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Canada - U.S. car import conspiracy?

· By: Drivers.com staff
· Date: 2008-02-28


Two Canadian car leasing companies are alleging the Canadian government is conspiring to prevent its citizens from crossing the border to purchase cars at prices made much lower by the drop of the U.S. dollar.

"We're alleging that Transport Canada, Mercedes, BMW and Canada Border Services Agency have violated the Competition Act in regard to people who are importing American vehicles into Canada," said Lawyer Brian Osler, whose firm filed the suit on behalf of Fournier Leasing Company Ltd. and Canadian Auto Associates Ltd. They are seeking class-action status for their claim.

Canadians purchasing vehicles in the U.S. must go through a complex process to ensure that all appropriate taxes are paid and the cars meet Canadian pollution and safety standards. The two leasing companies are alleging that Canadians are paying excessive fees for unnecessary vehicle modifications and approvals when they import Mercedes and BMW cars from the United States.

They are alleging that they were compelled to get modifications to BMW and Mercedes cars at exorbitant prices at dealerships instead of going to repair shops of their choice.

"The government has one set of rules for Mercedes and BMW and another set of rules for everyone else," says Mr. Glyn Hotz, a colleague of Brian Osler.End of Article


Comments

David Johnston, on Saturday, 01. March 2008 at 06:57 PM

Apparently now you also need Volvos' permission to import a volvo into Canada from the U.S

Dave Patrick, on Tuesday, 11. March 2008 at 10:58 PM

BMW wants to replace the instrument cluster, & heater controls >$4000.00. Standards at TC does not require this.

Patricia, on Wednesday, 12. March 2008 at 11:37 AM

Is there a lawsuit being filed. I lived in L.A. and own a mini cooper. I am coming back to Canada to live and I am appalled by the red tape and mostly by the expense BMW is inflicting on me. What action can I take to protest?

Dave, on Monday, 17. March 2008 at 02:06 PM

I found out that a Canadian citizen cannot drive a US vehicle (even if you own it) across the border. Border services told me that I would have to pay the GST (non refundable)on the car before I would be allowed to enter Canada. I went back to Bellingham (to rent a car) the clerk at the counter said there would be no problem driving across with a rental.... WRONG!!!
I phoned a friend to pick me up at the border.....

Bill, on Monday, 24. March 2008 at 09:12 PM

I'm interested in importing a 2006 Volvo...apparently i would require 2 vehicle inspections...firstly, a safety inspection by Volvo ....at this time they'd also perform any modifications that had to be made to Canadian"ize" the vehicle....this inspection is $1950.00. YUP, almost 2 thousand bucks at the volvo dealership here in Edmonton. Then it has to be given an out of province inspection by the likes of Canadian Tire. What a bloody joke...typical of we Canadians being told to bend over & smile. This is obviously to act as a deterent to prevent Canadians from importing. Appears to me that Volvo is anti-Canadian....and the Government is allowing this.

Michael, on Tuesday, 25. March 2008 at 09:34 PM

It's a clear conspiracy and it has allowed Mercedes and BMW to keep their prices high in Canada to gouge consumers. They're able to do it because the majority of their clientele are well off enough to shrug off the cost, and their products are in demand. Almost every other car company has been forced to reduce prices dramatically to bring them into line with fair market value for the cars based on the high Canadian dollar. For example, the Infiniti M35 dropped frrom 56k to 49k; Infiniti doesn't have a BMW like policy. Even Audi and Lexus have lowered prices dramatically although they have policies preventing the sale of vehicles to Canadians in America (used vehicles can still be purchased).

The reality is, the government shouldn't stand by and let this happen to "protect our economy" because if they open up the borders free and clear, Mercedes and BMW Canada will be forced to lower prices to protect their own dealers in Canada; market forces will do a fine job of protecting Canada's economy. BMW and Mercedes shouldn't be able to exploit them to supplement their black bottom lines. (They both are billion+ euro profit makers).

Bill, on Saturday, 29. March 2008 at 09:20 PM

It appears as though we are subsidizing the US marketplace.....if the price for imported vehicles is too high in the states, the vehicles won't sell. The only way they can compete is to keep their prices lower....as for Canada, we're gullible & willing to pay the price.

Same can be said for other consumer items.

Aaron, on Saturday, 05. April 2008 at 10:19 PM

This is criminal behaviour on the part of BMW Canada and Mercedes Benz Canada.

Here's some background on how Mercedes Benz canada charge higher prices for the same cars that sell in the US for 30-50% less.

