A class-action lawsuit filed with the Ontario Superior Court alleges Transport Canada, Canada Border Services Agency (CBSA), BMW and Mercedes-Benz participated in a conspiracy to impose unnecessary procedures and import fees that make importing vehicles into Canada artificially high. This is a big problem for many Canadians, since car prices are might higher north of the U.S. border, despite both countries’ dollars being nearly equal.
The lawsuit was filed by Fournier Leasing Co. Ltd. and Canadian Auto Associates Ltd. and seeks more than $1 billion in damages, according to the Globe and Mail.
The two vehicle leasing companies allege other carmakers don’t require the same fees, modifications or approvals as BMW or Mercedes-Benz and are, in fact, not prescribed under Canadian law, making for a double standard.
As luxury cars are believed to make up the majority of the record 189,738 vehicles imported into Canada in 2007, when the Canadian dollar was at its highest in nearly 30 years, it is a small wonder the lawsuit names BMW Canada, Mercedes-Benz Canada and Mercedes-Benz USA for reducing competition.
Prices of Canadian vehicles are 20 to 35 percent higher than similar or identical models sold in the US. A class action lawsuit was filed late last year over the high prices.
The leasing companies who filed the lawsuit also maintain they were forced to make modifications to the cars they were importing at Mercedes-Benz and BMW dealerships are instead of at repair shops of their choice, where prices for said services were more reasonable.
Because of the hassle and fees it imposes on importers of its cars, Mercedes-Benz Canada artificially inflates prices of its new cars, the lawsuit alleges.
An example of the exorbitant fees includes BMW charging $350 for a letter of admissibility and $500 for a letter stating if a vehicle has seen any recalls that pertain to it.
02/28, 2:00 PM
posted by:
LamborghiniZ
the picture LLN uses as the cover of all canada articles is so funny, and great.
02/28, 2:10 PM
posted by:
SwerveEarly
Nothing funnier then someone with a mullet in a fine auto. Except maybe for someone really pissed off with a mullet in a luxury car.
02/28, 2:11 PM
posted by:
e36m
Blame Cana…..er blame Germany
02/28, 5:17 PM
posted by:
howsmydriving
They have cars in Canada???
02/28, 5:19 PM
posted by:
RicardoHead
And the best part is how you get a pay raise. When the government says inflation is low, the average raise is immediately also low, but when inflation rises, the comapny says it is in a bind and the average raise is also ****.
02/28, 5:43 PM
posted by:
DeansterTJ
Howsmydriving – yes, there are cars in Canada! There are also lots of guys to drive them, because Al-Qaeda hasn’t beheaded them like they’ve done with all men in the States.
02/28, 6:17 PM
posted by:
RicardoHead
Deanster, you mean Lorena Bobbit was part of Al Qaeda?
02/28, 6:33 PM
posted by:
johnnycanuck
I googled Fournier Leasing and Canadian Auto Associates and they are both dealers out of Ontario offering high end used automobiles mainly brought up from the US. What dirt they may have on BMW or Mercedes is one thing, but I’d love to see Transport Canada and the CBSA get taken down- hard. Like most government run entities up here they’re bloated, over funded dictatorships run by toad-like drones who couldn’t get a job in the real world if their lives depended on it.
This could be fun to watch.
02/28, 6:40 PM
posted by:
Bimmer
I agree that all carmakers gouging Canadians. What about NAFTA? Shouldn’t one be able to freely import a vehicle from US?
02/28, 7:31 PM
posted by:
AxeHead
Right on Johnny. I’ve watched the Candadian RIV which ‘dictates’ what vehicles are allowed in Canada and it’s as volitile as Murderedout’s arsehole.
The whole bureacracy stinks and I hope it goes down as fast as Murderdout goes down on anything hard.
02/28, 8:09 PM
posted by:
RicardoHead
Bimmer, I can’t freely import a car from Mexico, so I think that is a misconception about “freely importing.”
Still, a government owes it to its citizens to not make it a pain in the ass, or more likely, the citizens owe it to themselves.
02/28, 9:14 PM
posted by:
bigp
they get things were cant even ask for as more power and better wheels not state lighter (bmw 3 turbo coupe)
02/28, 9:53 PM
posted by:
autonut
In US we can get the same from either Barak Hussein Obama or Hillary Rhodam Clinton, along with “free” medical insurance. Good thing my child in law school to prepare for a law suit.
02/29, 8:46 AM
posted by:
Steve@JDMAero
A Mullet? Hardly anyone in Canada has a mullet, and we don’t all live in Igloo’s. In some points, we are more advanced then Americans.
As for this, it’s an outrage. Thinking back to the Toronto Autoshow, what really gets to me is the absolutely huge amount of people at the BMW booth.
It’s disgusting that they would lure in people, and take their money.
02/29, 5:58 PM
posted by:
Bimmer
LP640, you meant HEAD! LOL
03/01, 2:05 PM
posted by:
jackjimturkey
“are might higher?” I’m convinced one of you nerds is on the LLN staff.
R-head:that was funny. I see from time to
time a Ford Ka with mexican plates