HEAD OF KSW LAWYERS EMPLOYMENT, LABOUR & DISABILITY GROUP

In the recent decision Forbes v Glenmore Printing Ltd., 2023 BCSC 25 (“Forbes”), the BC Supreme Court established that a termination clause in an employment contract does not have to mention “group termination” entitlement in order to be enforceable. In this case, a former employee sought to have the termination clause of his employment contract deemed unenforceable.

Our employment law team at KSW successfully represented the employer in opposing this novel argument at trial.

Background

The defendant in the case, Glenmore Printing Ltd., employed Mr. Forbes as a senior pressman for six years and four months until he was laid off as a result of the COVID-19 pandemic.

The parties agreed prior to trial that the layoff was a constructive dismissal, and the only remaining issue at trial was the value of the severance (payment in lieu of notice).

Glenmore argued it had satisfied all its legal obligations as it paid Mr. Forbes six weeks’ severance in accordance with both the Employment Standards Act, RSBC 1996, c 113 (the “ESA”) and the termination clause in the signed employment contract.

Mr. Forbes argued that the employment contract was unenforceable on the basis that it provided less entitlement than contemplated by the minimum requirements of the group termination provisions set out under section 64 of the ESA, and therefore entitled him instead to a higher common law reasonable notice.

Analysis

It is well established in BC law that if a termination clause potentially violates the ESA it will not be enforceable. Traditionally, this has applied primarily to termination clauses that provided for a lesser notice period than those set out in section 63 of the ESA.

In this case, the plaintiff brought a novel

argument attempting to extend this principle to include termination clauses that limit the employee’s entitlement to the formula set out in section 64 of the ESA which deals with “group terminations” only (of 50 or more employees). Although Mr. Forbes was not part of a group termination in this case, if he had been, he would have been entitled to more notice under section 64 than provided for by his employment agreement.

Mr. Forbes’ employment contract set out a termination clause which essentially mirrored the language contained in section 63 of the ESA (the “Clause”).

At trial, Mr. Forbes argued that by imposing an eight-week maximum for notice in the Clause, the defendant was attempting to circumvent the minimum-notice requirements for group terminations under section 64.

The Court rejected Mr. Forbes’ argument and accepted our argument instead, concluding that the Clause was enforceable because section 63 of the ESA (which provides for a

maximum of eight weeks’ notice) establishes the minimum statutory requirements that are needed to oust the common law entitlement to reasonable notice, and not section 64.

Further, the Court found that the Clause was enforceable because it was merely silent on the issue of Mr. Forbes’ entitlements in the event of a group termination, rather than expressly attempting to limit his entitlements in the event of a group termination. This is because, where an employment agreement is silent on an issue, the employer will be bound by the provincial employment standards legislation. In this case, the Clause did not place any limitations on Mr. Forbes’ potential entitlement in the event of a group termination under section 64.

Takeaways

In British Columbia, section 63 of the ESA (which provides for a maximum of eight weeks’ notice for individual terminations) rather than section 64 (which provides for a maximum of 24 weeks for group terminations) sets the minimum amount of notice required to limit an employee’s entitlement to common law reasonable notice.

In order to be unenforceable, a termination clause needs to contain express language that points to an intention to contract out of the ESA. For example, a termination clause stating that an employee is only entitled to six weeks’ notice or pay in lieu of notice would likely be unenforceable.

Employers should review and have their employment agreements updated periodically in order to limit their exposure to common law reasonable notice. An enforceable contract can help avoid litigation costs down the road and help create certainty for both the employer and the employee.

Note to Readers: This is not legal advice. If you have any questions about an employment matter or require assistance revising your employment contracts or policies, please reach out to Chris Drinovz at cdrinovz@kswlawyers.ca

An enforceable contract can help avoid litigation costs down the road and help create certainty for both the employer and the employee.

Protect Your Business From Unauthorized Access

Take these steps in addition to obtaining cybercrime insurance

In today’s economy, maintaining a stable and growing business is no easy task.

