TORONTO -

With Honda Canada Finance vice president David Sudbury set to retire in less than a month, the longtime Honda executive talked with Auto Remarketing Canada this week to share some of the highlights of his career and how the Canadian remarketing and auto finance fields have evolved during his 29-year Honda tenure, which ends March 1.

Among other topics, Sudbury also delved into where he thinks the Canadian auto finance industry is going in the next few years.

“I think we’re heading into a period of very challenging times. The competition with banks is going to be real challenge for captive finance companies,” Sudbury noted.

The Canada Bank Act is up for renewal next year, and banks could find their way into the leasing segment, he pointed out. Currently, they are prohibited from leasing in Canada, Sudbury explained.

As such, Sudbury stressed that captives will have to emphasize customer service and remarketing to stay competitive.

“On the remarketing side, that is one of the advantages a captive has where the bank doesn’t have experience,” he shared. “The ability to remarket to customer at the end of term will be critical. … That’s an area captives will have to strengthen and improve to maintain a high degree of competition and retain customers.”

If such legislation were approved, it would bring significant change to the industry. However, the remarketing and finance fields in Canada certainly have already witnessed much change during Sudbury’s career.

When asked how these sectors have evolved, Sudbury specifically pointed to the growing prevalence of leasing. When he started out, lease penetration in Canada was somewhere between 10 percent and 15 percent. Now, Sudbury said, it is about 30 percent.

“Leasing has had a tremendous impact on financial services in Canada,” he shared.

Furthermore, the Internet has also been a major evolution within the industry. Consumers are more educated now, as the Web provides a comprehensive resource for research. Shoppers are more willing to look around and explore all their options, he stated.

On the remarketing front, the Web is extremely pivotal. In fact, Sudbury said 70 percent of Honda Financial Canada’s end-of-term units are remarketed through online auctions.

“The importance of remarketing your end-of-term vehicles and the power of the Internet has really been transformational,” he revealed.

Three Decades with Honda

Moving along, Sudbury — whose background is in human resources — talked about his career in more detail, including how he got into the auto business in the first place.

Before coming aboard at Honda, he worked with the Royal Doulton fine China company. That was preceded by some time with Canadian Motorola and before that, he worked at the University of Toronto. Obviously, these companies are not exactly cousins to the auto industry.

But somehow, he found his way into the car business.

“I got head-hunted. I really had no inclination about being in the car business,” Sudbury said, noting that Honda actually came to him and asked to talk.

“Just on a whim, I went over for an interview and before I knew it, I was working for Honda,” he shared.

And 29 years later, he said it has been quite a ride. He has served in a slew of different positions for Honda, including human resources, finance and sales. And Sudbury has high regard for the auto industry.

“It’s a tremendous industry. It’s so fast-paced,” Sudbury stated. 

In fact he enjoys experiencing the "innovation and technology and the full gamut" of what goes into a vehicle’s birth in the market.  And, of course, he has enjoyed the people he worked with along the way.

“I’ve never had one day the same. There are always challenges, always opportunities,” Sudbury noted.

And with Honda, he noted, it doesn’t matter whether one is an executive or associate. All are encouraged to bring innovation and ideas to the table.

“Honda is an organization where we’re very egalitarian,” Sudbury commented, stressing the company’s focus on innovation, trust and equality. “Around that, people are encouraged to bring fresh ideas. There’s a lot of encouragement for people to express themselves.”

Moving along, he also shared what has stuck out the most from his 29 years with the company.

“The most important part is how Honda’s philosophy has shaped the company over the last couple of decades,” he noted.

Sudbury explained that it centers on the customer and he believes that “in some small way,” he has helped the company center on that core belief.

Comprising the core philosophy of Honda is what Sudbury referred to as the “three joys”: the joy of buying, the joy of making and the joy of selling. That centers on providing customers with high-quality products at reasonable prices.

Sudbury noted that what gives him the most pride from his time with Honda is that he has been “a change agent.” He said he has helped foster a culture of customer service at Honda and his involvement with Honda’s dealers.

He also has seen Honda grown from mainly being centered on the motorcycle segment in Canada to spreading its wings throughout the car side.

“Now it’s a very significant force in Canada, not only as a sales distributor, but as a manufacturer,” he noted.

Stepping Down

When asked why he decided to retire, Sudbury said “it’s the right time.” He feels that now is the best time for the next generation to take leadership at his company, and he also has some personal opportunities to explore, as well.

Sudbury has been very involved with health care in Canada and plans serve in a board of directors capacity in the this field. He also plans to play some golf, travel and “just see what else is out there in terms of fresh opportunities.”

He and his wife plan on taking their children on an Alaskan boat cruise this year, and the Honda executive is also planning a visit with his brother in Bermuda.

A riverboat cruise in Europe is also in the works, as well.

“So we’ll be busy,” Sudbury noted.

And after a three-decade career with Honda where he wore many hats, that comes as no surprise.