Drivers are quickly finding ways to bypass safety limits in partially automated driving systems, according to a new study from the Insurance Institute for Highway Safety (IIHS), raising questions about how effectively these systems prevent risky behaviour.

The study examined how drivers interact with advanced driver assistance systems (ADAS) like Tesla’s Autopilot, GM’s Super Cruise and others, which are designed to assist with tasks like steering, braking and lane-keeping.

While these systems are intended to enhance safety, they rely on the driver remaining attentive and ready to take control. However, the IIHS report reveals that drivers are finding creative ways to sidestep the very safeguards that are meant to ensure their engagement.

Researchers found that drivers of vehicles equipped with these systems can easily trick the monitoring features, such as placing objects on the steering wheel to mimic hands-on driving or using simple hacks to bypass alerts meant to keep them engaged. This behaviour allows them to disengage from the driving task for extended periods, undermining the purpose of the safety features.

“The study underscores a major gap in the effectiveness of these systems,” said Alexandra Mueller, the study’s lead author. “By circumventing the safety features, drivers are essentially nullifying the systems’ ability to reduce risk.”

Partially automated systems like Autopilot and Super Cruise require periodic driver interaction to ensure attentiveness, but the study found that even more advanced systems, such as GM’s Super Cruise, which uses cameras to monitor eye movement, are not immune to workarounds. While eye-tracking systems are a step up from basic steering wheel sensors, drivers can still fool the technology by using eyewear or making brief glances to trigger the system.

The IIHS has called for stronger regulations and more robust safeguards to address these issues. Suggestions include limiting the amount of time that automated features can remain engaged without manual input, implementing stricter driver monitoring systems and improving the design of these technologies to prevent circumvention.

Mueller and her team argue that as automated technology advances, it’s crucial to develop systems that better account for human behaviour and the tendency to misuse or override safety features.

“The problem is not just in the technology itself but how drivers interact with it,” Mueller added. “People find ways to make the systems work for them, even in ways they weren’t designed for, which puts everyone on the road at risk.”

With automation becoming increasingly integrated into the modern vehicle, the report concluded that manufacturers need to focus not only on developing cutting-edge technology but also on implementing safeguards that truly deter unsafe driving practices. In doing so, the automotive industry can better ensure that partial automation systems contribute to improved road safety rather than inadvertently enabling reckless behaviour.

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Car-sharing platform Turo announced a partnership with CrashBay, a digital marketplace for collision and car repair solutions.

This collaboration is designed to enhance the auto claims repair process for Turo hosts across the U.S. and Canada.

Both Turo and CrashBay aim to simplify vehicle ownership and improve the car-sharing experience. CrashBay’s platform will give Turo hosts access to a network of certified repair shops. These repair shops are vetted for quality, reliability and cost-efficiency

“CrashBay has been an invaluable partner to Turo and our hosts, providing an easy way to find a qualified body shop for vehicle repair,” said Jeff Platt, chief insurance officer at Turo. “Hosts are an integral part of the Turo community, and on the rare occasion that a claim needs to be filed, we want to ensure they feel supported with trusted, reliable resources like CrashBay.”

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A recent MIT study has found that high temperatures inside vehicle cabins during hot summer days significantly increase the levels of volatile organic compounds (VOCs), posing potential health risks to occupants.

A new study by researchers at the Massachusetts Institute of Technology (MIT), Cabin air dynamics: Unraveling the patterns and drivers of volatile organic compound distribution in vehicles, published in the journal PNAS Nexus emphasized the critical role of material surface temperature in driving VOC emissions, challenging the previously held belief that air temperature was the primary factor.

The research team, led by Rui Zhang and included Minglu Zhao, Hengwei Wang, Haimei Wang, Hui Kong, Keliang Wang, Petros Koutrakis, Shaodan Huang and Jianyin Xiong, looked at VOC levels inside a new car over seven summer days. They found that formaldehyde concentrations were notably high, with about one-third of the readings exceeding the standard limit for in-cabin air quality.

The study’s findings are particularly concerning for new vehicles exposed to high temperatures, which can exacerbate the “new car smell” often associated with VOC emissions. The researchers discovered that material surface temperature, rather than air temperature, is the most significant factor influencing VOC emission behaviours.

The report observed that the implications of this research are significant for both the automotive industry and public health. High levels of VOCs can have adverse health effects, including respiratory issues and other long-term health problems. It outlined that by identifying material surface temperature as a key factor in VOC emissions, manufacturers can design vehicle interiors to minimize harmful exposures, especially during hot summer months.

VOCs, emitted from various materials and products within vehicle cabins, pose a significant risk to occupants, particularly in high-temperature conditions. Understanding the factors that influence VOC emissions is essential for developing strategies to reduce exposure and improve overall air quality.

The research team hoped their findings lead to more informed decisions in vehicle design and air quality management.

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A recent paper has found that Canadians have little knowledge of data access and control in their vehicles.

Fewer than a third (29 per cent) of drivers say they clearly understand who has access to the data their vehicle produces, while most (63  per cent) want to know who controls that data, according to the study, Data dynamics: Exploring vehicle owners’ data awareness, ownership and sharing, published last week by AIA Canada.

The study highlights the growing awareness of the amount of data consumers leave behind as everyday actions — such as shopping, watching videos online and driving habits — produce data valuable to stakeholders for various purposes.

Through a survey of vehicle owners, AIA Canada, in collaboration with Quorus Consulting Group, explored behaviours, attitudes and preferences related to in-vehicle data, including data ownership preferences and expectations, self-assessed awareness of the types and amount of data produced by their vehicles and data-sharing preferences.

The survey allowed the research team to analyze responses across key demographic categories such as age and gender, region and various vehicle profile variables like type, age and warranty status.

Three-quarters of respondents believe the vehicle owner should own the data. Only 10 per cent said the vehicle manufacturer is entitled to it…

In addition to wanting more clarity on who has access to their vehicle’s data, more than half (51 per cent) of respondents said they want a better understanding of how much data is produced. Meanwhile, 39 per cent said they wouldn’t know where to find their vehicle’s data.

Three-quarters of respondents believe the vehicle owner should own the data. Only 10 per cent said the vehicle manufacturer is entitled to it, and just four per cent said the company that developed the technology collecting the data should have ownership.

More than three quarters (78 per cent) of respondents believe vehicle manufacturers have a responsibility to do more to educate owners about vehicle data ownership.

When it comes to sharing data, 74 per cent said they would wirelessly transmit certain vehicle diagnostics to their regular service provider to help keep them updated on repair and maintenance timelines.

Nearly half (46 percent) said they would send their driving behaviour data to insurance companies to adjust premiums accordingly.

The report acknowledged that knowing how much data is left behind and tracked from everyday actions can be concerning or overwhelming for consumers. While some may embrace data tracking by staying up to date with the latest devices and apps, others may not be aware of the extent of data collection or may be concerned about the privacy of their personal information.

The report is free for AIA Canada members or $199 for non-members.

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Canadian small business owners are showing “uncommon confidence” in the face of economic uncertainty, according to a recent survey.

The survey from Toronto-based Zensurance.com gathered responses from 1,000 small business owners, entrepreneurs and self-employed people from various industries, including retail, hospitality, consulting, construction and health and wellness. It found that a significant majority of businesses have experienced positive financial trends in 2024.

According to the survey, 58.5 per cent of respondents reported improved revenues compared to the first half of 2023, with nearly 20 per cent stating their revenues “soared to new heights.”

The positive signs may mean economic normalcy is building and that’s good news for the automotive aftermarket.

This optimism extends to future plans, with one-third of small businesses planning to hire additional staff in the next six months. Moreover, 24 per cent of respondents indicated plans to open a second workplace or office, and 30 per cent plan to introduce new services or products.

Confidence in business success remains high, with about seven in 10 small business owners expressing confidence in their prospects over the next six months. Among these, 36 per cent are “very confident,” while 33 per cent are “somewhat confident.” Despite ongoing economic challenges, 21 per cent of small businesses reported experiencing a “significantly positive impact” from the current state of the economy.

However, the survey also highlighted several concerns that continue to weigh on entrepreneurs. Cybersecurity emerged as the top issue, with 32 per cent of respondents citing the risk of a cyber-attack or data breach as a significant concern. Other major worries include theft and shoplifting (31 per cent), non-payment by customers (30.5 per cent), vandalism (26 per cent) and the risk of being sued (24.4 per cent).

“It’s encouraging to see such positivity among Canadian small businesses, even as they navigate numerous potential challenges,” said Danish Yusuf, founder and CEO of Zensurance.com. “Having a comprehensive insurance plan can help business owners maintain their confidence and success.”

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While many admit to driving dangerously at times, there’s growing support for measures like speed enforcement.

More than half of Ontario motorists confessed to engaging in risky driving behaviours, with younger drivers being the worst offenders, according to a recent study by CAA South Central Ontario.

The study found that more than 55 per cent of Ontario drivers admitted to participating in unsafe driving practices in the past year, a number that jumps to 61 per cent among younger drivers aged 18 to 34.

These statistics highlight the ongoing issue of dangerous driving on Ontario’s roads, with speeding, distracted driving and aggressive driving topping the list of risky behaviors.

“These actions not only endanger the drivers themselves but also put all road users at risk,” said Michael Stewart, community relations consultant for CAA SCO. “We must prioritize road safety by promoting responsible driving habits.”

The study found that the most common dangerous driving behaviors admitted by motorists are:

1. Speeding: 41 per cent
2. Distracted driving: 20 per cent
3. Unsafe lane changes: 9 per cent
4. Aggressive driving: 8 per cent
5. Running red lights: 7 per cent

In contrast, drivers reported witnessing these dangerous behaviours in others far more frequently:

1. Speeding: 84 per cent
2. Unsafe lane changes: 76 per cent
3. Aggressive driving: 76 per cent
4. Distracted driving: 73 per cent
5. Running red lights: 56 per cent

Stewart noted the disconnect between personal admission and observation. “The data tells us that it is far more prevalent for people to see others driving dangerously rather than admitting that they themselves are carrying out the same behaviour.”

Speeding remains a significant concern for Ontario motorists, particularly on highways with higher speed limits. While 86 per cent of drivers feel safe on residential streets, only 68 per cent report feeling secure on highways with posted speeds of 110 kilometers per hour.

“The risk of collision can increase when travelling at higher speeds,” Stewart noted, pointing out that dangerous driving behaviours are more commonly observed on highways.

The study also highlighted Ontario drivers’ support for stricter penalties to combat dangerous driving. This year, 35 per cent of Ontarians reported that fines and penalties for speeding and stunt driving have influenced their driving behavior — a 7 per cent increase from the previous year.

Despite this, the study found that 40 per cent of Ontario drivers actively avoid roads with Automated Speed Enforcement (ASE) cameras, even though 78 per cent believe that ASE can help deter speeding. Furthermore, 84 per cent of drivers support the presence of ASE near schools, and 81 per cent support it near community centers. However, 17 per cent of Ontario drivers — equivalent to more than 1.5 million people — have received a ticket from an ASE camera.

“It is no surprise that Ontario motorists are in favour of stricter penalties as speeding and dangerous driving continue to be an issue,” Stewart said. “What is surprising, however, is that despite the support for ASE, four out of 10 Ontario drivers will actively avoid roads where an ASE is present, an increase from last year.”

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The Barbie car at the 2024 Canadian International AutoShow in Toronto

New research looked at the biggest car-loving communities worldwide, with Toronto taking second place.

Austin, Texas, claimed the No. 1 spot, followed by Toronto and Cape Town, South Africa. Edmonton, also landed among the world’s top 15, finishing 11th, according to Auto Trader.

The research analyzed the number of car meets, auto events and motor shows in more than 400 cities worldwide, along with the number of Instagram posts associated with each city’s car meets, to show how strong the car-loving community presence is in each location.

Austin hosts major events such as the Formula 1 United States Grand Prix and the MotoGP Red Bull Grand Prix of the Americas. The city also has car clubs and dozens of car meets that push it to the top of the list for the biggest car community spirit.

Toronto’s car scene presence on social media is what propels the city into second place. According to Auto Trader, the hashtag #torontocarmeets recorded nearly 49,000 Instagram posts.

The top 15 were ranked as follows, with their scores:

• Austin, USA, 98.1
• Toronto, Canada, 95.4
• Cape Town, South Africa, 95.2
• Turin, Italy, 76.1,
• Munich, Germany, 68.1
• London, U.K., 61
• Warsaw, Poland, 58
• Frankfurt, Germany, 57.1
• Sydney, Australia 1
• Christchurch, New Zealand 41
• Edmonton, Canada, 39.3
• Wolverhampton, U.K., 38.6
• Geneva, Switzerland, 38.1
• Stuttgart, Germany, 38.1
• Pretoria, South Africa, 29.3

“In today’s digital age, it’s encouraging to see how many petrolhead communities thrive across the globe, allowing motor lovers to connect in person and show off their wheels,” said Rory Reid, YouTube director at Auto Trader. “From the annual Oktoberfest car meetups in Munich to the vibrant car scenes in Pretoria, each city offers unique events that bring enthusiasts together. This shows how, for many people, their cars are more than a means of transportation and in fact, act as an expression of individuality and a source of passion. Whether you’re from Christchurch, New Zealand or London, England, the car community truly is a place that fosters friendships.”

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Canadians overwhelmingly favour road trips over flying, citing greater control over their travel plans and safety concerns about air travel, a new study by Turo found.

The car-sharing marketplace highlighted Canadians’ travel preferences and concerns amidst a challenging economic landscape. Over half (57 per cent) of Canadians would rather spend five hours or more driving to their summer vacation destination than fly, according to the study. Additionally, 78 per cent of respondents believe that having access to a car during their vacation significantly reduces travel-related stress.

“Results from the study strongly indicate Canadians have an appetite for road trips this summer as it offers more personalization, from taking spontaneous pit stops along the way, packing extra items like camping gear or bicycles, or even bringing your dog along for the ride,” said Cedric Mathieu, senior vice president and head of Turo Canada.

The survey found that 65 per cent of Canadians prefer road trips due to the greater control they have over their itinerary (45 per cent), the ability to add multiple destinations to their trip (42 per cent), and better pricing (32 per cent). These factors make road trips an attractive option for many Canadians looking to maximize their travel experience.

Gen Z respondents, aged 18-27, exhibited the most significant hesitations around air travel. Over half (51 per cent) of Gen Z respondents cited safety concerns about air travel affecting their travel plans, the highest among all generations surveyed. Additionally, 25 per cent of Gen Zs prefer road trips to avoid flight delays, compared to 13 per cent of all Canadians surveyed.

Despite being the most concerned about travel costs, Gen Z is also the most willing to spend a substantial portion of their income on vacations. More than half (53 per cent) of Gen Z respondents are willing to spend more than their monthly paycheck on a summer trip, higher than the average across all Canadians (37 per cent).

However, 73 per cent of Gen Z respondents agree that saving enough for a trip is challenging due to current inflation rates, compared to 65 per cent of all Canadians. Moreover, 70 per cent of Gen Zs reported that their travel budget has decreased compared to last year due to the high cost of living.

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Electric vehicle charging stations see the highest utilization rates in densely populated, higher-income areas near parks and shopping amenities, according to new data from the Transportation Energy Institute’s (TEI) Charging Analytics Program (CAP).

The analysis covered over 1,000 DC fast chargers across the U.S. and Canada.

The CAP, developed in partnership with the Center for Sustainable Energy (CSE), aims to provide businesses with actionable EV market and charging deployment data to optimize site selection and ensure a strong return on investment.

“We saw a need to help site hosts make informed decisions, optimize products and services, and collaborated with CSE to develop CAP to address those needs,” said Karl Doenges, executive director of the Charging Analytics Program. “Our tiered construct starts with a high-level summary of market dynamics and progressively adds more granular regional analysis.”

Key findings from CAP’s initial analyses included:

• Median Income: Higher median income is one of the top predictors of EV charging station utilization.
• Infrastructure: The number of roads and population density significantly influence charger use.
• Amenities: Proximity to parks, open spaces, and stores correlates positively with charger utilization.
• Local factors: Utilization varies widely among chargers within a mile of each other, indicating the importance of hyperlocal characteristics such as traffic flow and traffic lights.

“EV chargers can attract customers who will spend time and money at a retailer. But businesses need data to determine which sites will bring the best returns,” said Scott Shepard, CSE’s transparency and insights director. “CAP layers EV market and charger deployment data with insights from EV infrastructure and retail business experts to provide actionable intelligence for charger deployment.”

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The latest Consumer Behaviour Series report from AIA Canada shows that dealers are outranking independent automotive service providers in several key areas.

The Dealership versus independent: How Canadian vehicle owners choose a service provider report is available to AIA Canada for free, or $199 for non-members. It explores the factors influencing Canadian vehicle owners’ choices for maintenance and repair services have been revealed, highlighting significant trends and preferences in the industry.

It found that most Canadians (37 per cent) believe dealers outperform the aftermarket. One-third believe the reverse, that independent automotive service professionals outperform dealers. The remaining 30 per cent believe both are the same.

When comparing a few specific areas, dealers ranked higher compared to automotive service providers in:

• • Helpful service advisor: Dealerships 37% vs. ASPs 23%
  • Proactive notifications: Dealerships 46% vs. ASPs 18%
  • Technical competence: Dealerships 36% vs. ASPs 20%
  • Quality of work: Dealerships 33% vs. ASPs 24%

The independents came out ahead in:

• • Value for money: ASPs 20% vs. Dealerships 58%
  • Being trustworthy: ASPs 28% vs. Dealerships 36%

If ASPs want to build greater trust with consumers, they should look to for consistency in matching up technicians with customer vehicles. Two-thirds of respondetns said they would trust their service center more if the same technician always worked on their vehicle.

The same number of respondents said they would trust more if more time were spent explaining the impact of maintenance and repair, while 64 per cent would trust more if they received more help in planning for short, medium and long-term maintenance and repair.

About half (51 per cent) would be more trustful if shops sent videos and websites explaining the scope and importance of maintenance and repair.

The report further dives into where Canadians go for maintenance and repair, the reasons they choose a shop, how they find a new service provider, their perceptions of the independent aftermarket versus dealers and how to increase trust and loyalty.

In its key takeaways and conclusions, the report noted that ASPs must focus on building trust and providing quality customer service to retain customers and justify premium pricing. Transparency, trust, and quality service ensure repeat business, even if price initially attracts customers.

Satisfied customers can become strong advocates for ASPs, generating positive word-of-mouth and online reviews, the report added. Every customer interaction is an opportunity to make a lasting positive impression, encouraging loyalty and recommendations.

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Employment levels in the auto repair sector are higher than pre-pandemic levels, according to data from DesRosiers Automotive Consultants.

The automotive aftermarket showed robust growth in 2023, with the automotive repair and maintenance sector reaching 121,000 employees by December, surpassing 2019 levels by 4.8 per cent. Similarly, employment in automotive parts and accessories stores came in at about 5 per cent above pre-pandemic figures.

However, other sectors lagged behind. Motor vehicle manufacturing remained 11% below 2019 levels, while automobile dealers were still slightly short of returning to pre-pandemic employment numbers.

“The overall employment picture in the automotive space was positive by the end of last year,” commented Andrew King, managing partner at DesRosiers. “With the manufacturing side of the industry transforming, the retail aftermarket led in employment growth.”

The broader automotive sector saw continued employment growth throughout 2023, nearly reaching pre-pandemic levels with 604,000 recorded employees by December, just 0.7% below December 2019.

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Canadian vehicle owners are continuing to ignore oil change needs, updated research has found.

The Automotive Industries Association of Canada released its latest look at consumer behaviour. It sheds light on where Canadian vehicle owners are deficient in their knowledge and where opportunities are for the automotive aftermarket.

Free for members, it examines the habits of Canadians across various segments such as age, income, region and type of vehicles they own. The report is $199 for non-members.

The report, Canadian vehicle owner’s attitudes towards maintenance and repair, shows that Canadians put oil changes at the top of the list of services they are letting slide. It’s followed by checking oil and a trio of tire related needs: Changing them, checking wear and checking pressure.

About 2,000 Canadians were surveyed in March 2023. They said they spent almost $400 on maintenance plus about another $650 on repairs.

