Canadian Vehicle Market Review - News Media Canada

[Pages:54]Canadian Vehicle Market Review

Dennis DesRosiers ? May 27, 2016

Market Review

? Canadian Market Review ? Outlook for New and Used Vehicle sales ? Outlook for F & I ? Outlook for Fixed Operations ? Conclusion and Summary

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Four Windows into the Automotive Sector

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The Automotive Sector is Huge and Represents near Unlimited Opportunity

Automotive Finance

$82.1 B

New Vehicles $67.8 B

Used Vehicles $37.2 B

Aftermarket / Fixed Ops $20.9 B

2015 - Final Retail = $208.0 Billion including Financing ?

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Media Spending Estimates

Automotive Finance

1% $ 800 ? $900 M

New Vehicles

Used Vehicles

$1,200 - $1,500 per Vehicle $2.5 ? $3.0 Billion

3% $ 650 ? $750 M

Aftermarket

2% $ 700 ? $800 M

$ 4.5 ? $ 5.5 Billion 5

Four "Windows" to Automotive

New Vehicles

Raw Material

MTDM

Parts Manufacturing

Vehicle Assembly

Vehicle Distribution

Vehicle Retailing

Used Vehicles

Vehicle Trade Ins

Wholesale Trades

Vehicle Retailing

Vehicle Disposal

Vehicle Finance

Asset Acquisition

Retailing

Credit Adjudication

Funding

Admin

Collection

Asset Disposal

Aftermarket

Parts Manufacturing

Warehouse Distribution

Wholesaling

Installation / DIY

Parts Return / Disposal

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Four "Windows" to Automotive

? Increased quality and longer lasting vehicles forces more attention to be put on the entire "value chain" of the vehicle (ie. finance, aftermarket, the used vehicle, etc.)

? Access to the "value chain" of the vehicle is very dependent on the sale of the vehicle

? This positions the "New Vehicle Dealer" as a critical player in the success of "third party" initiatives in this industry including media players

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Strategies For Success

? Focusing on the "New Vehicle Dealer" should be one of the key strategic initiatives for any Media Group - Key decision makers for "tactical" advertising - Key influencers for "strategic" advertising - Key role in all Four value chains

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