May-June 2015 - New Car Dealers Association of BC
Transcription
May-June 2015 - New Car Dealers Association of BC
A publication for members and friends of the New Car Dealers Association of BC May-June 2015 S gnals Vancouver International Auto Show Page 6 Auto Show Gala Page 10 New Car Dealers Foundation & Special Olympics BC Online Auction Page 16 ---- --- -VARIETY OF COLOUR OPTIONS AVAILABLE PROTECT YOUR LOOKS DURABLE / DISTINCTIVE / DIFFERENT $159.99 * ALLOYGATOR.CA ALLOYGATOR 10780 Cambie Road, Richmond, BC | 1-855-53-GATOR (42867) | [email protected] | www.alloygator.ca | *Taxes and installation extra. Contact AlloyGator for complete details. Contents 6 14 8 10 In This Issue 4 10 PRESIDENT’S MESSAGE 19 AUTO SHOW GALA Highlights from this year's Gala CADA UPDATE Success on GST/HST fight with Canada Revenue Agency Auto Show Wrap & CEV for BC VANCOUVER INTERNATIONAL AUTO SHOW Biggest attendance growth in Country! 8 LEGALINE Anti Spam Legislation Serious Business 14 SPECIAL OLYMPICS Inspiring Athletes from Kamloops Winter Games 17 COMPUTER CENTS 4 myths about IT services 20 VSA UPDATE Regulators crack down on legislation breaches 21 ASSOCIATE MEMBER LISTING At-a-Glance listing of members and contact Information SIGNALS MAY - JUNE 2015 3 SSIGNALS MAY - JUNE 2015 3 S gnals Chief Car Washer’s Message Officers and Directors Promise Made, Promise Delivered Jim Inkster Chairman Aspol Motors Ltd. John Chesman Vice-Chairman MCL Motor Cars Blair Qualey President & CEO New Car Dealers Association of BC Directors Paul Batchelor Pacific Newspaper Group Mark Edmonds Ferrari Maserati of Vancouver Darren Graham Applewood Auto Group Jeff Hall Hallmark Ford Sales Ryan Jones Marv Jones Honda Moray Keith Dueck GM Derral Moriyama Bank Of Montreal John Wynia Harbourview Volkswagen Auto Show Attendance Increase Largest in Country for 2014-2015 Show Season! To borrow a saying from our Premier, “Promise Made, Promise Delivered.” Last year, we made a number of changes in the team at the Association office to provide the right set of skills and experience to deliver an improved value proposition for our membership in a rapidly changing sector. We brought in two veteran Show managers, Jason and Phil Heard, and we promised a bigger, better and more entertaining Auto Show experience. With the guidance and support of our Board and our Auto Show Committee, I am pleased to report that your team at the New Car Dealers Association delivered. The most important event for the auto industry in British Columbia and best-attended consumer show in Western Canada, the Vancouver International Auto Show, delivered 2015 attendance numbers of 98,694 for the six-day event. This is a 17% increase from the 2014 Show, and the largest attendance increase in the country of the 2014-2015 auto show season. This level of attendance had not been seen in Vancouver since the Show was a 10 day event many years ago. The 2015 Vancouver International Auto Show featured over 440 vehicles from 40 national and international brands. This year’s Auto Show included a 25 per cent larger footprint and was the first consumer show ever to use both the ballrooms and all exhibit halls at the Vancouver Convention Centre West. Although this was the 95th anniversary year of the Vancouver International Auto Show, this year really signified the start of an entirely new era of the show in British Columbia. The 70,000 square foot addition allowed the show to showcase an impressive display of supercars, luxury automobiles, 30-plus regional debuts and five concept cars from global manufacturers. The changes our new Auto Show team implemented for this year’s event worked extremely well in engaging the public and increasing attendance. By expanding the show we were able to add a significant amount of features to the event, all of which appealed to British Columbian’s love of the automobile. These changes are being noticed not just by industry but by media as well. Unit 70 – 10551 Shellbridge Way Richmond, BC V6X 2W9 Tel: 604-214-9964 Fax: 604-214-9965 [email protected] www.newcardealers.ca Copyright: 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. 4 SIGNALS MAY - JUNE 2015 4 SIGNALS MAY - JUNE 2015 Auto journalist Zack Spencer in his April 2, 2015 column stated the following: “Yours truly travels all over the world to such exotic locations as Paris, Geneva, Beijing, New York and Frankfurt, for much bigger auto shows. But to me, it’s obvious that the setting for the Vancouver show is, hands down, the best around … And with the expansion this year’s show underwent, the Vancouver show is moving into the big leagues.” The 2015 Show was the beginning of a three year transition to a much larger show utilizing both buildings of the Vancouver Convention Centre. This is a huge step to take as no consumer or trade show has filled both buildings. But with the support of our members, the vehicle manufacturers and others in our sector, we will drive hard to get us there for 2017. Planning is already underway for the 2016 Vancouver International Auto Show, which will return to the Convention Centre March 23-28. Before I wrap up this editions President’s Message, I would be remiss if I didn’t mention