Ontario Toyota Dealerships

Ontario Toyota Dealerships

Embracing LEED® _{Concepts and Values}

Introduction

• Senior Project Manager for Fluent Group

Consulting Engineers Inc.

• Working exclusively in the green building

field for over 7 years

• Currently managing over 20 LEED® projects • Vice-Chair of the CaGBC Sites-Water TAG

Why Are You Here?

• Learn about Toyota’s dealership initiatives and

how they came to be

• Become familiar with the dealership green

building practices and view the results

• Discuss what it takes to implement a large

scale environmental movement in your business

Agenda

The Sales Pitch (no undercoating) Oldsmobiles, Plymouths & Pontiacs

A brief and recent automotive history

Kaizen, Muda, and Yokoten

Toyota in the green building industry

The Racetrack

Toyota’s 4 LEED Gold dealerships

Fuel Efficiency

Real life savings and benefits

Continuous Improvement

Automotive Industry Recap

• Energy crisis (oil prices) of mid 2000’s • Great Recession of 2008-2010

Automotive Industry Recap

• Gas prices continue to rise, yet fuel efficiency

had not been a priority (particularly for the big 3)

• Reduced market

share – more players

Toyota in 2008-2011

Market share was down 34% in 2008 Recalls on flagship models (Corolla, Camry, Prius)

Toyota in 2008-2011

Meanwhile, in LEED

• Tremendous market growth

• Introduction of new rating systems (2009)

– specific to building type, including retail

Meanwhile, in LEED

• Very little competition from other standards • Far ahead of most code requirements

LEED + Retail

Slow uptake – why?

Quick, inexpensive construction Fit-out is done by the tenant

Landlord/developer does not pay the energy bills Early on, there was no LEED Volume Program

LEED + Retail in Canada

• Early Canadian retail (2008 certifications)

– Teknion showroom

– 1st Choice Credit Union – Big box store

• Many have come since, including strip malls,

supermarkets, restaurants, etc.

• No car dealerships as of April 2010 (over 250

Toyota Motor Corporation

• Have always had a strong product history

– Fuel efficiency + environmental efforts – Durability and maintenance

• Recently produced an environmental report

(2013) for corporate and plant operations

• Eliminate “Muda” = waste

• Implement “Kaizen” = improvement(s)

• Practice “Yokoten” = sharing lessons learned

http://www.toyota.com/about/environmentreport2013/index.html

Toyota Motor Corporation

• View dealerships as an extension of their

corporate image and goals

Toyota Green Building Timeline (Canada)

• Mar. 2009 – Toyota hosts LEED course for

dealers

• Apr. 2009 – Toyota reworks dealer standards • Dec. 2009 – Welland registers

• June 2010 – Stratford Toyota achieves Gold • June 2011 – Stouffville Toyota achieves Gold • Fast forward > > >

– there are now 4 Gold dealerships, +1 recently

Toyota Dealer Standards

• Lighting is one of the most critical energy

considerations in retail – tough nut to crack

• In dealerships, lighting is 25-40% (cost)

– Dealership X (built 2008)

• 24 hr fluorescent lighting (no controls) • replaced throughout with LED

• < 10 W/m2 building wide

• est. $2,000 per month in elec. savings

– LEED Dealerships are achieving 30%+

Toyota Dealer Standards

• Certain materials are either short-listed or

have specific requirements in order to contribute to the “scheme” and brand

– Ceramic tile (colour, size, material) – Aluminum panels (colour)

– Glazing (tints/colouring, location)

• Conscious decision to move to higher recycled

Convincing Dealerships

• Dealership background – private owners • Little to no previous building experience • Know what they want (or think so)

• Toyota recognized this and held a training

session dedicated to green buildings,

specifically targeting current and potential dealers

Competition Between Toyota Dealers

• Stratford and Stouffville were early adopters

within the dealership community

• Knowing both were pursuing Gold, Welland

Competition in the Canadian Marketplace

dealership in Canada – by less than 3 weeks – despite completing construction 1 year later

• Stouffville and Welland were #3 and #4

• 4/7 LEED certified dealerships in Canada are

Competition in the Global Marketplace

– over 35 buildings, 2.1M sq.ft. of certified space

– 2003 LEED Gold Corporate Campus in Torrence, CA – 2006 LEED Silver dealership in Texas (1st in N.A.)

