Balancing the legal challenges of managing multiple dealerships in a highly competitive environment like Toronto is a complex task. Ilan Mints, general counsel at Downtown AutoGroup (DAG), says the key lies in supporting the company's customer-centric vision while navigating an increasingly regulated industry.
"Our legal framework is designed to support this expectation by enabling our teams to meet customers wherever and however they prefer to engage with us," Mints explains, pointing out that the legal team's role extends beyond traditional boundaries to facilitate every aspect of the customer journey.
The unique Autoplex model, which consolidates multiple dealerships under one roof, offers a clear strategic advantage, enabling real-time collaboration across departments. This proximity, according to Mints, allows the company to "proactively identify and remove friction points, whether by streamlining the processes or addressing compliance concerns before they impact customer experience." This is particularly crucial as legal teams in the automotive industry must evolve with the shifts towards digitalization and online sales while ensuring that compliance frameworks remain robust.
Despite offering fully online transactions, Mints says that Canadian consumers still prefer human interaction during their car-buying journey.
"Many people get sort of 99 percent of the way there," he says, highlighting that while the tech infrastructure is in place, the human element remains pivotal. The ability to adapt and meet customers where they are – through virtual consultations or remote test drives – demonstrates DAG’s flexible, customer-first approach, which Mints is keen to support with appropriate legal frameworks.
"What I've consistently found most valuable is recognizing that our guests are fundamentally reasonable people seeking reasonable solutions," he explains.
Ensuring that legal frameworks support the customer experience without imposing unnecessary friction is central to the legal team’s role. As Mints points out, the challenge isn't just managing risk but doing so in a way that doesn't detract from the seamlessness DAG aims to offer. "If any given solution adds friction to the purchase process, then that's simply not the right solution for us," he emphasizes. DAG’s legal strategies are thus shaped around minimizing this friction while staying ahead of evolving regulatory demands, a task that requires foresight and adaptability.
Mints highlights the significance of simplifying processes in an industry that often overwhelms consumers with too many options, particularly around financing and warranties.
"What we have strived to do is really pare down those options," he says, advocating for a streamlined approach that helps customers make informed decisions without being burdened by an overload of choices. The principle behind this approach is clear: "Don't sell anyone anything you wouldn't recommend your mother buy."
For Mints, this straightforward rule helps maintain transparency and trust, values that are increasingly critical in building long-term customer relationships.
The consolidation of dealerships into the Autoplex posed specific legal challenges, particularly around compliance and community engagement. Mints recalls how the move required a cultural shift within the organization. Each dealership operated independently, and bringing them together necessitated a new level of collaboration.
"The more nuanced challenge was the cultural fit," Mints notes, describing how daily interactions among teams from different brands fostered best-practice sharing, ultimately improving operational excellence.
DAG’s long-standing presence in the Toronto community also meant that maintaining strong ties with residents was a priority during the consolidation. Changes were made to minimize neighbourhood disruption, such as adjusting delivery schedules to avoid late-night noise.
"While these changes presented logistical challenges, our teams embraced them readily, understanding that being a responsible community member is fundamental for our identity," Mints says.
Looking ahead, the shift towards electric vehicles (EVs) and digital sales processes will bring new legal challenges. For Mints, staying ahead of these trends involves what he calls "anticipatory compliance." Regular collaboration with industry associations, manufacturers, and regulators is key to understanding emerging trends.
"I participate in all of our senior leadership budget and strategy meetings," he explains, underscoring the importance of integrating legal considerations into the company's operational strategy from the outset. This foresight has proven valuable, particularly as DAG navigates the complexities of upfront pricing models, where transparency is critical to maintaining customer trust.
The legal challenges associated with DAG's move towards digitalization are equally significant. While the infrastructure for fully online sales is in place, Mints acknowledges that Canadian consumers are not yet ready to fully embrace this model.
"We're just not seeing take up on it," he admits. However, the company remains prepared for a future where digital sales may become more prevalent. The challenge for the legal team will be ensuring that such transactions comply with both manufacturer requirements and broader regulatory standards.
For Mints, the overarching goal is clear: to support a business model that emphasizes trust and long-term customer relationships.
"It’s nearly impossible to repair a broken relationship where trust is broken down.”