a few other Association projects that we have also had on the go while Jason and Phil were pulling the Auto Show together. In late March I advised all of our members that the Provincial Government was reintroducing a Clean Energy Vehicle point of sale incentive program and that had asked us to administer it again. At the Auto Show, Energy Minister Bill Bennett and I announced the details of the Program which your Association team was able to get up and running for April 1. Under this program, qualifying vehicle purchases would receive an incentive of up to $6,000. I encourage you to visit www.cevforbc.ca for all the details. You must be a member in good standing with the Association to access this program. In my role as Chair of the BC Scrap-It Program, I was privileged to work with the Scrap-It management team on developing a new Electric Vehicle incentive adding another $3,000 incentive that can be stacked with the CEVforBC program. You must also be a member in good standing with the Association to access this program. The Association team has also been working on a new Association website and a Job Board along with Car Career promotional materials. If you are a member of the Association, please engage in the opportunities the Auto Show, CEVforBC, BC Scrap-It and our Car Career job board and materials will provide your business and your customers. And if you aren’t a member, well, what the heck are you waiting for! Call me today and we’ll get you signed up! Blair Qualey - President & CEO Liquidity Transparency Weekly Auction Times: Wednesday 7:00PM Thursday 9:30AM Saturday 10:00AM Trusted Since 1971 Buyers Around the World 604.232.4403 ADESA.ca/Vancouver The strongest market on record the time to sell is now! SIGNALS MAY - JUNE 2015 5 Huge Crowds Turn Out for all new Vancouver International AutoShow 2015 SHOW SEES BIGGEST ATTENDANCE GROWTH IN COUNTRY The most important event for the auto industry in British Columbia and best-attended consumer show in Western Canada, the Vancouver International Auto Show, released the 2015 attendance numbers of 98,694 for the six-day event. This is a 17% increase from the 2014 Show, and the largest attendance increase in the country of the 2014-2015 season. The 2015 Vancouver International Auto Show featured over 440 vehicles from 40 national and international brands. This year’s Auto Show included a 25 per cent larger footprint and was the first consumer show ever to use both the ballrooms and all exhibit halls at the Vancouver Convention Centre West. “Although this was the 95th anniversary year of the Vancouver International Auto Show, this year really signified the start of an entirely new era of the show in British Columbia,” says New Car Dealers of BC President and CEO Blair Qualey. “The 70,000 square foot addition allowed the show to showcase an impressive display of supercars, luxury automobiles, 30-plus regional debuts and five concept cars from global manufacturers.” Auto Show Executive Director Jason Heard said public response to the new additions was extremely positive. “The changes we implemented for this year’s Auto Show worked extremely well in engaging the public and increasing attendance,” said Heard. “By expanding the show we were able to add a significant amount of features to the event, all of which appealed to British Columbian’s love of the automobile.” Planning is already underway for the 2016 Vancouver International Auto Show, which will return to the Convention Centre March 23-28. For more information please visit: www.VancouverInternationalAutoShow.com. LegaLine CASL (Again): This is Serious Business Last Spring we introduced you to CASL, Canada’s new Anti-Spam Legislation that came into effect July 1, 2014. We took the bad cop/ good cop approach to tell you of the changes to expect and the impending doom if CASL compliance was not achieved. For dealerships, we pointed out that it was important to note that, simply because a customer has provided his or her email address or phone number, the customer has not consented to receiving electronic marketing material. Simply put, CASL prohibited organizations from sending “commercial electronic messages” (“CEM”) sent to an electronic address without the recipient’s prior consent, where the purpose of the message is to encourage participation in a commercial activity. This included not only emails but other forms of electronic communications as well, including text messaging and all social media. In order to get our point across, in partnership with the New Car Dealers Association, we took our dog and pony show on the road and held seminars throughout British Columbia, preaching not only compliance but suggesting ways to achieve growth in a CASL compliant manner. It was that important. Almost a year after CASL took effect, the Canadian Radio-television and Telecommunications Commission has issued its first Notice of Violation and fine of $1.1 million under the Legislation to CompuFinder, a Quebec software training company. Further to its investigation, Manon Bombardier, the Chief Compliance and Enforcement Officer, found that Compu-Finder sent CEMs without the recipient’s consent as well as emails in which the