NEW INDUSTRY TRAINING PROGRAM

THE AUTOMOTIVE INDUSTRIES ASSOCIATION of Canada has partnered with the Government of Ontario, St. Lawrence College, Conestoga College, Fanshawe College and Plug ‘N Drive to deliver on two challenges facing Ontario’s auto care industry: A shortage of automotive tradespeople and the need for automotive tradespeople to be upskilled to be able to service technologically-advanced modern cars, including electric vehicles.

The partnership falls under the third round of the Ontario Skills Development Fund. It will build on the success of round two while being expanded to include new partners, new training locations and a new curriculum.

The project will centre around two training programs. One will focus on an EV, hybrid, and advanced driver assistance systems (ADAS) training program. The module-based program will provide employers with free training in modern vehicle technologies to offer workers. It is also open to highlevel apprentices, the industry’s future workforce.

The second component will explore the automotive trades training program, open to job seekers without cost, and breaks the stigma by exposing participants to how technology has changed the type of work automotive tradespeople take on. When finished, participants can find an employer sponsor to pursue an apprenticeship.

“Getting working automotive tradespeople the skills that they need and getting more people into the automotive trades is essential,” said Jean-François Champagne, AIA Canada president, in a statement. “Without, car owners across Ontario, particularly those in small and remote communities, will have less access to, and will pay more for, essential auto care.”

H54K’S CHAIRMAN’S CHALLENGE IS BACK

AFTER RAISING $24,000 last year through corporate and personal donations, the AIA High Fives for Kids Foundation’s Chairman’s Challenge is back.

In all, $26,500 of funding was raised for children and youth charities across the country. Last year’s recipients included the YWCA – Edmonton, The Children’s Breakfast Clubs (Ontario), the Child and Family Services of Western Manitoba, the YWCA of Calgary, the Kerr Street Community Services (Oakville, Ontario) and the Junior Achievement of Northern Alberta.

Another $15,000 was contributed to students attending Canadian post-secondary institutions through the educational scholarship program.

“I hope that the success of our charitable and scholarship programs will inspire you to contribute to this year’s Chairman’s Challenge,” said a letter to AIA Canada members from foundation chairman Ray Proulx. “When planning your charitable giving for 2023, please help the AIA High Fives for Kids Foundation continue to make a difference in the lives of children and youths.”

Industry Retail Sales Recoup Losses

THE SIZE OF THE CANADIAN automotive parts and service aftermarket has just about recovered from pandemic losses, a new report shows.

The 2024 Auto Care Association Facebook reported that after suffering a 6.1 per cent loss in 2020, gains in the last two years have brought the aftermarket back to where it was in 2019.

The report further noted that while the number of wholesalers have declined, parts and accessories retailers and vehicle repair shops have increased year-over-year.

Included in the report was the 2023 Joint Channel Forecast Model report, which provides insights and guidance for the industry. It shows the automotive aftermarket growing faster than expectations — with continued strong growth to come.

Against a forecast of 8.5 per cent, the Auto Care Association and MEMA Aftermarket Suppliers, in partnership with S&P Global, reported growth of 9.7 per cent in 2022.

“This year's report finds that despite the recent increase in economic strain for many Americans due to rising costs, the industry continues to show its reliability and ability to adapt across the service and retail sectors, continually adjusting to meet demand in an ever-dynamic market,” the announcement from the Auto Care Association said.

Aapex Keynote Gets Some Magic

EARVIN “MAGIC” JOHNSON will deliver the keynote at AAPEX this fall.

Perhaps the greatest point guard in professional basketball history will be in Las Vegas on October 31 this year to speak to attendees about “The Magic of Winning” and the real-life story of his remarkable rise, his philosophy for success and an empowering message on how to create the best possible future, said an announcement from show organizers.

Johnson grew up in an automotive family in East Lansing, Michigan. His father worked in a General Motors plant.

Johnson has pursued several successful business ventures. Today, he is a renowned entrepreneur, owning multiple businesses in sectors such as entertainment, sports, and real estate. He has also been involved in philanthropy and has made significant contributions to various charitable causes.

