Less than half of all auto brands — 16 out of more than 30 — have committed to CIAS in Toronto. Ford Canada announced in late November it will not participate in any auto shows in 2023.
There are more brands sitting out the 2023 Canadian International AutoShow than those attending, with the biggest no-show in Toronto and other events around the country being Ford Motor Co.
Whether this is a post-pandemic blip or part of a larger trend remains to be seen, experts say, as carmakers look for more efficient forms of marketing, including direct and often solo engagement with consumers.
Of the 30-plus brands for sale in Canada, 16 will exhibit at CIAS in Toronto, Feb. 17-26:
*As of Friday, Dec. 16
The same experts, however, aren’t ready to say the end is imminent for auto shows, as inventory shortages are driving some of the decisions to sit on the sidelines.
The COVID-19-related shutdowns of all auto shows forced automakers to reexamine their use of marketing dollars, said Shane Bennett, managing director of Integrated Automotive Experience, which organizes marketing events — including media launches and direct consumer events — for carmakers.
“It opened up everyone to thinking about other things,” he said. “Everyone’s open to change now.”
Eight automakers, representing 16 brands have committed to CIAS, Feb. 17-26, while 14 companies, representing 18 brands will not attend. In Calgary, Ottawa and Vancouver, a lack of automaker commitment forced organizers to cancel their events. Shows set to run include those in Montreal, Jan. 20-29, Quebec City, March 7-12, and Edmonton, April 14-16.
Long before COVID-19, luxury car brands began to shift away from auto shows, a path that mainstream brands are beginning to follow, said Bennett.
“Auto shows are a very expensive way of reaching people, so they’re looking for a more targeted way to reach customers, such as [Montreal’s] Jazzfest or some other event,” he said.
‘TOUGH CHOICES’ ON COSTS
Ford told Automotive News Canada in late November that it was suspending its participation in all Canadian auto shows next year, citing the need to “make tough choices” considering its extensive investments in electrification.
“One of those decisions is to discontinue corporate support of auto shows in 2023 for both the Ford and Lincoln brands,” the company said.
Despite fewer brands, CIAS General Manager Jason Campbell said he is excited about the prospects for the 2023 show and expects attendance to return to pre-pandemic averages of 300,000 to 350,000.
All General Motors and Stellantis brands have returned, with Stellantis doubling its space from 2020, he said. Hyundai and Nissan have increased their display space, while Toyota, Lexus, Kia and Subaru have all maintained the size of their displays.
A new entrant, Vietnam-based electric-vehicle maker Vinfast, has booked 9,000 square feet (800 square metres).
“When we heard about Ford’s departure, we created a large, indoor EV test track in the space,” Campbell said. The additional 70,000 square feet (6,500 square metres) will be open to any manufacturer exhibiting EVs.
“I think [Ford’s decision is] a sign that we’ve all gone through some challenges in the auto sector with product shortages and it’s caused some people to reconsider,” Campbell said.
“We’re still very confident there are a lot of consumers and brands that are enthusiastic about sharing their products.”
GM spokesman Philippe-Andre Bisson said Nov. 30 the automaker had committed to the Toronto and Montreal auto shows but was still deciding whether to exhibit at regional shows.
Robert Karwel, senior manager of the Power Information Network, Canada, for J.D. Power, and Bennett think auto shows still have a future, but in different forms going forward.
“There are still too many of us who enjoy the look and feel of experiencing a large group of vehicles in one venue,” Karwel said. “But spending decisions [by automakers] are jutting up against the reality of EVs: They require tremendous investment, and OEMs need to ensure their costs are in check during the long transition.
“So, they will review any and all costs and determine what might be shed.”
DEALER-DRIVEN SHOWS POSSIBLE?
Bennett expects auto shows will continue but will have to reinvent themselves.
“Will they become more retailer-funded shows? Some of the shows may end up in a different format, perhaps dealer-driven.”
Bennett points to the work done to change the CIAS.
“They have done a really wonderful job of trying to reinvent,” he said. “I just hope they get a chance. There are still a lot of auto enthusiasts out there who want to see products.”
Campbell of CIAS points to one advantage that auto shows have over alternate events.
“At direct events, manufacturers get to talk to their own consumers,” he said. “What the auto show does is give them a chance to talk to their competitors’ consumers.”