unsubscribe mechanisms did not function properly. The emails sent by Compu-Finder promoted various training courses to business, often related to topics such as management, social media and professional development. The four alleged violations occurred between July 2, 2014 and September 16, 2014. the CRTC did not allege that Compu-Finder’s CEMs did not contain an “unsubscribe” mechanism, but rather the mechanism did not function sufficiently. Following Compu-Finder’s $1.1 million fine, the CRTC announced in April that it was entering into an agreement with the online dating service known as Plenty of Fish whereby the service would pay a $48,000.00 penalty. According to the CRTC, Plenty of Fish failed to include a CASL compliant “unsubscribe” mechanism in its CEMs to customers. The violations occurred from July 1, 2014 to October 8, 2014. As with Compu-Finder, Plenty of Fish’s CEMs contained an unsubscribe mechanism. However, the CRTC stated that Plenty of Fish had allegedly sent out CEMs with an unsubscribe mechanism that was not clearly and prominently displayed and which could not be readily performed, as required by the legislation. Compliance with CASL’s requirements was mandatory as of July 1, 2014. We recommend that dealerships take the time to review their updated electronic communication policies to ensure compliance moving forward. We also recommend that dealerships review their current email and text messaging lists and ensure that the consent of each recipient to receive CEMs is in place to ensure CASL compliant marketing campaigns. In a statement, Manon Bombardier of the CRTC said Compu-Finder, “…flagrantly violated the basic principles of the law by continuing to send unsolicited commercial electronic messages after the law came into force to email addresses it found by scouring websites. Complaints submitted to the Spam Reporting Centre clearly indicate that consumers didn’t find Compu-Finder’s offerings relevant to them. By issuing this Notice of Violation, my goal is to encourage a change of behaviour on the part of Compu-Finder such that it adapts its business practices to the modern reality of electronic commerce and the requirements of the anti-spam law. We take violations to the law very seriously and expect businesses to be in compliance.” Compu-Finder sent CEMs to other businesses soliciting its training courses with respect to management and professional development. This is a key point because although there are categories of implied consent, including the sender and recipient having an existing business relationship, personal and family relationship as well as business-to-business emails, they are not blanket exemptions and have requirements that must be complied with. Also of note, 8 SIGNALS MAY - JUNE 2015 By Christopher J. Bakker, Associate, Roderick H. McCloy, Associate Counsel Shapiro Hankinson & Knutson Law Corporation & Promotional Products shop online! Michael Mason & Co. Ltd. Devonshire Road Victoria, BC, Canada, VA T T: 250-384-7304 / 1-888-882-6688 F: 250-384-7308 / 1-888-727-6688 [email protected] www.michaelmason.ca To shift your Finance Dept into high gear, give us a call. To shift your Finance Dept into high gear, give us a call. John Romfo - National Sales Manager John Romfo - National Sales Manager 1-250-308-1112 1-250-308-1112 SIGNALS MAY - JUNE 2015 9 Moments from the 10 SIGNALS MAY - JUNE 2015 1 22015 AUTOSHOW Thank you to our Event Sponsors! Lance Torkos Wolfe Langley Mitsubishi Naeem Agro Applewood Nissan William Fong Porsche Centre Vancouver BMW HONDA Brian Woo OpenRoad Honda LAND ROVER BENTLEY GENERAL MOTORS KIA Neil Shah The BMW Store Tom Peng Land Rover Richmond Patrick Ng Mercedes-Benz Richmond Steven Wu Rolls-Royce Motor Cars Vancouver MINI Jason Wong Kia Vancouver Philip Man MINI Yaletown SCION Shane Nakai Wolfe's Langley Mazda Joey Prevost MacCarthy Motors Terrace MERCEDES-BENZ AUDI FORD JAGUAR Adam Smith MCL Motor Cars Jonathan Wang Bentley Vancouver ROLLS-ROYCE Farzin Sahbaei Cam Clark Ford Lincoln Ltd. George MacDonald MSA Ford Sales MAZDA ASTON MARTIN FERRARI & MASERATI INFINITI Geoff Rosales Infiniti North Vancouver James Rincon Capilano Audi PORSCHE MITSUBISHI Philip Ngai OpenRoad Lexus Richmond Victor Yeh Ferrari Maserati of Vancouver LINCOLN LEXUS Oksana Karpiv Castlegar Hyundai Wilson Ng Aston Martin Vancouver NISSAN ACURA CHRYSLER,DODGE JEEP,RAM,FIAT HYUNDAI Jarrett Payne Northland Chrysler Jeep Dodge Eric Chan Regency Toyota Scion Matthew Hale Wolfe Subaru Glenn Schwarz Jim Pattison Toyota-Victoria Shaun Openshaw Capilano Volkswagen Inc. VOLVO VOLKSWAGEN TOYOTA SPONSORED BY SUBARU 2014SALESPEOPLEof theYEAR AWARDS Chris Choi Lougheed Acura Jayson Wadud Jim Pattison Volvo of Surrey The New Car Dealers Association of BC recognizes BC’s automotive dealerships that exemplify business strength and community excellence — with a significant focus on making a tangible contribution to the growth and livability of their community or region. Congratulations to the 2015 Award Winners! Brian Jessel BMW, Metro Vancouver Region Brown’s Chevrolet Buick GMC Ltd., Northern BC Region Cranbrook Dodge, Kootenays Region Harmony Auto Group, Okanagan/Interior Region Laird