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
Continue reading →