Here’s a look at recommendations to consider, alongside cybercrime insurance, to help keep your hard-earned success safe and secure.

Cyberattacks are preventable and far less likely if cybercrime best practices are in place.

To prevent your business from becoming a victim of cybercrime, entrepreneur.com recommends the following:

• Implement employee training to foster critical thinking around cyber safety, including a system to report suspicious activity.

• Create a system security plan that includes details on how to limit access to authorized users and respond to a security breach, and ensure employees practice secure habits.

• Keep software updated since outdated software can expose your company to vulnerable security flaws.

• Enforce secure password policies because strong passwords that are regularly changed make a huge difference.

• Outsource cybersecurity, even if it’s just simple anti-malware or anti-ransomware technology. Keeping up to date with security threats is extremely time consuming, so placing the job with the right protector cuts your risk significantly.

Cyber criminals are always looking for opportunities, so vigilance with personal information is vital for your personal security.

Personal best practices resemble the business strategies mentioned above, and according to the American Cybersecurity and Infrastructure Security Agency (CISA) they can be boiled down to a four-point strategy:

• Turn on multifactor authentication for your accounts to make it significantly less likely you’ll get hacked.

• Update your software; in fact, it’s best to simply turn on automatic updates to plug any leaks that your software providers have identified.

• Think before you click: more than 90 per cent of successful cyberattacks start with a phishing email.

• Use strong passwords and, ideally, a password manager to generate and store unique passwords.

HUB International partners with Cyberscout, a market-leading cyber insurance service provider which offers businesses the means to better understand the exposure to cyber risk and, in the event of an incident, expertise and guidance to fix the situation. To learn more, contact Wayne

Hearts Full After Successful 2023

SOBC Winter Games in Kamloops

BC’s new car dealers are among Special Olympics BC’s longest-standing champions. It’s our privilege to share stories showing the difference you make by supporting Special Olympics. You help create experiences of joy, friendship, empowerment, skill development and health improvements for more than 5,200 athletes with intellectual disabilities in 55 BC communities.

The 2023 Special Olympics BC Winter Games presented by Prospera Credit Union were a joyful success thanks to 500 hardworking athletes with intellectual disabilities, more than 100 life-changing volunteer coaches and mission staff, and more than 700 dedicated SOBC Winter Games volunteers.

SOBC is extremely grateful for the support of BC’s new car dealers, who help make empowering opportunities like provincial games possible.

The competitors from 40 communities around the province came together in Kamloops from February 2 to 4, giving it their all in

eight sports. The athletes were well prepared to compete after all their hard work training in year-round Special Olympics programs in their hometowns. They returned home laden with medals, personal bests and memories and friendships for life. As they say in the Special

Olympics athletes’ oath, they were truly “brave in the attempt.”

These were Special Olympics BC’s first provincial games in four years, after a pause forced by the COVID-19 pandemic. Special Olympics BC athletes were thrilled to come back together

Cross-country skiing athletes and volunteers are inspired by the camaraderie at the 2023 SOBC Winter Games in Kamloops.

Snowshoers impressed with their speed and skill at Provincial Games.

to compete and show their skills.

Special Olympics BC-Kelowna athlete Chris Harrington said the 2023 SOBC Winter Games event was a wonderful experience that involved “meeting people that I haven’t seen because of COVID in four years and just getting back in being competitive.”

“The event was absolutely amazing! Kamloops volunteers jumped in and pulled it off— and not only pulled it off, but got amazing feedback that this was one of the best Winter Games ever,” 2023 SOBC Winter Games organizing committee chair Jan Antons said. “To see the joy of the athletes and volunteers and everyone around was a really great experience.”

Special Olympics BC-Kamloops crosscountry skiing coach and parent Curtis Howell said the camaraderie was outstanding. “It’s been fabulous. Thrilled to be here, thrilled to be with all the athletes. It’s been an amazing time. Everybody had fun and everybody competed well and hopefully threw their best on the course.”

