Skip to main content
Sister Publication Links
  • Automotive News
  • Automotive News Europe
  • Automotive News China
  • Automobilwoche
Subscribe
  • Subscribe
  • login
  • HOME
  • News
    • News by Brand
    • Auto Shows
    • Photo Galleries
    • Automakers
    • Suppliers
    • Retail
    • Government Relations
    • Trade and Tariffs
    • Technology
    • Labour
    • bentaygahybrid-main.jpg
      view gallery
      6 photos
      2021 Bentley Bentayga Hybrid
      g80.jpg
      view gallery
      9 photos
      2021 NACTOY finalists
      zoox_3.jpg
      view gallery
      6 photos
      Zoox robotaxi
      2021_nissan_kicks_3.jpg
      view gallery
      8 photos
      2021 Nissan Kicks
    • 1PLANT-MAIN_i.jpg
      How suppliers and automakers saved the industry amid a pandemic
      Automakers, suppliers tackle new crises together
      HONDA_20190508_FINAL.jpg
      Honda, Toyota most preferred by suppliers
      Lawsuit challenges Trump's authority on steel, auto tariffs
    • Wage subsidy kept sector afloat in 2020 with big players using government aid
      Magna: Vehicle assembly’s hired gun
      newalexa.jpg
      FCA first automaker to integrate new Amazon Alexa Custom Assistant
      Shift78Image_0.png
      PODCAST: Magna’s Sherif Marakby draws the blueprint for an electric future
    • MACHE-MAIN_i.jpg
      Ford delays some Mustang Mach-E deliveries up to 8 weeks in Canada, U.S.
      Ontario's stay-at-home order doesn't change much for province's auto industry
      BrightDrop.jpg
      GM launches commercial EV brand, with FedEx as first customer
      CES-MAIN_i.jpg
      All-digital format puts CES to the test
    • 6NAFTA-5.jpg
      Some Mexican automakers want more time to meet USMCA rules, official says
      Japan Prius prod 20 web.jpg
      Japan may ban sales of new ICE vehicles in mid-2030s, report says
      Ford Explorer 2016-MAIN_i.jpg
      Ford recalls 25,200 Explorers in Canada for suspension problem
      Biden? Trump? Either way, Canada faces big choices
    • Biden? Trump? Either way, Canada faces big choices
      TrumpReuters.jpg
      U.S. abruptly lifts tariffs on Canadian aluminum
      trump.png
      Aluminum tariff adds wrinkle just as USMCA gets going
      Trump reimposes Canadian aluminum import tariff to stem ‘flood’; Canada retaliates
    • Porsche, Apple Music partner on infotainment
      Vietnam-tied hackers said to target auto industry
      Vehicle screens go super-sized at CES as tech catches up
      All in a day's work
    • Wuhan honda prod web.jpg
      Automakers push to reopen plants with testing and lots of masks
      Ford, UAW reach tentative pact in U.S. with billions worth of investment
      GM Canada says it will find 2,400 jobs for Oshawa workers
      FCA to idle Ontario minivan plant for 8 days, union says
    • Aston Martin
    • BMW
      • Mini
      • Rolls Royce
    • Daimler
      • Mercedes Benz
      • Smart
    • Fiat Chrysler
      • Alfa Romeo
      • Chrysler
      • Dodge
      • Ferrari
      • Fiat
      • Jeep
      • Lancia
      • Maserati
      • Ram
    • Ford
      • Lincoln
    • General Motors
      • Buick
      • Cadillac
      • Chevrolet
      • GMC
    • Honda
      • Acura
    • Hyundai
      • Kia
    • Mazda
    • Mitsubishi
    • Nissan
      • Infiniti
    • Subaru
    • Tata
      • Jaguar
      • Land Rover
    • Tesla
    • Toyota
      • Lexus
    • Volkswagen
      • Audi
      • Bentley
      • Bugatti
      • Lamborghini
      • Porsche
    • Volvo
    • Toronto Auto Show
  • Opinion
    • Blogs
    • BrightDrop.jpg
      Big questions remain when it comes to GM's $1-billion CAMI plant
      Bosch_information_domain_computer web.jpg
      Bosch, Continental battle to supply the brain of the connected car
      Unifor exceeded its goals during Detroit 3 talks
      How and why GM brought truck assembly back to Oshawa
  • Canada Conversations
  • EVENTS & AWARDS
    • 2019 Canadians To Watch
    • 2019 Auto News Canada All Stars
    • Best Dealership To Work For
    • Canada Congress
    • Retail Forum: Dealer Discussions
    • Leading Women Roundtables
    • Dealerships reboot for millennials
      Communication is key to keeping dealership family together
      How giving back to their communities helps dealerships succeed
      Green dealerships good for business and for hiring
    • Embrace millennials and technology or be left behind, dealers warned
      walker.jpg
      Magna CEO says USMCA will mean 'more jobs, more investment' in Canada
      Top auto execs to address industry upheaval at 2020 Canada Congress
      VIDEO: Why Ford's Hinrichs is bullish on USMCA
  • Jobs & Classifieds
  • +MORE
    • NEWSLETTERS
    • SUBSCRIBE
    • CLASSIFIEDS
    • WEBINARS
    • ADVERTISE WITH US
    • CONTACT US
    • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. Retail
September 27, 2019 12:00 AM

