Auto Events

When you think cars and sports sponsorships the first thing that might pop into your head is the relationship between Honda Canada and MLB’s Toronto Blue Jays, which has lasted for 30 years. Ford Canada has also participated in the sponsorship game with the NHL’s Toronto Maple Leafs and Edmonton Oilers, as well as the NBA’s sole-Canadian franchise, the Toronto Raptors. And we can’t leave off General Motors and their relationship with the Vancouver Canucks, their arena used to be named GM Place. 

Well there’s one more car company to throw into that pool and that’s Kia Canada and their relationship with Toronto’s MLS team, Toronto FC. Yes, the little South Korean company that could. To be clear, they are actually not so little any more thanks to being the world’s fastest growing automaker. They currently sit in the eighth position when it comes to sales in Canada, ahead of big names such as Mazda, Volkswagen and Subaru.

Kia Canada’s relationship with Toronto FC (TFC) dates back to 2007, TFC’s expansion year. They were named an official automotive partner and have been actively promoting their products with TFC fans during home games. Recently in 2012, Kia Canada stepped up their partnership with TFC by acquiring the naming rights to TFC’s Training Ground and Academy Program. It’s the only Canadian automotive company to have their name on a building that’s not affiliated with the manufacturer’s own facility or dealership. 

A large group of automotive journalists were provided an opportunity to visit these new facilities and hear about Kia’s marketing approach, oh yeah, and test out a bunch of their 2014 vehicles including the Soul, Forte and Sorento. What media event doesn’t include that?

The main attraction was the 2014 Kia Soul that starts at $18,595 and will go on sale this December. The new Soul gets a makeover from the world-renowned German designer Peter Schreyer, who is the Chief Design Officer for both Hyundai and Kia. His touches are hard to miss and has elevated the unique Soul into a modern and hip urban hatch with this aggressive new look.

We drove the vehicles for a short period of time, but the focus was clearly on the officially named Toronto Football Club Kia Training Ground and Academy. It's located on 14-acres of land at Downsview Park, in the North end of Toronto, also known as North York. We were provided a tour of this facility and you really need one, as it’s impressive and it better be after $21-million was invested in it by Maple Leaf Sports & Entertainment. 

We had a quick session in the player’s meeting room to learn more about Kia. That was followed by a look at the three full-size outdoor grass soccer fields, the fitness and conditioning rooms and the lunch room that has an added focus towards healthy eating. There were some rooms in-between, but who could really keep track? 

According to the Shawn Jeffers, the Assistant Athletic Therapist and Strength and Conditioning Specialist at Toronto FC, “the TFC facility is the best in North America and rivals many of the elite European soccer clubs.” Players are amazed by the facilities when they arrive as it’s all first-class. It got me thinking that perhaps they players are pampered too much based on their historic dreadful results, but that’s another story for another day.

What we quickly learned was that these facilities were not just for the TFC first-team players, but for the second team and developmental players in their Academy. It was built to provide a facility that could build-up soccer in Canada and develop the next generation of players that will hopefully down the road suit up for TFC and their nation.

Kia Canada’s marketing plan involves a lot of active sports marketing and soccer seems to be where they focus most of their attention. Further to being involved with TFC, they are also partners with two other Canadian MLS clubs, the Vancouver WhiteCaps FC and the Montreal Impact. And if that isn’t enough they also sponsor the UEFA European Championships.

Sports marketing is only the tip of their affiliations as the list is as long as one of their soccer fields. This grassroots marketing movement that Kia started has allowed them to elevate their game by acquiring the naming rights to TFC’s world-class training facility. In return, Kia has seen a major boost to its brand recognition. There’s plenty of competition out there, but Kia has made it a plan to focus on producing top quality products at reasonable prices and in doing so are hoping to up there brand’s value from $2.7-billion to $6-billion by 2016. That’s a big jump for any company and an aggressive claim from Kia. I’m not sure they will reach their goal, but if they can increase its value to even $5-billion that would be impressive and the way Kia’s been growing – I wouldn’t bet against it.

