A soaring Canadian dollar and ongoing news of price disparity between cars sold in Canada and the United States has prompted 4 new car buyers to take matters to court.
Four Toronto residents, who’ve all bought new cars at Canadian prices recently, have enlisted the help of law firm Juroviesky & Ricci to launch a lawsuit against the Canadian and American branches of General Motors, Chrysler, Nissan and Honda. Apparently the Canadian Automobile Dealers Association and the National Automobile Dealers Association have also been named in the suit.
In the suit, the manufacturers are being accused of collusion between American and Canadian head offices of some manufacturers and the subsequent battle to prevent cross border shopping. The suit alleges that US dealers who sell vehicles to Canadians are threatened with penalties that could include revocation of their franchise. Also mentioned is the practice of refusing to honour warranty on US cars in Canada as a method of discouraging cross border shopping.
It’s interesting to note that this news comes hot on the heels of Porsche’s announcement that they would be dropping the price of some models by 10% to help decrease the disparity.
This is going to be a fight worth watching folks!
Full press release and contact info for interested parties after the break
Juroviesky and Ricci LLP Files a Class Action Against the Major Automobile Manufacturers
TORONTO, Sept. 26 /CNW/ - The law offices of Juroviesky and Ricci LLP
have filed a class action lawsuit in the Ontario Superior Court of Justice
against the major automobile manufacturers, currently including, the North
American operations of, Honda, General Motors, Chrysler, and Nissan. The suit
also extends to certain North American dealer organizations, namely, CADA, and
NADA.(collectively the “Defendants”).
The suit claims that the Defendants conspired to artificially enhance the
price of automobiles to the Canadian consumer through a variety of carefully
orchestrated business practices in violation of a variety of statutes
including the Competition Act, and the various provincial Consumer Protection
Acts. Additionally, the suit alleges the commission of certain common law
torts. For further details please see the statement of claim on Juroviesky and
Ricci’s website www.jrclassactions.com.
The class includes all persons resident in Canada that purchased or
leased an automobile (or intended to do so) from one or more of the
Defendants, in Canada.
Note that the detailed statement of claim filed with the Ontario Superior
Court of Justice is the result of an extensive and independent investigation
conducted by Juroviesky and Ricci LLP. In respect of Canada, to the knowledge
of Juroviesky and Ricci LLP, no other statement of claim has been filed in
this matter against Defendants and no other law firms, as at the time of
filing its statement of claim, represent plaintiffs in this litigation.
Because lawyers at Juroviesky and Ricci LLP have conducted a thorough
investigation on this matter, they are in a superior position to answer
questions about the claims alleged in the statement of claim, and can be
contacted to discuss this case through the telephone number and/or e-mail
address indicated below.
To be included as a lead or representative plaintiff on this matter, you
must meet certain legal requirements. If you would like to join this class
action as a lead or representative plaintiff, discuss this
action/announcement, or be included in our Automobile Price Fixing Conspiracy
database, please email Juroviesky and Ricci LLP at info@jrclassactions.com. In
your email, please indicate Car Conspiracy in the subject line, and include
your full contact information (name, address, phone number, and email
address).
More information on this and other class actions can be found on the
Juroviesky and Ricci LLP Class Action website at www.jrclassactions.com.
15 comments ↓
As a new car owner, I hope they don’t lower the prices now. This is a big dilemma for the manufacturers. I think what will end up happening is that the prices won’t fall a lot, maybe by 2-3%, but the manufacturers will supplement the purchases with rebates. Sure, you might say that’s the same thing, but at least with the rebates, the MSRP will remain “psychologically tolerable” for existing car owners. Need an example? Look at Apple’s iPhone’s $200 price drop. Nonetheless, I hope this suit will send a message to all manufacturers/merchants/etc. that consumers realize the price disparity across the border. I, myself, have been making trips across the border for my shopping…
Cheers.
Hi I bought a new honda Accord in Dec. of 2006 and would like to be involved in your fight to get the cross border shopping opened up or else our prices in canada more even with our dollar value. I was shopping in Montana recently and found a new Accord identicle to mine for 8000.00 less than I paid for mine. Could you let me know if there is any way to get some of my money back. I have voiced my concerns to Honda customer relations and they have assured me that if I go to the U.S. to buy my next Honda that the warranty will be void as soon as I bring the auto back to Canada.
Fortunat, just follow link in the last paragraph. That will send you in the right direction.
I bought a new Colorado 2006 and paid way too much as it was. I also paid for a protectin package that wasn’t applied properly and told tough cookies when we went back two days later. I would be more than willing to travel to the USA to buy my next vehicle but I don’t beliieve that we should have to. The price should be the comparable no matter where you live or where the vehicle is made. It is the same vehicle and made of the same materials. My payments for the truck are $548.00 per month for 60 months and that is with a $2500. down payment. The same truck in thr USA is advertised for around $200.-$300. per month. That is a very significant difference. Even though our dollar is stronger right now it doesn’t make a difference on the price of anything we are still paying top dollar for our vehicles and then some. UNFAIR!!!! Bombardier is an example. Honda won’t sell to Canadians anymore and this making us not want to own a new vehicle and it is making us reconsider buying a new vehicle when we can buy a used one for a reasonable price.