Mercedes Benz canada, actually have an arrangement with their parent company, (Daimler Chrysler Benz Germany) The german parent co, charges Mercedes Benz canada 30-40% more for the wholesale cost of the vehicle...

so mercedes benz canada buy a c300 from germany for CAD$32,000 and the MSRP in canada is CAD$41,000

mercedes benz USA buy the identical vehicle from germany for US$18,000 and MSRP it for US$32,000

so basically the extra money that MB is making on the canadian car goes back to germany, where Mercedes Benz gets all kinds of tax breaks and incentives...MB Canada reports a smaller profit and the canadian buyer gets stung for an extra $9,000 on the BASE cost.

it's criminal conspiracy tax evasion in canada, because MB Germany are inflating the cost to shift revenue back to germany, and MB Canadas measures to block US imports are conspiracy to fix pricing and prevent competition, What the hell is going on Canada, what happened to NAFTA?

Mercedes Benz Canadas statement on pricing discrepancy with the US: "We dont compete with other markets, we compete in the Canadian market"

Doug, on Monday, 07. April 2008 at 10:25 PM

I cannot believe that these co's can get away with this!! I want to import a used bmw...but riv.ca says we have to check with bmw canada in the admissable vehicles doc. Why are the necessary changes not documented like most other auto co's??? What do we have to do to join together to fight this anti-trade, anti-competition behaviour?

Brody, on Thursday, 10. April 2008 at 01:02 PM

How is it that all of a sudden they are not sure these vehicles are admissible any more? I have a copy of the admissibility list from RIV from a year ago, and most BMW's and all Volvo's were admissible up to 2007.

David, on Sunday, 13. April 2008 at 03:23 PM

Simply pissed at this situation.

John, on Monday, 14. April 2008 at 04:34 PM

I dont think car manufacturers should be blamed for this. The only thing they care is profit, so if nothing stops them to sell their cars at higher prices they will continue to do so; you can't really blame them. The Canadian goverment should intervene and protect the consumer, but then again its Canada, anything is tolerated, which is pretty sad

joey, on Tuesday, 15. April 2008 at 04:25 AM

I too am upset with all this red tape. I was on the verge of buying a bmw 5 series in las vegas at a massive discount im comparison to what is being charged here in canada. In fact the EXACT same vehicle I was going to import is listed at a local dealership for just over 29000 more! Even with all this hassle it is still worth jumping through all the hoops and just to spite any local bmw dealership, I will pay any all all associated costs to import the vehcile. But I agree with all other posts in the sense that why should we pay, as Canadians, more for vehicles than our American friends? Truly, the Canadian government has egg on its face and needs to stop manufactures from taking advantage of Canadian consumers.

Will Zaraska, on Tuesday, 15. April 2008 at 11:49 AM

I've been importing BMWs as a business for 20 years from Europe and the US. I race an M3 in the BMW CCA and instruct performance driving school students with BMWs. I love the marque. It's shortsighted for BMW to tag on these excessive fees. Sadly, I am pushing my clients into Audis and Porsches where there is greater value and less grief importing them.

Emillie Lingnau, on Thursday, 01. May 2008 at 11:52 AM

Hey Guys, I work for a dealer/leaser in Calgary. My most difficult job is importation. There are so many little backstabbing tricks and fees that usually it's not worth the effort to get the price break you see between canadian/ us vehicles. the worst part is that there isn't anything we can really do. We can't get our cars registered in Canada without going through the steps they charge so steeply for. the only companies that you would still get a good price on after going through the process are MB and BMW even though it's such a time consuming process you practically have to quit your day job for three-eight weeks to get it done. Yeah MB is charging 20K less in the states but it's such a pain in the ass that it's almost not worth it to do it. My boss is reluctant to import MB anymore because of it and thats what our company does.

Anyway. I'm in the process of writing a Complete HOW TO IMPORT from the states for the 2008 year and it will be up on the Internet soon I PROMISE! you can find me on blogger as idiomatic.canadian at Idioms and Idiots or Ask Reception. I'll try to have it up today but it will have as much information as I can get onto it about importing all the cars I have ever Imported and as many as I can get organized off RIV.
P.s RIV is an awesome resource but for final word on admissibility you have to ask the manufacturer.

If you want a US car and don't want the hassle go to www.blackhorseautomotive.com
I realize i just killed my credibility by advertising for the company i work for but it really is easier to get one from them than to do it yourself. just remember the only cars worth importing anymore are BMW and MB.

Randy, on Monday, 05. May 2008 at 05:43 PM

I purchased an 03 Acura MDX from the states in September, 2007. After all was said and done I saved $7000. It was really quite simple, I just did a little research on the internet and had all my paper work in order, and it was smooth sailing. Until, the transmission went on it a week before christmas. Cost me $7000. Acura is paying half of the transmission cost, cause they realize that there was a problem between 01-03 transmissions. Which would have helped greatly, but since the vehicle was imported from the states they deemed it a "grey market" vehicle, and would not help out. What gets me is, the vehicle was manufactured in Canada, so how that makes it a "grey market" vehicle is beyond me. I was simply bringing it back home to where it belongs! Now would I buy from the states to save thousands again? Of course, who wouldn't. If you are feeling bad about not supporting the Canadian economy, don't worry, you are still paying the GST, and PST. So I say, stick it to the man!!! and save your money!

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