When James Charles-Roberts booked a vehicle back in May, he and his family were looking forward to a two-week holiday in Southern California.
After several attempts to visit Disneyland were thwarted by the COVID-19 pandemic, the November vacation would be a chance for the Victoria, B.C., family to use their theme park tickets before they expire.
However, when Charles-Roberts called in June to move his reservation for a seven-passenger Ford Explorer by a day, the cost of the car rental nearly tripled.
“I booked the vehicle for $480 and when I called to make a change the price was $1,286,” he said in an interview. “It was just a minor change so we decided to keep our first reservation.”
The car rental shortage — or “carpocalypse” as it’s been dubbed in the U.S. — highlights what is expected to be a bumpy economic recovery as supply chain issues throw car rental supply and demand out of whack.
The problem started when nearly all travel was halted at the outset of COVID-19 lockdowns and travel restrictions.
Car rental reservations plummeted, prompting companies to drastically downsize fleets and lay off workers.
“Most if not all car rental operators across the world had to reduce their fleets significantly during the pandemic due to extreme reductions in consumer demand,” said Craig Hirota, vice-president of government relations and member services with the Associated Canadian Car Rental Operators.
“Nobody was travelling for vacation and corporate travel was basically non-existent. It left a lot of unused vehicles sitting on lots.”
Lots of demand
Now, the situation has reversed. As the economy reopens and demand returns, a global shortage of semiconductors has crippled vehicle production and caused lengthy delays for new cars and trucks.
“The car rental industry has not been able to resupply their fleets,” Hirota said. “They just can’t get vehicles.”
Enterprise Holdings, the U.S. parent company of Enterprise Rent-A-Car, National Car Rental and Alamo Rent A Car, said the chip shortage “has impacted new vehicle availability and deliveries across the industry at a time when demand is already high.”
The company added in an emailed statement that it’s “working hard to secure additional vehicles to meet the increasing travel demand and support customers’ broader transportation needs.”
Prices skyrocketing for what’s left
In the meantime, car rental operators are jacking up rates amid the tight supply and increasing demand.
“I think there’s some price-gouging going on for sure,” Charles-Roberts said of his experience trying to change his Los Angeles airport vehicle reservation.
The industry-wide car rental crunch is already in full force in the United States, where stories are emerging of tourists renting U-Haul moving vans or private vehicles from locals to get around.
Car rental companies slashed their fleets when demand plummeted in 2020, and now they can’t ramp up fast enough to keep up with demand. (Charles Platiau/Reuters)
The problem is expected to worsen in Canada this summer, especially in regions that rely heavily on tourism.
Many airport locations in East Coast cities like Halifax, Charlottetown and St. John’s are nearly sold out on weekends this summer.
“The impact is being felt everywhere — at least in hot tourism spots across Canada and the U.S.,” Gary Howard, senior vice-president of marketing and communications with CAA Atlantic, said in an email.
“Most of the fleets are leased so during the high point of COVID, fleets were shrinking,” he said. “Now it is coming back but the car rental companies cannot get enough vehicles back in the fleets.”
While the car rental shortage is expected to be felt more acutely in tourism destinations, prices are up across the country.
Hamilton resident Allyson Rowley said she often rents cars for long-distance travel and to visit family.
In 2019, she said she usually paid about $30 a day, an amount that climbed to about $40 in 2020. But Rowley said she just booked a car for two weeks in August, and the price was $61.52 a day.
“The cost has doubled since before the pandemic,” she said. “I’ve made an ethical and financial choice to not own a car as I mostly walk and bike and only rent a car when I need one, but it’s becoming unaffordable.”
For travellers hoping to rent a car this summer, experts say it’s critical to book early, search beyond airport locations and be prepared to pay more than usual.
It may also require alternatives to car rentals such as car sharing or public transportation as they say the shortage isn’t expected to ease up any time soon.
“If you’re planning travel, we encourage you to reserve a vehicle as early as possible,” Enterprise Holdings said. “Providing flexible travel dates and branch pickup locations in your search may help increase your options.”
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