Parent Outi Divin wrote, “I am a parent with two Special Olympics athletes. They have something that makes them feel important. They are amazing… [The 2023 SOBC

Winter Games] were a great time for athletes and spectators alike!”

At the 2023 SOBC Winter Games closing ceremony, Special Olympics BC announced the host community for the next provincial games. The 2025 Special Olympics BC Summer Games will head to the City of Prince George, marking the third time the community has hosted provincial games.

SOBC is deeply grateful to BC’s new car dealers for your generous support. You play an essential role in fueling SOBC’s life-changing, year-round programs and competitions for people with intellectual disabilities, creating empowering and inclusive opportunities.

Make A Difference

Bid from April 24 to 27

Start your engines—the Auction for Athletes is back for another year of driving life-changing support for two impactful charities!

The online auction raises vital funds to empower Special Olympics athletes with intellectual disabilities and help the New Car Dealers Foundation of BC award automotive industry grants and scholarships.

The auction features sought-after items and experiences, including new cars, electronics, autographed memorabilia, sporting goods, gift cards and more. Your generous donations and bids will help Special Olympics BC create empowering connections, open hearts and minds to inclusion, and break down barriers in 55 communities throughout the province.

To learn more, please visit auctionforathletes.com

Sell and source inventory anywhere, anytime.

Sell and source inventory anywhere, anytime.

Unsure if you want a digital real-time auction, to casually browse, or go in and kick the tires yourself? With TradeRev and ADESA* – you don’t have to choose just one. With platforms both digital and physical, the power is in your hands. It is your highway to sell – buckle in and let us help move your business forward.

Unsure if you want a digital real-time auction, to casually browse, or go in and kick the tires yourself? With TradeRev and ADESA* – you don’t have to choose just one. With platforms both digital and physical, the power is in your hands. It is your highway to sell – buckle in and let us help move your business forward.

Get started at TradeRev.com or adesa.ca/godigital**

Get started at TradeRev.com or adesa.ca/godigital**

Bowlers knocked down pins and set personal bests at the 2023 SOBC Winter Games in Kamloops.

Fast and Effective Auto Financing for Newcomers

Exploring TD Auto’s “New

As we see the Canadian auto industry slowly begin to recover from ongoing supply-chain issues, dealers are still feeling the pinch from limited inventory and increased sticker prices: sales remain approximately 24 per cent below 2019 levels and are expected to stay below trend in 2023.

While the Bank of Canada has paused further increases to the overnight borrowing rate, the cumulative effects of last year’s increases have led to a decline in overall consumer affordability, with household debt servicing costs increasing to approximately $1,600 per borrower.

Despite these challenges, at TD Auto Finance we believe that 2023 can be a year of growth for many of our dealers.

As the only truly full-spectrum lender in Canada, we’re committed to helping our dealers grow their businesses by offering financing solutions to fit nearly every circumstance.

to Canada” program

We encourage our dealers to use the full suite of products available to them to help tap into either under-served or growing segments of buyers.

With immigration levels occurring at over one million people in the last five years (and more to come!), newcomers to Canada are one such group.

Buying a vehicle is often considered among the top five financial goals of new Canadians, and BC dealerships’ role in helping new residents acquire transportation can go a long way to expanding your customer base and building customer loyalty.

Our New to Canada program was developed to offer financing to new Canadian residents and foreign workers. The program is available to newcomers within their first five years of arriving in Canada—at the time of writing, an industry-leading timespan that enables you and your customers to take advantage of the

program longer than at any other financial institution.

In addition to accessing our award-winning service, you and your customers can benefit from competitive down payments and amortization periods available for vehicles up to 10 years old from the current model year. Newcomers can also explore convenient banking options across TD, as our comprehensive New to Canada program provides easy access to the full suite of TD products and services.