They find the windshield sticker to be most helpful to remind them about maintenance needs. That was followed by dashboard messaging, e-mail reminders and text messages.

Fewer than half (44 per cent) of Canadians claim to be somewhat knowledgeable when it comes to vehicle maintenance and repair. About one in 10 claim to be very knowledgeable.

Four in 10 (41 per cent) don’t consider vehicle maintenance and repair to be a high priority, the research found. Fewer than a third (31 per cent) view vehicle repair and maintenance as easy with 57 per cent say it’s somewhat easy.

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A group has recently highlighted the top vehicles in each segment for the money they cost. And a new category has been added for the top plug-in hybrid vehicle.

Honda and Kia each won four Best Car for the Money awards across multiple categories from consumer advice outlet U.S. News & World Report.

“The Honda Civic, Honda Odyssey and Kia Soul – each previous winner in their respective categories for multiple years – have showcased commitment to low ownership costs, top safety ratings and great driving dynamics,” the group said in an announcement.

It pointed to the Hyundai Ioniq 5, which placed atop the Electric SUV class for the first time “thanks in part to its cutting-edge technology features, spacious interior and competitive estimated five-year ownership costs.”

“The Best Car for the Money winners represent vehicles that provide an excellent ownership experience and excel when it comes to long-term value,” said Jim Sharifi, managing editor of U.S. News Best Cars.

The winners in each category are:

• 2024 Honda Civic, Best Compact Car for the Money
• 2024 Hyundai Tucson, Best Compact SUV for the Money
• 2024 Hyundai Ioniq 5, Best Electric SUV for the Money
• 2024 Hyundai Elantra Hybrid Best Hybrid Car for the Money
• 2024 Kia Sportage Hybrid, Best Hybrid SUV for the Money
• 2024 Honda Accord, Best Midsize Car for the Money
• 2024 Honda Odyssey, Best Minivan for the Money
• 2024 Kia Sportage PHEV, Best Plug-In Hybrid SUV for the Money
• 2024 Honda Passport, Best 2-Row SUV for the Money
• 2024 Kia Telluride, Best 3-Row SUV for the Money
• 2024 Kia Soul, Best Subcompact SUV for the Money

The group outlined that award winners have the best combination of quality and value in their class. Quality is based on the vehicle’s overall score in the U.S. News Best Car Rankings, which are based on safety and reliability data as well as the collective opinion of the automotive press. Value is measured by evaluating transaction price data and projected five-year ownership costs.

The recipients were recognized at the Washington, D.C. Auto Show in mid-January.

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Most drivers would buy a car with less technology to protect their privacy, a study has found.

A recent survey report by Kaspersky reported that seven in 10 (72 per cent) of drivers are uncomfortable with automakers sharing their personal data with third parties. The report, Is my car spying on me?  reflects growing concerns about privacy and data security in the era of connected cars.

Despite the allure of modern vehicles equipped with advanced technology, sensors, apps and infotainment systems, the report found that most drivers are wary of how their data is used.

The survey of 2,000 U.S. drivers in November 2023 showed that 87 per cent of participants believe automakers should be obligated to delete their data upon request. Additionally, only 28 per cent of respondents claimed to have some understanding of the kind of data collected by their vehicles.

The findings come as the global automotive aftermarket wrestles with automakers and governments to enact a legislated right to repair solution, citing that automakers will have too much control over information that should be owned by consumers.

The trend of connected cars has not only improved comfort and convenience but also opened new revenue streams for car manufacturers through subscription services based on in-car technology.

However, this technological advancement has raised significant privacy concerns. A Mozilla report gave the auto industry poor ratings for privacy, highlighting that many car companies’ data policies allow them to share consumer data with third parties. Kaspersky noted that this not only creates privacy issues but also poses a security risk, as consumer data becomes increasingly vulnerable to leaks or theft.

This survey’s results indicate that while drivers may accept some level of data collection, they have clear boundaries regarding the use and security of their personal data. More than a third (37 per cent) of respondents expressed being “very uncomfortable” with automakers sharing their data, and 71 per cent would consider purchasing an older or less technologically advanced car to protect their privacy and security.

When presented with findings that none of the 25 car brands researched by Mozilla met minimum security criteria, 76 per cent of respondents expressed concern. The survey also explored drivers’ use of in-car technology, with many pairing their phones with their vehicles.

Nearly half (48 per cent) use services like Android Auto or Apple CarPlay, while 42 per cent of Bluetooth users choose not to share their phone’s address book with their car — a privacy measure recommended by experts.

Respondents had varying opinions on why automakers might collect data, with half believing it’s for selling to advertisers or third parties and 40 per cent thinking it’s for sharing with insurance companies. Two in five (42 per cent) respondents expressed concern about their car collecting personal data, with the highest level of worry among 18-24-year-olds.

Kurt Baumgartner, principal security researcher at Kaspersky’s Global Research and Analysis Team, emphasized the importance of privacy safeguards.

“It’s easy to take for granted how much your car knows about you,” said Kurt Baumgartner, principal security researcher at Kaspersky’s global research and analysis team. “A connected vehicle knows where you go, how fast you get there and what you listen to on the way — even potentially what your kids are doing in the backseat. And the data collection policies of many automakers go far beyond that, allowing them to track and share things like users’ marital status and other surprisingly personal information that gets connected through their phone.

“The bounds of property rights and ownership are clearly being bent, and people appear to be getting denied the level of control over their personal data that they expect. Our data is highly valuable, as is our privacy. As drivers, we need to advocate for privacy safeguards and common sense ownership agreements where we can enjoy the convenience of tech-enabled cars without having to give it all up.”

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A new poll conducted by the Canadian Automobile Association (CAA) has unveiled a significant concern among Canadians about speeding in residential areas.

The concern is there even though many admitted to occasionally engaging in the behaviour themselves.

According to the CAA survey, nearly nine in 10 (88 per cent) of Canadians expressed deep worry about speeding in neighbourhood zones. At the same same time, one in five (22 per cent) respondents confessed to speeding in these areas at least sometimes.

The issue is further compounded by data showing that speed-related collisions, which latest federal government statistics show make up a quarter of fatal accidents, are on an upward trend.

“Canadians have a valid reason to be concerned about speeding,” said Ian Jack, vice president of public affairs at CAA National. “These accidents are preventable and we urge everyone to reduce their speed in 2024 to enhance safety for all.”

The Traffic Injury Research Foundation highlighted that traveling even 10 km/hr above the speed limit can increase the likelihood of a collision by 60 per cent, while only saving an average of four minutes per trip. Jack also reminded drivers that posted speed limits are meant for ideal weather conditions, a particularly pertinent point during Canada’s harsh winter months.

In addition to speeding concerns, the CAA poll also asked Canadians to identify other dangerous driving behaviours they engage in. The top five confessions included speeding on highways (45 per cent), using technology while driving (32 per cent), speeding in residential areas (22 per cent), driving significantly over the speed limit (19 per cent), and driving while excessively tired (18 per cent).

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The automotive aftermarket’s labour shortage has doubled from one year to the next and is projected to worsen.

The talent gap doubled from 2021 to 2022, and a new AIA Canada report estimates the industry could be short 4,000 technicians between 2024 and 2028.

“So this shortage does pose problems for the industry and highlights an urgent need for skilled technicians,” said Mauricio Zelaya, partner and national economics leader at business advisory firm EY Canada, who presented the report, Our People, Our Success: Labour Market Challenges during a webinar last week.

EY collaborated with AIA Canada to gather the findings presented in the report. It further noted that the current gap will widen thanks to the rise in electric vehicle adoption. S&P Global Mobility reported that 10 per cent of new vehicle registrations in the third quarter of 2023 were battery electric, with another 3 per cent plug-in hybrids.

“As more and more people adopt electrical vehicles, the auto care industry must adapt to the increased significance of digital and technical skills related to vehicle electrification,” Zelaya said. “So this would require focus on training and upskilling technicians to meet the demands of this changing landscape. And the current shortage of skilled automotive service technicians is likely to be further heightened with the shift away from traditional ICE vehicles and towards EVs.”

An issue that plagues the industry and attracting and retaining talent is the comparatively low wages compared to other industries. EY’s research found a connection between higher wages and lower job vacancies.

“It means, for those industries that have lower wages and higher job vacancy rates, it can demonstrate a relatively stronger demand or challenge in filling these positions,” Zelaya said.

It can also lead to high turnover. A low-paying job with demanding work, long hours and extended hours away from home can push talent out of the industry. Nearly two-thirds (65 per cent) of shop owners reported that they’ve dealt with increased turnover.

According to the report, they’re leaving most often because they can find better wages elsewhere (46 per cent).

“The skills acquired in auto repair, like mechanical aptitude and manual dexterity, are transferable and valuable in [other] fields,” Zelaya noted.

The report found that industries like construction are a big draw as they offer a weekly salary of more than $1,400 on average; dealers are paying $1,352 on average. By comparison, the aftermarket pays its technicians an average of $983 per week.

“A more granular analysis revealed that the dealerships attract workers from the auto care industry with higher compensation and has also high overlap of skills,” Zelaya said.

And as electric vehicle population grows, the challenges around finding talent will only intensify.

“So with advancements in vehicle electrification and autonomous technologies, the skill sets required from technicians are expected to evolve as well,” Zelaya said.

The full Labour Market Report is available from AIA Canada for free for members or $199 for non-members.

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On the whole, the numbers look good. But there are concerns below the surface when looking deeper at consumer automotive repair trends.

After hitting a high of $10.9 billion in 2022, the J.D. Power 2023 Canada Customer Service Index—Long-Term (CSI-LT) Study, reported the auto service market declined this year. It now matches pre-pandemic levels at $9.1 billion. Perhaps to be expected as people spent their money closer to home, especially as new and used vehicles became scarce and expensive.

The study measures usage and satisfaction of service shops for vehicles that are four to 12 years old. It also found that Canadian customers are paying more for maintenance and repair work than a year ago but not going into their shops as often.

What that means is, service visits are down and repair costs are up. The study reported that the average cost per visit at a dealership is $432, up about 10 per cent ($394) from 2022.

Meanwhile, the average cost per visit at an independent shop is $262, an increase of $15 (6 per cent) from a year ago.

Inflation is having an effect when it comes to automotive service, observed J.D. Ney, automotive practice lead at J.D. Power Canada.

“Average spend per service visit is up year over year at both dealerships and aftermarket facilities — yet the number of service visits is down,” he said. “While the pandemic caused a decline in service visits and revenue, the market has rebounded strongly. Now, we’re seeing a return to pre-pandemic levels for service on four- to 12-year-old vehicles.”

As a continued warning to the aftermarket, dealers are expanding their foothold in the traditional aftermarket sweet spot. Dealers expanded their market share at the expense of the aftermarket sector, both in terms of revenue and number of service visits, the report found.

It noted that, of the $9.1 billion total market revenue this year, dealerships now have added three percentage points to their share, sitting at 61% in 2023. That translates to more than $250 million in revenue. Dealers are also seeing a higher number of average annual visits, up to 1.7 from 1.5 last year.

However, it’s the aftermarket that gets it done right the first time. Aftermarket facilities complete service work correctly the first time 95 per cent of the time, the same rate as last year. Meanwhile, dealers continued their decline from 96 per cent in 2021 to 94 per cent last year to 93 per cent in 2023.

Jiffy Lube topped the list for aftermarket satisfaction with a score of 818 (out of 1,000). Great Canadian Oil Change was second at 809. Those were the only two above the segment average. Lexus and Volkswagen dealerships tied for the top spot in the dealer segment with scores of 842.

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According to a new study, the ongoing automotive technician shortage is costing Ontario dealerships around a half million dollars a year per missing tech.

A study from business advisory firm MNP about the skilled labour shortage of technicians conducted for the Motor Vehicle Retailers of Ontario (MVRO), with support from the Canadian Automobile Dealers Association (CADA), reported that there were 3,000 vacancies as of Q1 2023.

Depending on labour rate, the estimated annual revenue loss of one technician vacancy for a dealership is between $429,600 and $644,440 per year.

“Just about every new car and truck retailer I speak to can’t hire an automotive technician today,” said Todd Bourgon, executive director of the MVRO, “We know there is a massive shortage of automotive technicians, and the problem won’t be solved overnight.”

Not just an Ontario problem but a Canada-wide one is the aging labour force of the automotive trade with a declining number of people entering apprenticeships is declining.

“As a result, the number of people in the automotive trades labour force is declining and vacancies are increasing,” the report said.

Employers are training apprentices and recognize the need to attract youth to the industry, the report observed, but acknowledged that it takes time to train technicians. There is concern that there are not enough apprentices to fill current and future labour needs.

The report noted that employers have increasingly been using the Temporary Foreign Workers program to fill vacant positions. But, it added, the process is costly and extends the hiring timeline.

From 2016-2021, the number of technicians and mechanics in the 15-24 age group declined by 2 per cent. In the 25-54 age group, the drop was 8 per cent. The number of technicians and mechanics aged 55 and over went up by almost 13 per cent.

“This indicates that the workforce is aging and that the number of people entering the occupation is not sufficient to replace those that will be retiring between 2022 and 2032,” the report said.

“This report underscores that careers are plentiful for the next generation of automotive technicians. Our members are ready and willing to train and hire workers for the long term,” said Bourgon. “I encourage students, parents and educators to give a hard look at the tremendous career opportunities in Ontario’s world-class auto sector. In the short term, we can address this crisis by cutting red tape in the [labour market impact assessment] process to save time and money for employers and technicians coming from abroad.”

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Canadians are not as excited about battery electric vehicles as they once were, according to a new report from J.D. Power.

But, as other reports show, hybrids are still very much an option.

Range, cost and infrastructure were cited as top reasons why nearly 4,500 Canadians who responded to the survey are shying away from battery electrics, according to the second annual J.D. Power Canada Electric Vehicle Consideration (EVC) Study. Compared to last year, there was a 13-point decline year-over-year in likely to buy a BEV.

So while a year ago, nearly half (47 per cent) of Canadians were either likely to consider a fully electric vehicle, that number is now at about a third (34 per cent).

“EV consideration has gone down in this country and that is in opposition to the U.S. where EV consideration has ticked up slightly year-over-year,” said J.D. Ney, director of the automotive practice at J.D. Power Canada, during a webinar discussing the results. “So the gap that we reported last year between Canadians and Americans when it comes to the likeliness for them to consider an electric vehicle, that gap is actually widened a little bit in the intervening 12 months.”

According to first-quarter data from S&P Global Mobility, while BEV sales dropped (8.4 per cent to 6.9 per cent), hybrid (7.1 per cent to 8.7 per cent) and plug-in hybrids (1.8 per cent to 2.2 per cent) grew compared to the last quarter of 2022.

“The main reason behind it is weather,” explained Guido Vildozo, senior manager of Americas light vehicles sales forecasting at S&P Global Mobility during the AIA Canada National Conference. He was talking in the context of Canadians preference trending towards hybrids and not the first-quarter data results. “We know that there’s an infrastructure challenge up north; 5 per cent of the population is in the northern territories [and] in the Prairies. Battery performance is not the same in this kind of weather.”

Indeed, cold weather concerns are one of the top reasons (48 per cent) why Canadians are wary of going with an EV for their next vehicles. In the U.S., the weather is a factor for just 20 per cent.

“Obviously that that makes geographic sense,” Ney said. “It tends to get a little bit cold in this country, compared to, say, owning an EV in Arizona, but it’s a fairly stark difference and a good reminder that there are some legitimate logistical and temperate concerns in terms of electrifying one’s transportation in this country.

Cost is also a significant concern with interest rates significantly increasing compared to a year ago.

“And so I think that has fundamentally changed the buying decisions, or at least the buying confidence of a lot of consumers,” Ney said.

And the price gap between an electric SUV and its ICE version can be $20,000, he added, which plays a role in decision-making.

“So it’s not surprising, to us anyway, when we take a look at overall consideration that given the interest rate realities of today and just everything up to and including affordability of housing, that’s going to have an impact,” Ney said.

Relatedly, as household wealth increases, so too does the likelihood that one will consider an EV. Four in five (81 per cent) of households making $200,000 said they own or could install chargers. On the other end, 48 per cent of households under $100,000 said so.

Access to home charging eliminates a lot of barriers for people, Ney noted.

Furthermore, likelihood to purchase increased with household wealth — 42 per cent of households making $200,000 said they were while 31 per cent of those under $50,000 were not.

So how can people overcome their hesitation around EVs? More than half (55 per cent) of Canadians have never been in an EV.

“As Canadians gain more experience with an EV, they’re likeliness to consider one goes up dramatically,” Ney said. “And so with new EV sales on the rise, it is giving more Canadians more opportunity to experience them.”

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A new joint report out of the United States 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.

The number is part of the 2023 Joint Channel Forecast Model report, which provides insights and guidance for the industry. It’s all included in this year’s Auto Care Factbook.

“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.

The industry will continue to be an attractive one to investors, it noted. Thanks to persisting high inflation, the aftermarket is expected to grow an additional 8.1 per cent this year before eventually settling to more modest — but still substantial — growth rates.

The full Factbook, available to members of the Auto Care Association and MEMA Aftermarket Suppliers, also highlights the Canadian market. Retail sales were up, it reported, 5.2 per cent in 2022. Combined with small gains made in 2021 (0.8 per cent), most losses from 2020 caused by the pandemic (-6.1 per cent) have regained.

It also noted that while the number of wholesalers has declined, parts and accessories retailers and vehicle repair shops have increased year-over-year.

It also noted that the Toyota Corolla, Honda Civic and Hyundai Elantra make up the top three passenger car sales while the Ford F-Series, RAM Pickup and Toyota Rav4 are the top-selling light trucks.

The report also highlights the following key topics:

• Market size projections in billions of dollars through 2026, along with year-over-year percent change;
• Sales dollars and market share for the retail, service, and dealer channels;
• Key economic projections through 2026 such as GDP, consumer price index, and the CPI for Motor Vehicle Maintenance and Repair;
• Forecasts for motor vehicle sales through 2026; and
• Detailed factors influencing the growth in the aftermarket

“Consistency, reliability and adaptability — that’s what the motoring public have come to expect from the auto care industry over the years, but especially in more recent times with many Americans facing the very real rise in their cost of living,” said Bill Hanvey, president and CEO of Auto Care Association. “The latest Joint Channel Forecast Model demonstrates this reality with the latest market figures surpassing expectations yet again.”

Paul McCarthy, president and CEO of MEMA Aftermarket Suppliers, highlighted the “impressive outlook” on tap for the industry.

“The automotive aftermarket continues to prove that it can succeed on two fronts: The longstanding production and manufacturing that gives the aftermarket its strong foundation and the innovation and entrepreneurship that are required with the bourgeoning technology changes and opportunities in transportation,” he added in a statement.

The announcement also highlighted tailwinds for the aftermarket, such as an aging car parc even as new vehicle supplies slowly replenish but high prices push owners to hang on to their vehicles longer.

“These factors have provided tailwinds to the automotive aftermarket as vehicle miles travelled have returned to pre-pandemic levels,” the announcement said.

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Inflation and other economic factors are influencing the attitudes and actions of car buyers in Canada, according to a survey from Canadian Black Book.

Furthermore, higher prices have pushed shoppers to look at more options when buying a vehicle.

DesRosiers recently reported that the average transaction price is nearly $50,000 for a light vehicle.

From the Canadian Black Book survey, it found that purchase price is the most important consideration when buying a vehicle for 44 per cent of Canadians, according to the survey, which was carried out by Ipsos. It was far and away the leading reason — 12 per cent said brand preference was most important.

A little more than a quarter (28 per cent) of Canadians are looking to buy a new car in the next 12 months — and 47 per cent are unlikely. Four in 10 respondents said the cost of a new vehicle is too high.

About three in five (59 per cent) reported that increased prices will delay their vehicle purchase. Of those, nearly half (44 per cent) said they’ll delay at least a year, while 28% say 2 years. Families with kids are by far the group most likely to delay a car purchase, where 72% of those respondents indicated that they would.

Younger generations are most likely to buy a new vehicle, according to the survey. Two in five of those aged 18-34 intend to compared to 19 per cent of those 55 years and older.

The survey found that 40 per cent of Canadians intend to buy used cars due to price hikes and almost half (47 per cent) of the youngest car buyers are likely to buy used — this is a growing trend as 38 per cent were likely to in 2022.

