This year’s CADA Summit was jam-packed with sessions ranging from effective uses of dealer councils to the current, turbulent automotive landscape.
While the topics were varied, the one constant is that OEMs and dealers are still positive about the year ahead. It’s important to recognize that we can’t control the chaos but we still have customers to serve and vehicles to sell.
The morning started strong with a Quick Takes dealer panel hosted by Jason Stein. With the uncertainty around tariffs and incoming competition from new markets like China, Christian Chia, CEO OpenRoad Auto Group, discussed prioritizing the 3 C’s: Cost, Competition, and Consolidation when it comes to operating a group and how they analyze mergers and acquisitions. All three heads of Canadian dealer groups agreed that OEMs need to look at the costs they’re imposing on dealers and that a more flexible approach should be explored for sharing facilities in certain markets.
Darrel Bricker, CEO, Ipsos Global Public Affairs gave an in-depth presentation on the demographic change and the current state of our population. Bricker dispelled the myth that unsustainable population growth will destroy our planet and resources. He went on to highlight that 3 out of 4 of the top countries by population in 2017, will all experience significant decline in population by 2100, including China and India. So how does this affect car dealers directly? Factors like urbanization, dropping fertility rates, and decreased population growth are what make up the Canadian car buying landscape. Dealers should remember that the largest segment of our population is still the baby boomers and these people are still buying vehicles.
The next speaker was Darren Slind,
Co-Founder and President of the Clarify Group, who showcased an early look at the CADA report on the future of the automotive industry. He explored the top seven key insights from the report, covering the evolution of customer expectations and the demand for personalized shopping experiences, the shift to new energy vehicles, and how digitization and AI are driving retail investment priorities.
He also highlighted the changing OEM landscape, new profitability drivers, the ongoing challenges in recruitment and talent retention, and the undeniable reality that adaptability is the key to long-term success in automotive retail.
The big takeaway from Slind’s presentation was to leverage your CRM to deliver a more personalized customer experience. Slind also recommended taking the time to understand the why behind what you’re implementing before rushing into new investments.
The rapid pace of technology innovation was a hot topic for Octavia Howell, Chief Information Security Officer with Equifax Canada. Howell highlighted how we’re living in a VUCA (Volatility, Uncertainty, Complexity, Ambiguity) world, and when there’s high volatility, it means we need to be agile if we’re going to win. AI is reshaping the online security landscape for all businesses, and if dealers are only focused on what’s happening to them today, they are already behind. By collaborating with partners to understand their security measures and educating employees on established processes, dealerships can strengthen their defences and confidently navigate the future.
The morning session at the CADA Summit concluded with a Dealer Council Chair Panel, moderated by Niel Hiscox, featuring the following representatives: Andy Caletti, Chair of the Lexus Communications Team, Michael Crosby, Past Co-Chair of the Volkswagen National Roundtable, and Tim Reuss, President & CEO of CADA.
Their discussion focused on the role and impact of dealer councils, emphasizing that an effective council must also be a well-informed one. Strong communication, clear structure, and thorough pre-meeting preparation are essential to ensuring success. While council members naturally bring perspectives shaped by their own regions and dealership needs, they carry a broader responsibility—to represent all stakeholders and foster collaboration with OEMs, particularly as new vehicle launches reshape the industry.
Some might see the after-lunch speaking slot as a challenge, but for Glenn Mercer, it was the perfect opportunity to engage and energize the audience. A CADA Summit fan favourite over the years from GM Automotive LLC, Mercer packs the perfect presenter punch with his dry humour and hard-hitting facts currently facing the automotive industry.
He presented on three topics including:
- Dealership of tomorrow
- Cost of distribution
- Back to basics
Kicking off with the dealership of tomorrow, Mercer emphasized how industry fears from years past—like Google’s 2012 prediction that we’d all be in autonomous cars within five years—have not materialized as expected. While these concerns have evolved, they remain valuable to monitor alongside exciting new developments, including AI advancements, emerging competitors from China, and evolving auto distribution channels like Scout, Afeela, and Amazon’s partnership with Hyundai.
