2023 was a year for LGM that gave us pause for reflection of our 25 years in business (watch video) and to finally take some respite from the long effects of Covid-19. We are grateful to our employees and business partners for their ongoing loyalty and support. Together, we have much to be proud of, particularly knowing that our results have been earned with a social purpose mindset. It really becomes that much more satisfying to achieve greatness when you can do so with pride in your approach and enduring impact.
Industry new vehicle sales began its recovery towards pre-pandemic levels in 2023 with approximately 1.7 million light vehicles sold across Canada. There remains continued pent-up demand from consumers given that at least 1 million fewer vehicles were sold between 2020 and 2023. Despite higher interest rates, exciting new models that deliver fuel efficiency, feature-rich technology, improved safety and alternative powertrains became the center of attention for consumers needing an upgraded vehicle. In addition, Canada’s immigration policy invited more than 500,000 new residents in the past year of which many would seek their own transportation hence driving new and pre-owned vehicle demand.
At LGM, we are pleased that we were able to consistently “beat the market” with increased contracts sales that eclipsed the overall industry growth rates for the year. Specifically, we delivered a 35% increase year-over-year compared to an impressive industry growth rate of 12%.
Our OEM partners and their highly engaged dealer networks performed to record levels in 2023 with the highest core product penetrations ever achieved. Our collaborative efforts demonstrate how industry-leading sales results can be accomplished while still ensuring an exceptional consumer experience.
We are proud to work with these ten distinguished automotive brands and the most Original Equipment Manufacturers of any provider in our market.
With thanks to our CX audit partner, JD Power, LGM continues to deliver best-in-class service to dealers and consumers both with our sales and claims management teams. With more than 90% of our dealers saying that we meet or exceed their expectations, it is not easy to find more ways to improve our service, but we will always keep trying!
In 2023, we were thrilled to have renewed agreements and expand our product offerings with BMW, MINI and Motorrad. Today, we take great pride in our partnership with ten renowned automotive brands: Kia, BMW, MINI, Motorrad, Mitsubishi, Jaguar, Land Rover, Volvo, Polestar, and Mazda.
Our commitment extends nationwide as we now provide comprehensive support to over 1,200 franchised dealers throughout Canada, collectively representing more than a third of all dealerships in the country.
Following a successful beta launch, in 2023 LGM officially rolled out our new proprietary and comprehensive FSM Certification Program on a broader scale for their dealer partners.
The FSM Certification consists of a unique three-phase program designed to empower Financial Services Managers with advanced skills, enhancing dealership performance and customer satisfaction.
of participants said they saw the value of going through LGM’s customized learning journey
of our learners said that following the certification in this specific order was beneficial for developing their knowledge, skills and abilities.
Our social purpose philosophy kept us highly engaged in doing what’s right in our local communities and for our planet (view timeline). LGMers continue to give of their time to support local opportunities meaningful to them and as a team of just over 160 we are impressed that over 28,000 hours have been devoted to helping others since 2017. In the past year we also joined the United Nations Global Compact Network which fellow-minded organizations collectively agree to improvements that create a sustainable future for generations to come.
Turning our minds to the year ahead, we look forward to continuing improvements in new vehicle sales for our industry, enhancing our product offerings to really meet the evolving needs of consumers and how vehicles (and ownership) are changing and continuing our relentless pursuit of exceptional service experiences for our partners and their customers.
A heartfelt thanks to all our valued partners, suppliers, and fellow LGMers.