At TD Auto Finance, we’re proud to support dealers with a wide range of products and specialized support teams and programs like the New to Canada program. Contact us today at 1-855-832-8861 or reach out to a dealer relationship manager to talk to us about how our full suite of products and specialized teams can help you find financial solutions for almost every circumstance.

Reward Your Customers for Servicing Their Vehicles

Beat the competition with Service Lane Plus offer

The season change is in full swing, which means so are your service bays! SiriusXM wants to help you keep them full of appointments with the help of Service Lane Plus!

We want to give all your service customers a free three-month trial for completing service at your dealership. What better way to build your customer loyalty?

Since this program also benefits customers with non-equipped vehicles, you will be able to market this reward in-store to help ensure that customers come to you for their service needs, instead of the competition.

And don’t worry, your eligible service customers with SiriusXM-equipped vehicles will continue to receive a three-month trial in their vehicle!

How does it work?

It’s easy! If a customer has a SiriusXM-equipped vehicle and is eligible, they will receive a three-month Platinum trial in car and on the SXM App.

For those with unequipped vehicles, customers will receive a three-month Streaming Platinum trial on the SXM App. As for ineligible customers, they will receive a free three-month Streaming Platinum trial. Now all your service customers can experience SiriusXM!

Plus, we will provide support in all your marketing efforts to help you highlight this incredible offer. From service communications, social media to your landing pages, we want to help you treat your customers with a free SiriusXM trial, because who does not love ad-free music, artist-dedicated channels, podcasts, and access to streaming over 425 channels?

How do I sign up?

Ready to take this offer for a spin? Contact us at dealer. support@siriusxm.ca and a SiriusXM representative will be in touch. You will receive marketing assets to implement in your communications and to display in your dealership.

We want to give all your service customers a free threemonth trial for completing service at your dealership. What better way to build your customer loyalty?

OFFICIAL SUPPLIERS Premier Partners GOLD LEVEL

CADA 360 programs are unique. Each program is designed under the guidance of a dealer committee, and participating dealers become stakeholders in the programs. “It all comes back to you” is more than a tag line: it’s a guarantee to association members. The end result is a powerful combination of industryleading business solutions for health and wellness benefits and exceptional dealer representation. CADA also supports the development of automotive leadership through its partnership with the Automotive Business School of Canada. cada.ca/web/cada/insurance/cada

Cox Automotive is transforming the way the world buys, sells and owns and uses cars with industry-leading marketing, software, financial, wholesale and e-commerce solutions for consumers, dealers, manufacturers and the overall automotive ecosystem worldwide. The global company has 34,000 team members in more than 220 locations and is a partner to more than 50,000 auto dealers as well as most automobile manufacturers. coxautoinc.ca

SILVER LEVEL

ADESA Vancouver’s auctions provide registered dealers, brokers, automobile manufacturers and rental agencies as well as corporate and government fleets with a complete vehicle marketing solution in British Columbia. adesa.ca/vancouver

CARFAX Canada, a unit of IHS Markit, is Canada’s definitive source of automotive information, delivering vehicle history, appraisal and valuation. Drawing on billions of data records from thousands of unique sources, its products enable used vehicle buyers and sellers to make in-formed decisions. Formerly known as CARPROOF Corporation, CAR-FAX Canada is dedicated to transparency, and is trusted to provide im-partial and comprehensive information to dealerships, vehicle manufac-turers, consumers, major auctions, governments, insurance providers and police agencies. carfax.ca

First Canadian Financial Group is a national, privately chartered life insurance company that offers life and disability insurance coverage on consumer loans through automotive dealership financial service offices. Since September 1988, the First Canadian Financial Group has been marketing its insurance, mechanical breakdown protection, and protection product programs through automotive, RV, and marine dealers across Canada with tremendous success. firstcanadian.ca

J.D. Power’s Power Information Network (PIN) is the largest source for retail transaction data. PIN has the broadest electronic point-of-sale data from dealerships describing the sale, the vehicle, the buyer and the deal. JD Power PIN has 16,000+ participating franchises, covering 42% of all U.S. and 25% of Canadian retail transactions. jdpower.com