Canadian Black Book noted that average vehicle price is up about 20 per cent. Even though only 15 per cent of Canadians knew that stat, they were aware of the rising costs associated with vehicles — a third (34 per cent) said they believed prices have jumped from 15-25 per cent. Still, 12 per cent of respondents said that they believed prices have not increased at all.

“Inflation has not left the auto industry alone as prices have seen unprecedented increases in the last year, and consumers are taking note,” says Daniel Ross, senior manager of industry insights and residual value strategy at Canadian Black Book.

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A new report is highlighting the continuing affordability of electric vehicles in addition to the fact that running costs remain stable when compared to internal combustion engine vehicles.

The Zero Emission Transportation Association (ZETA) released a report showing that EVs continue to be more affordable for drivers. It also highlighted that EVs are more price stable when looking at the cost to operate as gasoline prices have fluctuated greatly for more than a year while the cost per kilowatt-hour of electricity has remained stable.

In other words, electricity is more insulated from price fluctuations compared to gas-powered vehicles, noted Albert Gore, executive director of ZETA. “Ensuring that [families] can travel affordably requires better protection from fluctuating oil prices. Electric vehicles provide that protection.”

EVs, the group highlighted, operate independently of global oil and gas markets, making their operating costs not subject to fossil fuel price shocks, disruptions and supply shortages.

It also noted that driving an EV can be 4.5 times cheaper than a gas-powered vehicle. “EVs are markedly cheaper to drive per mile — and experience far greater price stability — than gas-powered vehicles,” ZETA’s report synopsis said.

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About one out of every 11 vehicles bought in Canada last quarter was a zero-emission vehicle, up almost a full percentage point compared to the same time last year.

S&P Global Mobility released first-quarter insights for the automotive industry recently. While year-over-year data shows overall increases, a quarter-by-quarter analysis shows a possible shifting trend as the trajectory moves upward.

Breaking the findings down by engine type, battery-electric vehicles accounted for almost 7 per cent of market share with total volume jumping by 19 per cent, S&P reported. Hybrids had an adoption rate of 8.7 per cent while plug-in hybrids had a share of 2.2 percent in the first quarter. The total number of ZEVs jumped by 18.2 per cent.

Internal combustion engines made up 82.2 per cent of the total share last quarter — a drop from 86.1 per cent reported in the first quarter of 2022.

However, when comparing S&P’s data from the first quarter of 2023 to the last of 2022, there has been a shift in which vehicles Canadians are moving towards. At the end of last year, BEVs had an 8.4 per cent share, hybrids had a 7.1 per cent adoption rate, while PHEVs were at 1.8.

So while year-over-year comparisons show growth across all segments, quarter-by-quarter analysis suggests Canadians are moving more towards a hybrid option.

Regionally, the two provinces offering rebates are leading the way for adoption. British Columbia, S&P reported, has the highest rate of electrification adoption with BEVs accounting for about 16 per cent of all new registrations in the province.

Quebec leads the way in total volume with 38.5 per cent of vehicle registrations being a zero-emission option.

S&P highlighted Ontario, noting that its market share of ZEVs stands at 6.2%. “ZEV volume in the province levelled off in Q1 ’23, only increasing by 17 per cent, making up 27.2% of all ZEV registrations in Canada. This is a substantial decrease from Q4 ’22 where the province made up a third of the new vehicles,” its analysis said.

B.C., Ontario and Quebec make up 92 per cent of the BEV market, S&P noted.

Looking ahead, S&P observed that 41 new BEV models are scheduled to be launched in the Canadian market in 2024.

“These new models aim to target various vehicle segments, including the introduction of new entrants in the light-duty pickup truck segment, which addresses specific challenges for adoption where product availability is lacking (e.g. GMC Sierra EV, Hummer EV and Chevy Silverado EV),” it said.

That means there will be a greater number of options for Canadian consumers, S&P added.

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Canadian small businesses are expecting to raise employee wages by 3.3 per cent over the next 12 months, according to a recent report.

The Canadian Federation of Independent Business (CFIB) Business Barometer reported high inflation and a tight job market are pushing companies to make the move.

“Wage plans would have to further moderate to bring inflation within the Bank of Canada’s target range of 1%-3%, however, they are really not that far off and, quite frankly, show a sensible approach in the current inflationary context. Small businesses, while responding with higher than usual wage increases, are not really the ones fueling the inflation fire at the moment,” said Simon Gaudreault, chief economist and vice president of research at CFIB.

The group noted that while wage increase plans are elevated compared to historical standards, the latest report shows numbers are down after peaking at 3.6 per cent in June of last year.

While the automotive aftermarket shows signs of strength and resiliency, the same can’t be said for other sectors.

The CFIB reported that more businesses reported their general situation as bad this month (20 per cent), while fewer reported it as good (34 per cent) compared to last month. The long-term small business confidence index in April crept up by less than half a point to 55.7. While that’s on an upward trend, it’s below its historical average of 61, indicating some way to go before economic perspectives are back to normal on Main Street.

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It was a day chock full of expertise, insights, tips and knowledge at the Automotive Industries Association of Canada’s National Conference.

Held in Toronto near the airport, speakers in the main hall or in breakout sessions gave the latest information on industry trends, career tips, technological innovations and more.

The day kicked off with AIA Canada’s leadership team of president J.F. Champagne, and senior directors Alana Baker (government relations) Stuart Klein (collision) and Brendan Mullen (digital marketing and communications) providing updates on the association’s goals, the industry’s challenges and what’s ahead.

Concurrent sessions were held under three umbrella themes. Under Women in the Aftermarket, Christine Botham, assistant vice president of automotive operations at Canadian Tire talked about how relationship building drives results. Then Emily Chung, owner of the shop AutoNiche in Markham Ont., talked about the barriers and challenges women face in a male-dominated industry.

The Young Professionals in the Aftermarket hosted sessions looking at increasing your brand and presence on LinkedIn, hosted by Jacki Lutz, senior manager of global marketing communications at Sensata Technologies, while Sabrina Thring, senior vice president of revenue operations in paint and collision, Driven Brands, talked about building winning teams around you.

 

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Under the “Market research and data” theme, Guido Vildozo, senior manager of Americas light vehicles sales forecasting at S&P Global Mobility, gave a global and then Canadian-specific outlook while exploring the impact of battery electric vehicles as the country moves towards an electrified future. He was followed by J.D. Ney, Canadian automotive practice lead at J.D. Power, who talked about how consumer behaviours have changed and the need for the industry to shift along with them.

Back in the main hall, an industry leaders panel with Mauro Cifelli, president and CEO of Groupe Del Vasto, Jasna Smiljcic, senior director and country leader with Gates Canada and Steve Leal, president and CEO of Fix Network World was moderated by Champagne. They discussed supply challenges, adapting to change, training, talent and more.

Mathew Growden, head of auto retail team at Google Canada looked at vehicle buying trends and customer pain points.

The day wrapped up with Andrew Au, a global thought leader on digital transformation and culture change, who challenged attendees to embrace change, understand what lies ahead and evolve.

A pair of big awards were handed out. Brad Shaddick was presented the Distinguished Service Award, AIA Canada’s highest honour. Brad Cochrane was named the Young Leader of the Year by the Young Professionals in the Aftermarket.

The night before, an evening networking reception was held. Please see our photo gallery below and Instagram reel for more highlights.

AIA Canada National Conference 2023

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A sweep of global data shows there has been a significant reduction in the number of out-of-stock vehicles and automotive products compared to a year ago.

DataFeedWatch reported that its Feed Marketing Report 2022 found 57.46 per cent of products were out of stock in the global automotive eCommerce market just 10 months ago. As of late February, that number sat at 26.46 per cent.

DataFeedWatch compiled the info from 17,000 online stores across 60 countries.

The group noted that even though the segment’s out-of-stock numbers are high — only sporting goods are suffering more — “its bad days of fewer products available … are well over,” it said.

The company also reported that vehicle parts have the largest median of products at more than 7,900, outdoing categories like health and beauty and home supplies

And there have been fewer sales and discounts of parts than most other categories. Just 6 per cent of vehicles and parts have been discounted from regular prices, compared to 50 per cent of furniture, 40 per cent of apparel and 35 per cent of home and garden products.

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New research has found that the younger generations are more likely than the older ones to take on minor car repairs.

The study from eBay found that more than a quarter of millennials would undertake their own vehicle repairs. They’d rather save on costs than visit their local automotive repair and service shop.

Furthermore, Gen Z is also seemingly willing to get its hands dirty. Nearly a quarter (23 per cent) of those aged 17-24 responded that they would be inclined to undertake minor car repairs themselves.

Meanwhile, fewer than one-in-five (18 per cent) of Baby Boomers are willing to get their hands dirty – they’re more likely to opt for help from their local shop.

Looking at some of the more common tasks consumers take on themselves, more than half of consumers are prepared to replace windshield wipers at home, according to eBay. Broken or smashed door mirrors were among other easy-to-fit items popular with vehicle owners last year, eBay reported. A fifth of respondents said they would be willing to carry out a mirror replacement.

“As the cost of living continues to rise, motorists are increasingly looking for ways to reduce their running costs across the board,” said Tony Tong, head of automotive at eBay UK. “This trend towards DIY repairs, spurred on by interest from younger generations, is something we expect to keep rising — converting more and more motorists into enthusiast home mechanics. Doing simple jobs yourself is an easy way to upskill and save.”

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The number of automotive aftermarket parts being used these days is on the rise thanks to a combination that includes more older vehicles — and bigger ones, too.

A recent report from Lang Marketing highlighted that aftermarket product volume rebounded to match pre-pandemic levels after plunging during 2020 amid the height of COVID-19.

In 2021, product use per vehicle came back up before making ‘a significant gain’ last year and producing a volume increase.

The report, Vehicles Expand Their Parts Appetite, credited four reasons behind this: Higher vehicle age, yearly mileage distribution by vehicle age, light truck growth and more foreign nameplates.

Older vehicles, from cars to light trucks, user more products per mile than newer ones, it noted. “The steady increase in vehicle age and the growing number of cars and light trucks in older age categories” helped boost aftermarket product volume, the report said.

There has also been a significant mileage shift that is impacting older vehicles. Lang reported that vehicles under the age of four generate about 35 per cent more annual miles on average than older vehicles.

“Reductions in new vehicle sales have tended to redistribute heavy driving across older age categories of cars and light trucks,” it said. “When new vehicle sales fall, annual mileage shifts from newer to older cars and light trucks, which use more products per mile. This increases the annual product use per vehicle.”

Looking specifically at light trucks, there’s more content in them. And with consumers preferring these bigger vehicles, that’s producing a higher aftermarket product volume.

There’s not only more, but these components are more expensive, such as drive-train components associated with four-wheel drive and off-road use.

“The growing light truck share of new vehicles and the [vehicles in operation] have helped to boost the aftermarket product use of the average vehicle,” Lang said.

The report further observed that foreign nameplates typically have higher aftermarket product volume than domestic nameplates on average.

“The steady increase of foreign nameplates as a share of new vehicle sales and VIO will help to boost aftermarket product use per vehicle in the coming years,” it said.

This is all good news looking ahead, the report suggested, as these factors will keep average product use on the rise.

“This will boost aftermarket volume growth even if the VIO remains stagnant, a likely outcome of the current lackluster level of new vehicle sales, which is expected to continue for some time,” Lang said.

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With so few battery electric vehicles on roads in Canada and the United States, the runway for the automotive aftermarket to continue working on internal combustion engine vehicles will be a long one.

In Canada, electric vehicles make up about 1 per cent of all vehicles. That number is smaller in the U.S.

“This underscores the significant time lag between the new sales share of EVs and their aftermarket impact,” said a recent Aftermarket iReport from Lang Marketing.

And the number of BEVs that have replaced ICE vehicle is so small in the four years and older age category.

“Lang Marketing estimates that BEVs eliminated only about 0.3% of ICE aftermarket volume last year,” it said in the report, ICE Vehicles Will Long Dominate Aftermarket.

The agency figures less than 5 per cent of ICE vehicle product volume — not including tires and certain accessories — will be eliminated by BEVs by 2030, if electrics were not introduced. Furthermore, Lang believes ICE vehicles will record substantial aftermarket growth between 2022 and 2030.

“In fact, the annual rate of ICE aftermarket product growth between 2022 and 2030 will greatly outpace the ‘loss’ of ICE volume due to BEVs during these eight years,” Lang said.

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A Swedish car magazine has found a gap in safety when comparing touchscreen buttons to the old-school alternative.

Newer vehicles are seeing touchpads replacing knobs in everything from controlling the radio to the air conditioning.

Tests conducted by Vi Bilägare found that the driver in the worst-performing car needed four times longer to perform simple tasks than in the best-performing car.

“The screens in modern cars keep getting bigger. Design teams at most car manufacturers love to ditch physical buttons and switches, although they are far superior safety-wise,” was the conclusion of the magazine’s testing.

Vi Bilägare tested the HMI system (Human-Machine Interface) of 12 vehicles, trying out changing radio stations to adjusting climate control all while the vehicle was driven at 110 km/h. A 17-year-old Volvo V70 was used for comparison.

The four tests conducted were:

• Activate the heated seat, increase temperature by two degrees, and start the defroster.
• Power on the radio and adjust the station to a specific channel (Sweden’s Program 1).
• Reset the trip computer.
• Lower the instrument lighting to the lowest level and turn off the center display.

Tesla vehicles, for example, have the biggest touchscreens, in which most of the vehicle’s feature controls are housed, even the wipers. The BMW iX also offers a touchscreen, though not as big as Tesla’s, while also providing physical buttons. The research found that even so, that’s no guarantee for easier use.

“The BMW’s infotainment system has lots of features, but it also has one of the most complex and complicated user interfaces ever designed,” Vi Bilägare reported.

It also noted that carmakers like Volkswagen place touch-sensitive climate controls below the screen in the ID.3 to save money. These are not backlit which makes them completely invisible at night.

At the end of the day, the group found one vehicle that stood out from the rest.

“The easiest car to understand and operate, by a large margin, is the 2005 Volvo V70,” Vi Bilägare said. “The four tasks is handled within 10 seconds flat, during which the car is driven 306 meters at 110 km/h.”

To compare against some notable names, the BMW iX took 30.4 seconds, the Volkswagen ID.3 took 25.7 seconds, the Hyundai Ioniq 5 took 26.7 seconds, the Tesla Model 3 took 23.5 and the Subaru Outback took 19.4 seconds.

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The good news is light vehicle sales in Canada were up 5.1 per cent in February compared to one year ago, according to DesRosiers Automotive Consultants.

The bad news is that it wasn’t a high bar to jump over. Last month was still the second-worst February for sales in the last 10 years with 100,000 new vehicles sold.

That said, DesRosiers preferred to look on the bright side of things.

“The market has now achieved year-over-year gains in four straight months as the breadth of improved vehicle availability gradually widens, and consumer spending remains resilient,” said Andrew King, the firm’s managing partner.

The SAAR for the month came in at 1.70 million units, which is pretty much in line with the level seen in January, DesRosiers noted. If it goes as suggested, the firm is pegging sales to spike in March to almost 180,000 units before coming down to about 160,000 in May and June. From there, it expects sales to tail off each month and end the year at about 120,000 units in December.

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The results are in and zero-emission vehicles continued their rapid growth in Canada.

Overall, ZEVs grew 42.6 per cent in 2022 compared to the year before, according to a report from S&P Global Mobility.

These vehicles — which included battery electrics, hybrids and plug-in hybrids — were one of every 11 new vehicle registrations in Canada in 2022. Its market share increased to 8.9 per cent for last year, up from 5.6 per cent the year before.

Battery electric vehicle volume was up 65.4 per cent — a year-over-year increase of 39 per cent — bringing its market share to 7 per cent.

British Columbia once again led the country in new BEV registrations with 15 per cent. But it was Quebec that led in volume, accounting for 36.7 per cent of overall ZEV volume in 2022.

The rise in ZEV registrations comes as the number of light vehicles entering the market drops.

“These figures demonstrate a clear demand for electric and sustainable transportation in Canada,” the quarterly report said.

Ontario saw nearly double (95 per cent) the number of ZEV registrations in 2022 compared with the previous year. The province made up 31.5 per cent of all ZEV registrations in Canada. When looking at BEVs, volume grew 121 per cent, a feat S&P called “impressive” for the year.

Vancouver (22.5 per cent adoption), Montreal (16 per cent) and Toronto (9.4 per cent) make up 58 per cent of ZEV volume in Canada. Toronto had the fastest growth with a 107 per cent volume increase.

Rural communities are also adopting ZEVs at an increasing pace. In 2022, the rural ZEV adoption rate in 6.5 per cent, an increase from the 4.4 per cent rate in 2021.

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Many members of the Automotive Aftermarket Retailers Association of Ontario are looking ahead to 2023 with optimism, despite facing rising costs of parts.

DesRosiers Automotive Consultants teamed up with AARO to survey its members on a number of topics from sales changes to outlook for the year ahead.

It found 54 per cent of aftermarket shops reported a positive increase in sales in 2022 compared to 2021 with 34 per cent overall reporting gains of more than 11 per cent. Fewer than a quarter (23 per cent) reported reduced sales year over year.

Comparing 2022 to pre-pandemic levels, the majority (52 per cent) said their sales are higher. About one in three (29 per cent) reported lower sales while the rest (19 per cent) said things are the same.

Looking to the year ahead, three in five (61 per cent) believe sales in 2023 will outdo 2022.

As for specific jobs performed at shops, 47 per cent of respondents said they’re going more oil changes, compared to 41.5 per cent who said there has been little change in 2022 compared to the previous year. Diagnostics was another area where more reported a business increase (44.3 per cent) compared to those who said there was little change (43.4 per cent).

In tire change/sales, 45 per cent said there was little change while 36 per cent saw business increase. In preventive maintenance, 41.5 per cent said there was little change as 40 per cent saw business grow.

When it comes to getting the parts, shops are having issues no matter where they look. Almost nine in 10 (89 per cent) said they had issues with their jobber while 94 per cent had issues with new car dealers.

Everyone reported seeing price increases from their jobber as 70 per cent said they’ve seen prices jump more than 6 per cent.

“The automotive aftermarket remained buoyant in 2022 with a majority of retailers seeing growing sales and expecting further growth throughout 2023,” said Andrew King, managing partner at DesRosiers. “However, persistent issues surrounding parts supply and prices remain problematic across the industry.”

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Those employed in the automotive industry are reporting a big boost in their mental health levels.

The industry scored the third highest on the LifeWorks Mental Health Index with 69.9 points, trailing only real estate, rental and leasing (70) and management of companies and enterprises (73.1).

Furthermore, its jump of seven points from November was the biggest out of all industries, 2.4 points higher than real estate, rental and leasing (up 5.6 points).

The report didn’t dive into specific reasons why auto saw such a boost.

Canadians’ greatest concern is inflation with 36 per cent saying so. A recession was second, well behind at worrying 14 per cent.

On average, the index sits at 64.6 points, up slightly from 64.3. Lowest on the sub-score scale of concerns are anxiety (58) and isolation (60.6). On the other end, psychological health (72.1) and financial risk (69.3) topped the list.

The report also found that respondents over the age of 50 are two-and-a-half times more likely than respondents under 40 to be most concerned about their physical health and wellbeing, while also being more than two times more likely to be most concerned about their mental health and wellbeing.

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The Automotive Industries Association of Canada launched a new tool that plots tens of thousands of shop locations across the country.

The Auto Care Landscape in Canada tool is an online interactive map that shows locations of more than 25,000 collision repair, mechanical repair and new car facilities in Canada.

The tool is exclusively for AIA Canada members, according to the association’s announcement. Access includes everything from an overview of the auto care sector on a provincial level to a street view look at a particular business’ store front.

For every entry, members can get contact details and information on whether the business is an independent shop or part of a national or regional banner.

According to AIA Canada, information can be customized, allowing uses to identifying expansion opportunities, plan distribution networks, measure saturation and more.

AIA Canada said the landscape project was designed in response to an information gap in understanding the auto care landscape in Canada, especially in the collision, mechanical and new car dealer sectors.