Wheaton GM, Vancouver Island Region Mertin Auto Group, Fraser Valley Region Awards Sponsor Media Sponsors Special Olympics Snapshot Athletes and support inspire at 2015 SOBC Winter Games Kamloops B.C.’s New Car Dealers are among the longest-standing supporters of Special Olympics BC. In this issue of Signals we continue the series demonstrating all that your support helps to bring to life through the world of Special Olympics – all the experiences of joy, friendship, empowerment, and acceptance for more than 4,300 athletes with intellectual disabilities around the province. The way Max Nelson sees it, Special Olympics athletes are superheroes. “When people say special needs, I don’t think of that, I think we have special powers,” the Special Olympics BC – Quesnel snowshoeing athlete said after a day of giving his all racing in the 2015 SOBC Winter Games. Nelson’s vision was shared by the 2015 SOBC Games Organizing Committee, who wanted the 500-plus participating athletes to be recognized and celebrated as the superheroes they are. With superhero-themed Opening and Closing Ceremonies and an outstanding competitive experience throughout, the 2015 Provincial Games in Kamloops and Sun Peaks gave the Special Olympics athletes the empowering experience they deserve. Nelson earned silver, bronze, and fourth-place finishes in his three Games individual races. He said competing in Provincial Games makes him feel “powerful.” Held February 19 to 21, the 2015 SOBC Winter Games involved competitors from around B.C. and the Yukon who were at the top of their game in earning more than 350 medals in seven sports. After training countless hours over the last two years to reach the Provincial Games, with the support of their dedicated volunteer coaches, the athletes were well prepared to make the most of this opportunity to show their abilities in a world-class sport hosting community. Many won medals and achieved personal bests; all competed hard and grew as individuals. At age 12, figure skater Arianna Phillips of SOBC – Nanaimo was the youngest athlete to compete in the Games. She won gold competing with her brother Michael in the Level 1 pairs event, and skated to silver in her Level 3 freeskate event. Phillips said she felt they performed well and had fun. “It’s fun and it’s my first time here. I’m the youngest,” Phillips said of Provincial Games. She likes competing, but had to power through some nerves to perform as well as she did. “I was nervous because it was my first time.” SOBC – Kamloops curler Wayne Kulchyski said he had a good time in his hometown Games. Kulchyski said he had “lots of fun and met lots of people. I enjoyed it.” SOBC – Victoria figure skater Emily Walzak was competing in her first Provincial Games, and said she enjoyed the encouraging and exciting atmosphere. “It’s pretty exciting to be here. Everybody is so supportive of each other. I like the sportsmanship and the energy. Everyone claps for each other,” Walzak said. 14 SIGNALS MAY - JUNE 2015 “I always enjoy spending time with all the athletes. The highlight of my year usually is Provincial Games, or regionals, or National or World Games. It’s so great to see them all excel, and to see their lives change,” said Randy Scott, SOBC Provincial Coach for alpine skiing. The 2015 SOBC Winter Games were an incredible experience thanks to the outstanding performances by the athletes, the inspiring dedication of their volunteer coaches and mission staff, the cheering of families and fans, and the remarkable support shown by volunteers and sponsors. Provincial Games would not be possible without the support of local sponsors and SOBC’s generous provincial sponsors, including B.C.’s New Car Dealers. In addition to the ongoing support SOBC receives from New Car Dealers around the province, Rivershore Chrysler in Kamloops stepped up to help locally, donating vehicles used for Games operations and helping raise awareness in the community. “We were thrilled to see the powerful way our Games athletes were welcomed and celebrated in Kamloops. They were treated like athletes, with outstanding competitive venues, enthusiastic and well-trained officials and volunteers, and media coverage,” SOBC President & CEO Dan Howe said. “And we heard a wonderful response from those who generously came out to volunteer and the sponsors who supported the Games. As much as these athletes were inspired by the Games, they inspired so many others.” Find full results, photos, and Games information at http://sobcgameskamloops.ca D New Car Dealers Foundation/Special Olympics SE O CL 2015 ONLINE W O AUCTION O N I T C U A N MAY 1 - MAY 8 2015 Thanks for your support! T he annual New Car Dealers Foundation of BC/Special Olympics Auction makes a significant difference for the athletes and programs of Special Olympics BC and the work of the New Car Dealers Foundation, having raised more than $4.2 million to date. Held May 1 to 8, the 2015 auction featured another amazing array of items up for online bidding by New Car Dealers and donors around the province. We are sincerely grateful for the leadership of the hardworking auction committee, and for the generosity of the Dealers who support the auction with items and cash pledges. Our sincere thanks also go out to the bidders whose generosity leads to significant fundraising to support the lifechanging Special Olympics BC programs and opportunities and the work of the New Car Dealers Foundation. Auction Committee Manse Binkley, Harmony Honda and Harmony Acura Dan Howe, Special Olympics BC Doug Bower, Vancouver Sun & Province Dave Meyerink, Harris Auto Group Marnie Carter, Carter Auto Family Joe Mitchell, Carter Auto Family John Chesman, MCL Motor Cars Christie Morning-Smith, New Car Dealers Association Pamela Keith, Dueck Auto Group Blair Qualey, New Car Dealers Association Christina Hadley, Special Olympics BC John Wynia, Harbourview Volkswagen Dealerships that donated to the 2015 auction Auto West BMW Harbourview Volkswagen Auto West Infiniti Ltd Harmony Acura Bannister Automotive Group Harmony Honda Barnes Wheaton Group Harris Auto Group Brian Jessel BMW Jim Pattison Auto Group Brian McLean Chevrolet Buick GMC Jenner Chevrolet Clarkdale Motors Ltd Laird Wheaton GM Cam Clark Ford Lincoln Ltd Pacific Honda Carter Auto Family Preston Chevrolet Buick GMC Cadillac Ltd Dueck Downtown Tyee Chevrolet Buick GMC Dueck GM Wheaton Chevrolet Buick Cadillac GMC Ltd Dueck Richmond 16 SIGNALS MAY - JUNE 2015 Computer Cents The 4 Myths About IT Services That Every Growing Business Should Know C hoosing a computer support company isn’t easy. There are no shortages of horror stories about incompetent computer repair “gurus” bungling jobs, causing more problems, and wasting everyone’s time and money. I’m sure if you talk to your own friends and colleagues you will get an ear-full of the unfortunate experiences they have encountered in this area. BUYER BEWARE As your company grows, it’s important to keep costs low, but not all expenses should be shoe-stringed. Consider these four common misconceptions about IT service companies that cause business owners to skimp on IT support and lose valuable uptime. Misconception #1 - “My computers and networks do not require regular monitoring and maintenance.”After all, they are machines, right? Clicking “Install updates” should take care of everything. Like all machines, and especially those with moving parts, failure is bound to happen at one time or another. Hard drives are spinning all day, and heat is being generated for as long as your computer is “on”. These kinds of things put a lot of stress on your computer, and that’s just the hardware side of computer maintenance (only 10% of computer problems are hardware-related). Software, antivirus programs, firewalls, and files all need proper and proactive attention. Lack of system maintenance is the main reason why growing companies lose valuable uptime, and subsequently incur large costs from unproductive staff and inefficient computers. Misconception #2 - “Tech savvy friends, family, and neighbors are reliable resources for keeping my computers running and my data safe.” Many people look for a part time guru – usually a friend or family member – who can work cheaply and save their business a bit of money. While they may love computers, and likely have some real skill, certain issues can easily overwhelm them because of their limited experience. We frequently receive calls from business owners who desperately need certified professionals to salvage lost data, restore equipment, or help to recover from another catastrophe caused by lack of experience or training. By all means, work with your friends and family to network and grow your business and to encourage you on a tough day, but consider other options for the greater responsibility of computers, servers, and other technology systems that keep your business going. Misconception #3 - “All IT services companies are created equal. Your best option is the one that offers the lowest price.” Some things in life are great bargains but most of the time we get what we pay for. In the world of IT services, a bargain may well be an indication that a company is not offering the same services or level of experience or, possibly, not the same guarantee of response or uptime. Be careful when choosing the low cost provider. Charging less than experienced and professional shops can be a sign of newer IT companies or individual consultants that won’t be able to quickly or correctly address all of the needs of your growing business. Misconception #4 - “An honest IT service company should be able to give you a quote over the phone.” Over the phone quotes are simply not accurate. Besides watching out for companies that undercut their more experienced competitors, also be on the lookout for companies that quote you a cheap rate over the phone or in an email just to get in the door. We’ve seen companies offer a cheap initial price, only to add “overages” that double or triple the original proposal. An honest and professional IT firm will rely on a thorough inspection and analysis of your IT situation. You will be much more efficient in the long run if the IT service company can professionally assess your equipment with an audit plan and tools designed specifically for that purpose. Looking for more? These are just a few misconceptions and tips on IT