Calgary's ultraluxury dealers are weathering Alberta's economic downturn

Harry Pegg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Carlo Galasso of Ferrari of Alberta attributes a sales increase to greater customer confidence in a new $15-million store, which he says has “a sense of elegance and permanency.” 

    CALGARY — Alberta’s economic downturn has not dampened sales of ultraluxury vehicles in Calgary, where garages of the wealthy continue to house brands such as Ferrari, experts say. 

    “Calgary is an important market, and it’s growing faster than the rest of the region in terms of percentage,” said Ferrari North America CEO Matteo Torre. He was in Calgary for the recent official grand opening of Ferrari of Alberta, a $15-million structure that shares space with Roll-Royce, Maserati and Alfa Romeo. 

    The dealership is “an important milestone in the long history of success Ferrari has had in this part of the world,” Torre said.   

    It’s so important that Ferrari chose the Calgary as the first to showcase the new midengine F8 Tributo sports car, featuring a 3.9-litre V-8 touted as the most powerful V-8 the company has ever made. 

    UPBEAT IN DOWN TIME 

    Alberta’s economy is stuck in low gear, according to the latest quarterly Alberta Economic Outlook quarterly report, issued by ATB Financial on Sept. 10. The report said “job creation has been tepid in 2019.”

    The collapse in oil prices has left Calgary with a downtown office vacancy rate of 24.4 per cent and an unemployment rate of 6.6 per cent, according to Calgary Economic Development.  A report by Avison Young indicates the vacancy rate is trending downward.

    In 2014, while the economy was booming, the city enjoyed a 4.5-per-cent jobless rate and a 9.8-per-cent vacancy rate. 

    But Torre said he thought a return to prosperity was near for Calgary and the rest of the province.

    Dealer Principal Carlo Galasso said he has seen business increase “about 30 per cent” since the dealership quietly opened about year ago, before the official grand opening this summer.

    He attributed most of the increase to greater customer confidence in the new store, which has “a sense of elegance and permanency.” 

    Since then, he said, “We’ve had weeks where we’ve sold five cars.” 

    Maserati sales are flat, Galasso said. The grand total is down 28.7 per cent nationally for the first eight months of 2019.

    As for Rolls-Royce, he said the Cullinan SUV has made a positive difference for the brand and, without disclosing numbers, said sales are up year over year. Nationally, Rolls-Royce had sold 80 vehicles at the end of August this year compared with 72 in 2018.

    Alfa Romeo sales are down in Calgary and off a whopping 57.6-per-cent year to date nationally. 

    Meanwhile, Lamborghini Calgary General Manager Christopher Sage said the downturn has “done some damage” to volume. “We’ve sold two or three cars so far this year, but overall we’re pleased because we’re growing the service side,” said Sage, adding that business is stable.

    “We should have done more, but we’re not seeing as many oil and gas people.”  

    Canada is the fifth-largest market in the world for Lamborghini — which has seen an increase for the first eight months of 2019, selling 152 vehicles compared with 144 last year. 

    ‘FAIRLY STRONG YEAR’ 

    Tony Dilawri of Calgary’s Distinctive Collection, which handles Bentley and Aston Martin, said sales year over year are up, but he declined to give a percentage. 

    “The trouble with percentages,” he said, “is that if you sold 20 cars last year and sold 22 this year, you’re up 10 per cent. 

    “We’re having a fairly strong year. Bentayga is doing very well.” 

    Sales of used vehicles, meanwhile, have increased 89 per cent over last year, Dilawri said. 

