Legal news and trends for Canadian in-house counsel and c-suite executives
Issue link: https://digital.canadianlawyermag.com/i/50890
INDUSTRYSPOTLIGHT posted across the country, and analysts predict they will surpass $1.50 per litre by the end of the summer. And, as if that wasn't bad enough, with a housing crisis and a collapsing credit market south of the border, consumers in the United States have apparently decided they no longer want pickup trucks and SUVs, result- ing in a forced restructuring of the industry. In Canada, production on these vehicles has been slashed, with assembly lines and manu- facturing plants closing in Wind- sor and Oshawa, Ont. Thousands of jobs in the automotive sec- tor are disappearing from Canada — perhaps for good — along with countless more "spin-off" jobs. "There are some challenges that we face on an economic ba- As gas prices soar, consumers are more interested in fuel-efficient cars like this 2009 Saturn Astra XR 5-door. of the lawyers will have specialty areas . . . but they're also gener- alists in many ways as well. There's no absence of neat things to work on. It makes the job ever-changing, really." "You never know what you're going to do," says Macdonald. sis," says Macdonald. "When you have to deal with a plant clos- ing, you recognize that it has to be done — but it's a signifi cant event that impacts people's lives. . . . On the other hand, I've always been impressed with the responsibility that this compa- ny has taken in terms of having people have a soft landing and providing for them when changes have to be made. . . . It's never easy. These are real people and real families." "The market is a very challenging market because consumer tastes are changing," says Anthony Cornacchia, general counsel and senior manager for Honda Canada Inc. "It's an exciting place, it's a challenging place, and it's a chal- lenging time for the industry, so it makes the work that much more stimulating," agrees Lorraine Shalhoub, vice president - general counsel/external affairs and public policy for Chrysler Canada Inc. Even on a good day it's not for the faint of heart. "You come into General Motors and one of the things that strikes you is, if you lost sleep over deals in private practice, you would never sleep if you thought about some of the deals and the dollar fi gures that you work with on deals with General Motors," says Macdonald. What work does legal counsel typically perform in the auto industry? "It's like a little law fi rm dropped in the mid- dle of a big company," providing a range of legal services, says Norman Stewart, of Ford Motor Company of Canada Ltd. "Each one "You come in in the morning and you think you have a plan, but there's always something that comes up. . . . I was absolutely amazed, when I came to GM, by the breadth and depth of the legal matters that you work on." For illustrative purposes, consider that one of the primary more stimulating." — LORRAINE SHALHOUB, CHRYSLER CANADA place, and it's a challenging time for the industry, so it makes the work that much "It's an exciting place, it's a challenging functions of a company in the auto sector is to operate as a sales and marketing organization. Thus, legal counsel work on devel- oping, structuring, and implementing sales programs, includ- ing advertising approvals and incentive programs. They prepare dealership agreements (Ford, for example, has 425 dealerships across the country), distribution agreements, and deal with the inevitable subsequent disputes. Then throw in the fact that some companies in the sector, such as GM, Ford, and Honda, are also major manufacturers. Lawyers for these companies also have to deal with prod- uct liability, warranty issues, labour relations, health and safety and environmental issues, workers' compensation issues, and human rights issues. Finally, like almost any large organization, there are real estate transactions and a lot of broad corporate-commercial work — for ex- ample, Stewart is presently involved in Ford's sale of its Jaguar/Land Rover division. Miscel- laneous issues include tax work, competition law, intellectual property, etc. It can be a little overwhelming. "Potential topics include anything from a pension matter to negotiating a third-party contract or a litigation matter," says Jeff Van Damme, counsel for Nissan Canada Inc. "To have somebody come in and throw out C ANADIAN Lawyer INHOUSE A UGUST 2008 39