“In particular, data on the number of businesses operating in each of the sectors was sparse and unverified,” the announcement said. “Secondary sources such as Statistics Canada provide an overall number of businesses but do not indicate how many are independent or belong to a regional or national banner.”

It also noted issues around understanding market dynamics and how the sectors interact with each other.

“Through a series of three reports published in 2021-2022, the landscape series provided much-needed insight into some of the trends impacting the auto care industry,” the group said. “Building on the database assets created as part of the landscape series, the Auto Care Landscape in Canada interactive map allows users to explore the data in a visual format.”

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A study has found that Canada is one of the most vehicle-dependent countries in the world.

When ranking countries based on adequate access to public transportation, the efficiency of public transportation, amount of rail transportation and cost of taxis, Canada ranked fourth in the world when it comes to relying on vehicles to get around.

With a score of 7.14 out of 10, Canada was behind New Zealand (8.48), Greece (7.62) and Argentina (7.36). By comparison, the United States placed eighth with a score of 5.89.

The data was compiled by Confused.com, an insurance and financial rates comparison website.

Rail transportation lines are lacking in Canada when compared to other countries. Only New Zealand’s 776.6 million km and Greece’s 1.3 billion km of rail lines are fewer than Canada’s 1.7 billion km, despite Canada’s vast geographical size and much larger population. By comparison, Italy has 56.6 billion km of line, while the U.S. has 32.5 billion.

Still, the efficiency of both Canada’s public transport service and rail service scored second in each category. Its score of 4.7 out of 7 trailed only the U.S. with its score of 5.5 in rail service. In public transportation efficiency, Canada scored 5 out of 7, again only railing the U.S., which scored 5.7.

Canadians pay some of the highest costs when it comes to transportation costs, according to the research’s price index. With 100 being the global average, Canada came in at 125.55, placing it fifth behind Belgium (141.05), New Zealand (139.05), Italy (135.37) and Australia (132.55).

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On one hand, the value of used vehicles didn’t increase an appreciable amount. On the other, that means they didn’t decrease and used values are still relatively high.

November’s used vehicle values came in more or less flat, according to Canadian Black Book. Its Used Vehicle Retention Index now sits at 158.7 Index points, up slightly from October’s score of 158.5.

Used values had been on a rapid increase at the start of 2022 but slowly started coming down after a peak in March. This was followed by a few months of declines. But some of those gains were returned in September before coming back down in October.

Despite it technically being an increase in overall values, Canadian Black Book is calling November a flat month. Compared to November 2021, used values are up just 4 per cent — in October, the year-over-year increase was almost 14 per cent.

“We are seeing a much more stable market compared to the previous two years,” said David Robins, principal automotive analyst and head of Canadian vehicle valuations at Canadian Black Book. “Used and wholesale values are decreasing at typical rates versus the astronomical increases seen from mid-2020 to end of last year.”

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The automotive aftermarket can expect to continue to see a healthy business for the foreseeable future.

The increased cost of living has put families in tight financial positions and vehicle owners are opting to take better care of their cars by investing in them so they can hang on to them longer, according to a survey from the British Columbia Automobile Association.

Seven in 10 B.C. drivers reported on the survey that the high cost of living and economic uncertainty has them keeping their current vehicle for much longer than they planned. Even though mony is tight, they’re opting to repair, rather than replace.

In fact, they’re more attuned to maintenance these days. Almost half (49 per cent) admitted to skipping recommended vehicle maintenance and repairs in the past due to costs. But more than four in five (83 per cent) said they can’t risk being without their vehicle as a result of a breakdown.

Furthermore, 93 per cent of respondents agreed it’s worthwhile to get the most out of their vehicle even if they consider it costly to maintain.

Drivers are taking action as three-quarters (78 per cent) said they’ve already had their vehicles serviced for the winter season or are expecting to do so very soon.

Anecdotally, shop owners have told AutoServiceWorld.com that they are consistently busy these days. That backs up observations from Keith Berry, regional manager for BCAA Auto Repair and Maintenance. He noted that BCAA Auto Service Centres in Victoria, Nanaimo, Surrey and Kelowna have all reported significant jumps in customer bookings this year.

“We’re seeing people we haven’t seen in a long time, and they’re telling us that their days of skipping regular vehicle servicing are over,” he said. “Economic uncertainty seems to be a wake-up call for many drivers to take care of their vehicles and keep them reliable.”

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In search of lower costs for their customers, a new survey has found that automotive repair shops in the United States are turning more to private label brands.

During the first eight months of the year, the percent of shops reporting they’ve increased their purchasing of private label brands increased to 77.4% from 75.4% in 2021, according to AutomotiveResearch.com. It also found that part purchases at independent repair shops remained steady at an average of 36.2 per cent.

Over the next year, 76 per cent of independent repair shops expect to increase their private label parts purchases, up from 73.6 per cent previously.

Shops noted inflationary pressure affecting their customers as the main reason for anticipating an increase in private-label purchases.

In the previous two years, they cited the pandemic as driving customer uncertainty and behaviour. This year, it’s not the pandemic, but cost. The group noted that the majority of the shops that stated their customers were having financial difficulty due to inflation were the same shops that reported their customers were proactively asking for lower-cost parts.

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The automotive aftermarket’s economic output in Canada took a hit but the industry is on the rebound, according to the Automotive Industries Association of Canada’s 2022 Outlook Study.

The report released last week examined the state of the industry and where it’s projected to go.

Notably, the study found that after hitting a high of $39.7 billion in economic output in 2018 and 2019, everything from supply chain challenges to health restrictions knocked that number down to $35.4 billion in 2020.

But as restrictions have lifted and some supply chain relief takes place, 2021 came in at $37.8 billion. This was equivalent to 1.9 per cent of Canada’s GDP. The industry employed about 481,200, accounting for 2.9 per cent of employment in the country.

Elsewhere, vehicles in operation “increased at a healthy pace,” according to the study — there were 25.7 million vehicles on Canadian roads in 2021. About 59 per cent of VIOs are light trucks, up from about 56 per cent in 2019.

“With consumer preferences shifting away from passenger cars, the growth was entirely attributed to the light truck segment,” the study noted.

The number of kilometres those vehicles travelled returned to pre-pandemic levels in 2021 at 455.3 billion km — on par with 2019.

The study also looked at consumer behaviour — where they went to get vehicles serviced, why, delayed maintenance, and how often various components were replaced — and a look at the global aftermarket landscape, which includes comparisons to the U.S., U.K. and Australia. It also explores vehicle electrification in Canada and how global trends like producer costs and oil prices are affecting business here.

The full study is available through AIA Canada for free to members and $250 to non-members.

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While the vast majority of American vehicle owners once preferred to have a shop do vehicle maintenance and repair for them, preferences have since changed significantly, according to a recent report.

The balance of product volume shifted going into and during the COVID-10 pandemic, reported Lang Marketing, to a level not seen before.

In its report, DIFM & DIY Changes and Channel Growth Differences, Lang looked at the six-year period of 2015-2021. In 2015, the do-it-for-me (DIFM) market made up 80 per cent of product share in the U.S.; do-it-yourself (DIY) was 20 per cent.

But over those six years, DIFM made up only 56 per cent of aftermarket product growth — it typically made up 90 per cent. The DIY segment made up the remaining 44 per cent, which is more than four times its normal amount.

“As a result, the DIFM share of light vehicle aftermarket volume slipped from 80 per cent in 2015 to 77 per cent by 2021. Concurrently, DIY share climbed from 20 per cent to 23 per cent of light vehicle product volume,” Lang reported.

Traditional warehouses and jobbers bore the brunt of the hit. It couldn’t “ride the wave of increasing DIY volume due to its weak position in that market,” Lang said.

Despite being the second biggest channel, it accounted for just 9 per cent of total aftermarket growth.

Indeed, the bulk of the growth was seen through integrated channels — where products don’t change ownership or program affiliation between a purchase from manufacturers to eventual sale — accounting for 86 per cent of aftermarket growth. Lang notes this channel is better suited for the DIY market.

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A new report has found the estimated difference in female fatality risk compared to male fatality risk is significantly reduced in newer vehicles.

Female Crash Fatality Risk Relative to Males for Similar Physical Impacts published by the National Highway Traffic Safety Administration in the U.S. reported that the findings of improvement start as year recently as model year 2000. With each passing year, the gap gets smaller — the discrepancy drops from 18 per cent to 6.3 per cent for 2010-2020 vehicles and down to 2.9 per cent for 2015-2020 vehicles.

A 2013 NHTSA reported that females have a higher estimated fatality risk than males in comparable crashes, such as from similar physical impacts, as front row occupants when the full history of all fatal crashes is considered. This latest study updates those findings.

“The declines are the direct result of NHTSA’s actions adopting and strengthening Federal Motor Vehicle Safety Standards for seat belts and air bags and launching educational campaigns to improve seat belt use,” the group said in an announcement.

In the study, it found that fewer than a third of occupants wore seat belts in the crashes included in the study involving model year 1960-2009 vehicles. For later year vehicles — model years 2010-2020 — almost 83 per cent of occupants wore seat belts.

“NHTSA is taking several steps to ensure that any existing disparities in like crash outcomes for men and women are eliminated,” the group said. “These include the development of new biofidelic crash test dummies, the development of sophisticated computer modelling that can evaluate the effects of different types of crashes on a large range of human body types and sizes, research into the degree to which sex disparities in injuries exist in like crashes, and the evaluation of new safety standards to eliminate all remaining disparities.”

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Nearly three quarters of American automotive repair and service shops are servicing hybrid electric vehicles and more than half attribute a portion of the business to battery electric vehicles.

AutomotiveResearch.com surveyed 5,000 independent automotive repair shops to gauge service and repair levels of hybrids and battery electric vehicles (HEV and BEV).

While many reported that they work on such vehicles, business in this area is still small. Of the 72 per cent of independent repair shops that indicated a portion of their business is from servicing HEVs, these vehicles represent 5.9 per cent of business on average.

Of the 55 per cent of shops that reported business coming from servicing BEVs, these vehicles make up 3.9 per cent of business on average.

The smaller the shop, the less amount of business HEVs and BEVs will make up. Shops with one to three bays saw 3 per cent of business form BEVs and 4.3 per cent of business coming from HEVs. Shops with eight or more bays reported 5.5 per cent of their business from BEVs and 7.7 from hybrids.

For those that service hybrids, almost all — 96 per cent — have seen business increase in the last two years. However, of those that service BEVs and HEVs, 58 per cent said they don’t specifically market or advertise that their shop has the capability to service such vehicles.

When looking at all shops interviewed, four in 10 (42 per cent) said they have invested in tools and equipment to service BEVs and HEVs while about the same (41 per cent) have invested in training for their technicians on BEV and HEV service and repair.

Almost half (47%) of shops said they believe the increasing number of battery and hybrid vehicles on the road will impact their business over the next two years. That means 38 per cent don’t believe there will be an impact with 15 per cent saying they don’t know when that impact might be, if at all.

Of the 38% of shops that don’t believe the increasing number of BEVs and HEVs on the road will impact their business in the next two years, 42 per cent believe it will take 10 years or longer to see an impact; 19% don’t believe there will ever be an impact on their business from these vehicles.

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Vehicle owners whose cars are between four and 12 years old are poised to help boost sales in the vehicle service industry, according to a new study.

However, the aftermarket is falling behind in capturing this potential.

The J.D. Power 2022 Canada Customer Service Index—Long-Term (CSI-LT) Study reported that the auto service industry is expected to see ifs market value cross pre-pandemic levels, reaching $10.9 billion in 2022 — that’s up from $6.6 billion last year and $10 billion in 2019, before the onset of the COVID-19 pandemic.

The cause of the “boom” is mostly thanks to the increased cost to service and repair vehicles as the average cost per visit to the shop has gone up.

Dealerships are seeing the per-spend visit in their bays jump from $332 last year to $394 this year, up 19 per cent; in the aftermarket, per-visit spend jumped from $226 to $247, a 9 per cent increase.

J.D. Ney, automotive practice lead at J.D. Power Canada, pointed to a couple of factors. ““In addition to driving more, some owners are catching up on repairs that were put on hold because of the pandemic and others are hanging on to their vehicles longer due to inventory shortages and the high price of used cars,” he said in a statement.

However, consumers are now visiting dealers more than aftermarket shops, reversing last year’s trend.

So not only are dealers seeing customers pay more per visit, but vehicle owners are visiting more often — 1.5 times annually in 2022 compared to 1.1 last year. Dealers account for 47 per cent of all service visits and are capturing the larger share (58 per cent) of industry revenue.

This comes despite gains made last year by the aftermarket. Still, this is a trend seen in this sector since 2019. Average annual visits in the aftermarket fell to 1.2 in 2022 from 1.3 in 2021.

The study found that the number of aftermarket customers who said that all service work was completed right the first time dropped to 95 per cent from 97 per cent in 2019. That’s still better than the dealership service segment which stayed more or less the same at 94 per cent compared to 2019.

And overall economic challenges are indeed having an impact, Ney observed.

“While auto service shops are doing well, they are not immune to other pandemic-related effects such as a tight labour market and the challenges of attracting and retaining technicians,” he said. “While this has not affected overall satisfaction in the short term, we do see some leading indicators in this year’s study, such as a decline in fixed right first time and appointment on day desired diagnostic metrics. Clearly, the automotive service industry in not immune to these larger macro-economic forces.”

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NAPA AutoPro topped the list as not only the preferred automotive aftermarket choice for Canadians but recorded the highest score overall.

The J.D. Power 2022 Canada Customer Service Index—Long-Term (CSI-LT) Study reported that NAPA’s automotive service centres ranked highest in customer service satisfaction compared to aftermarket competitors with a score of 868 on a 1,000-point scale.

NAPA also finished ahead of the top choice for dealers — Lexus dealerships finished atop that category with a score of 829. Following NAPA in the aftermarket segment were Great Canadian Oil Change with a score of 826 and Midas in third with a score of 813.

The study measures service usage and satisfaction among owners of vehicles between four and 12 years old. It analyzes customer experience in both warranty and non-warranty service visits. Overall satisfaction is based on five factors which are weighted: Service quality (32%); vehicle pick-up (20%); service facility (17%); service initiation (16%); and service advisor (15%).

The study received responses from more than 8,600 vehicle owners between April and June 2022.

The aftermarket segment average score was 810. Apart from the top three, Jiffy Lube finished fourth with a score of 810 and was the only other one to place at or above the average. Those that placed below average were Costco (802), Kal Tire (784), Mr. Lube (784) and Canadian Tire (764).

On the dealer side, the segment average was lower, coming in at 799. Mercedes-Benz dealers came second to Lexus with a score of 824, followed by GM dealerships (818), Mazda (813), Toyota (808), Kia (806) and Volkswagen (799).

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A third of crashes that cause injuries to seniors behind the wheel could be cut thanks to advanced technology at intersections, says a new report.

The Insurance Institute for Highway Safety’s latest study, Safety potential of crash avoidance features, improved headlights, and V2V-enhanced technologies for older drivers, shows technology allows older drivers to better safely navigate intersections.

“Left turn assist and other, upcoming intersection-assistance technologies could deliver big safety benefits for drivers in their 70s and 80s,” said the paper’s author, Aimee Cox, IIHS research associate.

With more drivers living longer and staying behind the wheel at advanced ages, so too does the risk of collisions. According to IIHS, drivers in their 70s and 80s are at a greater risk of certain types of crashes. They’re also more prone to severe injuries and fatalities than younger people. It highlighted that age-related declines in vision and cognitive abilities make left-turn crashes more common.

IIHS said its researchers used U.S. federal crash data from 2016-2019 to compare the types of crashes that are most common for older drivers and their middle-aged peers. They then estimated how many police-reported crashes, driver injuries and driver fatalities could be addressed by five existing features, plus two others that aren’t yet available — these depend on vehicle-to-vehicle connectivity that allows vehicles to share information about their location, speed and intended path, which are not widespread.

Common safety features are automatic emergency braking (AEB), lane departure prevention, brighter headlights and blind-spot detection.

“These results should spur efforts to roll these technologies out to consumers as rapidly as possible.”

Newer and less known ones are intersection-assistance features. These include left turn assist, which uses a camera and other sensors to detect oncoming vehicles when the driver signals a left turn. Vehicle-to-vehicle (V2V) connectivity, still in development, would lead to similar, more sophisticated features, IIHS noted.

For example, V2V would link every vehicle on the road. They could communicate positions, speed and travel path. Turning vehicles would know the speed and trajectory of oncoming traffic, even if a hill or obstruction makes it difficult to see.

These features could deliver big gains, according to IIHS. About three-in-five of crashes involving both age groups could be addressed by at least one safety measure examined in the study.

For intersection-assistance features, the study found these were potentially relevant to 32 per cent of older driver crash involvements, 38 per cent of older driver injuries and 31 per cent of older driver fatalities. The research also noted that these could have benefits for middle-aged drivers, as they were relevant to more than a fifth of all crashes for that age group.

“These results should spur efforts to roll these technologies out to consumers as rapidly as possible,” says Jessica Cicchino, IIHS vice president of research.

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As gas prices remain high, consumer satisfaction with gas-powered vehicles dipped, according to a new study.

Because the price at the pumps skyrocketed, owners became less satisfied with their gas-powered vehicles due to fuel economy.

That drop in satisfaction has further narrowed the gap when it comes to satisfaction between gas-powered and electric vehicle owners.

The J.D. Power 2022 U.S. Automotive Performance, Execution and Layout (APEAL) Study found that satisfaction with fuel economy/range is typically stronger among owners of gas-powered vehicles than satisfaction with range/charging speed among owners of EVs.

But rising gas prices and decreased satisfaction around fuel economy have closed the gap to just seven points on a 1,000-point scale.

“The most important factor leading to the industry decline this year is owners’ perception of their vehicle’s fuel economy,” said David Amodeo, director of global automotive at J.D. Power. “The study was fielded as fuel prices were experiencing a meteoric rise, and that pinch at the pump is conveyed in lower vehicle satisfaction. Battery-electric vehicles have not been negatively affected by the increase in fuel costs but do have issues related to battery range and charging time.”

Notably, hybrid (832) and plug-in hybrids (835) reported lower APEAL scores than internal combustion engine vehicles (846). Battery electrics, not including Tesla, scored 838.

“Tesla vehicles were summarized separately in the study from the BEV composite score because the brand’s dominance in the category would skew the results of all other BEVs,” J.D. Power’s announcement said. “It is important to understand that certain attributes of Tesla models continue to outperform other BEVs, though there are notable challengers emerging such as the Mercedes-Benz EQS.”

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There’s a gap between how many Canadian drivers say they see road rage compared to those who admit to road rage.

While half (51 per cent) of Canadians say they engage in road rage behaviours behind the wheel, nearly four-in-five (78 per cent) say they’ve seen other drivers take part, says a new survey from RatesDotCa.

For example, 58 per cent of respondents said they’ve seen one driver cut off another while 14 per cent said it’s happened to them or they’ve done it themselves.

“Such a contrast may suggest some drivers who claim to only witness this behaviour may cut off other vehicles without even realizing it,” said the report.

Another gap was seen in those getting out of their vehicle to confront another driver — 16 per cent observed this whole just 3 per cent admitted to engaging in it.

The survey also found that 28 per cent of Canadian drivers have watched a collision take place because of road rage in the last year — compared to 8 per cent who admitted to being involved in one as a result.

Those who engaged in road rage behaviours said they honk (35 per cent) or flash lights (18%), tailgate (16 per cent), brake-check (16 per cent), cut off another driver (14 per cent) and give an obscene gesture (14 per cent).

The survey also found that it’s those under age 55 who engage in road rage — nearly two-thirds (64 per cent) of those aged 18-34 and 58 per cent of those between 35-54. For those over 55, 38 per cent admitted to road rage.

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Consumers underestimate how much an electric vehicle can support their mobility needs as even most modest battery ranges are capable of meeting drivers’ daily needs, according to a recent study.

This “cognitive bias” is holding back people from buying an EV.

Gas prices hit record highs this year, automakers are regularly announcing investments into electrification and governments have mandated the end of gas-powered vehicles — most of which has accelerated in the last year or so. But even though registrations of EVs were at its highest point at the end of 2021, they still make up a small number of vehicles in operation. Provinces that offer rebates for EVs — B.C. and Quebec — have the highest number of those vehicles on roads.

