Sales projections for the Canadian and global auto industry, supply shortages, vehicle residual value trends, electric vehicle growth projections, changing consumer journeys and the need for a more diverse and inclusive workforce were all key topics tackled at the first TalkAuto Canada event to return in person since the pandemic — and the first organized solely by Canadian Black Book.
Yolanda Biswah, Canadian Black Book’s Senior Vice President & General Manager kicked off the event telling the sold-out crowd the event’s theme was “an industry in transition.”
As she introduced the key themes for the day, Biswah singled out the need to forge a more diverse workforce. “Also near and dear to my heart, is I have a responsibility to promote diversity,” said Biswah. “We have to create a culture that is inclusive to everyone in this industry. That is the only way we will attract talent to this industry,” said Biswah.
“Today our message on diversity and inclusion is we need to be purposeful in our hiring and all the practices we do,” said Biswah.
The first few speakers took the audience through forecasts for the new and used vehicle markets in Canada, North America and globally.
According to the experts, the picture is decidedly mixed, with the threat of an all but certain recession looming, and other global uncertainty related to supply constraints and disruptive factors like the war in Ukraine making forecasts more difficult than in more normal times.
Several speakers took a deeper dive into trying to assess the EV market, and although projections vary, the underlying message was clear: EVs aren’t just coming, they are here and adoption is going to pick up speed rapidly.
“It’s definitely growing,” said Dan Ross, Senior Automotive Analyst, Vehicle Valuations and Residuals with the event organizer Canadian Black Book. “Over time that will steadily increase.”
As it stands year to date, Battery Electric Vehicles sales already represent 5.2% of new vehicle sales, but government mandates, new products from OEMs and growing consumer acceptance are all factors fueling the growth projections.
“Are we already at the end of the ICE age?” asked Ross, sharing his projection that EVs will grow to 57% of the market in only 10 years.
Jeff Schuster, President LMC Automotive, echoed that outlook, saying ICE vehicles will represent less than 30 per cent of the market globally by 2034. He said the global EV market is currently heavily weighted towards Tesla, but that will change as more OEMs gain their piece of the growing pie with new products.
In terms of global auto production, Schuster predicts a slow recovery due to a host of supply and consumer demand factors. “It’s a slow trajectory back to pre-pandemic levels,” adding that it will take until 2025-2026.
Accelerate Auto, a not-for-profit set up to help promote opportunities for Black talent in Canada’s auto industry was also featured prominently at the event, as a key sponsor and also during a session on diversity where leaders presented new research the organization commissioned to assess the diversity gaps in the auto industry.
Christopher Nabeta, Accelerate Auto’s Executive Chairman, presented his perspective on what it was like for Black talent working in Canada’s auto industry, and what the industry looked like for young Black people on the outside looking in.
Nabeta told the attendees that the organization was there to work with them, to help them better understand the path forward to improve diversity and inclusion efforts, and to join forces with allied organizations and companies.
After a spirited chat with Canadian auto dealer’s editor Todd Phillips, Nabeta was joined on stage by Raed Kadri, Head of the Ontario Vehicle Innovation Network (OVIN) and Amanda Sayers, OVIN’s Director of Skills, Talent and Workforce Development.
That conversation explored the efforts that OVIN is making to help build the robust and highly-skilled workforce that the industry will need to compete as a player in the automotive manufacturing industry, particularly in new areas like electric and autonomous. OVIN has also recognized the diversity gap in the industry, and is making a concerted effort to attract talent from communities that in the past have been underrepresented or overlooked.
Kadri and Sayers talked about a growing relationship with Accelerate Auto to reach out to students and others to give them a better understanding of the amazing jobs in the auto sector.
That panel discussion was followed by a keynote by Flavio Volpe, President of the Automotive Parts Manufacturers Association. He too picked up on the theme of workforce development and skills gaps and the need for the industry to constantly recruit and train new talent.
Volpe, an engaging speaker, also teased images and video clips of the $20 million Arrow electric vehicle prototype that his industry association is building in collaboration with its members to prove the know-how, technology, and imagination exists in Canada for next generation vehicle production and assembly.
Volpe said the vehicle will be unveiled at the Consumer Electronics Show (CES) in Las Vegas in January. He played a teaser video and told the crowd they were the first to see it. The APMA did unveil part of the vehicle at their annual conference in October.
Other speakers included an engaging panel on the changing consumer journey that was moderated by Stephanie Henry, journalist and Toronto television personality. The high-powered panel discussed changing consumer experiences and expectations, the direct to consumer model, and new purchasing models for new and used vehicles.
Anne Marie Desando and Rebekah Young, from Scotiabank also had an interesting and engaging chat about banking and financing trends and the transition they were seeing in their industry.
Talk Auto was organized and staged by Canadian Black Book.