Still think Canucks are the most modest people around? Think again. An international study of more than 10,000 drivers from 10 countries for the classified website Kijiji places more Canadian drivers in the category of "Image Seekers" than any of the report's other driver personas, and above the global average in this category.

The Kijiji report categorizes Canadian and international drivers among seven different personas based on driver habits and opinions, as follows:

- Image Seekers (27 per cent) - brand, design and styling are more important than among other personas. Global average: 23 per cent

- Reliability/Efficiency Seekers (22 per cent) - brand is less of a priority, but reliability, efficiency, and running costs matter. Global average: 22 per cent

- Performance Seekers (17 per cent) - handling and power are higher up on the list of priorities.  Global average: 17 per cent

- Necessity Drivers (19 per cent) - say a car is just a tool to get from A to B. Global average: 17 per cent

- Risk Takers (five per cent) - parks carelessly, more likely to drink and drive. Global average: 11 per cent

- Cautious Drivers (five per cent) - rarely has accidents or damages their car. Global average: four per cent

- Accident Prone (five per cent) - despite less obvious risk taking they are still prone to accidents. Global average: six per cent 

"When it comes to Canadian drivers, Image Seekers have overtaken Efficiency Seekers, though many stereotypically modest Canadian traits continue on the road," says Scott Neil, Head of Autos, Kijiji Canada. "Luckily, as Canada's largest automotive listing website, Kijiji has cars of every make and model to suit all types of drivers."

DREAM CARS

While Image Seekers and Performance Seekers combined account for close to half (44 per cent) of Canadian drivers, as a nation, we are still understated when it comes to the cars we covet.  When asked to list their "dream vehicle", Canadians gravitate to more modest luxury brands such as BMW (14 per cent), Mercedes-Benz (11 per cent), or Lexus (nine per cent) versus supercars like Lamborghini (six per cent), Ferrari (four per cent), or Rolls-Royce (four per cent).

BUYING HABITS

Notwithstanding our tendency to value style slightly above substance, when it comes to colour, Canadians prefer classic, neutral tones over bright and bold. Sensible silver is the most popular car colour in Canada, preferred by 18 per cent of drivers, followed by basics blue and black (15 per cent each) and good old grey (14 per cent).  Just 11 per cent of us opt for racy red.

As a nation, Canadians also approach car buying pragmatically, with nine out of 10 (89 per cent) acknowledging that a new car's value depreciates when driven off the lot.1 When it comes to new versus used vehicle purchases:

- Five out of six Canadians (83 per cent) have owned a used vehicle

- Sixty-three per cent of Canadians would buy a used vehicle because they feel that new cars are too expensive

- Three out of 10 Canadians (29 per cent) feel that used vehicles are just as good as new ones, and that new vehicles are not worth the extra money

- One in five Canadians (19 per cent) would buy a used car in order to get their particular dream vehicle 

DRIVING HABITS

The Kijiji study also reveals that, once behind the wheel, Canadians are more careful and conscientious on the road compared to the global average:

- Just five per cent of Canadian drivers fall into the "Risk Takers" persona compared to 11 per cent of drivers globally

- While 17 per cent of Canadians report scraping or scratching their car in a minor accident over the last year, 21 per cent globally say they've had a fender bender

- Ten per cent of Canadian drivers admit to getting a speeding ticket over the last year compared to 16 per cent of the global population surveyed 

TIPS ON BUYING A USED CAR ONLINE

"With over 250,000 Canadians actively selling their vehicles on Kijiji, our selection of local used car listings will get you where you need to go fast — whether you're seeking a Ford or a Ferrari," says Neil.

Kijiji's top tips for Canadians when buying a vehicle online:

- Know the History - Always ask the seller for a car's Used Vehicle Information Package (UVIP), CarProof Vehicle History Report, mileage, and repair history

- Inspect - Have a professional inspection done by a licensed technician to save money down the road, and look for potential issues with the tires, body or interior

- Test Drive - Don't buy a car before taking it for a test drive, preferably when the engine is cold.  Try various speeds, different types of roads, parking and idling. Make sure all of the lights and electronics are working.  Even a short test drive can help identify problems.

