CBC investigating why Canadians pay more for Canadian made automobiles
[QUOTE]CBC News looked at the relative prices of 24 models made in Ontario by the five big automakers — Ford, GM, Chrysler, Honda and Toyota — and found that in 18 cases, the models cost thousands of dollars more to buy in Ontario than in the United States, including Hawaii.
Based on the manufacturer's suggested retail prices, the two-wheel drive Toyota Rav4 would cost $22,650 in Honolulu, with an additional charge for freight and pre-delivery inspection (PDI) of $810.
A resident in Woodstock, Ont., however, would pay $24,865, plus a freight and PDI charge of $1,465, for the same model, despite the Rav4 being manufactured in Woodstock.
Likewise, a resident in Alliston, Ont., where the Acura MDX is made, would pay $52,690 based on the suggested retail price, while in the U.S. the vehicle's suggested price is $43,030. (See chart at bottom of article for a full list of vehicle price comparisons.)
The Canadian prices for Canadian-made vehicles tend to be lower or on par with American prices for the more affordable vehicles like the Honda Civic or Toyota Corolla.[/QUOTE]
[QUOTE]Senator Pierrette Ringuette said she invited representatives from the Big Three automakers in the U.S. to appear before the Senate finance committee to explain the price disparities, but they declined.
"How do you justify a car made in Canada being sold for 20 to 25 per cent more in Canada than in the U.S.?" she said.[/QUOTE]
[QUOTE]Lamb, the founder of the website Cars without Borders, says U.S. dealers obey orders from the automakers to turn Canadian buyers away.
"If you're a U.S. dealer you're not going to sell a brand-new car to a Canadian and that's it, and if you do you'll lose your licence, you'll be penalized. So dealers across the states are not selling new cars to Canadians," said Lamb.[/QUOTE]