However, there appears to be a mental block getting in the way of many people when it comes to buying an EV, according to research from the University of Geneva (UNIGE).

“While financial and technological adoption barriers are increasingly being removed, psychological barriers remain insufficiently addressed,” says the abstract of the report Counteracting Electric Vehicle Range Concern with a Scalable Behavioural Intervention.

The authors found that drivers underestimate the capacity of an EV’s driving range to meet their daily needs. These psychological barriers haven’t been given much consideration when it comes to transitioning car owners from an internal combustion engine to electric.

“However, many studies show that individuals do not automatically adopt the behaviours most beneficial for themselves or society, often due to a lack of access to complete information,” said Mario Herberz, one of the study’s authors and researcher at the Consumer Decision and Sustainable Behavior Laboratory of the Department of Psychology at the Faculty of Psychology and Educational Sciences of the UNIGE.

Fellow author and director of the Consumer Decision and Sustainable Behavior Laboratory Tobias Brosch noted that consumers wrongly believe that current batteries are insufficient to cover their daily needs.

So a larger network of charging stations or bigger batteries aren’t the only solutions to put consumers’ minds at ease, Herberz noted. “It is the provision of information adapted to the concrete needs of drivers that will reduce their concern and increase their willingness to adopt an electric vehicle.”

For the overwhelming majority — 90 per cent of drivers — a 200-km range was adequate for daily use.

“The trend is to increase performance, but we have observed that a greater range, beyond 300 km for example, does not increase the fit to daily needs. It would only have a minimal impact on the number of additional trips that can be completed with one electric charge,” Herberz said. “Increasing the size of the batteries is therefore not a key element in the energy transition.”

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A new report casts doubt on the idea that Canadians are back to pre-pandemic driving levels. But there are no alarm bells ringing, either.

That’s because, despite rising gas prices, Canadians are still driving — and that’s good news for the automotive aftermarket.

How much Canadians drive is a key statistic for the aftermarket as it signals consumer activity in several categories. DesRosiers Automotive Consultants noted that it doesn’t buy into the findings of mobility data that showed the second half of 2021 saw Canadians driving more in line with pre-pandemic 2019 numbers.

When the consultancy speaks with industry partners and looks at gas consumption data, it feels different, it said in an announcement.

“Even when factoring in increasing ZEV counts and the improved fuel economy of the fleet, we can’t build a case that kilometres driven in the second half of 2021 were significantly ahead of 2019 — as speculated by some non-automotive players,” it said.

It also noted a drop in gasoline consumption in the first quarter of this year when gas prices jumped dramatically.

“Kilometres driven has shown remarkable resilience in Canada throughout the past 2 years,” said Andrew King, DesRosiers’ managing partner. “Recent gas price increases have undoubtedly impacted that dynamic, but the relative inelasticity of demand and continued use of vehicles means kilometres driven are unlikely to fall dramatically and will provide support for the aftermarket in the coming months.”

During the Automotive Industries Association of Canada’s Annual General Meeting, Niel Hiscox, president of Universus Media Group Inc., said he didn’t think there will be any change to driving habits and that the trend of increasing kilometres travelled coming out of the COVID-19 pandemic will only continue.

“That notion of persisting for the long term is really important because there’s actually a lot of research out there that says, in fact, that kilometres driven, is actually quite inelastic, relative to gas prices, and that in fact changes in gas prices don’t impact miles driven that much,” he said.

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Many Canadians relocated during the COVID-19 pandemic as restrictions opened up opportunities to work remotely. But at hybrid workplaces become commonplace, those who moved out of city centres expect to be putting more kilometres on their odometers these days.

A new study from Aviva Canada, called the How We Live Report, asked Canadians about their lives and aspirations during and post-pandemic.

It found that a quarter of Canadians are working in a hybrid model while 28 per cent are fully remote — though 32 per cent in Ontario said so, compared to 23 per cent for the rest of Canada. The remaining 47 per cent work outside of their home.

The study found in 2021 that 60% of Canadians said they were at least unlikely to use public transportation in the future. In this year’s survey, just one in five (18 per cent) said their transportation habits have changed since the pandemic. Notably, driving is expected to increase among Canadians. Of those who aren’t driving right now, 54 per cent said they expect to use a vehicle to get around in the next year. Meanwhile, 23 per cent are expecting their mileage to go up. More than half (52 per cent) said they’re going to use their own car for transportation.

For those who work on site, 70 per cent of them said they travel via car to their place of work —80 of them said they’re driving the same or more than they did before the pandemic. For remote workers, four in five say they are reliant on their vehicles but are driving less than they were pre-pandemic (53 per cent).

Those who drive are highest in rural areas, with 77 per cent of Canadians saying a car is the top mode of transportation. That drops to 62 per cent in semi-rural areas (such as small villages) and down to 58 per cent for those living in suburban areas. For those living in a more urban area, transportation by car still leads the way but is only the main mode for 40 per cent.

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It’s been 36 years since J.D. Power saw so many problems in new vehicles.

In its annual U.S. Initial Quality Study, the agency blamed a number of disruptions caused by the pandemic: Supply chain issues, record-high vehicle prices and personnel dislocations. These issues led to vehicle problems being the highest in the 36 years it has been conducting the study.

Compared to last year, the number of problems per 100 vehicles (PP100) was 11 per cent higher. The industry average was 180 PP100. A lower score represents better quality.

At the top of the list was Buick, which recorded a score of 139. That’s the highest among mass-market brands. It improved by 17 PP100 year-over-year, jumping from 12th place last year to the top spot in 2022.

In the luxury category, Genesis was the leader with a score of 156.

Mass market vehicle owners reported fewer problems than luxury brands. Their score was 175 PP100 — luxury brands scored 196 PP100. This is a trend that has been happening since 2016.

J.D. Power noted that only nine of 33 ranked brands improved in vehicle quality compared to last year. However, the drop is understandable said a company executive.

“Given the many challenges automakers and their dealers had to face in the past year, it’s somewhat surprising that initial quality didn’t fall even more dramatically,” said David Amodeo, director of global automotive at J.D. Power. “In general, initial quality has shown steady improvement throughout the history of this study, so the decline this year is disappointing — yet understandable. Automakers continue to launch vehicles that are more and more technologically complex in an era in which there have been many shortages of critical components to support them.”

The study surveyed more than 84,000 owners of model year 2022 vehicles with questions on infotainment systems, driving assistance, powertrain, driving experience and more.

“Supply chain disruption, especially the shortage of microchips, has caused automakers to seek alternative solutions to get new vehicles into purchasers’ and lessees’ hands,” Amodeo said. “In some cases, new vehicles are being shipped without some features installed. Communication with them about the changes in feature availability, as well as when such features will be reinstated, is critical to their satisfaction.”

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It’s no secret that the automotive aftermarket’s reputation with consumers isn’t the best that it should be.

But a new survey reveals what shops can do to improve relationships with customers. At the top of the list were “more detailed information on service and parts” and “Have more open and clear communication about services and needs.”

“It appears that vehicle owners’ trust is strengthened with more infor­mation regarding service recommendations when the information is presented in a way that is relevant, un­derstandable, and clearly communicates the benefits of the recommended services,” said the Automotive Service Report. “Better communication can be trained for and consumer education aides are readily available.”

The survey was done by AutoNetTV, looking at trust, communication, maintenance motivation and more.

When it comes to earning loyalty, respondents suggested shops “communicate more openly and honestly about services” as a way to earn repeat business.

“Research studies, and common practice, have con­sistently demonstrated the tie between improved com­munication and increased trust. This, as with other studies, reinforces the importance of providing more information about the service process, business prac­tices, and vehicle service and repair recommendations,” the report observed.

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Bigger purchase incentives are top of mind for Canadians when considering buying an electric vehicle, according to a recent industry survey.

The Canadian government mandated a year ago that all new vehicles in the country be zero-emission by 2035. A recent J.D. Power report found that Canadians are less interested in electric vehicles than Americans, citing cost, range anxiety, lack of familiarity and geography.

DesRosiers Automotive Consultants note that there hasn’t been a detailed action plan outlined since. So it decided to ask Canadians what they believe the government should do to get them behind the wheel of one.

Topping the list was increasing incentives through bigger rebates with 68.7 per cent citing the need to entice them to buy a zero-emission vehicle.

Charging infrastructure is also top of mind, with about 54 per cent of respondents highlighting the need.

When asked if the limiting of internal combustion engines would be a good strategy, about one in five (22 per cent) agreed.

“The Canadian government has set a significant challenge with its ZEV targets without yet providing a detailed roadmap as to how this will be achieved,” said Andrew King, Managing Partner at DesRosiers. “For this goal to be met it will require creative and consumer-focused policies that meet the needs of vehicle purchasers across the country.”

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A recent study out of the United States found that vehicle owners find it easier to do business with an aftermarket service facility compared to a franchised new-vehicle dealer for some types of service.

The J.D. Power 2022 U.S. Aftermarket Service Index (ASI) Study reported that dealer service facilities have a leg up over the aftermarket in consumer perception — except in one area. The aftermarket outperforms dealers in ease of doing business when it comes to general maintenance, tire replacement and oil change services.

Consider this a competitive advantage to build on, a J.D. Power expert said.

During the COVID-19 pandemic, dealers put more emphasis on vehicle service as new vehicle sales took a hit.

“To remain competitive, independent service providers must understand that it’s important to build on the competitive advantage of being easier to do business with — which is something franchise dealers typically fail to communicate to their sales and service customers,” said Leonard Martin, director of automotive retail at J.D. Power. “This facet of the business includes location, hours of operation, scheduling procedures and overall friendliness. Customers want to be acknowledged immediately and then served hassle-free.”

The study measures customer satisfaction with aftermarket service facilities measuring areas like ease of scheduling, fairness of charges, friendliness of the service advisor, quality of work and more.

The study found shops are good at fixing problems right the first time — improving from last year’s numbers. It reported that 97 per cent of full-service maintenance customers said their problem was fixed right the first time, up from 94 per cent in 2021.

For quick oil change customers, customers reported ‘right the first time’ at 98 per cent (up form 97 per cent). Tire replacement customers reported this at 96 per cent, up from 94 per cent.

“Given that both franchised dealers and independents are finding it more difficult to hire qualified technicians, this result is heartening,” Martin said. “It’s an indicator that the general level of service has improved despite labor challenges.”

When asked why they choose an independent service provider respondents selected lower cost of service (39 per cent), schedule accommodation (38 per cent) and perceived ease and speed of using the facility (34 per cent).

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The specialty-equipment market saw sales surge once again en route to another record-setting year.

Sales of specialty-equipment parts in 2021 reached US$50.9 billion — up more than 6 per cent (US$47.9 billion) from the year before, according to the Specialty Equipment Market Association.

In its 2022 SEMA Market Report, the group pegs that growth was driven by strong consumer interest in working on their car or truck. It found that more than four in five specialty-equipment consumers reported spending as much, if not more, time working on their personal vehicles as they did during 2020.

As in-person shopping restrictions eased throughout 2021 following the COVID-19 outbreak, consumers were more comfortable shopping in-store to buy specialty-equipment parts. SEMA found about a 50-50 split between purchases done online versus in-store. In 2020, about 54 per cent of purchases were made online. Pre-pandemic, 45 per cent of shopping was done online. The association expects more normalization of numbers this year.

Modifications to pickup trucks remain a driving force for the industry. In the report, Gavin Knapp, director of market research at SEMA, noted that one-third of parts and accessory sales were for pickup mods.

“The shift toward light-truck sales continues in the new-vehicle market, and those pickup and utility vehicles are great platforms for accessorization,” he said.

That said, performance modifications are also a significant market driver as people look to add more power to their vehicles.

“Most people can’t afford a Lamborghini or even a Hellcat. Still, this industry helps anyone boost their own car toward those lofty goals,” Knapp said.

“Even amid all the disruptions, people found the opportunity to do something fun with their cars. That’s what makes this industry so cool.”

What this shows is people “love their cars” and there is a strong car culture still around, he added in the report. People do enjoy accessorizing their cars.

“Enthusiasts have been taking advantage of these strange times to do what they love: work on their cars and trucks,” Knapp said. “Even amid all the disruptions, people found the opportunity to do something fun with their cars. That’s what makes this industry so cool.”

Of course, there are challenges ahead. Most notably, the supply chain segment still poses headwinds as issues are expected to continue into 2023 and may lead to softer sales going forward. And other factors are starting to creep in.

“Inflation has risen across the board, as gas prices have shot up and companies in our industry feel the need to raise prices amid increased costs,” Knapp reported. “Consumer confidence has remained down, as a pandemic, politics, and supply issues have weighed on their minds. Some economists see a slowdown coming this year.”

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Province by province, new car dealers are well behind their typical stock levels of new vehicles, according to a report from DesRosiers Automotive Consultants.

The group partnered with the Canadian Automobile Dealers Association to gauge how big the issue is around inventory.

During normal times, most dealerships in every province would have at least 140 new vehicles in stock. When surveyed, dealers had between 10 and 30 units available.

“In Alberta, the drop from normal to current inventory levels represented more than 130 units on average,” DesRosiers’ report said. “Ontario fared marginally better, down 125 from baseline.”

Only 11.5 per cent of respondents said their situation had improved while 58 per cent said things have gotten worse. The rest (31 per cent) said the inventory situation is the same.

When asked when they think things will get better will happen, more than half (51 per cent) said it’ll be sometime in 2023. About a third (34 per cent) are hopeful that the situation will get better later this year.

The survey also found that most customers (58 per cent) are waiting four to six months to get their orders fulfilled. About one in five are waiting between one and three months (21 per cent) or more than six months (21 per cent). Very few, less than one per cent, get their order within four weeks.

Dealers told DesRosiers that the semiconductor shortage is having a major impact on inventory levels and order times.

“The new dealer community — and the market as a whole — eagerly await the end of the semiconductor shortage,” Andrew King, managing partner of DesRosiers, said in a statement. “The market is currently running more than 200,000 units below potential — a situation that will only improve when normal supply resumes.”

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Disruptive forces sit at the doorstep of the mechanical repair sector of the automotive aftermarket, but these bring both opportunities and challenges ahead, according to a new industry report.

The Automotive Industries Association of Canada released the Mechanical Repair Sector Landscape – 2022 report last week. It examines what impacts these forces will have on the mechanical repair sector.

It summarizes its findings by noting that the industry should return to pre-pandemic activity, barring something unforeseen, making it important for those in the sector to plan ahead. Major changes are on the way as internal combustion engines make way for battery-electric ones.

“And this planning imperative is not for some future point — it requires the urgent attention of all aftermarket mechanical providers now,” it emphasized.

Another challenge is around talent. Proactive investment and a look to attract internationally is noted as a strategy.

For those willing to adapt, the report highlights opportunities. One is the growth of regional and national banner programs. As consumers demand a level of expertise to service their vehicles, consolidation similar to that of the collision industry could take place.

Similarly, customer service — in which the aftermarket outranks dealers — will be key to shops.

It also noted positive signs such as a rebound in kilometres driven, more vehicles in operation and a higher average age of vehicles.

The report includes a deeper examination of the impact of disruptors, electric vehicles, vehicle quality and more.

It is free to AIA members and $249 for non-members.

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Canadians are making new plans when it comes to buying a new vehicle, according to a recent survey. And they’re increasingly weighing their options between repairing and replacing their current vehicle.

Rising prices for used vehicles and a lack of inventory of new ones are pushing 43 per cent of Canadians to adjust their new car buying plans, reported RatesDotCa and BNN Bloomberg.

With used values at all-time highs and the average price for a used car almost $37,000 according to Canadian Black Book, consumers are thinking twice. According to the survey, 13 per cent said they delayed or would need to delay their purchase due to high prices. Another 12 per cent have delayed or will be delaying their purchase due to availability issues while 9 per cent are making changes to their vehicle of choice for the same reason. Cost is pushing 12 per cent to change their vehicle of choice.

However, more than two-thirds (68 per cent) of respondents said they will consider repair and replacement costs when purchasing a new vehicle and how it might impact their insurance premium.

Costs related to insurance were reported as the most important factor for those planning to buy a new car (73 per cent) or a used one (76 per cent).

The survey was conducted by Leger and reached more than 1,500 Canadians April 8-10.

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If you haven’t examined the pay structure in your business, you appear to be in the minority, according to results from a recent survey.

In fact, noted business consulting firm Robert Half Canada, not only do workers expect a raise but pay discrepancies could cost you some of your staff.

More than two-thirds (69 per cent) of executives surveyed said they have found salary discrepancies between new hires and more tenured staff in the past year. More than half (57 per cent) of them are regularly reviewing their company’s compensation plans. Robert Half reported they’re increasing salaries for existing employees, when appropriate, to align with current market rates.

These moves are a must given the tight labour market if companies want to keep employees and remain a competitive organization, said David King, Canadian senior managing director of Robert Half.

“Companies should take deliberate steps to improve their compensation strategy, including benchmarking salaries, conducting pay equity reviews and making adjustments as needed to ensure all employees are paid fairly for their work,” he said.

Meanwhile, in a separate survey of workers, Robert Half found that employees expect a pay bump, which is driving wage growth.

Four in 10 (41 per cent) employees reported said they have not had a raise in 12 months. But half do plan to ask for a raise this year. Top reasons being to adjust for the higher cost of living (31 per cent), to account for additional job responsibilities (18 per cent) and to reflect current market rates (16 per cent).

And if they don’t get a raise? More than a third (36 per cent) will look for a new job, a quarter will ask to revisit the topic in a few months and 17 per cent said they will ask for more perks.

“Along with addressing salary gaps, companies need to provide a fulsome compensation and benefits package that promotes a positive employee experience overall,” King recommended. “That includes offering opportunities for career development and advancement, additional paid time off, flexible schedules, and remote or hybrid work options.”

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A shrinking share of aftermarket replacement parts could have major consequences for the automotive aftermarket, a recent report warned.

There are four major groups of light vehicle aftermarket products: Replacement parts, accessories, chemicals, and tools and equipment. In 2016, replacement parts — those necessary for vehicle operation and subject to wear and tear — made up nearly two-thirds of aftermarket product volume in 2016, according to Lang Marketing.

However, the segment’s sales share fell to approximately 62 per cent by 2021, the group said in a recent Aftermarket iReport.

This diminishing share is concerning.

“First, the falling product growth and share of replacement parts make it more difficult for aftermarket participants to manage parts proliferation since replacement parts represent the vast majority of aftermarket products and are necessary for vehicle operation,” the report said. “They are slipping in market share, but they must be readily available to keep cars and light trucks on the road.”

It also observed that the changing share of aftermarket volume of the four major product segments is shifting product volume among distribution channels supplying the light vehicle aftermarket.

Furthermore, a reduction in replacement parts sales means a shift in consumer purchases from non-discretionary to discretionary.

“Consequently, the aftermarket is becoming more sensitive to economic changes and fluctuations in consumer income and purchase behaviour,” Lang Marketing said. “This makes the aftermarket less countercyclical to general economic conditions and less of a ‘recession-resistant’ industry.

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A new industry survey reported that a significant number of Canadians will be staying closer to home this summer as gas prices keep setting new record heights.

Canadian woke up on Mother’s Day to the highest national average price for gasoline at 189.9 cents/litre, according to the Canadian Automobile Association. That was up 11.5 cents from the week before and almost 60 cents more expensive than a year ago.

British Columbia has the highest gas costs on average right now, at 209.1 cents/litre as of May 9. Alberta is the cheapest at 161.6 cents/litre. As of May 9, the national average sat at 188.5 cents/litre.

Canadians are responding by ditching plans to get behind the wheel, according to the Tire and Rubber Association of Canada (TRAC). The survey, carried out by Leger, found that two-thirds of drivers reported that fuel prices will force them to cancel or limit plans for road trips this summer.

Young drivers were most likely to change plans. Three-quarters of those aged 18 to 24 planned to hit the brakes.

With air travel not an option for many, road trips became a popular way for people to get out. People hit the road at pre-pandemic levels in the third quarter of 2021.

The survey also found that four in five believe high gas fuel prices are here to stay.

TRAC also found gaps between drivers’ understanding of how proper tire inflation can lead to better fuel economy and when and how to measure and set correct tire pressure.