TORONTO - Canadian automakers say demand for cars and light trucks remained strong in September, with many of them reporting significant year-over-year sales increases on Tuesday.

Among the Big Three manufacturers, Ford Canada and Chrysler Canada both said saw improvements in vehicle sales last month, substantially so in the case of Ford.

"What is somewhat surprising is that September 2012 had also been a record month," according to a commentary by DesRosiers Automotive Consultants Inc.

"It is a lot easier to show significant improvements in the market when comparable data from previous years are weak. September had a very tough comparable month to beat, but blew past this quite easily."

DesRosiers said if vehicle sales continue at this pace, they could beat the all-time annual record of just over 1.7 million set in 2002.

Ford said it had the second-best September on record, as sales for its vehicles jumped 10 per cent last month compared with the same month a year earlier.

It said it sold 25,956 light vehicles in September, compared with 23,600 in the 2012 period.

The boost was attributed to a surge truck sales, including the F-Series, which saw its best September on record. Ford said it sold 20,237 trucks last month, an 8.8 per cent increase from 18,606 a year earlier.

It also reported strong sales of the Ford Fiesta, which increased by 64 per cent, while sales of the Fusion jumped by 20 per cent year-over-year. Sales of the Mustang climbed 10 per cent in the same period.

Chrysler Canada said it recorded its best sales for September in 13 years, with 19,858 cars and light trucks sold last month, up slightly from 19,555 in September 2012.

Still, the total marked the 46th consecutive month of year-over-year growth, the longest sales streak in the company's history, Chrysler said.

The gains were due to sales records for its Ram trucks and Dodge Dart and Chrysler 200 models. Sales of its Town and Country minivan more than doubled to 454 sold in September, compared with 162 a year earlier.

The last of the Big Three, General Motors, reported a small decline last month, with 18,270 cars and trucks sold, compared with 18,756 in the same month a year earlier.

Meanwhile, many of the other automakers also reported higher sales in September.

Japanese car manufacturer Honda Canada saw sales of 12,449 vehicles last month, up 8.7 per cent from 11,457 in September 2012.

Honda said its Civic models continue to be its most popular cars, with 6,262 sold in September, an 8.3 per cent jump from 5,782 in the same period a year earlier.

"Strong September sales wrapped up the summer selling season and will help to continue our sales momentum through to the end of the year," Dave Gardner, vice-president of sales and marketing for Honda Canada Inc., said in a statement.

Its luxury division, Acura, also saw an increase of 4.2 per cent, as it sold 1,515 cars in September, compared with 1,454 in September 2012.

Toyota Canada also reported an uptick in September across its cars, trucks and Lexus luxury division.

Toyota had total sales last month of 15,688, up 2.7 per cent from 15,278 a year earlier, due to strong gains by its Corolla and RAV4 brands. Sales of Lexus vehicles were up 1.5 per cent in September to 1,580 sold in September of last year.

Nissan sales increased by 39 per cent last month, making it the company's best September on record, as it sold 8,564 vehicles across Canada.

Subaru Canada said September was also its best month ever, with its vehicle sales increasing by 23.2 per cent to 3,310 units. This compared with 2,686 units in September 2012.

Luxury brand Mercedes-Benz also saw its sales climb more than 20 per cent to 3,226 vehicles in September from 2,676 vehicles a year earlier.

But it wasn't all rosy news from the auto sector.

Mazda Canada said its vehicle sales fell by 16 per cent in September compared with a year earlier to 5,647. Its compact Mazda3 vehicles led September sales, with 3,310 sold, but were down more than 20 per cent from 4,278 sold in September 2012.

Kia Canada also saw its sales figures decline slightly in September compared with a year earlier. The automaker reported new vehicle sales of 6,833, down 2.8 per cent.

