Top 5 stories of the week: Possible ransomware incident; AutoCanada cuts; software ban, and more

News regarding AutoCanada Inc. dominated the Canadian automotive headlines the week of Sept. 23. It began with a ransomware organization claiming it stole a large amount of financial, employee and sales data from publicly traded dealership group. The next day, we reported that AutoCanada will close more than half of its RightRide used-vehicle businesses as part of a restructuring of the unit that caters to customers with low credit. 

Here's a quick rundown of those stories and the others that comprised our top five by reader interest this week.

1. Ransomware outfit says it stole AutoCanada data

A ransomware organization claims it stole a large amount of financial, employee and sales data from publicly traded dealership group AutoCanada. 

The Sept. 17 notice and ransom demand on the dark web follows an IT breach AutoCanada first reported on Aug. 11.

AutoCanada did not confirm the ransom request.

2. AutoCanada closing some RightRide locations

AutoCanada Inc. said Sept. 24 that it will close more than half of its RightRide locations as part of a restructuring of the business unit that caters to customers with low credit. 

The Edmonton-based dealership group that owns 65 new-vehicle franchises in Canada and 18 in the United States operated 13 RightRide stores as recently as last month, according to the company’s latest quarterly earnings report. 

3. Auto industry pushes for Chinese software ban

Canada’s auto industry is calling on the federal government to follow the lead of its U.S. counterparts in a push to ban Chinese software and hardware used in connected vehicles on American roads.

U.S. President Joe Biden's administration has raised concerns about connected Chinese vehicles collecting data on U.S. drivers and infrastructure and potential foreign manipulation of vehicles connected to the internet and navigation systems. In February, the White House ordered an investigation.

Canada has similar concerns and is “absolutely” considering a similar ban, Finance Minister and Deputy Prime Minister Chrystia Freeland told reporters earlier this week.

4. Unifor ratifies CAMI deal with GM

Hourly workers represented by Unifor at General Motors Canada’s CAMI Assembly Plant ratified a two-year contract that gives longtime employees a 15-per-cent wage increase over two years and puts members on the same contract as workers at GM plants in Oshawa and St. Catharines, Ont., starting in 2026.

Rank-and-file staff at the plant that builds BrightDrop electric delivery vans at CAMI in Ingersoll, Ont., voted 95.7 per cent in favour of ratifying the new contract on Sept. 22.

5. Auto fraud on the rise

Driven by fake credit applications and identity theft, automotive fraud has surged 54 per cent from a year ago, a report from Equifax Canada has found. 

"That kind of increase really indicates there's a specific targeted attack to that sector," said Carl Davies, head of fraud and identity at Equifax Canada, in an interview. 

The biggest jump in auto fraud rates was in Ontario, where they doubled since last year, said the report released Sept. 24.