Despite tire makers recommending drivers check tire pressure monthly, only 27 per cent of Canadian do so. Furthermore, nearly three in five (59 per cent) didn’t know checks should be done when tires are cold. About a third (34 per cent) check the tire’s sidewall for the correct tire pressure, which is incorrect as it notes the maximum pressure —the vehicle placard on the driver’s door jamb contains the correct inflation pressure.

“With these substantial knowledge gaps about tire maintenance, it’s apparent that drivers need more education to improve their fuel economy effectively. With gas prices at all-time highs and no relief in sight thus far, the time has come for all drivers to arm themselves with the knowledge needed to lower fuel costs,” said Carol Hochu, president of TRAC.

She reiterated the need for monthly pressure checks to ensure top fuel economy and the value of the tires.

“Combined with the right driving habits such as reducing idling, maintaining a steady speed, accelerating gently and coasting to decelerate, these small, simple practices can add up to big improvements in fuel economy. Drivers have the power to fight back against high gas prices by learning these few simple techniques to ensure they are always riding on properly inflated tires,” Hochu said.

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More Canadian vehicle owners choose to only go to dealerships for maintenance and repair needs than those who only choose to visit an independent shop, a new industry survey has found.

The Automotive Industries Association of Canada releases a report last week on what drives some owners to visit dealerships while others choose independent shops.

Dealership vs. Independent: How Canadian Vehicle Owners Choose a Service Provider found that 26 per cent of Canadians will always go to a dealership while 22 per cent would only visit an independent shop. In the middle, 53 per cent said they use both.

The survey reached out to 2,000 Canadians in June 2021.

The report found that 9 per cent of Canadians do all maintenance and repair themselves or have someone close to them do it for them. But 36 per cent said they do at least some and have a professional do the rest. More than half (54 per cent) have an automotive service professional do all of their work.

The most common DIY work are tires (changing or checking pressure) at 42 per cent of respondents, changing oil (36 per cent) and brake systems (19 per cent).

When it comes time to change ASPs, almost two-thirds (64 per cent) listed someone recommended to them as a top priority. Close behind was price (61 per cent) and a place close to where they live or work (59 per cent).

Almost two-in-five Canadians (38 per cent) believe dealership technicians are better trained than those in an independent shop. Furthermore, 31 per cent believe their vehicle’s warranty would be void by vising an independent shop. Another third (32 per cent) feel overwhelmed when bringing their vehicle in for service.

Those who only choose an independent shop said they do so because they feel they are getting a better deal or a more fair price (39 per cent) and that they are cheaper than a dealer (25 per cent). One in five cited trustworthy or reliable service from an independent.

People choose to visit the dealer because their vehicle is still under warranty (25 per cent), feel it’s more trustworthy or reliable (23 per cent) or they believe the dealer is more knowledgeable (14 per cent).

For those who choose both options, they pick an independent for specific repairs (49 per cent), noting oil changes and tire work as top reasons. Canadians choose a dealer also for specific repairs (29 per cent) but with engine issues/repairs at the top of the list, along with oil changes.

When respondents were asked about key performance metrics, value for money received the top score for independent shops. Cleanliness was the top-ranking category for dealers. Other areas where respondents scored dealers better were in parts quality, pro-active notifications and length of warranty. Independents ranked higher in being trustworthy.

Customers said shops can gain more trust from customers if they had the same technician always working on their vehicle, explaining the importance of maintenance and repair and helped them plan for short- and long-term service needs.

The full report with detailed breakdowns is free to AIA member and $199 for non-members.

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The pandemic and the need to commute to the office are influencing how much Canadians are driving and what kind of vehicle they want to own, according to a recent survey.

Nearly half (48 per cent) of Canadians told a Canadian Black Book survey that they have been working from home more often since the COVID-19 pandemic started. But as restrictions list and businesses open back up but three in five (60%) respondents expect to return to the workplace this year.

And they just might need a vehicle if they do return.

Of those expecting to head back to the office, almost three in five (58%) reported that are likely to buy a used or new vehicle within the next two years. But because they’re driving less, almost seven in ten (69%) said they’re not going to replace their vehicle as quickly.

About one in five (20%) said they had to put off, delayed or postponed their purchase as a result of the pandemic in 2021. This year, however, more Canadians (36%) are putting off plans to buy a vehicle — be it new or used. Canadian Black Book suggested this may be due to the shortage of new vehicles and skyrocketing prices of used ones.

Is survey, which was carried out by Ipsos, found that two-thirds of Canadians are driving less during the COVID-19 pandemic — but that’s down from last year when more than three-quarters (75 per cent) reported the same. In other words, while many are driving less, they are driving more this year than last.

On average, the survey found, Canadians reduced their time spent on roads by 50 per cent.

Comfortability with public transit is also on the rise. While 45 per cent said they were uncomfortable with using public transit in 2021, that number is down to 36 per cent this year. Furthermore, rise-sharing saw a drop in hesitancy — 37% of respondents reported being unlikely to use the service in 2022, down from 42% in 2021.

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The price for a used vehicle continued to rise in March but the pace at which it’s increasing seems to have slowed.

Canadian Black Book released its monthly index for March recently. The index sits at a new record high of 165 — that means the index is 65 points above the baseline of 100 and used vehicles values are 65 per cent higher than the baseline set in January 2005.

The baseline sat just about even in the summer of 2020 and has skyrocketed since with a noticeable spike in the fall of 2021. Year-over-year the index is up 39.1% compared to 118.6 points in March of 2021.

“Although value retention growth is beginning to slow down, it is still increasing, and vehicles are worth substantially more than they ever have been,” said James Hancock, director of OEM strategy and analytics at Canadian Black Book. “What’s more impressive is that values today are 64.2% higher than the low point during the pandemic when the Index sat at 100.5points.”

For March 2022, the full-size van was the segment with the highest monthly increase at 8.72 per cent It has gained 81.11 per cent since March 2021. The full-size pickup segment saw the next highest monthly value gains of 2.34 per cent, while luxury cars were followed with 2.16 per cent growth.

However, 12 segments saw decreases. The full-size car segment dropped 4 per cent and compact vans fell 2.3 per cent, leading the way. Still, these segments are up overall year-over-year.

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With gas prices higher than they ever have been, a recent analysis is expecting “significant consequences” when it comes to the way drivers use their vehicles.

The average gas price in Canada at the end of March was 174.3 cents/litre, peaking on March 11 at 184.5 cents/litre. One year ago, the average price was 120.4 cents/litre.

Across the United States, gas prices have spiked as well, crossing $6 per gallon in some states.

And there’s no sign of relief coming any time soon, observed a recent Aftermarket iReport from Lang Marketing. In fact there are three factors that make this surge different from previous ones.

“The speed at which it has occurred, the record heights that it has reached and the likelihood that it will persist for an extended time,” it reported.

The likelihood prices will remain high for the rest of the year will indeed affect drivers.

“This extended punishment of consumers at the pump will have more significant consequences for consumer driving patterns than did previous pump price surges,” the report Raging Gas Prices Shake Up the Aftermarket Analysis 2: Miles Driven said.

First, there will be a decline in driving.

“Approximately one-third of Americans have indicated that they are driving less because of high gas prices, with an even larger share planning to combine trips and take other actions to cut back driving,” the report said.

Remote working will also gain in popularity. Though people have returned to the office as pandemic-related fears and restrictions subside, gas prices will influence their decision to work from home more often.

“The current surge in pump prices will renew the appeal of remote working and dampen the recovery in driving, following the double-digit plunge in 2020 annual mileage,” Lang said.

Lang Marketing is predicting annual travel on roads will drop between 0.5 and 1.2 per cent because of high gas prices.

This will lead to three impacts on the automotive aftermarket, it predicted.

First, while overall mileage will be down, mileage among the older vehicle cohort — due to the lack of new vehicle supply — will be up compared to previous years.

“This will provide a tailwind for aftermarket product growth during the year,” Lang said.

Secondly, the lack of new fuel-efficient vehicles available for purchase will continue to increase the average age of vehicles. “As a result, older vehicles will account for a growing portion of total miles driven,” it said.

The third benefit is for those who specialize in foreign nameplates.

“The relatively high fuel efficiency of foreign nameplates will reduce their scrappage rate. Both of these factors will increase the number of foreign nameplates on U.S. roads and add to their aftermarket product volume and share,” Lang said.

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The popularity of bigger vehicles has been on an upwards trajectory for many years now. But a new paper is raising red flags over SUVs, pick-up trucks, vans and minivans obscuring drivers’ view and increasing the danger for pedestrians.

A new study from the Insurance Institute for Highway Safety (IIHS) shows that larger vehicles may not afford drivers as clear a view of people crossing the road.

One automaker, however, recently announced plans to help drivers have a less obstructed view.

Light truck sales made up 81.2 per cent of total new light vehicle sales in 2021. It was the first time the segment has broken through the 80 per cent barrier, according to DesRosiers Automotive Consultants.

The paper concluded that light trucks have a higher chance of being involved in certain pedestrian crash types. It believes that the visibility of pedestrians near the front corners of these vehicles by drivers is problematic. It suggested more research to examine blind zones by vehicle type.

“If it is found that [light trucks] have larger blind zones, automakers should consider ways to design the A-pillars of these vehicles to minimize blind zones while maintaining pillar strength. Doing this could improve pedestrian safety around these increasingly popular larger vehicles,” it said.

It is already known that larger vehicles cause more severe injuries when colliding with pedestrians, pointed out IIHS vice president of research Jessica Cicchino, one of the study’s authors.

“The link between these vehicle types and certain common pedestrian crashes points to another way that the increase in SUVs on the roads might be changing the crash picture,” she said.

The researchers examined what were the most common types of single-vehicle, single-pedestrian crashes at or near intersections and at other locations. They also studied how involvement in these crashes varied for three larger vehicle types compared with cars.

At intersections, the odds that a crash that killed a crossing pedestrian involving a left turn by the vehicle versus no turn were about twice as high for SUVs, nearly three times as high for vans and minivans and nearly 4 times as high for pickups as they were for cars. The odds that a crash that killed a crossing pedestrian involved a right turn by the vehicle was almost 90 per cent higher for pickups and 63 per cent higher for SUVs than for cars.

“It’s possible that the size, shape or location of the A-pillars that support the roof on either side of the windshield could make it harder for drivers of these larger vehicles to see crossing pedestrians when they are turning,” said Wen Hu, IIHS senior transportation engineer.

IIHS noted that the heavier weight of a larger vehicle requires stronger pillars to protect occupants in rollover crashes. However, a systematic assessment of A-pillar design by vehicle type has not been conducted. Other design elements of larger vehicles could also impede drivers’ ability to see pedestrians, such as their high ride heights and long front ends.

General Motors was recently granted a patent for a transparent vehicle A-pillar. The transparent opening is designed to give the driver a bigger field of view — notably on left-hand turns.

“The transparent material is selected from materials having a transmission coefficient of at least 50 percent for light in the infrared (IR), visible, and ultraviolet (UV) wavelengths and a refractive index between 1 and 2 for visible light, such as polymethylmethacralate (PMMA) or an optically transparent polycarbonate,” its patent application said.

The option of a smaller pillar is a non-starter due to safety concerns, according to the application. “Reductions in these pillar widths, however, are constrained in part by structural performance requirements. In other words, arbitrarily small pillar widths are not possible without sacrificing the structural performance of the vehicle frame and negatively impacting passenger safety,” it said.

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The automotive aftermarket may see electric vehicles in its bays sooner than expected thanks to rising gasoline prices.

The increased cost per litre for gas in Canada, along with vulnerability in the oil supply chain has made Canadians feel more favourable to buy an EV, according to a new poll from business advisory firm KPMG.

Three in five (61 per cent) Canadians said it’s time to buy an EV. More than half (51 per cent) have decided to never buy a pas-powered vehicle again. Nearly one in three (30 per cent) regret not already owning an EV.

“The poll results show that rising fuel prices are a big catalyst in changing Canadian attitudes towards EVs,” said Peter Hatges, national automotive sector leader for KPMG in Canada. “Canadians were already on edge about the spike in inflation and are now afraid soaring gas prices will make it impossible to balance their budgets. Buying an EV will allow them to take some control by reducing their fuel and maintenance costs.”

Of the 61 per cent who decided it’s time to buy an EV, 18 per cent said high gas prices and oil supply volatility solidified their decision, 24 per cent said it greatly influenced their decision and 19 per cent confirmed gas prices changed their mind; they weren’t considering an EV before and now they are.

In B.C., gas prices were around $2 per litre in late March, according to gasbuddy.com. So it perhaps not surprising that 63 per cent in British Columbia — 60 per cent among 25-to-34-year olds and 68 per cent among 18-to-24-year-olds — said they would never buy a gas-powered vehicle again.

Nearly half (48 per cent) of respondents reported that they’re “definitely buying an EV” because they “don’t think gas prices will ever normalize again, especially as economies transition off oil and gas,” KPMG found.

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Almost half of Canadians are planning on buying a vehicle, be it new or used, in the next two years.

While that’s up from last year, it’s still down from pre-pandemic levels, according to results of a new survey from Canadian Black Book.

The survey, carried out by Ipsos, found that 46 per cent of Canadians plan to buy a vehicle in the next 24 months — 44 per cent said the same one year ago but 52 per cent had the same intentions before the pandemic.

Prices of new and used vehicles have spiked since the pandemic started. Shortages for new vehicles pushed buyers to used dealers. More than a third (35 per cent) of those surveyed said the vehicle’s purchase price is the most important consideration when buying.

And due to rising fuel costs and changed driving habits because of the COVID-19 pandemic, nearly four in ten (37 per cent) said they are likely to buy a smaller, more fuel-efficient vehicle.

Light truck sales made up 81.2 per cent of total new light vehicle sales in 2021. It was the first time the segment broke through the 80 per cent barrier.

“For years now, Canadians have been falling in love with pick-ups and SUVs,” said James Hancock, director of OEM strategy and analytics with Canadian Black Book. “With that said, we know that historically, when fuel prices rise, so does the trend towards smaller and more fuel-efficient models. These statistics suggest that history may repeat, but now there are many EV options to consider as well.”

When asked if they would buy new or used, about one in five (19%) of car buyers reported that they will go with a used vehicle. Nearly a quarter (24 per cent) of those in Saskatchewan and Manitoba are leaning towards used, along with 22 per cent in Quebec.

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Most senior managers in Canada want staff back in the office. And many Canadians would rather quit and look for a new job than being forced back to a physical workspace.

The findings come from a pair of studies done by human resources staffing firm Robert Half. In a survey of 800 senior managers, 55 per cent said they want their teams on-site full time to work as COVID-19-related restrictions ease. That’s nearly unchanged from a similar survey the firm conducted a year ago.

Meanwhile, a survey of 500 Canadian professionals found that 53 per cent of those already working from home would start the search for a new job that offers remote options if their current employer required them to return to the office five days a week. That’s up 20 percentage points from last year. Millennial professionals (68 per cent) and working parents (59 per cent) said they’re most likely to quit if called back.

“It’s clear professionals want continued flexibility in where and how they work — however, some companies appear to be out of sync with their employees’ priorities as they plan for the future,” said David King, Canadian senior managing director of Robert Half. “In today’s tight talent market, eliminating remote work options will only make hiring and retention more challenging. Employers need to move past the idea that collaboration and innovation only happen in the office and recognize that people are more engaged and motivated when they have a say in where they work.”

Robert Half also reported that 44 per cent of senior managers support long-term hybrid schedules (where staff can divide time between the office and another location) and employees’ ability to choose where they work. Managers at large companies with 1,000 or more employees (54 per cent) are most open to flexibility.

The company offered some tips to embrace a flexible work model:

• Define hybrid: Determine if employees will be required to come to the office certain days each week or only for specific purposes, such as for training or team building?
• Improve onboarding: As you hire remote employees, consider how to make them feel welcome, supported and part of a team they may never meet in person.
• Have the right technology: Support effective communication and collaboration. Consider new tools to implement to create a seamless experience for onsite and remote staff.
• Business process impact: Anticipate problems, adjust workflows and ensure everyone has access to the resources they need.
• Build and maintain engagement and morale: Create equal opportunities for all employees to grow and develop, network and build authentic relationships with colleagues.

Image credit: Depositphotos.com

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Jobber News is once again seeking the opinions of shops across the country to evaluate how they work with jobbers and sourcing parts in general.

The results of this survey will be published in the May 2022 issue of Jobber News.

The survey is available through this link.

This survey is intended to help Canada’s jobbers better serve the needs of automotive service providers. Your answers will help jobbers shape their business to serve you better. Please take a few minutes to complete the questions in this survey.

All responses are confidential.

Thank you in advance for your time.

Sincerely,
Adam Malik
Managing Editor
Jobber News

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Electric vehicles will grow from 7 per cent of sales in 2021 to 19 per cent in 2027 thanks to better battery range, more fast chargers and better charging power.

However, warned a recent report from ABI Research, there is still more work needed to be done to bring EVs to the mainstream. Notably, improvements to in-vehicle user experience and charging needs.

“While OEMs have made significant improvements in EV technology, there are still important obstacles that OEMs and the EV ecosystem must overcome to drive mass adoption,” observed Maite Bezerra, smart mobility and automotive research analyst at ABI Research.

Typical automotive buyers are concerned about inaccurate range and charging information, she added. Bezerra also noted “a below-par public charging experience” as another hurdle.

With an inability at the moment to reduce production costs and charge higher prices for EVs, ownership is concentrated around wealthier and tech-savvy early adopters.

Right now, there are 1.6 million charging points globally. By 2025, however, that number will jump to 7.1 million. With more charging stations, the focus should shift to improving the ownership experience. This will drive loyalty in existing drivers and build trust in electrification to prospective EV buyers, the report said.

Part of that experience is delivering accurate real-time information about battery range and charging information to the driver through the in-vehicle infotainment system and companion app interfaces — tools that are not widely available today.

The report called on carmakers and navigation software developers to partner with charge point operators and e-mobility service providers to bring EV routing, charge point information —even recommended in-vehicle payment options — via a connected strategy.

“Besides vehicle-specific measures, wider EV adoption will require utility companies to radically change last-mile energy distribution to accommodate the increased demand and consumption without expensive network investments,” Bezerra noted as a strategy when looking at reducing production costs and lowering entry point prices to make EVs more price competitive.

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Those who work in the automotive industry reported one of the steepest month-over-month declines in mental health, according to a recent study.

The mental health of Canadians overall has declined at a rate not seen in more than a year, according to LifeWorks, a digital and in-person total wellbeing solutions provider.

The overall mental health score for January 2022 was -11.3 compared to the pre-pandemic benchmark. That’s the lowest it’s been in eight months, among the lowest scores during the COVID-19 pandemic and the quickest month-over-month fall since October 2020.

Automotive industry employees reported a score of -8.1 in January 2022. That’s down from -5.3 in December 2021. The drop of 2.8 points was tied with those in the transportation and warehousing industry, and only better than accommodation and food services, which saw a 5-point drop. Services listed as “other” dropped 3.9 points.

However, the -8.1 score would place it fifth overall, behind industries such as mining and oil and gas extraction, and management of companies and enterprises.

In its report, Lifeworks examined the elements of work that are most important to Canadians. At the top of the list was flexible work with 55 per cent of working Canadians citing it as most important, That was well ahead of career progression, which 24 per cent of Canadians said was most important.

“The pandemic has created a lot of change in our lives, which has resulted in Canadians shifting their priorities,” said Stephen Liptrap, Lifeworks president and chief executive officer. “Many employees are now placing more importance on workplace flexibility – when, where and how they work – rather than career progression, which often includes compensation, promotions and professional development. As more organizations return to the office, it is important for employers to find new ways of supporting employees in this new environment.”

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Changing engine oil was one of the top vehicle maintenance procedures Canadian vehicle owners didn’t stay on top of, according to a new report.

The Automotive Industries Association of Canada released its latest Consumer Behaviour Series report, Vehicle Owner Attitudes Towards Maintenance and Repair – Views of 2,000 Canadian Car Owners, last week.

It found that, in addition to an engine oil change, drivers were also not staying on top of other procedures, such as checking engine oil, changing their tires, checking tire wear and checking tire pressure.

