Canada: Car Brands With The Most And Least Loyal Customers


The economic consensus is in: The U.S. and China are in a trade war. A year ago, the economists in a monthly survey by The Wall Street Journal were evenly split over whether to describe the situation in those terms. Of the 48 respondents, 24 said the U.S. was in a “trade war,” while the other 24 said they preferred other terms, such as “trade skirmish,” “trade tensions,” “trade battle” or “trade dispute.” But in the latest survey, conducted Aug. 2-6, 87% of respondents were good to go with “trade war.”

Source: The Wall Street Journal


AutoCanada has re branded its nine U.S. locations as the Leader Automotive Group under a turnaround plan that includes selling under performing stores, Canada's lone publicly traded dealership group said Thursday. AutoCanada, which in April 2018 acquired nine stores from the Grossinger Auto Group, said in a news release detailing second-quarter earnings that it also plans to sell four of its U.S. dealerships. It did not specify the locations. Tammy Darvish, who AutoCanada hired to lead the ailing U.S. stores in March, has created a restructuring plan focused on managing expenses, certain dealership initiatives and gross profit efforts at department levels. Darvish, on a Friday conference call with investors, said the efforts have included renegotiating vendor contracts and shifting compensation from fixed to performance-based.

AutoCanada Executive Chairman Paul Antony said the company hopes to turn the U.S. stores’ financial performance around under Darvish within six months. “We now know what we have there,” Antony said. “Our goal is over the next six months to make those stores at minimum break even and then start turning the corner to actual profitability.” Antony said the four U.S. stores up for sale are the weakest of its American dealerships and said it would become more difficult to achieve the company’s break-even goal without selling those locations. The U.S. stores have dragged down the company’s earnings and share price since the group acquired them in 2018. AutoCanada, which spent $135 million Canadian (US$105.6 million) on the 2018 acquisition of the U.S. stores, has said it has dealt with unexpected costs and has written down the value of the U.S. operations.

Net Loss

As a whole, AutoCanada reported a net loss in the quarter of $4.5 million (US$3.42 million), compared with a loss of $39.4 million (US$29.94 million) the previous quarter. The company also said the adoption of new reporting standards increased expenses, resulting in an unfavorable impact of $2.6 million (US$1.98 million) on the latest quarter's red ink. Revenue rose 7.4 per cent to $946 million (US$718.96 million) as total vehicles sold rose 4.3 per cent to 19,353. The number of new vehicles sold during the quarter fell 3.2 per cent to 12,104 units. Used-vehicle sales surged 20 per cent to 7,249 units. On a same-store basis, revenue rose 4.7 per cent to $741 million (US$563.16 million) and vehicle sales jumped 5.4 per cent to 15,535 units. F&I sales rose 6.4 per cent to $38.3 million (US$29.11 million). Parts, service and collision repair revenue climbed six per cent to $64.5 million (US$49.02 million).

Acquisition Strategy

AutoCanada said it sold a Hyundai store in Victoria, British Columbia, in June, followed by the sale of another Hyundai store in Calgary, Alberta, in July. The company said it “is not planning to sell any further Canadian dealerships at this time."

Antony said AutoCanada, which has expanded in recent years via acquisitions, would look at buying new stores when the company’s financial performance is in order.

"We still have a lot of wood to chop when it comes to operating the business,” he said. “What we’re very concerned about and what we’re focused on every day is getting our balance sheet square.

Once we do that and continue to operate our way into a good financial position, we’re looking forward to making acquisitions.”

Canadian Operations

AutoCanada reported net income of $12.8 million (US$9.73 million) at its Canadian operations during the second quarter, compared to a loss of $6 million (US$4.56 million) a year earlier.

The company attributed the gain in net income to its “Go-Forward Plan,” which it says has “improved the operational focus of the Canadian dealership network” while developing new profit centres, which include new special finance and wholesale divisions and long-term plans to sell more used vehicles. “At the end of Q2, we felt very, very good about the talent that we had, the new profit centres performance and contributions across all of our business lines,” AutoCanada President Michael Rawluk said on the call. “And we felt a great sense of momentum going forward. To put it anecdotally, we are just getting started.” Canadian revenue rose 6.4 per cent to $830 million (US$630.8 million) as the number of vehicles sold rose 5.3 per cent to 16,983. Total new-vehicle sales in Canada dipped 3.4 per cent to 10,559 units, as a decline in fleet vehicle sales offset a gain in retail sales. Meanwhile, used-vehicle sales increased 24 per cent to 6,424 unit.

