$2B lawsuit accuses carmakers of keeping Canadian prices high [Archive] - Jeep Patriot Forums

: $2B lawsuit accuses carmakers of keeping Canadian prices high


Robot_Boy
09-26-2007, 11:27 PM
http://www.cbc.ca/money/story/2007/09/26/classaction.html

$2B lawsuit accuses carmakers of keeping Canadian prices high
Last Updated: Wednesday, September 26, 2007 | 9:31 PM ET
CBC News

Canadian car buyers have been the victims of an illegal plot by automakers to inflate the prices of cars in Canada and discourage cross-border car buying, according to a $2-billion class-action lawsuit.

The suit, filed by the Toronto law firm of Juroviesky and Ricci LLP, accuses the automakers of conspiring "to lessen competition and to unreasonably enhance the price of new cars sold in Canada," according to the statement of claim.

Most of the big North American and Japanese vehicle makers are named as defendants in the suit, along with the Canadian Automobile Dealers Association and its U.S. counterpart, the National Automobile Dealers Association.

The suit was filed on behalf of four Toronto residents who said they paid much more for their vehicles in Canada than identically equipped models in the U.S. The statement of claim alleges that the "price for identical product from U.S sources could be 25 to 35 per cent lower on average than in Canada" after adjusting for the exchange rate.

The suit gives a number of examples of recent large price differences in the same vehicles when the Canadian dollar was trading above 98 cents US:

* A Chrysler Grand Cherokee Laredo that was advertised for $29,215 in the U.S. and $36,215 in Canada
* A Honda Odyssey Minivan that was advertised for $25,645 in the U.S. and $33,333 in Canada
* A Range Rover Sport that was advertised for $58,500 in the U.S. and $78,300 in Canada

pdxbubba
09-27-2007, 11:35 AM
I sold our little scion xB to a guy from Canada. I sold it for more than I bought it for and he still got it for less than it is for sale up there even with all the travel and stuff involved.

Robot_Boy
09-27-2007, 11:22 PM
I sold our little scion xB to a guy from Canada. I sold it for more than I bought it for and he still got it for less than it is for sale up there even with all the travel and stuff involved.

I'm pretty sure that you can't buy a Scion at all in Canada, for any price.

dutch78
09-28-2007, 03:51 AM
I doubt the suit will hold up in court. It's up to a car manufacterer to make the price list per country. You don't like it, you don't buy it. Unless they can prove some kind of cartel between al the car manufacterers to make price agreements!

And in Europe we've gotten used to pay the same amount in euros (or even more) for the same product in dollars in the US. From I-pods, xbox and also cars...

pdxbubba
09-28-2007, 04:04 PM
It will be interesting to see how the prices change now that currently the Canadian dollar is on par or valued higher than the US dollar.