services for growing businesses but there are many other things to consider when looking for an IT service provider. If you’ve made the decision to outsource the management of your IT you will want to be sure you are first asking all the right questions: Bit.ly/ShortITQuiz. Looking to learn more about the benefits of Outsourced IT Services? We can help - contact us by phone at 604-270-1730, or by email at [email protected] and we’ll help you find the right IT service company for your business. Your comments are appreciated – [email protected] Bob Milliken is the President of Cascadia Systems Group. We take care of your IT so you can take care of your business. You can reach Bob directly at 604.270.1730, or by email at TheITGuy@ cascadiasystemsgroup.com SIGNALS MAY - JUNE 2015 17 2015 Digital for Dealers in review Dealers and associates attended the 2015 Digital for Dealers event on March 26th during Auto Show week at the Vancouver Convention Centre West. Ron Henson from DrivingSales led the group in a morning workshop. Ron Henson (left) with Jim Inkster (right) Over lunch, Michael Sanders from Postmedia, provided information on “Modern Media Company”. Thank you to our sponsors: Jim Inkster (left) with Michael Sanders (right) Your 2015-2016 2014-2015 New Car Dealers Association of Directors Association BoardBoard of Directors Jim Inkster Chairman Aspol Motors Ltd. John Chesman Vice-Chairman MCL Motor Cars Jeff Hall Hallmark Ford 18 SIGNALS MAY - JUNE 2015 Blair Qualey President & CEO NCDA Moray Keith Dueck Auto Group Paul Batchelor Pacific Newspaper Group Ryan Jones, Marv Jones Honda Mark Edmonds Ferrari Maserati of Vancouver Derral Moriyama Bank of Montreal Darren Graham Applewood Auto Group John Wynia Harbourview Volkswagen Canadian Automobile Dealers Association (CADA) Update Success on GST/HST Fight with Canada Revenue Agency F or more than three years, the Canadian Automobile Dealers Association (CADA) in partnership with the Trillium Automobile Dealers Association (TADA) has led a coordinated campaign to help dealers being audited and assessed by CRA for unpaid HST/GST on finance income. Since that time this has been the number one advocacy priority set by the Boards of Directors of both associations. In early February 2015 CADA sent a memo to all dealers to inform them that our collective efforts have been successful. The CRA’s Appeals Division confirmed that both conditional sales contracts and financing contracts will remain HST/GST exempt. The Appeals Division also confirmed that they will be vacating all assessments on both conditional sales and financing contracts. TADA had funded numerous dealer appeals in this area while CADA funded and pursued a positive ruling from CRA’s Rulings division. Subsequent to an earlier positive outcome at Rulings, CADA received confirmation that some dealers have begun to receive significant refunds from audits conducted in this area. CADA began this government relations effort in early 2012 after becoming aware of numerous audits throughout the country in which CRA contended that HST/GST applied to fees received by dealerships from financial institutions. Since 2012 CADA has worked with a team of external legal and accounting experts which led to numerous meetings and consultation with CRA officials and other government leaders over that time frame. CADA has always maintained the position that as a financial service, a typical dealer finance transaction was HST/GST exempt. This position has now been affirmed by CRA’s Appeals Division. This is a significant victory for all dealers, even those not under audit, as a loss on this issue would have led to nationwide assessments and penalties for every dealer in the country. Through CADA/TADA efforts, we will continue to keep you apprised of all further significant developments on this file and other CRA matters currently under review, as while this positive outcome solidifies our long-standing position regarding HST/GST on dealer finance income, CRA has advised that it is reviewing its view that income derived from the sale of insurance products remains taxable under the Excise Tax Act. Given that this matter initially gained momentum in the province of Ontario, CADA would like to thank the TADA for its significant contribution on this file and the outstanding work of our joint legal counsel Colin Smith of Thorsteinssons LLP first introduced to the file by TADA. CADA would also like to thank the Canadian Finance and Leasing Association (CFLA) for its substantial assistance both in 2010, when this issue first surfaced and more recently. CFLA President & CEO David Powell provided significant research and technical expertise in support of our case. Finally, CADA would also like to thank Doug McLarty, Partner at the accounting firm MNP, and his team for their assistance. CADA also thanks long time CADA outside legal counsel Peter Harris. Michael Hatch, Chief Economist, Canadian Automobile Dealers Assocation (CADA) All-New Automotive Job Board Your Association is excited to have launched an all-new Job Board, available for members of the New Car Dealers Association of BC! Please share with us your job openings and business opportunities