Source: Automotive News


Prosecutors in Stuttgart, Germany are set to fine Mercedes-Benz parent Daimler between 800 million euros ($895 million) and 1 billion euros for diesel-related violations, German magazine Der Spiegel said in its online edition on Friday. German motor vehicle authority KBA had discovered cheating software fitted to Mercedes-Benz C-Class and E-Class vehicles and ordered the carmaker to recall 280,000 vehicles, Spiegel said. A fine of up to 5,000 euros per vehicle is being considered by the Stuttgart prosecutor, the magazine said. A spokesman for the prosecutor’s office said the investigation was ongoing and would not be concluded before year-end.

Daimler declined to comment while the investigation was under way.

In May 2017, German prosecutors searched Daimler offices as part of a fraud inquiry related to possible manipulation of exhaust gas after-treatment in diesel cars. Daimler also faces regulatory scrutiny by United States authorities. In February 2016 the U.S. Environmental Protection Agency asked Mercedes-Benz to explain emissions levels in some of its diesel cars.

Prosecutors in Germany have used administrative orders to impose fines on Volkswagen, Audi and Porsche, blaming senior management for oversight lapses which allowed emissions cheating to take place. In May, Stuttgart prosecutors fined Porsche 535 million euros and supplier Bosch 90 million euros, while prosecutors in Braunschweig fined VW 1 billion euros and Munich prosecutors imposed an 800 million euros fine against Audi.

Source: Reuters


– But Hope to Avoid Wholesale Cuts of a Decade Ago

Automakers are facing what is only the second down market since the end of the Great Recession and the record sales that followed. How far down demand will go this time is a matter of debate, with analysts and planners warning that could depend on how the Trump administration handles disputes with China and other trade partners. Industry officials, including General Motors CEO Mary Barra, say they learned critical lessons during the last recession and hope to be more proactive this time around, adjusting production early to stay in line with market demand while avoiding the sort of budget-busting incentives that devastated industry balance sheets a decade ago.

Source: CNBC


Auto makers for two decades have leaned on hybrid vehicles to help them comply with regulations on fuel consumption and give customers greener options in the showroom. Now, two of the world’s largest car manufacturers say they see no future for them in their U.S. lineups. General Motors Co. and Volkswagen AG are shifting the bulk of their future investment into fully electric cars, seeing hybrids, which save fuel by combining a gasoline engine with an electric motor, as only a stopgap to ultimately meeting tougher tailpipe-emissions requirements, particularly in China and Europe.

Source: The Wall Street Journal


A vast majority of vehicle shoppers still want the dealership involved in the buying process, and it doesn't appear that is changing with younger buyers. That's according to a study by Urban Science in conjunction with Harris Poll that surveyed some 2,000 shoppers and about 200 dealers in February. The results included some surprises, especially for dealers, said Randy Berlin, global director of dealer services at Urban Science. Berlin recalled speaking to Automotive News 20 years ago when he was a Lincoln-Mercury Internet programs manager. Back then, vehicle shoppers were getting wise to the Web and spending more time on consumer and independent review sites than on automaker sites.

Source: Automotive News


It seems like it should be simple for car companies to maintain customer loyalty – if they make good cars, people should keep buying them. Often, drivers find a car they like and, when the time comes to replace it, they stick with the same company.

Yet this is not always the case. Consumers may want to try something new, or they may have had a bad experience with their current car and opt for something completely different. Some companies have found the key to ensuring that most of their customers come back, while others can only retain a fraction of their previous buyers.

To determine the car brands with the most and least loyal customers, 24/7 Wall St. reviewed J.D. Power data on the share of drivers who bought or leased the same brand of vehicle as their previous one over the past year.

 Least Loyal    Most Loyal Owners
 Rank Manufacturer  Rank  Manufacturer 
 10 Volvo

 10  Hyundai
 9  Infiniti  9 Nissan 
 8  Mitsubishi  8 Lexus 
 7  Mini  7 Chevrolet 
 6  Buick  6 Kia 
 5  Jaguar  5 Ford 
 4  Dodge  4 Ram 
 3  Fiat  3 Honda 
 2  Chrysler  2 Toyota 
 1 (Least)  Smart  1 (Most) Subaru 

Source: USA Today


In case you missed this announcement, below is a link to the video.

Source: Vimeo


Germany—Concern is rising in Europe’s automobile heartland about the economic impact of the industry’s move to electric vehicles from gasoline-powered cars. Officials and executives in Germany fear the country’s big car companies and rich ecosystem of suppliers and service providers are insufficiently prepared for the transition, and that their leadership may not be assured in an electric-car world, threatening jobs, tax revenue and even growth.

Source: The Wall Street Journal

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions