BC New Car Dealers Worth Close To $10-Billion To Economy
VANCOUVER – A study of the social and economic impacts of New Car Dealers’ in BC shows the industry to be crucial to the economic fabric of the province generating a total of $9.4 billion in retail sales in 2010 and supporting 33,755 full time equivalent jobs throughout the province.
Annually, New Car Dealers in BC account for close to $2 Billion ($1.8 billion in 2010) towards the total provincial gross domestic product (GDP) which is more than the BC film and television industry ($1.7 billion in 2010) and comparable to the 2010 Winter Olympic Games ($2.3 billion in 2010).
Throughout BC, New Car Dealers are directly employing close to 15,000 people, an average of 40 full-time and 7 part-time individuals at each store. These jobs pay substantially more than typical retail sector positions, averaging $488 per week more than the provincial average, and are almost $100 per week higher than the average wages at automobile dealerships in Canada. In total, almost half a billion dollars of tax revenue was generated for government ($443.4 million), far surpassing the tax generated by the BC film and television ($124 million) and the Winter Olympic Games ($398 million). It is important to note that this amount does not include any sales tax generated for the provincial or federal government, which is estimated to be in the hundreds of millions of dollars.
“BC’s auto dealers are the engine of the local economy throughout the province,” says Blair Qualey, President and CEO of the New Car Dealers Association of BC (NCDA). “We are proud to have members in every corner of the province providing jobs and helping to shape communities. Over 70% of all new car dealers being deeply involved in local associations and sports teams and as a group donating more than $13 million to BC charities”.
“The study results illustrate that the new car dealer industry is an important component of BC’s economy,” says Ed Mansfield, Economics Practice Leader, MNP.“The economic impacts created across the province by members of the NCDA of BC are of a similar magnitude to many of BC’s major industries, including ones based on agriculture, natural resources and the creative sector.”
The study entitled “Social and Economic Impacts of the Members of the New Car Dealers Association of British Columbia” was conducted by accounting firm MNP who set out to analyze the economic impacts and benefits produced by NCDA members in British Columbia. The analysis quantifies output, GDP, government tax revenues and employment as well as the New Car Dealers’ contribution to the social development of the province through charitable giving, community involvement and commitment to the environment.
A total of 156,656 vehicles were sold in BC in 2010 a 10.8% increase over 2009, which had lost more than $1 billion in revenue from sales in 2008, and over $2 billion from 2007
About New Car Dealers Association of BC
The New Car Dealers Association of BC is the provincial industry association that represents more than 350 new car and truck dealers throughout British Columbia. Members of the Association directly employ 15,000 British Columbians in 53 communities and are responsible for more than $9 billion of economic activity in the province. The association speaks on behalf of the retail new automotive industry to the public, media, and government, and deals primarily with the legal, environmental, and consumer issues relating to vehicle sales in British Columbia. For more information visit www.newcardealers.ca.