When it came to knowledge about maintenance and repair one in 10 said they were “very knowledgeable” while nearly four in 10 (37%) said they were “not very knowledgeable.” Though it appears many Canadians have some comfort around the topic as nearly half (45 per cent) said they were “somewhat knowledgeable.”

The survey also painted a good picture of how much Canadian pay attention to vehicle repair and maintenance. Virtually all respondents (96 per cent) said they consider it a priority — 59 per cent said maintenance and repair is a high priority, plus 37 per cent recognizing it as a medium priority.

Furthermore, seven in 10 (71 per cent) said they at least follow their vehicle’s maintenance schedule — 30 per cent said “very closely” with another 41 percent “more or less” following it.

And the reason they do so is for safety, to prevent breakdowns, extend their vehicle’s life and reduce long-term expenses.

When looking at how much they spend, the average annual spend on maintenance was $400, with $516 spent on repairs.

And while customers prefer to have a sticker inside the windshield or their dashboard system remind them of required maintenance, they also like to be notified by their shop via email, an app and text messaging.

Image credit: Depositphotos.com

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Motorists in rural Manitoba are more likely to forego their seatbelts while those in Winnipeg were most likely to use an electronic communication device while driving compared to their rural counterparts.

Manitoba Public Insurance (MPI) commissioned a road safety observation study last fall. It found that 10 per cent of all drivers in rural Manitoba were observed not wearing their seatbelt, compared to three per cent in the Winnipeg capital region.

When it came to using an electronic communication device (ECD), the numbers were reversed — usage was three times higher in Winnipeg (10 per cent) compared to rural areas (three per cent).

Nearly 29,000 vehicles were observed in 46 towns and cities with a population of at least 1,000 for the study.

“The purpose of this study was to obtain current rates of risky driving behaviour across Manitoba, with a focus on use of hand-operated electronic devices and seatbelt use,” said Satvir Jatana, MPI’s chief customer officer. “The findings of this study will be used as a benchmark to monitor behaviour change over time and shared with the Manitoba Association of Chiefs of Police for the purpose of planning future enforcement and awareness campaigns.”

Driver distraction is linked to nearly 50 per cent of all fatalities and 37 per cent of all serious injuries in 2020, according to MPI data. A person is more than 50 times more likely to be killed and almost four times more likely to be seriously injured when not wearing a seatbelt.

“High-risk driving behaviours places all motorists at risk on our public roadways,” Jatana said. “This study confirmed too many drivers continue to exhibit high-risk behaviours which can easily be changed.”

Other highlights from the study include:

• Overall, 7 per cent of all drivers observed were using an ECD in some capacity
• ECD use appeared to be higher in areas with traffic lights
• ECD use is highest among younger drivers
• Overall, 7 per cent of all drivers observed were not wearing their seatbelt
• Those driving trucks had slightly higher rates of not wearing a seatbelt compared to passenger cars or vans/SUVs
• Seatbelt non-use was split between males and females
• Drivers in rural areas wore their seatbelt less often across all age groups
• In cases where the driver was not wearing their seatbelt, 54 per cent of passengers were also not wearing their seatbelt

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If you have customer service skills, then you may be highly sought after by a prospective employer.

Alternatively, you may be even more valuable to your current bosses.

Randstand, a human resources services company, recently released a list of the most in-demand skills.

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Many of them are fits for the automotive aftermarket. After customer service, skills related to scheduling, sales, cleaning and repair made up the top five.

Customer service was at the top of the list because of the expanding options for customers. If they have a bad experience in one place, they will quickly go to the next. On the flip side, a good experience can create a loyal customer.

“This is why job seekers with customer service and administrative support skills will have no difficulty finding a job in 2022,” Randstand’s announcement said.

Scheduling skills placed second and are new to the list, the company noted. That’s because safety and wellness factors are being constantly addressed by businesses. Adhering to health regulations means ensuring an even and distanced flow of people while also serving customers, Randstand noted.

“Initially, organizations were focused on making sure their workforce had the technology and security they needed to remain operational, now the focus is on the long-term need to push sales, provide best in class customer service, provide a safe environment for their employees and customers and effectively manage their budgets,” said Patrick Poulin, group president of Randstad Canada. “As a result, customer service representatives, salespeople, scheduling and budgeting specialists and accounting positions will be among the most sought-after professionals in the years ahead.

“From an employee perspective, this provides Canadians with the opportunity to level up, refine and repurpose skills that they may have used in previous roles.”

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The vast majority of Canadian drivers say they need to own a vehicle, but they hardly get behind the wheel, according to new research.

Peer-to-peer car sharing marketplace Turo Canada recently polled Canadians in a benchmark study analyzing the state of car ownership in Canada. It found that while Canadians own a vehicle, they aren’t using it. But most don’t want to give theirs up either.

The report, Car Ownership Index, found that 83 per cent of Canadians own or lease a vehicle. But they don’t use it 95 per cent of the year. That means Canadian car owners are behind the wheel for an average of 400.6 hours per year.

However, that’s up from past years. In a similar study Turo conducted in 2019, it found that cars sat idle 96 per cent of the year and driven for 380 hours annually.

Yet, even though they use their vehicle so little, four-in-five (81 per cent) of vehicle owners said there’s no way they could live without a car. The same number of respondents also said they don’t intend to do away with vehicle ownership at all.

According to the study, some of the most common reasons to own a car were convenience (31 per cent), followed by commuting (30 per cent) and the desire for freedom (17 per cent).

This comes despite the fact that car ownership is too big an expense for Canadians, costing an average of $4,937 per year.

“Our findings shed light on a paradox when it comes to car ownership,” said Cedric Mathieu, vice president and head of Turo in Canada. “It’s clear that car ownership is still a central part of Canadian life, but these cars largely go unused while costing owners thousands of dollars a year. Car ownership is an inefficient model, but the alternatives are limited for Canadians who still need access to a vehicle.”

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A number of managers are seemingly more open to doing away with the traditional eight-hour workday, according to new a new report.

Research recently released from Robert Half, a talent and business consulting firm, shows nearly half of senior managers (48 per cent) are fine with giving employees the ability to choose when they work.

Furthermore, almost one-third (31 per cent) of those respondents said they’re fine if their direct reports put in fewer than 40 hours a week — they just care that the job gets done.

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But there appears to be a caveat. Managers most likely to offer flexible schedules work in either large companies with at least 1,000 employees or with remote teams.

But when asking workers, it seems they can’t enjoy the benefits their managers are offering. The survey of 500 workers found that 61 need at least eight hours a day to get their job done; more than half (52 per cent) are doing more video calls than before and feel a third of the meeting time is wasted; and more than half (52 per cent) never fully disconnect from work during business hours — they feel obligated to respond to messages and requests right away, even if on a break.

“Although companies are offering greater flexibility to support employee well-being, managers don’t always have line-of-sight into their team’s workload,” observed David King, Canadian senior district president of Robert Half. “An employee with a long to-do list may feel pressure to work non-stop, which is why organizations must do their due diligence prior to introducing flexible schedules. Auditing processes, projects and deadlines, and checking in regularly, will help employers determine the work arrangements that work best for their staff.”

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The United States leads the world in readiness for autonomous vehicles. Canada just missed out on the top five, placing sixth overall.

Insurance comparison website Confused.com graded preparedness for AVs for countries around the world. It scored the countries on AV regulations, consumer interest and technology investments.

The U.S. topped the list with a score of 8.62 out of 10, well ahead of Japan (7.59), France (7.37), the United Kingdom (6.92) and Germany (6.74).

Canada’s score came in at 6.47, placing it ahead of countries like  Sweden (6.34), Israel (6.03), Austria (5.85) and Switzerland (5.58).

The company explained placing the U.S. at the top by saying it has the most companies leading the way on automated technology, on top of having the most patents and public charging stations for electric vehicles. According to its findings, the U.S. has 127,570 AV patents, dwarfing Japan which has 21,242.

“A number of companies such as Tesla that are well known for AVs are based in the United States,” it noted.

Because Canada did not finish in the top 5, Confused.com didn’t explain its placement. It did note Canada has almost 4,700 patents with two companies that have made an AV investment of $50 million. While that is more or less in line with other countries on the list, the U.S. has 50 of those.

Alex Kindred, car insurance expert at Confused.com, noted the tempered excitement around Avs.

“However, in recent years there have been a series of technological and ethical issues linked to the rollout of Avs,” he stated. “These include system hacking and a lack of clarity when it comes to moral dilemmas, such as accidents.”

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AT&T, a major wireless carrier in the United States, will soon be shutting down its 3G wireless technology and that could negatively impact the freight industry, a research group recently warned.

The sunsetting is set to take place Feb. 22. At the beginning of February, all major U.S. carriers began the shutdown of 3G networks. What this means is that modules and devices that request 3G voice and data-only services from the AT&T network will no longer work.

According to ABI Research, a global technology intelligence firm, the move could have a crippling effect on more than 350,000 Class 8 vehicles and many connected cold-chain trailers.

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It is estimated that there are almost four million Class 8 trucks in the U.S., with about 3.8 million of them employed by smaller fleets. It’s these smaller fleets that are most likely to have delayed moving to 4G networks, ABI said. The move requires Federal Motor Carrier Safety Administration (FMCSA) compliance via Electronic Logging Devices (ELDs).

“It is entirely likely that many fleets that have not yet transitioned will be unable to purchase, remove, and replace devices prior to February 22,” warned Susan Beardslee, supply chain and logistics principal analyst at ABI Research. “This will result in serious compliance, safety, vehicle health, and operational capability challenges to an industry that moves roughly 72.5 per cent of the nation’s freight by weight, and during a time of rolling, crucial shortages of consumer and business products.

Canada and Mexico have delayed shutting down 3G networks for a few more years. However, should a truck from either country use an AT&T 3G device, it wouldn’t be able to transmit or receive data between drivers and dispatch. This will also include linked devices, such as video telematics.

“Essentially, when the devices no longer function, drivers cannot digitally track their Hours of Service (HOS),” Beardslee said. “Considering that driver fatigue tops the list of road dangers, this sunset severely impacts ELD compliance and road safety.”

If a reprieve is not given, ABI noted that other options could include a temporary ELD exemption from the FMCSA, which was done in response to pandemic-related needs.

“Longer-term, as connectivity and ADAS advance, more telematics will come factory/line-fit/OEM-grade with the unit pre-installed,” ABI’s statement said. “Future scenarios to consider are modular hardware designs and hardware upgradeability, eSIM software, and greater inventory planning in advance.”

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Most automotive aftermarket service and repair shops are continuing to see a solid boost in business, according to a new report. But DesRosiers Automotive Consultants wonder if issues related to the supply chain will act as a wet blanket.

The group noted that the aftermarket was a “pillar of strength” and provided stability amid turbulent times in the automotive industry as a whole. Canadians continued to use their vehicles as kilometres travelled increased to pre-pandemic levels. This resulted in continued maintenance and repair, showing the market to be resilient and remain relatively strong.

The consultancy surveyed members of the Automotive Aftermarket Retailers of Ontario (AARO) to get their feedback on sales performance, sales outlook, supply concerns and more to gather their feelings on the industry’s performance last year and how they feel about the future.

More than half reported sales increases in 2021, with more than three-in-five having a positive future outlook.

Specifically, 34 per cent of respondents reported sales increases of upwards of 10 per cent in 2021 compared to 2020; another 20 per cent saw increases of more than that. On the flip side, 14 per cent reported no change, the same reported losses of upwards of 10 per cent and 19 per cent saw losses above 11 per cent.

Indeed, both extremes were well represented.

“While a majority of service and repair facilities noted sales at or above pre-pandemic levels in 2021, there were still some that faced difficulties,” observed Andrew King, Managing Partner at DAC. “In addition, supply issues impacted the aftermarket in a meaningful way and may have hampered growth even though the larger picture remains positive.”

The future is more positive as 58 per cent of respondents expect sales increases of upwards of 10 per cent, plus another 4 per cent predicted more. Meanwhile, 21 per cent are not expecting a change. Only 17 per cent overall are expecting a decrease in sales next year.

The types of jobs shops performed generally remained unchanged. Oil changes, regular maintenance, tire changes and diagnostic were generally seen having little change in 2021. However, looking at preventive maintenance, respondents were pretty much evenly split as to whether there was an increase, decrease or little change.

But when it came to getting parts, more than three-quarters (77 per cent) said they experienced issues. Furthermore, virtually all (96 per cent) noted price increases from their jobber. Specifically, 47 per cent of them said parts prices from jobbers increased upwards of 5 per cent and 49 per cent reporting price increases higher than that.

But while DesRosiers wondered if the aftermarket financial performance would suffer from supply chain issues, Paul McCarthy, president of the Automotive Aftermarket Suppliers Association, noted that despite higher costs, people need to get their vehicle repaired at the end of the day.

“Now, compared to most other products, when our price goes up, our volume doesn’t go down that much. When you need your vehicle repaired, you need it repaired,” he said during the recent AASA Global Summit in Coral Gables, Florida. “You need to go to work. You need to get your kids to practice or to school. And that price elasticity is one of the fundamental appeals of our industry.”

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Sales of used vehicles are expected to tick up this year compared to 2021, a year when sellers saw soaring demand and consumers were hit with higher prices.

That said, according to new research from DesRosiers Automotive Consultants, opinions differed between independent used vehicle dealers and franchised new vehicle dealers as to how the year will play out for sales. The former expected an increase while the latter is poised for a drop. Overall, though, an increase is expected.

No matter what happens to sales volume, the vast majority on both sides are expecting price increases.

For new dealers, 57 per cent of respondents expect passenger cars to cost least 11 per cent more this year. But when looking at SUVs, 75 per cent predict a jump in prices of at least 11 per cent. And with pickups, 85 per cent expect to see prices jump that much.

Independents showed similar findings with 62 per cent, 76 per cent and 79 per cent predicting price jumps in each of those categories.

“The difficulties in the new vehicle market clearly spilled into the used vehicle market in a dramatic way,” said Andrew King, managing partner at DesRosiers. “Used vehicle dealers saw prices skyrocket by way of burgeoning demand and limited supply.”

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A common worry among potential electric vehicle owners is the possibility of a fire. But the fear appears to be overblown, according to new research.

Turns out, hybrids lead the way when it comes to the risk of catching fire — electrics are least at risk.

Electric vehicles catching fire and being recalled for such risk grab headlines — stories about Teslas catching fire without warning came up last summer; Chevrolet recalled its electric Bolt over concerns about the cars spontaneously combusting while parked and charging.

But insurance aggregator AutoInsuranceEZ.com recently examined statistics from the U.S. National Transportation Safety Board, Bureau of Transportation Statistics and recall data around fires for gasoline, hybrid and electric vehicles.

It found that hybrid vehicles reported 3,475.5 fires per 100,000 sold. Gas vehicles accounted for 1,529.9 fires for every 100,000 sold. Electrics saw just 25.1 fires at the same rate.

In the fall, Hyundai recalled 130,000 2017 Tucson and Sonata hybrids in Canada and the U.S. This came months after 390,000 other Hyundais were recalled for two problems that could cause a fire in the engine.

For both hybrid and electric vehicles, all recalls were related to battery issues. Compare that to gas-powered vehicles where issues around fuel leaks, electrical shorts, and anti-lock braking systems (ABS) led to recalls.

When an EV or hybrid catches fire, though, it can be more difficult to deal with than one in a gas vehicle.

“Electric automobiles catch fire less frequently than gasoline-powered cars, but the duration and intensity of the fires can make them considerably more difficult to put out due to the use of lithium-ion battery packs,” explained Axel Hernborg, CEO of Tripplo, a South Africa-based software module company. “Lithium-ion batteries are notoriously difficult to keep cool. Even after appearing to be turned off for 24 hours, the batteries can generate enough heat to re-ignite.”

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Quebec vehicle owners are most eager to buy an electric or hybrid vehicle the next time they’re looking for a new car.

Nearly three-quarters (72 per cent) of Quebec respondents to a recent study said they are planning to buy or lease an EV or hybrid as their next vehicle. That’s well above the Canada-wide average of 58 per cent, according to the Car Ownership Index commission by Turo Canada in partnership with Léger.

Concern for the environment may be the driving force behind the shift as the study also noted that nearly half (47 per cent) of respondents said they are will consider their next car’s impact on the environment.

That said, Canadians have concerns when it comes to moving from an internal combustion engine to an electric or even hybrid one. Nearly four-in-five (79 per cent) of Canadians planning to buy to lease or buy a new vehicle have reservations about EVs. Among their concerns are the high cost (29 per cent) of such vehicles and range anxiety (24 per cent).

Barriers may be able to be broken by simply exposing more people to the technology. The survey found that 86 per cent of Canadians have never even driven an EV. Two-thirds said they’d be more likely to buy an EV if they had the opportunity to drive one anywhere between a few days to a week before making the decision to buy.

“From this study we see that while Canadians understand the importance of buying an electric vehicle, the majority are unwilling to take the next step towards purchasing before trying one,” said Christian Bourque, executive vice president and senior partner at Leger. “It’s clear that there’s still a knowledge gap when it comes to adoption.”

A ‘try before you buy’ strategy by automakers could prove effective, observed Cedric Mathieu, vice president and head of Turo in Canada. “Making EVs more accessible through extended test drives will help them be more comfortable purchasing one in the future.”

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Vancouver leads Canada when it comes to the most number of electric vehicles on city roads, according to new analysis.

The city has 6,600 EVs on its roads, reported Kijiji Autos. It’s followed by Toronto at 6,300, Montreal with 3,633, Calgary at 3,000 and Kitchener, Ont., with 2,800 to round out the top five. The remainder of the top 10 (Edmonton, Quebec, Hamilton, Ont., Ottawa/Gatineau and Winnipeg) all have fewer than 1,000.

But when it comes to electric vehicle readiness, Toronto jumps to the top spot. In addition to its 6,300 EVs, it also has 864 electric charging points. Montreal came in second — it has 1,258 electric charging points in addition to the 3,633 EVs in the city.

Vancouver, even with the most number of EVs, only has 483 charging points.

Interest for electric vehicles appears to be on the rise. Searches for electric vehicles on KijijiAutos.ca have increased 97 per cent year-on-year, according to the company. It also reported that leads for KijijiAutos.ca for electric vehicles have nearly tripled (up 296 per cent) year-on-year and Google searches in Canada for “electric car” are up 23 per cent compared to last year.

The study from Kijiji Autos also analyzed how green 10 of Canada’s cities are by scoring sustainable travel systems. Vancouver came out on top with an overall score of 6.24. The study looked at metrics including public transport availability, cost of a bus fare, congestion levels, green initiatives, electric cars on the road and electric car charging hubs.

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The number of jobber stores in the United States has been shrinking for a decade, but the rate at which they closed picked up substantially since the start of the global COVID-19 pandemic.

According to a recent iReport from Lang Marketing, “The pace of jobber store attrition abruptly increased during 2020 and 2021 as the annual loss of jobber stores occurred at more than twice the rate of the previous five years.”

In all, about 810 jobber stores closed their doors since 2011 when there were about 17,338 stores across the U.S. About 328 of them closed between the middle of 2011 and 2015. Another 260 closed between then and the middle of 2019.

That means in the last two years alone, about 222 jobbers have closed.

“The sharp increase in jobber store closings during 2020 and 2021 created a significant change in the mix of auto parts stores (jobbers and retail auto parts stores) across the U.S., as jobbers suffered a diminishing share of the total auto parts store population,” the report observed.

The jobber population peaked in the U.S. in 1981 with more than 31,000 stores across the country, Lang reported. There has been a 47 per cent decline in outlets over this 40-year span.

“The pace of jobber store attrition was highest during the 1980s and 1990s and slowed after 2000, with annual attrition averaging less than 1.0% between 2011 and 2016,” the report said. “Over the next two years, the rate of Jobber store loss declined by nearly one-third, before the annual pace nearly doubled during 2020 and 2021.”

Store population receded at the fastest pace in four western regions between 2011 and 2021. The Pacific states suffered the sharpest jobber decline.

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Canadian consumers ranked gas and transportation as their second top financial stressor for the year ahead.

That could be a signal to the automotive aftermarket as to how 2022 could play out. History has shown that when gas prices get to a certain point, consumers will park their vehicles to save money or cut spending in other areas to make up the difference.