Whoah!!!
Ok folks let’s look at this from a neutral perspective.
I am Canadian and agree that the recent dollar increase does offer a serious dilemma. But consider all you have to do, when buying a vehicle accross the border.
1- warranty automatically voided (so you must buy a warranty, $3500 ballpark)
2-of course pay the taxes at the border.
3-remember also, you must notify custom 72 hrs before crossing the border.
4- you cannot get financing, so not many can write a check for a car.
5-must change odometer from miles to km’s, and also change to running daylights here in Canada.
And there’s more …
But that gives you the general idea.
It’s not as simple as just crossing the border, and bringing back you new vehicle.
Lot’s of paperwork, lot’s of headaches, expenses while doing all this, transport, hotels, gas, etc…etc.
Now, they are saying that you save about $10,000.00 to $15,000.00 on a usa vehicle compared to a Canadian one.
Ok, well do all the math for the things above mentioned, and yes you will save a bit, but not that much, and trust me, the headaches are not worth the (maybe) $2,000.00 or $4,000.00 that you might save in the end.
Oh and, let’s not forget….
We are all saying (me included) that retailers should lower their prices to match our southern neighbors.
Our dollar is high, but what if it only last another 6 months, do you or can you even imagine all the imp0lications in changing everything? I think that most retailers, or manufacturers are simply waiting to see if the market will hold, and if the dollar will survive. Prices can’t just be changed because we’re complaining! Most retailers and any companies, have products bought at older dollar values, imagine the money they would lose?
Not being the devil’s advocate here, just being realistic folks, our dollar is strong, but for how long?
Let’s wait and see if the market settles, and then cry for someone’s head, but not just because it’s been about 6 months.
Good points Steve. As I pointed out in a previous post: http://thegarageblog.com/garage/cross-border-shopping-is-it-worth-it-part-deux/
Cross border shopping may not be right for every consumer, or even for every vehicle. In some cases though, it can be very worthwhile.
[...] New or used? Talk to a dealer in your area that you’d want doing warranty work (and possibly get something in writing to back up what they say) I have heard bits on the news about Canadian dealers not honoring warranty for a new vehicle purchased and imported from the US. Apparently, there is a class-action lawsuit in the works against the Canadian Automotive Dealers Association over this whole warranty mess and high purchase costs. Here’s a little reading: Canadians launch price fixing lawsuit against car manufacturers — The Garage [...]
Some of you, guys, are clearly missing the point when you’re talking about the dollar volatility. The lawsuit is not about setting prices on par, it is about collusion between US and Canadian branches of respective manufacturers, which prevents users from buying in the US.
Steve K, you are seriously misinformed on importing a vehicle. You pay gst whether you buy in Canada or US (mute point), you can finance through your bank (do not need to “write a check”), do not have to change the odometer from miles to km (as well almost all speedometers have mph and kmh). The process to import is quite simple (3 or 4 items) not the incredible headache you indicate (trust me, there are no large headaches..and it is well worth it!!). I have bought myself and my wife each a car from the US in the past 5 months and have saved total $18,500 which includes duty paid and shipping (did not pick up the vehicles). My father went to a dealership in Calgary to ask why a new Buick Lucerne built in Oshawa Ont. costs $9,000 more in Canada than the US, (there is no valid exchange rate, cost of manufacturing, delivery, etc. explanation)…the dealer could only point to the manufacturer. Keep the money in your own pocket and start refusing to pay the “Canadian premium” expected (not only on vehicles)!!
I am Canadian (from Quebec Province)
Recently I wnet to vermont USA, and wanted to buy a Mercedes Benz S550 4 matic at AUTOMASTER sealership in Burlington. No way. Even if I could give him eventually a US address and even with a driver license of Vermont I could acquire. NO. NO. NO.They said.
There the basic price without Options is $87,900.00, and here in Canda the same car is starting basic at $123,000.00. It is $35,000.00 over price.
What can I do. I do not want a used car of 2007. I want to buy new 2008 with all the options I want. Also the options in the US are at a lower price than in Canada.
I know how to get all the paper work, but the dealers dont want to sell to me as a Canadian. Tell me wrong about price fixing and NAFTA. That is ridiculous, NAFTA does not exists. I can buy a TV or a chair in the US but not a car.
Hoping the Class aciton will succeed against all the manufacturers and the Canadian government. As usual the government dont lift a finger to make everything crystal clear.
Jean-Louis Houle
[...] Canadians launch price fixing lawsuit against car manufacturers [...]
toyota dealer from boston refuse to sell me car,he told me that toyota forbid them to sell car to canada,how i could sue toyota
So, they have been refusing sales to Canadians to keep the Canadian prices up, which is obviously illegal. The manufacturers are almost certainly going to lose the lawsuit and get fined billions of dollars. I’m sure their lawyers knew it too. What I don’t get is, why did they do something so blatantly illegal at the first place?? Am I missing something here? Can someone please enlighten me?
So after all these comments and experiences, shall I go and buy a car from the USA?
The Jaguar XF looks good and 25K chaper in the USA incomparison to CA.
Have someone buy it for me in the USA and they could sell it to me as used (3 months used) to avoid all those formal issues when buying new.
Advice please..
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