available at your dealership. This will ensure the new website is populated with a robust Job Board postings section connecting you with skilled workers searching for employment. For the next few months, as we launch Phase II of the new NCDA website, there will be no charge for dealer members to submit job listings. The Job Board is an invitation to members to post your job openings. Postings by members are separated into different categories including: Accounting & Administration Apprenticeships Body Shop/Collision Customer Service Finance & Insurance / Business Office General Human Resources Leasing Management New & Used Sales Parts Department Service Department Within the job postings, the following fields are available to fill in: Job title, location, company Job description, including email/phone contact to apply, deadline Contact person Contact Christie Morning-Smith at [email protected] with any questions and to set up your login credentials for posting. SIGNALS MAY - JUNE 2015 19 Motor Vehicle Sales Authority (VSA) Update Recent Insurance Council, Competition Bureau and CRTC Fines Offer Reminders C anadian regulators have been cracking down on businesses that breach federal and provincial legislation. As dealerships and their employees are governed by these laws, the regulatory actions serve as a reminder for dealers to ensure compliance in all business practices, not just vehicle sales legislation. The Insurance Council of BC requires a licensed nominee to oversee the solicitation and sale of non-exempt insurance products. As a result of recent investigations: • One dealer was fined $750 and investigative costs of $600 for allowing an unlicensed employee to solicit insurance. • Another dealer failed to disclose to consumers that the insurance was not mandatory. For this breach, the Council levied a combined $3,600 fine against the dealer and the nominee. The Council notes that dealers have an “obligation to know and act in accordance with Council rules and all relevant legislation.” The federal Competition Bureau has been monitoring deceptive advertisements across Canada. In efforts to enforce all-in pricing, the Bureau found that Avis and Budget car rental agencies: • Mislead consumers in their advertisements, often charging an additional 35% above what was originally advertised; and • The fine print in both online and traditional ads implied that the fees were required by government. For these infractions, the Bureau is seeking a $30 million penalty – the maximum fine possible. Improper advertising and pricing practices can also be a deceptive act under the provincial Business Practices and Consumer Protection Act. The Competition Bureau also works alongside the Canadian Radiotelevision and Telecommunications Commission (CRTC) and the federal Privacy Commissioner to enforce Canada’s AntiSpam Legislation (CASL). The CRTC found two companies in breach of the act: 1. Compu-Finder, an Ontario company, sent commercial electronic messages (CEMs) without consent. This warranted a $1.1 million penalty. 2. Plentyoffish Media, a Canadian online dating site, sent out commercial emails that did not have an unsubscribe option. This warranted a penalty of $48,000. CASL became law on July 1, 2014 to protect the privacy and security of all Canadians in electronic communications. Dealers and salespeople are reminded that a CEM, as defined by CASL, is any form of electronic message used to solicit someone’s business. Consent to solicit is required in most cases. The Registrar reminds dealers that a failure to abide by any federal or provincial legislation may be added to a dealer’s record and will 20 SIGNALS MAY - JUNE 2015 be reviewed as part of an obligation to protect the public interest. Walt the Curber at the Auto Show For the 11th year, the VSA had a booth at the Vancouver International Auto Show. During the successful six-day event, 18 staff from every VSA department took the time to work at least one shift at the show, chatting with both consumers and industry members. This year, the new booth concept that contrasted the dangers of buying from Walt the Curber and the benefits of licensed dealers drew an engaged crowd. A prize wheel attracted visitors to the booth, giving VSA staff the opportunity to teach consumers that it’s a gamble to buy from curbers. VSA pens, small notebooks and other branded items were given out to consumers, while 350 Tim Horton’s gift cards went to the licensed salespeople working the show as a way to recognize their hard work. Ian Christman, Registrar of Motor Dealers Associate Member Listing The New Car Dealers Association of BC is a member driven organization. In addition to dealer Members, a strong and valuable group of Associate Members belong and contribute to the success. Many Associate Members have direct ties with the automotive industry, oftentimes specializing in areas and issues specific to the industry. Preferred rates are often offered by Associates to Dealer Members. ADESA Auctions Canada Corp AllWest Insurance Services Ltd. Auto123.com - Xprima.com Corporation Inc AutoAlert Inc. BCIT - School of Transportation BMO - Bank of Montreal - Dealership Finance Calla Financial