U.S. AVERAGE VEHICLE AGE AT A NEW HIGH

THE LATEST ANALYSIS from S&P Global Mobility pegs the average age of a U.S. vehicle at 12.5 years. A combination of high new vehicle prices and the lack of new sales has pushed people to keep their older vehicles long, driving up the average age of the nation’s car parc.

The number is a three-month increase from last year, according to S&P and the sixth straight year of an increase. It’s also the highest yearly increase since the 2008-2009 recession when, similarly, a sharp decline in new vehicle sales accelerated average age beyond its traditional rate.

“We expected the confluence of factors impacting the fleet coming out of 2021 would provide further upward pressure on average vehicle age,” said Todd Campau, associate director of aftermarket solutions for S&P Global Mobility. “But the pressure was amplified in the back half of 2022 as interest rates and inflation began to take their toll.”

This, of course, is all good news for the automotive aftermarket. So many older vehicles in operation mean these automobiles will continue to need repair work and service to perform properly.

“The aftermarket sector trajectory typically follows growth in average vehicle age, as consumers invest more to keep their aging vehicles running, barring some exceptions,” the report from S&P said.

The aftermarket sweet spot is also growing.

“Traditionally, the ‘sweet spot’ for aftermarket repair was considered 6-11 years of age, but with average age at 12.5 years, the sweet spot for aftermarket repair is growing,” Campau said. “There are almost 122 million vehicles in operation over 12 years old.”

Car Prices Spike In 2022

THE AVERAGE LIGHT truck cost $51,700 in 2022, according to data from DesRosiers Automotive Consultants. That’s a jump of $5,000 — a nearly 10 per cent jump. It’s also the first time that light trucks surpassed the $50,000 price point.

Passenger cars came in at $41,800 on average. Light trucks accounted for 84 per cent of light vehicle sales in 2022. That brings the average transaction price to $49,900.

“The cost of purchasing a new vehicle increased sharply in 2022 driven primarily by semiconductor-related vehicle shortages,” said Andrew King, managing partner at DesRosiers. “With interest rates also climbing, affordability may create a noticeable headwind in the market, damping down the considerable pent-up demand that still exists.”

Frisby Tire Acquired By Kal Tire

KAL TIRE ANNOUNCED it has acquired Ottawa’s Frisby Tire, one of the oldest independently-owned tire dealers in Canada.

The deal closed on May 27. Kal Tire will operate Frisby Tire’s five retail and commercial stores. Kal Tire’s subsidiary, Total Tire Distributors, will acquire Frisby’s existing wholesale operations.

Frisby Tire dates back to 1920. Don Frisby became the thirdgeneration leader of the business in 1995.

“It’s always been so important to us that our customers are happy with their experience, and we feel very fortunate to know that will only continue with Kal Tire’s culture of service-oriented values,” said Frisby. “Some of our technicians have worked here their whole lives. We’ve built this legacy together and I know they’re all in the very best hands.”

The 52-member team of Frisby Tire will join Kal Tire as the company operates Frisby Tire stores on Industrial Avenue,

Names In The News

Engine Rebuilders Inc. has named Bill Hay as its president. He took over the role on July 4. Hay was most recently president of Bestbuy Distributors.

KYB Americas Corporation announced the appointment of Andy Castleman as director of product and marketing.

Guna Sathyamurthy has been promoted to product manager for the U.S. and Canada at KYB Americas. He has been with KYB since coming out of college.

Tom Amero has been appointed director of operations at Elite Worldwide, a training, coaching and consulting company for shop owners and managers.

Somerset Street West, Queensdale Avenue, Clyde Avenue and Hazeldean Road in Ottawa.

Frisby Tire’s warehouse and wholesale distribution facility at Humber Place in Ottawa and 26 team members will be operated by the Total Tire team.

Canadians Rethinking Road Trips

THE TIRE AND RUBBER ASSOCIATION OF CANADA has found higher costs all around have forced Canadians to rethink their summer plans.

Two-thirds of drivers told the survey that financial pressures would likely push them to keep their car parked entirely or limit road trips this summer. Those numbers spike when looking at younger drivers — 73 per cent of those aged 18-34 and 72 per cent aged 35-54 said a summer road trip is off the books or will be limited.

“Our survey exposes the extent of harsh financial stresses impacting Canadian motorists and the need for more education on how to gain optimal fuel efficiency from tires,” says Carol Hochu, president of TRAC.