Buying groceries (59 per cent) was the top stressor, reported the Canadians + Money 2022 Survey, released by digital life insurance company PolicyMe. Paying for gas was second at 40 per cent.

Furthermore, 66 per cent of respondents expect expenses related to gas and transportation to increase in the coming months.

Gas prices were in part to blame for the increase in the consumer price index. Inflation in December was up 4.8 per cent, the highest rate in 30 years. The cost of gas was up 33 per cent year-over-year.

This could impact the aftermarket because, as Lang Marketing reported recently, gas prices are tied to miles driven.

Furthermore, Lang noted, higher gas prices could push consumers to give a longer look at alternative engine options.

“High gas prices could cause new car buyers to take a longer look at electric vehicles,” whether that is battery or a plug-in hybrid option, Lang said.

Concern about high gas prices was also noted by Nathan Shipley, executive director at The NPD Group, at AAPEX 2021.

“We’re starting to creep up to that price point where consumer behaviour shifts,” he said.

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SEMA’s Ky;e Cheng speaking during the SEMA webinar “Outlook for 2022: Industry Forecast, Supply Chain Projections and Changing Consumer Demographics”

The worst of delays in the automotive supply chain is likely behind us but issues will linger past this year, predicted the Specialty Equipment Market Association.

The latest prognostication came in its Future Trends Report, released this month. It reported that more than 80% of industry companies have been severely or moderately impacted by supply chain disruption. Issues are expected to stay the same or improve in the short term, but not get worse.

“Most issues, including transportation delays and supply shortages, should improve through the year and return to more normal levels by the end of 2022,” the report said.

However, it added, lingering issues like elevated prices will continue into 2023.

“All signs suggest that the worst of the supply chain disruption has already passed, and things should be in a better place by the end of 2022. Some things, including price, may take longer and bleed into 2023,” it said.

The report noted that many supply issues centred around shipping, which included port delays. As those ease in the second half of this year, issues will be relieved. But the elevated costs, which are related to freight transport and commodities, will take longer to ease.

Consumers, however, are still spending money. Two-thirds reported that they’ve experienced supply chain constraints in some way. But just because a specific item can’t be found doesn’t mean they’re just putting their money back in their wallet, observed Kyle Cheng, SEMA market research manager.

“When they go to your store and can’t find a product, they’re switching brands or they’re switching retailers. So as a company, if you’re not able to meet demand, you’re losing business. It’s not that they’re not stopping buying it, they’re just looking for other methods to buy it,” he said during the SEMA webinar Outlook for 2022: Industry Forecast, Supply Chain Projections and Changing Consumer Demographics.

“So demand still there. And despite all these supply chain issues, they’re looking for other ways to purchase it.”

Notably, the specialty-equipment industry has faced different challenges around supply chain disruption, SEMA’s report noted.

“Manufacturers and distributors face a wide variety of shipping and production delays, both foreign and domestic, while retailers face more domestic supplier issues,” it said.

“On the bright side, most projections have this kind of delay improving by the end of the year. So by the latter half of 2022, we should be in a better place in terms of getting through these ships.”

Cheng noted that there are about 110 ships waiting off ports in Los Angeles and Long Beach, California.

“So, right now, we’re seeing record numbers of ships waiting,” he said. “On the bright side, most projections have this kind of delay improving by the end of the year. So by the latter half of 2022, we should be in a better place in terms of getting through these ships. Demand should be in a better place and we should have more logistical capacity to handle it.”

Sourcing from different suppliers to get around challenges is easier said than done in most cases.

“Many businesses looking to source domestically have had difficulty finding vendors — particularly ones that can match prices from Asia,” the report said. “Another factor driving companies to find other suppliers: Tariffs. Existing tariffs set in place prior to the pandemic continue to impact international shipping, compounding already high prices for inputs and products.”

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Erik Mclean / Pexels

Just about every month is setting a new record when it comes to the retained value of used vehicles and December 2021 was no different.

Canadian Black Book’s Used Vehicle Retention Index for December 2021 put the index at a new high of 158.5 index points. That’s a jump of nearly six points since the previous record month of November 2021.

The index is calculated using CBB’s published wholesale average value on two to six-year-old used vehicles, as a percent of the original typically equipped manufacturer’s suggested retail price. The baseline is 100, set in 2005. So the current score indicates that the average used vehicle is retaining 58.5 per cent more of its value today than in 2005.

December 2021’s number represents 42.2 per cent year-over-year growth from December 2020 — that’s the highest change ever over the same period. Seventeen of the past eighteen months have experienced month-over-month growth in average retained values, industry-wide, with fifteen record months in that timeframe, the group reported.

“It has truly been surreal to watch this index, which in its first fifteen years grew by 13 per cent and to witness what has happened in 2021,” said James Hancock, director of OEM strategy and analytics at Canadian Black Book. “Given where we were in the spring of 2020, this rapid ascent of wholesale values could not have been forecast and has eclipsed all expectations.

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There are fewer than two dozen electric vehicle models on the market today. That number is going to skyrocket before this decade is out, according to industry analysts.

That may be behind tempered excitement for EVs as not many options are available for consumers. But automakers are hard at work developing the technology, said Akshay Singh, partner with Strategy&, at AAPEX 2021. So get ready to see many more in the next several years in North America.

“If you look at the number of nameplates that will be introduced by the OEMs in the next eight years or so, it’s a massive number for models being introduced — almost more than 160 nameplates,” he predicted.

Akshay Singh, left, and Carlos Thimann of Strategy& present the report thei co-authored at AAPEX 2021

The data he presented was from a joint electrification forecast he co-authored. It was presented by Auto Care Association and the Automotive Aftermarket Suppliers Association, Impact of New Technologies in the Automotive Aftermarket.

Furthermore, Singh noted, Europe and China are expected to see twice as many models become available. “So there’s going to be intense competition between the automotive OEMs in terms of targeting market share,” he added.”

Pre-pandemic, about 20 million vehicles were sold in North America every year. So if there is a 20 per cent adoption rate at the start of the next decade, that means at least 20,000 electric vehicles per nameplate are going to be sold.

“So it remains to be seen whether automotive OEMs are going to make any returns on their investment, at least in the short term, in the next five to 10 [years],” Singh said.

Expect competition among automakers to ramp up as well.

“Competition is going to be intense. Every OEM is focusing on or actively working on introducing electric vehicles,” Singh said. “Japanese OEMs — who are really behind and really thought that they just wanted to focus on hybrids — have to also adopted this strategy. They have also realized that they have to introduce electric vehicles in the next five to 10 years. And they all are working on it.”

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In a new poll from the Canadian Automobile Association, the most serious threat to road safety in this country is aggressive driving.

Since the onset of the COVID-19 pandemic in March 2020, road safety has been a regular topic. With emptier roads, drivers were engaging in more aggressive driving. Insurance companies reported fewer crashes but higher severity when collisions occurred.

More than 90 per cent of respondents to CAA’s poll said forms of aggressive driving such as running red lights and speeding, are serious threats to their safety on roads.

“Despite roads starting to fill up again, aggressive driving is still a major concern for Canadians,” said Ian Jack, CAA vice president of public affairs.

Also ranking high when it comes to road safety is distracted driving. Again, more than 90 per cent reported that distraction — such as people using their phones while driving — is a serious threat to road safety.

In the same survey, Canadians admitted to CAA that they have done at least one distracting activity while driving. Recent data from Transport Canada shows that distracted drivers are at fault in more than 1 in 5 fatal collisions. That’s higher than impaired driving.

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With almost 130 billion km travelled in the third quarter of 2021, Canadians are moving around at rates higher than before the global COVID-19 pandemic started.

The previous high over the last two years was during the same time in 2019 at 126 billion kilometres, according to data captured by StreetLight Data and recently released by the Automotive Industries Association of Canada in the quarterly report National Vehicle Kilometres Traveled Metrics – 2019 To 2021. The third quarter — from July to September — of 2020 came in at just over 116 billion kilometres, which was the high-water mark of that year.

In the report’s commentary, it was noted that the figure of 130 billion km represented something of a return to normalcy for Canadians when comparing data to previous quarters.

Jack Hodges / Unsplash

“Canadians enthusiastically resumed their pre-pandemic levels of road travel this summer, reflecting their collective desire to break free from pandemic isolation and confidence in the strong vaccination levels across the country,” the report said.

The jump from 126 billion km to 130 billion km represents a significant jump, it added.

“The pendulum may have swung further than usual this quarter as Canadians eagerly celebrated the possibility of a post-pandemic world,” the report observed.

The average daily kilometres travelled also hit an 11-quarter high of 1.4 billion km from July to September of 2021.

And not all of the travel recorded appears to leisure, the report noted. The increase in travel “mirrored” an increase in business confidence that was seen across Canada.

“This increase in business confidence led some Canadian employees and companies to resume pre-pandemic commuting and driving patterns,” the report said.

Of course, this is good news for the automotive aftermarket. People are driving more and when combined with the new vehicle shortage and boost in used vehicle sales, the future looks bright.

“The increased number of older vehicles on the roads will require more replacement parts and with increased usage, durability issues should positively impact the industry’s bottom line,” the report said.

With the Omicron variant, however, the question on everyone’s mind is what impact will COVID-19 have on how things trend forward.

“Canadians are eager to resume aspects of their pre-pandemic lives but uncertainty remains,” the report said. “Will strong vaccination levels across the country protect against new lockdowns and restrictions, and keep us behind the wheel? Our fingers are crossed.”

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Canadians are putting debt repayment at the top of their priority list for 2022, according to a recent survey.

The report from CIBC also found that Canadians are most worried about inflation and uncertainty related to COVID-19.

Rising prices mean Canadians took on more debt in 2021 — 37 per cent of respondents told CIBC that their expenses outstripped their income. Furthermore, only about a quarter of Canadians (27 per cent) said they expect their financial situation will improve in 2022.

When it comes to economic worries, 66 per cent are concerned about inflation and its impact on them. Uncertainty thanks to COVID-19 is on the mind of 36 per cent of Canadians.

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Gas prices, supply chain, inflation and the looming COVID-19 variant threat will all have something to say about how the next 12 months play out in the automotive aftermarket, according to new analysis.

Calling these “mega-forces,” a recent Lang Market’s iReport observed that there hasn’t been a combination of such great issues in recent memory that will affect the aftermarket.

“These four mega-forces will change the pace of miles driven, influence vehicle buying decisions, reduce the availability and variety of aftermarket products, change how consumers decide where to have repairs done, alter the frequency of auto repairs and affect the growth of aftermarket volume,” the group said.

What makes all of this unusual is how quickly they have developed, their collective strength and the likelihood that these issues will stick around for the entire year, if not longer.

“Collectively, they will provide a headwind inhibiting the anticipated aftermarket recovery in 2022,” Land noted.

The effect of gas prices will be felt in miles travelled. It will also impact where else they spend their dollars if they’re spending more at the pump.

That said, this situation could push consumers to give a longer look at alternative engine options. “High gas prices could cause new car buyers to take a longer look at electric vehicles,” whether that is battery or a plug-in hybrid option, Lang said.

The current challenges of the supply chain will remain, creating a headwind for the aftermarket, the group explained. As a result, “parts stores and repair outlets [will] scramble to provide same-day availability of the wide array of products needed to keep America’s vehicles in operation.”

As for inflation, consumers will be looking to stretch their dollars as far as possible. And it could hit the aftermarket harder than most other industries, Lang warned.

“With consumers trying to stretch their purchase power in the face of rising prices, this could mean delaying some vehicle repairs or opting for ‘value’ as opposed to ‘premium’ auto parts,” it said.

However, increased prices could mean higher bottom lines and overall dollar volume in the industry.

Finally, the new COVID-19 variant Omicron.

“A resurgence of mandates to control the spread of the Omicron variant will slow the return of workers to offices and extend the remote working of millions of [people],” Land said. “This will put downward pressure on miles driven and increase supply chain disruptions.”

This could mean difficulty in getting products as supply chains face disruption caused by the new variant.

“These four mega-forces will collectively create a headwind against the continued recovery of 2022 aftermarket volume from the devastating impact of COVID-19 during the last two years,” Lang said.

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Toyota was the top-selling brand in the United States in 2021, a first for the company.

General Motors had been in the top spot for the last 90 years. But it appears supply chain shortages held it back, according to reports, and it slipped to second after holding on to No. 1 since 1931.

COVID-19 led to a number of supply chain shortages, notably semi-conductors. Toyota was able to keep its production plants running smoother than its American counterparts, helping it produce and sell more vehicles.

Toyota announced it sold a little more than 2.3 million vehicles in the U.S. — that’s a 10 per cent jump compared to last year. GM announced 2.2 million vehicle sales in 2021 — a drop of 13 per cent.

The top seller at Toyota was the Rav4, even though it was down 5 per cent compared to last year. The Japanese automaker saw sales boosts from its Camry, Corolla, Highlander and Tacoma lines.

Toyota also noted hat its hybrid sales hit nearly 600,000 sold, up 73 per cent.

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Canadians know what vehicles they want and that hasn’t changed despite a pandemic, changing travel habits or supply chain hurdles.

AutoTrader.ca released data around what vehicles customers are searching for on its website. At the top, once again, was the Ford F-150. For the second year in a row, it was followed by the Ford Mustang and the BMW 3 Series, respectively.

In fact, the rest of the top ten looks similar to last year. Indeed, according to AutoTrader.ca, the same vehicles round out the top 10, just in different spots compared to last year.

The company reported 10 million Canadians visiting its site to search for vehicles for sale. It then uses the search data to gauge the interest of car buyers to come up with its top 10 list.

The rest of the top-searched vehicles is similar to the first three — luxury and mainstay brand. The Porsche 911, Mercedes-Benz C-Class, Honda Civic, Toyota RAV4, Mercedes-Benz E-Class, Chevrolet Corvette and BMW M rounded out the top searched vehicles.

This stability came despite the ongoing pandemic and a shortage of microchips which has shrunk new vehicle options. In turn, used prices have hit all-time highs.

“When it comes to vehicles, Canadians like what they like and we found this consistency to be a reassuring sign for the industry, demonstrating consumers were willing to weather the storm,” says Jodi Lai, editor-in-chief at AutoTrader.ca. “While cars continued to dominate 80 per cent of the top searched list, the truck is still king with the Ford F-150 claiming the top spot nationally for the seventh year in a row, and the Toyota RAV4 remaining a fan favourite in the SUV category.”

AutoTrader.ca also noted that Canadians are still wary of public transit and looking to private travel options. One in five are opting to walk and 36 per cent are choosing to drive themselves.

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August de Richelieu / Pexels

While employment levels are up from the depths of the worst of the COVID-19 pandemic, they’re still not at pre-pandemic levels, according to new analysis. Aftermarket sectors, though, appear to be on an upward trajectory.

The pandemic hasn’t been the only reason for reduced employment. A semi-conductor shortage as led to reduced available new vehicles and, in turn, less staff needed to sell what is available.

“Employment counts tumbled across the automotive space in 2020 and what should have been a period of recovery throughout this year was derailed before it had barely begun,” reported DesRosiers Automotive Consultants in an analysis of third-quarter employment levels.

At the end of the third quarter, the average employment count for the auto industry as a whole grew 5.2 per cent from the same point last year. That comes out to more than 633,000 employees on record. However, that’s still below the 2019 levels by 8.4 per cent.

When taking a closer look at sectors involving the automotive aftermarket — automotive parts and accessories stores, and repair and maintenance — there are positive signs.

According to DAC, automotive parts and accessories stores have seen employment up 2.6 per cent year to date. On the repair side, numbers are up 6.6 per cent.

Only automotive dealers saw a higher increase in employment count, coming at a 7.1 per cent increase year to date.

“The two big automotive employers — dealerships and repair/maintenance facilities — both showed growth in 2021,” said Andrew King, managing partner of DAC. “However, if and when employment will return to historic levels remains an open question — as the industry adapts and evolves to meet new shopping patterns and consumer needs.”

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The number of service bays in American repair and service shops has dropped but that hasn’t stopped an overall rise in the amount of auto repair work that’s taken place.

According to Lang Marketing, the do-it-for-me aftermarket segment of light trucks is growing. But the number of service bays is falling across the U.S.

Overall, repair shops have installed US$7 billion more in product between 2016-2021. That’s an increase of 2 per cent on average every year. And that comes, as Lang pointed out, despite a double-digit drop in 2020 as the global COVID-19 pandemic hit this sector.

And during that same five-year period, bays to service passenger cars and light trucks fell by 44,000. That means fewer bays have been bringing in more business.

“The average number of cars and light trucks per bay in the U.S. climbed between 2016 and 2021, along with the annual dollar volume of light vehicle products installed per bay,” the report said. “Lang Marketing estimates that the average number of vehicles per bay increased nearly 10 per cent between 2016 and 2021, with product sales per bay up even more sharply.”

The report noted that gains in product sales per bay were achieved by the two major types of specialty repair outlets in the U.S.: Foreign specialists and repair specialists.

“Product volume per bay rose approximately 16 per cent among foreign specialists (outlets that focus on foreign nameplates) between 2016 and 2021, and repair specialists (outlets performing a limited array of repairs) achieved over a 14 per cent gain in product sales per bay,” Lang said.

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Andrea Piacquadio / Pexels

A recent survey of Canadian consumers indicated that personal budgets will be trimmed in 2022.

The findings came out of findings from a life insurance survey. PolicyAdvisor.com’s State of the Nation: Life Insurance Trends 2021 looked at how Canadians’ attitudes were changing saving, spending and life insurance in a post-pandemic economy.

Nearly six-in-10 (59 per cent) of respondents said they’re concerned about rising costs due to inflation and expected increases in interest rates. Recently, the 12th edition of Canada’s Food Price Report projected that the average family of four will spend nearly 1,000 more on food in 2022.

Job security is another top concern for Canadians (14%). The survey results, the company said, reflect short-term concerns many have as they return to the workforce in the new normal.

“Canadians know they are going to feel some pain in their pocketbooks in the next 12 months,” said Jiten Puri, CEO and Founder of PolicyAdvisor. “But, it’s the immediate uncertainty of pricing, be it grocery bills or mortgage rates, that is top of mind, and may lead to across-the-board spending cuts.”

When it comes to planning out their budget for 2022, Canadians reported that they’ll cut spending on entertainment (51%), travel (43%) and clothing (42%).

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Amazon is the most relevant brand for Millennials because it appeals to them in a variety of ways. The aftermarket will be challenged to take them on, a recent report warned.

Particularly, when it comes to product selection and speedy delivery, Amazon comes out ahead. This, according to new research from Lang Marketing, is what the aftermarket is up against as Millennials — those born between 1981 and 1999 — make up the largest generational grouping.

“For the next quarter-century, Millennials will be the key generation driving the economy, as Baby Boomers fade from the scene and Generation Zers gain traction,” the report Amazon Owns Millennials said.

Amazon has the leg up on brick-and-mortar aftermarket retailers in a few areas. Notably, peer-to-peer opinions and buying alternatives.

“Peer-to-peer opinion sharing is a primary way that Millennials choose among products,” the report said. “This sets Amazon apart from many other buying sources (particularly brick-and-mortar outlets) and gives Millennials the feeling of extra value that makes their product selection much easier.”

Anirudg / Unsplash

Amazon also suggests brand alternatives, along with pricing advantages. “This is very important to Millennials who generally prefer branded merchandise but also seek competitive pricing,” the report said. “Such product and price variety are generally not available from brick-and-mortar stores.”

Amazon has its sights set on the auto parts sector as it expands. So the connection to Amazon for Millennials could have consequences for traditional aftermarket retailers.

“Millennials already play a key role in DIY parts buying and are rapidly becoming a larger factor in the DIFM market through the growth of Millennial technicians and repair shop owners,” the report noted.

It further noted that Lang Marketing found many differences in the buying policies of Millennial technicians and shop owners compared to older technicians and shop owners.

But what about delivery times, which have been the advantage of physical stores over Amazon? That’s becoming less of a concern. Amazon is expanding same-day and even one hour delivery service in key markets.

“Amazon could provide the swift and dependable delivery of auto parts that would be necessary for it to dramatically expand its position in the DIFM (commercial) segment in the aftermarket,” the report said.

An upcoming Lang study will examine the changing online buying habits of consumers and how the aftermarket could dramatically change over the next five to ten years.

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