Kijiji Autos has over 6 million unique visitors to its platform each month, making it Canada’s most visited online automotive marketplace. Our strategy of putting the consumer first has resulted in us building a robust and purposeful destination where Canadian’s feel safe to interact. Kijiji Autos makes sure your inventory is being noticed. No matter the size of your dealership, there is a package to help unlock its full potential. kijijiautos.ca

Michael Mason & Co. has been manufacturing and supplying for the automotive industry since 1967. It has products for every department within your dealership. Michael Mason & Co. fabricate products at factories in British Columbia, Canada. michaelmason.ca

BRONZE LEVEL

SiriusXM is the country’s leading entertainment company. SiriusXM creates and offers commercial-free music, premier sports talk and live events, comedy, news and exclusive talk and entertainment. SiriusXM is available in vehicles from every major car company, smart phones and other connected devices as well as online. siriusxm.ca

The New Car Dealers Association of BC would like to acknowledge these fine companies for their support of the association’s activities.

The New Car Dealers Association of BC is a proud member of the Canadian Automobile Dealers Association (CADA). The CADA is the national association representing new car and truck dealers. Acting as the voice of the dealers at the national level, CADA serves as an advocate to government, industry and the public.

ACCOUNTING

MNP LLP Accounting

Chris Schaufele // 604-542-6768 // mnp.ca

AUCTION SERVICES

ADESA Auctions Canada

John Macdonald // 604-232-4403 // adesa.com

EBlock

Nicole Sergio // 416-853-5626 // edealer.ca

Manheim Auto Auction Company (Cox Automotive Canada)

Jack Sulymka // 905-875-3522 x5441 // manheim.com

AUTOMOTIVE SCHOOLS

BCIT - School of Transportation

Mubasher Faruki // 604-454-2234 // bcit.ca/transportation

Georgian College (Automotive Business School of Canada)

Joe Lauzon // 705-728-1968 x1234 // georgiancollege.ca

CO-OPS

Consolidated Dealers Co-Op

Janette Tooley Andrade // 905-264-7022 // consolidateddealers.com

Leader Auto Resources LAR Inc.

