Ontario New Car Dealers Drive 10 Percent Job Growth; GDP Contribution Up Over $1 Billion

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TORONTO, Feb. 26, 2020 /CNW/ – A study commissioned by the Trillium Automobile Dealers Association (TADA) finds new car dealers are creating jobs and increasing tax revenue for governments – showcasing that auto dealers continue to be a significant driver of Ontario’s economy.

TADA members – nearly 1,000 franchised, new car dealers across Ontario – generated and supported 85,300 jobs in 2018. This marks a 10 percent increase from 2016 according to the study by PwC Canada.

Direct employment by TADA members has increased to 44,500 in 2018, representing a 6.2 percent increase compared to 2016.

Cliff Lafreniere, TADA President and Dealer Principal of Pinewood Park Ford in Kirkland Lake said, “When most people think of the auto sector, the retail side is too often an after thought. This study suggests what auto dealers like me have known our entire lives – when new car dealers are able to succeed, the communities they operate in and the entire province succeeds.”

“Even with this remarkable job growth, we’re still not firing on all cylinders. We are suffering a shortage of skilled trades workers. Every dealer I talk to across Ontario has difficulty in finding the next generation of auto technicians. Our message to everyone is: consider looking for a career at a new car dealership because we’re hiring.”

This large increase in job creation provides much needed tax revenue for governments to deliver the services Ontario families depend on like health care and education.

For example, the $3.2 billion generated by corporate and personal income tax and taxes on production could pay for building a brand new, fully digital state-of-the-art hospital every year – such as the Humber River Hospital in Toronto which the province allocated up to $2.13 billion to build.

Other highlights of the study:

  • 1 in 20 of all retail jobs in Ontario are directly sustained by TADA members.
  • Average weekly earnings at auto dealerships were $1,088 per week or $438 (80 percent higher) than the average weekly earning in the retail trade overall.
  • Between 2010 and 2018, employment in motor vehicle and parts dealerships increased by more than 26 percent, compared to a 22 percent increase in jobs at in vehicle and parts manufacturing.
  • TADA members contributed and facilitated a total of $13.9 billion in GDP in 2018, an increase from $12.15 billion in 2016 – a 14 percent increase.
  • TADA members increased labour income to $4.94 billion in 2018, an increase from 4.33 billion in 2016 – a 14 percent increase.

The full report can be found here.