    NO DOWNTURN FOR FERRARI  

    While some analysts are predicting that sales of premium cars have peaked globally, Torre said the Ferrari brand is exempt because its business model “protects us in a downturn.” 

    At Ferrari, production is driven by demand, Torre said. He also indicated that four more new vehicles will be unveiled this year in addition to the F8. 

    “We generate the demand first and then follow with production,” Torre said. “That’s why our residual value stays strong and our waiting list very long. We work to generate the demand and satisfy that demand partially. 

    “That’s our philosophy. The rest of the industry is playing a different game.” 

    As manufacturers embrace greater electrification, Ferrari has begun moving to hybrid power with the just-unveiled SF90 plug-in, which uses three electric motors linked to a V-8 turbo. A turbo V-6 plug-in hybrid has also been confirmed. 

    Beyond that, Torre declined to elaborate on new products other than to say no plan exists for a hydrogen fuel-cell vehicle and certainly not for an autonomous-driving Ferrari. 

    “The joy and pleasure of driving our car is a big selling point,” he said. “You get emotion out of it. You feel the performance. It is not just point A to point B.” 

    Though the automaker pays attention to “every technology, … we are not followers, we want to be leaders,” Torre said. “Whatever we do, the car is built around performance. 

    “We make the driving easier, but we want a driver behind a steering wheel.” 

    RECOMMENDED FOR YOU
    Alfa Romeo starts life in Stellantis with a promise of growth
    Recommended for You
    Alfa Romeo starts life in Stellantis with a promise of growth
    Alfa Romeo starts life in Stellantis with a promise of growth
    Average transaction price spiked to record $40,000 in December 2020
    Average transaction price spiked to record $40,000 in December 2020
    Ford brings FordPass Rewards loyalty program to Canada
    Ford brings FordPass Rewards loyalty program to Canada
    Digital Edition
    View latest issue
    See our archive
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up today for our Weekly Newsletter, Daily Newsletter and Breaking News Alerts. We'll deliver the news you need to know straight to your inbox.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Subscribe Now

    An Automotive News Canada subscription includes 12 monthly issues – delivered in print to your doorstep, and digitally to your inbox – plus unlimited, 24/7 access to our website.

    Subscribe Now
    Connect With Us
    • Facebook
    • Twitter
    • Instagram

    Our Mission

    The Automotive News Canada mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in Canada.

    Contact Us

    PO Box 243
    Station A
    Windsor, ON
    N9A 6K7

    1-877-812-1257

    Email Us

    ISSN 2475-5001 (print)
    ISSN 2475-501X (online)

    Resources
    • About us
    • Contact Us
    • Digital Edition Archive
    • Advertise with Us
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Canada
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • News
      • News by Brand
        • Aston Martin
        • BMW
          • Mini
          • Rolls Royce
        • Daimler
          • Mercedes Benz
          • Smart
        • Fiat Chrysler
          • Alfa Romeo
          • Chrysler
          • Dodge
          • Ferrari
          • Fiat
          • Jeep
          • Lancia
          • Maserati
          • Ram
        • Ford
          • Lincoln
        • General Motors
          • Buick
          • Cadillac
          • Chevrolet
          • GMC
        • Honda
          • Acura
        • Hyundai
          • Kia
        • Mazda
        • Mitsubishi
        • Nissan
          • Infiniti
        • Subaru
        • Tata
          • Jaguar
          • Land Rover
        • Tesla
        • Toyota
          • Lexus
        • Volkswagen
          • Audi
          • Bentley
          • Bugatti
          • Lamborghini
          • Porsche
        • Volvo
      • Auto Shows
        • Toronto Auto Show
      • Photo Galleries
      • Automakers
      • Suppliers
      • Retail
      • Government Relations
      • Trade and Tariffs
      • Technology
      • Labour
    • Opinion
      • Blogs
    • Canada Conversations
    • EVENTS & AWARDS
      • 2019 Canadians To Watch
      • 2019 Auto News Canada All Stars
      • Best Dealership To Work For
      • Canada Congress
      • Retail Forum: Dealer Discussions
      • Leading Women Roundtables
    • Jobs & Classifieds
    • +MORE
      • NEWSLETTERS
      • SUBSCRIBE
      • CLASSIFIEDS
      • WEBINARS
      • ADVERTISE WITH US
      • CONTACT US
      • DIGITAL EDITION