This segued perfectly into the second topic: the cost of distribution and where the dealership model fits in. Mercer and his team analyzed an extensive database spanning 10 years and tens of millions of data points to truly understand the distribution models and which one stands out among traditional franchised, hybrid, and direct-to-consumer options. While only averages were presented and significant differences exist among brands, the final numbers were quite similar across every channel. Ultimately, Mercer’s rule still applies:
- If demand > supply, you can sell any way you want
- If demand < supply, you need dealers
- And the car industry has been mostly in over-supply for over a century
The final topic focused on getting back to basics and envisioning the future of car sales in 2030 and beyond. The key message to dealers was one of confidence and resilience—rather than reacting to headlines, they should focus on what they do best: innovate and persevere.
While new vehicle sales volume is expected to remain steady, the EV market will continue its gradual growth, and the importance of omnichannel dominance will only increase, reinforcing that a balanced approach between in-person and online sales is here to stay.
While you can’t dictate pricing and new vehicle margins are shrinking, success now hinges on shifting from out-dealing to out-managing. Prioritize streamlining dealership operations, doubling down on optimizing used inventory, and broadening and strengthening your profit centers.
The leaders of the Detroit “Big Three” automakers took the stage next: Bev Goodman, President & CEO, Ford Motor Company of Canada, Jeff Hines, President, Stellantis North America, Kristian Aquilina, President & Managing Director, GM Canada, with moderator, Jason Stein, Presidio Group.
It was a rare sight to see and while the group was conscientious of the hot topics at hand, they shared some great insights into industry challenges, affordability and momentum.
Aquilina stressed the importance of communication with dealer partners to be a true dialogue and not a monologue, as that is the only way to navigate the challenges ahead together. The weakening Canadian dollar and emerging competition from new markets were priorities for all 3 OEMs on stage, with Goodman stating that the industry will always face challenges, so it’s not about how the landscape may be harder now, it’s about figuring out how we’re going to overcome these challenges. Hines concluded that transparency is vital and that we as an industry can’t waste time on what’s out of our control.
Affordability was a theme throughout the day as it’s on everyone’s mind. Ford is looking at affordability in terms of vehicle segments, adding trim levels, and offering a choice in the powertrains offered. Both Stellantis and GM have been offering longer-term loans (84 & 96 months) for quite some time, but Aquilina acknowledges that it’s not sustainable long term and that there still needs to be flexibility available based on consumer demand.
Both Ford and GM had a positive end to 2024, with Goodman denoting that retail sales were up 20% in all segments. There was no surprise that Hines touched on the challenging year Stellantis experienced throughout 2024, with inventory levels and price points, but is optimistic going into 2025 with how the brand is pivoting and continuing to work with its dealer partners.
The second last panel of the day was with Niel Hiscox and the three 2024 CADA Laureate Award Winners* to discuss the key challenges and opportunities for dealers throughout 2025. All three agreed that there’s going to be a large focus on profit centers and how those will vary by region and market. For some, doubling down on EV maintenance will be a differentiator, whereas for others collision centers may present a unique opportunity. Fixed operations have a lot of potential as profit centers, and also a lot of competition, so dealers will need to figure out their value proposition to differentiate and stay ahead.
The day concluded with an engaging and dynamic political panel. Huw Williams, CADA’s Director of Public Affairs, led a discussion with three prominent journalists on the turbulent political climate in Canada and the U.S. and its potential impact on businesses and citizens on both sides of the border.
As we continue into 2025, with constant change and fresh uncertainties on the horizon, dealers continue to showcase their resilience and celebrated entrepreneurial spirit. The CADA Summit underscored this through every panel and session, spotlighting the automotive industry’s exceptional ability to adapt and thrive, no matter the obstacle.
The rest of 2025 is sure to be interesting and we’ll do our best to keep updated along the way. If you haven’t already, sign up for our newsletter to stay in touch!
-Alecia Wilson
*Congratulations to these three 2024 CADA Laureate Award Winners: Peter Heppner, President, Preston Chevrolet Buick GMC Cadillac Ltd., Alexandre Saillant, Co-President, Groupe Saillant, Dean Cooley, Dealer Principal, Dean Cooley Motors