Bob Grewal // 778-773-1727 // larnet.com

Western Dealers Co-Auto

Mike Reid // 780-468-9552 // wdcoauto.com

DEALER 20 GROUPS

NCM

Kory Suppes // 913-401-2311 // ncmassociates.com

DMS PLATFORMS

Tekion

Connor McCardle // 1-833-935-4662

CDK Global

Greg Wallin // 778-838-0639 // cdkglobal.com

Reynolds and Reynolds

John Caulfield // 519-319-2264 // reyrey.com

Serti Information Solutions

Pascal Lafleche // 514-493-1909 // serti.com

ENTERTAINMENT SOLUTIONS

Sirius XM Canada

Mario DeGrace // 403-629-2953 // sxmdealer.ca

EV CHARGING SERVICES

FLO

Matthew Watkiss // 604-340-6244

FINANCIAL SERVICES

BMO - Bank of Montreal

Bradley Warren // 604-417-0229 // bmo.com

Calla Financial Services

Nick Calla // 604-921-4048 // callafinancial.ca

Canadian Western Bank

Gus Masi // 403-570-3200 // cwbank.com

CIBC Commercial Banking

Phil Lehn // 604-665-1318 // cibc.com

First Canadian Financial Group

Darren Johnson // 250-217-5955 // firstcanadian.ca

General Bank of Canada

Marley Begg // 780-974-2829 // generalbank.ca

iA Auto Finance

Denise Buott // 905-815-9510 // iaautofinance.ca

iA Dealer Services

Vicki Yan // 604-882-8220 // iasal.ca

LGM Financial

Amanda Tracey // 604-806-5300 // lgm.ca

National Bank

Darren Kiley // 604-209-8957 // nbc.ca

RBC Automotive Finance Group

Aaron Young // 604-656-2965 // rbc.com/canada.html

Scotiabank Western Dealer Finance Centre

Bramin Karsanji // 604-644-1782 // scotiabank.com

Scotia Dealer Advantage

John Hiscock // 416-288-7800 // scotiabank.com/scotiadealeradvantage

TD Auto Finance

Richard (Rick) Bessex // 778-628-7458 // TDFS.com

HEALTH BENEFITS

ZLC Financial

Fab Biagini // 604-688-7208 // zlc.net

INSURANCE SERVICES

AllWest Insurance Services

Renee Nielly // 604-733-7383 // allwestins.com

HUB International Insurance Brokers

Wayne LeGear // 604-269-19dealer44 // hubinternational.com

Insurance Insight

Neal O’Donoghue // 866-603-8666 // insuranceinsight.ca

Optiom

Michelle Wong // 800-613-3705 // optiombc.com

LEGAL SERVICES

Clyde & Co Canada LLP

Matthew Wansink // 604-408-2022 // clydeco.ca

KSW Lawyers

Michael J. Weiler // 604-336-7423 // ksw.bc.ca

MERGERS AND ACQUISITIONS

Baker Tilly Dealer Acquisitions

Peter Heasty // 416-368-7990 // bakertilly.com

Dealer Solutions North America

Rick Kingdon // 778-245-1041 // dealersolutionsna.com

National Business Brokers

Amy Burgess // 1-800-576-9875 // nationalbusinessbrokers.com

OFFICIAL NCDA BILL OF SALE PROVIDER

Michael Mason & Co.

Steve Batchelor // 250-384-7304 // michaelmason.ca

PAYMENT PROCESSING, MERCHANT SERVICES

Moneris

Brittney Page // 1-866-836-3375 // moneris.com

PRINT AND DESIGN SOLUTIONS

Harv Craven Design

Harv Craven // 604-476-0435 // harvcravendesign.com

PROPERTY SECURITY

Radius Security

Mike Baxter // 604-232-2405 // radiussecurity.ca

RESEARCH AND SHOPPING WEBSITES

CARFAX Canada ULC

Shawn Vording // 866-835-8612 x2966 // carfax.ca

JD Power

Robert Karwel // 416-294-2790 // jdpower.com

Kijiji Autos

Kristin Macintosh // 647-962-1510 // Kijiji.ca

Trader Corporation

Randy Shepherd // 403-999-8854 // autotrader.ca

TELECOM

Bell Mobility

Cameron Gerrie // 289-442-3701 // Bell.ca/EPP

TOOL SUPPLIER

Snap-on

Ray Lavender // 416-662-9951 // snapon.com

VEHICLE ALIGNMENT SYSTEMS

Hunter Engineering

Dan Martin // 780-340-3456 // hunter.com

Canadian Black Book

Dwain Samuels // 416-817-8444 // canadianblackbook.com

Consultant Auto 360

Kim Normandin // 514-394-1955 x508 // solutionsmedias360.com

Cox Automotive Canada

Jack Sulymka // 416-254-4037 // coxautoinc.ca

Podium

Zach Williams // 1-385-315-6000 // podium.com

Smart Program Inc.

Jerrod Lucas // 780-975-3412 // thesmartprogram.ca

Associate members of the New Car Dealers Association of BC provide vital products and services to dealer members, allowing them to do business with greater cost effectiveness, environmental responsibility and general efficiency. Welcome to our new members!

CADA 360 IS DESIGNED TO HELP DEALERS IN EVERY WAY.

CADA 360 products not only help with real dealer needs –proceeds from these products are used to fund lobbying and advocacy for our entire industry at both the provincial and federal level. When you buy CADA 360 it’s good for all of us.

CADA 360 Products include:

• Retirement Savings

To find out more call 1-800-463-5289 or visit CADA.ca