2017 DSI Survey

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Introduction The fact that Canada has continued to beat sales records is a testament to the working relationship between the dealer and the automaker. — John White, CADA President & CEO For the first time in Canadian history, the 2 million sales mark for light vehicles was surpassed in 2017. A total of 2,038,798 new light vehicles were sold in the past year, driven in no small part by the combined efforts of 25 automotive brands and more than 3,200 dealerships. 2017 was a year largely marked with sales successes, with 9 out of the 12 months seeing year-over-year sales increases on an already record setting 2016. The only punctuation marks on what has been another runaway year were sales decreases reported in April, November and December where sales declined 1.6 percent, 1.2 percent and 1.1 percent respectively. This is in stark contrast to the U.S. new vehicle market which has seen a reversal of fortune, presenting only 2 months of year over year sales growth (in September and November) and 10 months of sales declines. The U.S. market in recent years had been recovering strongly following the 2008/09 recession and in 2015 surpassed their previous all-time record which was established in 2000. “Getting a vehicle into the customer’s hands is still a two part relationship” says Canadian Automobile Dealers Association (CADA) President & CEO John White. “The fact that Canada has continued to beat sales records is a testament to the working relationship between the dealer and the automaker”. Looking at trends in the Canadian market, the past year has witnessed a continuation of recent trends for dealers and automakers alike. Light truck sales continue to take the lion’s share of new vehicle purchases, tracking just below an unprecedented 70.0 percent market share. Subcompact SUVs were the fastest growing segment thanks in part to new product introductions and were up 32.6 percent over the past year. The compact SUV segment took first place in sales for the 2 nd time in the new vehicle market, furthering the lead against the previous perennial winner in the compact car segment. As a whole, the combined SUV segments were over 40.0 percent of the market. Despite the passenger car market not enjoying the same level of success, the luxury car segment has seen growth in both sales and market share over the past year. From a regional perspective, British Columbia, Manitoba, Nova Scotia, Ontario and Quebec have seen record levels of success in 2017 with Alberta and Saskatchewan recovering back to their previous highs. Given the downturn in the U.S., the question of whether or not the Canadian market is reaching its peak comes back into focus. Concerns involving interest rate hikes, housing market corrections, and general cyclical downturns following an 8 year sales increase streak in Canada add to a laundry list of reasons that could contribute to a potential for a change in market direction. It is more important than ever to focus on the relationship between dealers and manufacturers. “We’re certainly at a point in our industry where technology and market conditions 2 2017 Dealer Satisfaction Index Survey
equire both dealers and manufacturers to be on high alert so they can adapt and respond quickly to changes” says White on the status of the market. Given the lightning pace of the industry from both a technological and sales standpoint, data such as the results published in the CADA Dealer Satisfaction Index (DSI) Survey become an invaluable tool in evaluating and managing the important dealer/ automaker relationship. Efficiency in communication between partners is a necessity to hedge against the rapid shifts in the industry that may catch an unprepared dealer or automaker off guard. DSI Purpose The DSI Survey has been an industry staple for over 25 years and continues to build on that authority with this year’s edition. A key indicator of the DSI’s pervasiveness and continued success within the industry comes from the highest ever response rate in 26 iterations of the study. The 2017 DSI Survey achieved not only the highest response rate, but also the highest number of responses in a notably shortened survey period. All of these factors contribute to a more complete and more noise free picture of the relationship from the dealer perspective. “The DSI Survey is one of the most important things CADA does every year. It is the single most important barometer OVERALL OPINIONS INDEX 50 55 60 65 70 75 80 85 90 95 100 1 Subaru (1) 2 Mercedes-Benz (2) 3 Audi (8) 4 Porsche (14) 5 Cadillac (6) 6 Lexus (12) 7 Chevrolet (10) 8 Honda (7) 9 Buick-GMC (11) 10 Ford (4) 11 Jaguar-Land Rover (3) 12 Mazda (13) 13 Acura (15) 14 Lincoln (9) Industry 15 Toyota (16) 16 Volvo (5) 17 Mitsubishi (17) 18 Volkswagen (25) 19 Kia (22) 20 Nissan (19) 21 Hyundai (20) 22 MINI (21) 23 Infiniti (23) 24 BMW (18) 25 Chrysler (24) 93.81 90.31 88.66 88.00 86.94 86.56 86.55 86.45 86.27 85.92 85.29 81.88 81.63 81.42 80.79 80.49 79.68 77.85 75.05 74.76 73.94 73.32 67.96 65.26 63.12 60.60 2017 2016 2015 1. Subaru 2. Mercedes- Benz 3. Audi 4. Porsche 5. Cadillac 6. Lexus 7. Chevrolet 8. Honda 9. Buick-GMC 10. Ford 11. Jaguar Land Rover 12. Mazda 13. Acura 14. Lincoln 15. Toyota 16. Volvo 17. Mitsubishi 18. Volkswagen 19. Kia 20. Nissan 21. Hyundai 22. MINI 23. Infiniti 24. BMW 25. Chrysler 1. Subaru 2. Mercedes-Benz 3. Jaguar Land Rover 4. Ford 5. Volvo 6. Cadillac 7. Honda 8. Audi 9. Lincoln 10. Chevrolet 11. Buick GMC 12. Lexus 13. Mazda 14. Porsche 15. Acura 16. Toyota 17. Mitsubishi 18. BMW 19. Nissan 20. Hyundai 21. MINI 22. Kia 23. Infiniti 24. Chrysler 25. Volkswagen 1. Subaru 2. Mercedes-Benz 3. Honda 4. Lexus 5. Ford 6. Jaguar Land Rover 7. Mazda 8. Audi 9. Porsche 10. Acura 11. Chevrolet 12. Buick GMC 13. Mitsubishi 14. Nissan 15. Toyota 16. BMW 17. Volvo 18. Chrysler 19. MINI 20. Kia 21. Volkswagen 22. Hyundai 23. Infiniti For dealer review only. Not for press release. Strict copyright enforcement. © 2018 CADA 3
Page 4 and 5: for the vital manufacturer-dealer r
Page 6 and 7: SATISFACTION WITH THE FRANCHISOR'S
Page 8 and 9: multiple categories. The brand’s
Page 10 and 11: Acura A steady performance from the
Page 12 and 13: FAIRNESS OF MANUFACTURER’S POLICI
Page 14 and 15: CUSTOMER SATISFACTION POLICIES AND
Page 16: Canadian Automobile Dealers Associa

2017 DSI Survey

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