Winnipeg played host to the MMDA’s annual convention
A kinder, gentler dragon delivered an inspirational message to auto dealers and industry suppliers at the Manitoba Motor Dealers Association’s (MMDA) annual convention held May 3 at the Radisson Winnipeg.
Wealthy Barber author David Chilton entertained delegates with stories of his investments and life as a dragon the the popular CBC program Dragons’ Den.
David Chilton, best-selling author and now one of the dragons on the popular CBC television show Dragons’ Den kicked off the event with a humourous and upbeat keynote address. “It has been life changing,” says Chilton of his TV experience, adding that he expects Dragons’ Den will go down as one of the most popular shows in Canadian television history.
Chilton, who admits he has been very lucky in his career, recounted tales of some of his successful investments. He also entertained delegates with stories of what goes on beyond the scenes at the popular TV show where hopeful entrepreneurs pitch their ideas to a panel of investors — aka the dragons. “Everyone wants to be an entrepreneur now,” says Chilton, adding that he meets lots of young people in business schools who tell him the program inspired them to pursue careers in business.
Chilton delivered a mix of economic advice, social commentary, and lots of great stories. Chilton’s key takeaway message was that despite the high standard of living enjoyed by most Canadians, we still remain a grumbly and complaining group. “We love stuff too much,” he says, adding that Canadians are carrying too much personal debt, and that having material things doesn’t equate to happiness. “The more you have the more you want, and it never ends.”
He says many of us are missing a sense of perspective about how good we have it. “Our pets live better lives than billions of people in the world,” says Chilton. “We have lost the ability to differentiate between a minor inconvenience and a major problem.”
Geoff Sine, MMDA Executive Director, says attendance was up at this year’s convention.
Attendance up say organizers
Geoff Sine, MMDA’s Executive Director was happy with this year’s one-day event that featured keynote sessions, workshops, a banquet and networking opportunities. “Attendance is up and we had some exciting workshops,” says Sine. “That’s what it’s really all about, providing dealers with something that is going to be informative and something they can take back and share with their staff.”
“We are certainly happy with how things are proceeding,” Sine said of the industry’s growth in Manitoba.
Canadian auto dealer also caught up with Shirley Canty, the association’s former executive director and now lifetime MMDA member. Canty says she has been enjoying herself since retiring two years ago. “It’s wonderful to see everyone again,” she says. “I’m greeted like a friend and it gives you a warm feeling. They are such great people.”
Canty says she’s happy to see a great turnout at the event. “It’s very gratifying to see,” says Canty. “I think Geoff Sine is doing a great job and he’s loving it.”
Canadian auto dealer editor Todd Phillips talks with Shirley Canty, former executive director of the MMDA at the association’s annual convention in Winnipeg.
Canty says after her retirement she took a three-week trip to Hawaii and has been visiting friends and family across North America from Arizona to Alberta.
Economic update
Michael Hatch, Chief Economist with the Canadian Automobile Dealers Association (CADA) delivered an economic update tailored for the Manitoba market. He says Manitoba’s economy is robust and dealers should expect a good year. He said there is a brighter upside in Manitoba than the rest of the country. “The people in this room know it better than I do, but the economy here is very strong. It’s one of the strongest provinces in the country,” says Hatch.
Hatch described the retail auto market as a bright spot, in a “darkening economic context” and cautioned that other global forces could impact the retail market.
He says the auto retail sector in Manitoba represented $2.8 billion in sales in 2012, and represents 4,500 full time jobs. Vehicle sales at the 107 dealerships in the province represent 16.7% of all retail sales. He says 2012 represented the best year ever for new vehicle sales in the province. Hatch predicts we could break a new sales record in Canada this year, and in Manitoba.
Another speaker, Professor Jack Brown from Georgian College’s Automotive Business School of Canada (ABSC), talked about the rebranding of the school from its former name as the Canadian Automotive Institute. Brown says the college’s 3,000 graduates are at work throughout the automotive industry, and that the program has a more than 90 per cent graduate placement rate over its 28 year history.
In his workshop, Malcolm C. Smith, from the Department of Marketing at the I.H. Asper School of Business, University of Manitoba, walked dealers through a detailed presentation on how consumers reach decisions on major purchases such as an automobile.
He says consumers get highly involved and spend hours extensively researching a vehicle purchase and sales people need to understand their customer’s anxiety over what can be perceived as a “higher risk” purchase. “If you are buying a car, or a house, in most cases it’s a lot higher risk,” says Smith, adding they need to help reassure them.
“Word of mouth is priceless,” says Smith. “It’s one of those things that can really influence that unbiased research process.”
Gino Cozza, Head of Sales with TD Auto Finance takes part in a consumer finance panel at the MMDA convention in Winnipeg.
Professor Jack Brown, from the Automotive Business School of Canada moderated the consumer financing panel. Panelists were: Gino Cozza, head of sales at TD Auto Finance Canada; Jim Dyas, Regional Manager, Scotia Dealer Advantage; Gord Mooney, Chief Operating Officer for the General Bank of Canada; George Steinsky, National Sales Director RBC; and Dave Desjardine, Relationship Development Specialist, BMO Bank of Montreal.
Bankers discussed the increasing regulations affecting the industry. Gino Cozza from TD Auto Finance says dealers sometimes get upset at the number of questions the banks ask about their customers. It’s not the way banks want to do business, but regulations dictate the need for scrutiny.
Dave Desjardine says the government was concerned about consumer debt so they shortened mortgage terms and are now concerned with the length of consumer car loans. Consumer debt is now 168% of a consumer’s income in Canada.
The bankers said the non-prime market is a growing market, representing 25-30% of car buyers who have less than ideal credit. This represents a growth opportunity for dealers. “There is nothing wrong with these customers,” says TD Auto Finance’s Gino Cozza.
The bankers also talked about emerging technology that means smarter, better informed customers. Banking technology itself has also changed so that dealers are able to provide much faster answers on credit questions for their customers.
Dealers also talked about the importance of maintaining good relations with their dealer customers. “The most important thing is trust,” says Desjardine. “You just keep communicating with each other. I found that recipe just works. You know the bank and the bank knows you.”
“Honesty and integrity is very important,” says Cozza, adding that banks depend on the accuracy of the information that dealers provide to them.
The bankers expressed some concern over things like record low interest rates, rising levels of consumer debt, 96-month car loans, the pace of regulatory change and compliance, and fraud.
Bankers were also asked about whether they would like to enter the leasing business. Some bankers said they would like to and would “do a great job” at it. Another said his bank wouldn’t be interested, adding that there’s not that big a difference between an extended term loan and a lease.