SEATTLE, WA - A fire that destroyed a Tesla electric car near Seattle began in the vehicle's battery pack, officials said Wednesday, creating challenges for firefighters who tried to put out the flames.

Company spokeswoman Liz Jarvis-Shean said the fire Tuesday was caused by a large metallic object hitting one of the battery pack's modules in the pricey Model S. The fire was contained to a small section at the front of the vehicle, she said, and no one was injured.

Shares of Tesla Motors Inc. fell more than 6 per cent Wednesday after an Internet video showed flames spewing from the vehicle, which Tesla has touted as the safest car in America.

The liquid-cooled 85 kilowatt-hour battery in the Tesla Model S is mounted below the passenger compartment floor and uses lithium-ion chemistry similar to the batteries in laptop computers and mobile phones. Investors and companies have been particularly sensitive to the batteries' fire risks, especially given issues in recent years involving the Chevrolet Volt plug-in hybrid car and Boeing's new 787 plane.

In an incident report released under Washington state's public records law, firefighters wrote that they appeared to have Tuesday's fire under control, but the flames reignited. Crews found that water seemed to intensify the fire, so they began using a dry chemical extinguisher.

After dismantling the front end of the vehicle and puncturing holes in the battery pack, responders used a circular saw to cut an access hole in the front section to apply water to the battery, according to documents. Only then was the fire extinguished.

The incident happened as the Tesla's driver was travelling southbound on state Route 167 through the Seattle suburb of Kent, said Trooper Chris Webb of the Washington State Patrol. The driver said he believed he had struck some metal debris on the freeway, so he exited the highway and the vehicle became disabled.

The driver, who did not return a phone call seeking comment, told authorities he began to smell something burning and then the vehicle caught fire.

Firefighters arrived within 3 minutes of the first call. It's not clear from records how long the firefighting lasted, but crews remained on scene for 2 1/2 hours.

Tesla said the flames were contained to the front of the $70,000 vehicle due to its design and construction.

"This was not a spontaneous event," Jarvis-Shean said. "Every indication we have at this point is that the fire was a result of the collision and the damage sustained through that."

There was too much damage from the fire to see what damage debris may have caused, Webb said.

The automobile website Jalopnik.com posted photos of the blaze that it says were taken by a reader, along with a video.

Shares of Palo Alto, Calif.-based Tesla have risen more than 400 per cent this year. But some investors likely were alarmed that the fire could be an indication of a flaw in the company's battery packs, and Tesla shares fell $12.05 to $180.95 Wednesday.

Also contributing to the stock's decline was a rare analyst downgrade. R.W. Baird analyst Ben Kallo cut his rating on the stock from "Outperform" to "Neutral," telling investors that while he's still bullish on Tesla's long-term prospects, the company has "significant milestones" during the next 18 months that come with risk.

The company's battery system and the Model S itself have received rave reviews, including a top crash-test score from the National Highway Traffic Safety Administration and a tie for the highest auto rating ever recorded by Consumer Reports magazine.

But lithium-ion batteries have raised concerns in other vehicles.

Two years ago, battery fires broke out in three Chevrolet Volt plug-in hybrid cars after crash-testing, but NHTSA investigators determined that the Volt was no more risky than vehicles with conventional gasoline engines.

Officials from General Motors Co. and the government believed the fires were caused by coolant leaking from damaged plastic casing around the batteries after side-impact test crashes. At the time, they said there were no real-world fires in any Volts.

Still, the fires tarnished the Volt's reputation and cut into sales. Recently, though, sales have recovered. Sales are up about 3 per cent this year, with GM selling about 17,000 Volts through September.

Earlier this year, Boeing Co.'s worldwide fleet of 787s was grounded because lithium-ion batteries overheated or caught fire. Flights resumed four months later after a revamped battery system was installed.

Under normal circumstances, investigators from NHTSA, the government's auto safety watchdog, would travel to Washington state to investigate the Tesla crash. But with the partial government shutdown, NHTSA's field investigations have been suspended.