Decreasing participation in training courses and losses in 2007 have prompted I-CAR to consider changing the way I-CAR Canada is operated or pulling out of the country altogether. I-CAR President and CEO John Edelen told a group of repairers at its annual meeting in Canada that it’s “not realistic” to continue operating I-CAR Canada the same as in the past.
At a “town hall” meeting held during its annual conference in Canada, the results of a market study were discussed by I-CAR board members, including Edelen, and around 100 collision repairers. Shirley Stobnicky, president of Creative Partners in Performance Inc., presented the research findings and four alternatives for I-CAR’s future in Canada:
• I-CAR should remain in Canada as it is currently structured – as a “region” of I-CAR International’s U.S.-based operation, but with an improved infrastructure;
• A Canadian I-CAR entity should be established for the exclusive purpose of licensing I-CAR’s products and providing I-CAR training and related services to address the Canadian market;
• A Canadian entity should be established to address the broader training needs of the Canadian auto collision repair inter-industry and pursue the licensing of I-CAR curriculum as one of a broader portfolio of multiple training offerings;
• I-CAR should withdraw completely from the Canadian marketplace.
“When you consider an appropriate allocation of corporate, general and administrative expense, the Canadian operation has been significantly subsidized by U.S. operations over the past number of years,” Edelen said. “Given our losses in [the 2007 fiscal year] and our efforts to regain profitability in a ‘down market,’ it isn’t realistic to expect the current level of subsidy to be sustained, let alone investing further in a model which is declining.”
I-CAR International Board of Directors Chairman Robby Robbs, who moderated the discussions, said decreasing participation in Canada has hurt I-CAR operations in the country.
“The core issue at hand is that based on the trend of declining participation in I-CAR training, the Board has questioned the wisdom of continuing down this path,” Robbs said. “The success of this structure in any market is determined by the level of engagement by industry leaders at a national, regional and local level and across industry segments. Unfortunately, this is something which has been sadly lacking in Canada for some time and clearly represents a need for change.”
The following day, Edelen addressed the Canadian Collision Industry Forum and said the task force reviewing its market study results will present recommendations for adjusting I-CAR Canada’s operations in February 2009 and will consider industry feedback. Until then, training will be offered as usual.
“The question of what changes need to be made in order for I-CAR to be successful in Canada isn’t a question that I-CAR can answer for itself or on its own,” Edelen said. “It’s a question that must be answered by the inter-industry.”
“Over the course of the discussion yesterday, the level of engagement of the participants and of industry thought-leaders from across the industry segments suggests that there is still great support for I-CAR in Canada in the future,” Edelen concluded.