• Honda and others have joined in

– Honda HQ in Markham

– GM plants in MI and Brazil

– Volkswagon, BMW, Jaguar…

A Different Beast

• Dealerships are not your typical retail • Quite a mix of spaces and occupants

New Approaches

• Utilizing LEED in a dealership setting

required a fresh perspective on green buildings

• Teams took a “first principles” approach to

how business is conducted and what their employees and customers want

• Many “old school” concepts were revisited • The dealership is more than just a building

Replicable

• Dealerships work off a shell of

pre-determined design attributes

• All buildings share a similar flow, function

and distribution of spaces

• Dealers have the same goals

– Sell cars, lower operating costs, keep employees

Success Stories

Success Stories

• Reasonable incremental costs • Utility savings ($)

• Intangibles

• Dealer satisfaction

• Education and outreach

Success Stories – Incremental Cost

• Reasonable incremental costs

Stratford ~ 6.3% incremental cost

Stouffville ~ 7.6% incremental cost (includes PV)

• With ever-increasing technology and Code

requirements, even retail can be built for a reasonable upcharge

Success Stories – Utility Savings

• Energy conservation measures

- radiant heating - VRF cooling - efficient lighting

• Rainwater catchment systems

- indoor plumbing - landscape irrigation - car washing

Success Stories – Utility Savings

• Solar PV installations at 2 of the dealerships

– 7 kW ground mounted tracking array at Stouffville – 12.5 kW roof mounted array at Vandermeer

Success Stories – Utility Incentives

• All of the dealerships qualified for energy

incentives

– Offset the cost of implementing efficiency

measures

– Some were offered a case study – free publicity

• The projects that installed PV qualified for

Success Stories – Utility Study

• A wealth of information available for

comparison

• Water, gas, and electricity over 10 months

for 5 dealerships (2 LEED certified)

• Similar use and function, of a similar era • Slight variations in space ratios, operating

Success Stories – Energy Savings

Non-LEED Stratford Stouffville

ekW h/ m 2/ ye ar Electricity Gas Total

Success Stories – Energy Savings

Non-LEED Stratford Stouffville

$/ m 2/ ye ar Water Gas Electricity Total $30,000/year savings!

Success Stories – Water Savings

Non-LEED Stratford Stouffville

Li tre s/ m 2/ ye ar @ $3/m3, savings of $7,000!

Success Stories – Intangibles

Success Stories – Intangibles

+ =

• Happiness + Comfort = Worker Satisfaction

- Increased productivity (up to 10%*)

- Decreased absenteeism (40% in Seattle*)

- Employee retention (especially in the shop)

Success Stories – Intangibles

• Pride in ownership and the brand

– Employees need to understand the goals of the

corporation

– Taking ownership of the environmental goals

breeds enthusiasm and healthy competition

Success Stories – Dealer Satisfaction

• Dealers are proud of their LEED buildings

– Market edge in their locale

– Third party verification means no greenwashing – Alignment with the brand

Success Stories – Dealer Satisfaction

believer in the initiative. A lot of times people are trying to sell an idea telling you, ‘If you do X you will save Y’. Seldom to you actually realize Y.” - John Strickland, Stratford Toyota

• “How do you put a number on feeling? Pursuing LEED made sense.

Our facility is extremely comfortable, everyone is generally happier, and it has provided a sense of future-proofing our building.”

- Kevin Baxter, Stouffville Toyota

• “From the moment we decided to move to a new and larger site, we

were committed to making green innovation the essence of the facility…We are ecstatic to be giving the people of Cobourg a building that puts our community at the leading edge of

Success Stories – Education

• Toyota promotes each of their successful

dealers through intra-company bulletins and media

• Dealers promote their buildings and

Success Stories – Education

• 3/6 dealerships have implemented green

building education strategies

• 2 of those 3 have implemented interactive,

hosted tours

• Car sales are all about

interaction with the customer base

Lessons Learned

• Service bays and drive through areas pose

unique challenges and opportunities

• While dealerships all look similar, each needs

to be addressed independently

• It’s hard to get started without a champion • Corporate initiatives do not always translate

into company-wide uptake

Next Steps for Toyota

• New builds – Toyota design standards or LEED • Existing dealership stock – Level I or II energy

audits (water too!)

• Milton Toyota just approved a full lighting

change to LED – expected savings of $24,000/yr.

How This Applies to You

• These principles apply beyond dealerships • Success in corporate initiatives requires:

– Engaging the audience

– Having a champion for the cause – Believing in the initiative

– Healthy competition and goal setting

LEED v4 and Beyond

• A whole new set of firsts • Pushing the industry

• A chance to reinvigorate the

industry and engage a brand new set of users

Grant W. Peters, P.Eng.

Senior Project Manager, Sustainability Services Fluent Group Consulting Engineers Inc.

t 888.358.3683 x703 f 866.620.7502

c 519.938.0563