The nature and pace of change in the auto industry in the past few years has overshadowed changes that took place in previous decades. Even in a positive economy, there is no longer easy organic growth and the ability to increase volume will come from increasing market share. With the Canadian population projected to increase by little more than 1% per year to 2020 and vehicle penetration closing in on saturation levels, the battle will be fierce.

We are living in a world of convergence within the industry:

• Vehicle quality is still vitally impor- tant, but it is no longer the major differentiator for buyers
• In each segment, design, features and performance are similar (or certainly not different enough to sway deci- sions easily)
• Pricing is confusing to consumers and incentives are so common that they rarely have the same tactical impact that they used to
• There are no longer “Tier 1” or “Tier 2” brands in consumers’ minds – the playing field is level

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