Canadian Leasing Companies Suing Government, BMW, and Mercedes-Benz
Two leasing companies in Canada have hit the warpath to uncover a conspiracy between the Canadian Government and automakers to keep vehicles high within the country.
Fournier Leasing Co. Ltd. and Canadian Auto Associates Ltd. have sued Transport Canada, the Canada Border Services Agency, BMW Canada, Mercedes-Benz Canada, and Mercedes-Benz USA in a lawsuit that alleges the strict requirements for people or companies to import cars into Canada enabled a 20 percent to 30 percent spike in cars sold in Canada versus similar U.S. models. The two companies are seeking damages that total in excess of $1 billion.
A statement filed with the Ontario Superior Court said, “These additional charges, fees procedures and restrictions prevent more competitively priced Mercedes vehicles from entering into the Canadian market, thereby enabling the Mercedes defendants to charge higher prices for new vehicles sold and leased by them in Canada.
Comments
EmmEff
It is doubtful that the good guys (read- *not* BMW or M-B) will win this... the cars can still be legally imported, however the process is more difficult than before and the expense higher.
With that said, I certainly do not agree with the new policies imposed by BMW or M-B but I feel that the RIV is just as much as fault to let such practice happen in the first place.
Josh
From what I've gathered (As someone who imported a BMW almost a year ago, and is looking to do it again this year) -
RIV has no control on the admissibility of vehicles or not, since Transport Canada does not determine if a vehicle meets the standards it puts out, only the car companies do that. Therefore, BMW, MB (Plus a few more are starting to make it more and more difficult) has said that in order for them to verify that it is even admissible, we're going to charge $500 for a letter saying saying stating the admissibility of it. Then once back in Canada, they are able to basically charge for whatever they deem "not up to standards". As mentioned, some of these standards are the bumper, but some are as "low" as charging $1500 to replace the instrument cluster because it does not support day time running lights - and yet you can enable DRL's via iDrive no matter the IC.
If I were to import the same BMW as I did last year (Z4), I would incur the following 'new' costs:
$250 - Letter stating it is admissable
$500 - Letter stating it has no recalls
$300 - For a "Canadian BMW Certified Technician" to verify the vehicle has DRL's, even if it standard.
$1300 - New "compatible" instrument cluster.
Even with all the new costs, it would still be far cheaper to import it than it would be to buy it up here (incl. transport, tax etc.)
As far as my story goes, these new protectionism policies have made me look to another automobile maker for my next purchase.
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CanuckGreg
Josh's post is right on the money. I imported an '04 330i to Canada in Sept/07. BMW Canada wasn't involved at all. My car was on the "admissible" list, and my recall clearance letter consisted of a US dealer supplied computer printout (no charge). Modifications to meet Canadian standards? Add bilingual airbag warning stickers ($1.75 for two from my local Dodge dealer).
Although there have been no legislative changes enacted since then that render the same car inadmissible, to execute the same transaction today would cost me $850 in fees to BMW Canada, plus whatever my local BMW dealer decides to charge me for whatever modifications he decides are "necessary".
The whole situation is annoying as hell. I don't really blame the manufacturers, as Transport Canada has basically thrown up their arms and shirked all responsibility for the matter.
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Anonymous
I find the whole matter a big joke. How can the manufacturers (BMW/M-B) all of a sudden deem U.S. vehicles OK one day and not OK the next unless you fork up the additional $ and jump over hurdles.
As indicated by "Josh's" comments, on top of the additional charges to make that vehicle "admissible" you have the dealership's service dept.'s put scheduling an appointment for the inspection and turning on DRL on LOW to NO priority even if it was already done by the U.S. dealer prior to shipping it up. Does that mean U.S. dealerships technicians are not a capable as the Canadian ones?
BMW & M-Benz N. America should step in and put a stop to this nonsense. I can understand their motives to some degree but all they have to do is to adjust the CDN MSRP on the vehicles to reflect a 10 even 15% premium over an U.S. counterpart. As a Canadian I would pay the "nominal" premium to support the local economy, avoid potential warranty headaches etc. However I'm not prepared to pay upwards to 40% premium which is the case today. I know some manufacturer's have adjusted their pricing but the token 10% decrease is not enough to stop US importing. Lastly, what is RIV's function if they leave it up to the individual manufacturers to determine what is admissible?
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