Over 77,000 Jobs, Billions in Provincial Taxes Resulting from Ontario New Car Dealer Operations

Ontario’s automobile dealer industry generates over 53,000 direct jobs and more than $37-billion in retail sales each year, a study conducted on behalf of the Trillium Automobile Dealers Association (TADA) suggests.

Over 77,000 Jobs, Billions in Provincial Taxes Resulting from Ontario New Car Dealer Operations

Ontario’s automobile dealer industry generates over 53,000 direct jobs and more than $37-billion in retail sales each year, a study conducted on behalf of the Trillium Automobile Dealers Association (TADA) suggests.

TORONTO - Ontario’s automobile dealer industry generates over 53,000 direct jobs and more than $37-billion in retail sales each year, a study conducted on behalf of the Trillium Automobile Dealers Association (TADA) suggests.
 
TADA members – nearly 1,000 franchised, new car dealers across Ontario - directly employ more than 45,000 people and produce $12.15 billion in GDP each year to the province, according to the study by PwC Canada, commissioned by TADA. They also generate and facilitate 77,554 jobs through direct and indirect means – resulting in over $4.3 billion in labour income through the employment chain.
 
“When people think of the auto industry, they mainly think of manufacturing jobs,” said Larry Lantz, President of TADA and a new car dealer. “But the auto retail sector should not be overlooked. We provide well-paying jobs across Ontario in diverse fields such as skilled trades, sales, finance and marketing to name a few.”
 
Lantz continued, “A strong auto retail sector means billions in taxes help support vital public services. For example, the $2.81 billion generated in 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 - like the Humber River Hospital in Toronto which the province allocated up to $2.13 billion to build.
 
Other highlights of the study:
  • Between 2001 and 2016, employment at new car dealerships increased by approximately 30 percent, outpacing the overall increase in Ontario’s retail sector by about 5 percentage points.
  • Employment at new car dealerships  provide an average of $1,012 in weekly earnings – 84% higher compared to earnings in overall retail trade and about 9% higher than in the overall service producing industries 
  • Over 1 in 20 (5.55%) of provincial retail trade jobs are generated by TADA members.
  • TADA members generate $2.81 billion in provincial revenue courtesy of corporate and personal income taxes and taxes on production and imports.
  • Aside from new vehicles, TADA members sold 780,000 pre-owned cars in 2015 (the latest available figure). The study states “the provision of reliable maintenance and repair services using qualified staff, quality parts and systematic maintenance schedule has a positive impact on automobiles’ longevity and ensures vehicles on the road are running at optimal or near optimal performance, which leads to more efficient driving and lessens the impact on the environment.” 
The full PwC Canada report can be found here.