Services Ltd. Canadian Automobile Dealers Association Canadian Black Book CarProof CDK Global CIBC Commercial Banking DealerSocket Dealertrack Technologies e-Dealer Evolio - Xprima .com Corporation Inc First Access Funding Corp. First Canadian Insurance Corporation General Bank of Canada HUB International Insurance Brokers Industrial Alliance S.A.L. Group Kent-Macpherson Appraisals Ltd. Kijiji Canada LegalShield - Focus 3 Marsh Canada Limited Michael Mason & Co. Ltd. MNP MyAutoNews.ca NXGEN Canada Pacific Newspaper Group, A division of Postmedia Network Inc. John Macdonald Dana Voynovich Kyell Vyncke John O'Brien Kim Dotto Bradley Warren Nick Calla Lucille Laframboise Kathy Ward Scott Osinchuk Greg Wallin Phil Lehn Shellie Pierce Debbie Brewer Shane Hambly Kyell Vyncke Paul Stephanson John Romfo Raj Autar Wayne LeGear Michel Poirier Adrian Rizzo Bobbi Barnes Dan Anders Tom Swan Steve Batchelor Darrell Endresen Morgan vanHolst Don Andrews PaulBatchelor (604) 232-4403 (604) 731-6696 (888) 474-2886 (949) 398-7000 (604) 432-8254 (604) 665-7064 (604) 921-4048 (800) 463-5289 (905) 477-0343 (780) 901-1612 (778) 838-0639 (604) 665-1318 (206) 730-2055 (905) 281-6229 (416) 853-5626 (888) 474-2886 (888) 816-5574 (250) 308-1112 (604) 617-6411 (604) 269-1944 (604) 882-8220 (250) 763-2236 (416) 969-2256 (604) 318-9161 (604) 443-3520 (250) 384-7304 (604) 949-2088 (519) 932-1149 (604) 946-8884 (604) 605-2546 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] www.adesa.com www.allwestins.com www.autoalert.com www.bcit.ca/transportation www.bmo.com www.callafinancial.ca www.cada.ca www.canadianblackbook.com www.carproof.com www.cdkglobal.com www.cibc.com www.dealersocket.com www.dealertrack.ca www.edealer.ca www.fafcorp.ca www.firstcanadian.ca www.hubinternational.com www.salgroup.com www.kent-macpherson.com http://www.kijiji.ca/autos www.legalbenefitcanada.com www.marsh.com www.michaelmason.ca www.mnp.ca www.myautonews.ca www.paylogec.com www.sunprovince.com Radius Security Jonnie Graham (604) 232-2405 [email protected] RBC Automotive Finance Group Erik Jensen (604) 468-4590 [email protected] Roy Speed & Ross Ltd. (Operating as RSR Global) Karey Davidson (905) 631-5865 [email protected] Scotia Dealer Advantage GinaGuercio (778) 373-4248 [email protected] Scotiabank Western Dealer Finance Centre Warren Sandbeck (800) 268-0762 [email protected] Search Optics Ltd Dean Brownstein (858) 678-0707 [email protected] Serti Information Solutions Pascal Lafleche (514) 493-1909 [email protected] Shapiro Hankinson & Knutson Law Corporation - Roderick H.McCloy (604) 684-0727 [email protected] Rod McCloy Law Corp. www.securitysystemsvancouver.com/ remote-guarding TD Auto Finance Total Graphics inc. Western Dealers Co-Auto Wolrige Mahon Chartered Accountants www.TDFS.com www.totalgraphics.com www.wdcoauto.com www.wm.ca Danny Long Jeff Mesina Mike Reid Masato Oki, C.A. (403) 819-1244 (604) 294-0223 (780) 468-9552 (604) 684-6212 [email protected] [email protected] [email protected] [email protected] www.rbc.com/canada.html www.royspeedross.com www.scotiabank.com/ scotiadealeradvantage www.scotiabank.com www.serti.com www.shk.ca SIGNALS MAY - JUNE 2015 21 September 20-21 Fairmont Pacific Rim Vancouver, BC - Details & Registration Coming Soon - 2015 BC Auto Industry Conference Save the Date! Who's Who at the NCDA OUR VISION: 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 four individuals working to serve all Members of the New Car Dealers Association of BC. Should any questions, concerns, issues or ideas arise, the Association staff will be available to listen and help. CONTACT US Get in touch via phone, email, fax or in person at the Richmond office! Blair Qualey President & CEO [email protected] Jason Heard Executive Director,Vancouver International Auto Show [email protected] Shakira Maqbool Senior Accountant & Office Manager [email protected] Christie Morning-Smith Event Manager cmorning-smith@ newcardealers.ca #70-10551 Shellbridge Way, Richmond, BC V6X 2W9 | Phone: 604-214-9964 | Fax: 604-214-9965 @NCDA_BC New Car Dealers Association of BC @NCDA_BC CORPORATE PARTNERS AND SUPPLIERS The New Car Dealers Association of B.C. would like to acknowledge these fine companies for their support of your association’s activities: Signals, the official publication of the New Car Dealers Association of B.C, is published six times a year. It is designed and printed at Total Graphics Inc. and distributed to dealer members, select government agencies and the Association’s corporate partners. Please direct all inquiries about Signals to the Editor, Christie Morning-Smith. We search when you say so. Only CarProof ™ searches for vehicle data the moment you order your report. Unlike some competitors who often buy their data in ‘dumps’, resulting in records that are sometimes weeks or even months old, CarProof ensures you have the most recent facts available to help you make the best decisions. Only CarProof. ™ 1.866.835.8612 | www.carproof.com SIGNALS MAY - JUNE 2015 23 SAVE the DATE SEPTEMBER 20-21•2015 Fairmont Pacific Rim Vancouver, British Columbia Event details and registration opening soon at www.newcardealers.ca 2015 BC AUTO INDUSTRY CONFERENCE