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http://www.canada.com/nationalpost/financialpost/story.html?id=d6db47d3-ab3b-4e0b-bfe8-9c076c593bc2&k=57065&p=1

From Autoblog.com
A few days ago we posted on the price discrepancy between identical vehicles sold in the U.S. and Canada. The discrepancy was always there, but became apparent when the value of the Canadian Loonie reached parity with the U.S. dollar recently. It was then that consumers couldn't ignore the fact that they were paying more for vehicles than their U.S. neighbors, up to 38% in some cases.

The Toronto-based class-action lawsuit firm Juroviesky and Ricci is taking up the case and expected to file a $2 billion class-action suit on behalf of four Canadians who feel that they paid more for their cars than they would have in the U.S. The class-action suit is open to any Canadian consumer who bought a new vehicle between August, 2005 and August, 2007 when the Canadian dollar was rapidly appreciating, but the prices of Canadian cars weren't adjusting.

Wow, they're in deep doo-doo. But I kinda saw this coming when I first heard of the price discrepancies.

Hi C0da:

___The interesting thing is Canadians used to pay almost 30% less then we did for the same vehicle. Back in late 02, the Canadian Acura MDX costs over $8,000 less then the US MDX. They are both manufactured at the same plant in Canada and are equivalent other then a metric speedo, odo and DRL’s. To pick up a Canadian based MDX cost almost $5K after the government got their hands on it and you lost your 4 year/48,000 mile warranty whereas the manufacturers brought their vehicles across duty free thanks to NAFTA. Great idea that NAFTA is. Allow the manufacturers to take advantage of cross border manufacturing free of a major duty unlike the consumer who does not receive the same by any stretch :(

___Anyway, the shoe is now on the other foot with the dollar crashing against all major currencies. I guess the Europeans, Asians and now Canadian’s don’t have anything worth purchasing here in the US all the while we purchase everything we can get our hands on without a care … The lawsuit is frivolous but it will make for an interesting exchange given the situation Canadian’s are in vs. the US.

___While in Niagara Falls last month, there were Canadian’s staying at the Hilton Fallsview of all places taking up bags of groceries to their rooms. I had to ask what was going on and one of them told me groceries in the US are so much less expensive then they are in Canada that we do our shopping while visiting the Fall’s. This was at a $250 + a night hotel. WTF!!!

___Good Luck

___Wayne

Wow, it's like we're Mexico to them except without the cheaper labor. As frivolous as the lawsuit may be, Porsche has already made some changes by dropping prices.

http://www.autoblog.com/2007/09/26/porsche-responds-to-disparity-in-canada-by-slashing-2008-prices/

I love Canadians but this is just stupid. For many years their dollar was not worth as much as the U.S. one is. Out of nowhere, without expectation and without any certainty that it will stay that way, over the last few months it has gotten stronger.

It hasn't even been a year yet and already the lawyers are at it. Sheesh.

Actually, it's been appreciating steadily (rapidly) for about 5 years vs. the USD:

http://spmedia.canada.com/gallery/00posted/Dollar-value.gif

5 years ago it was Americans' turn to cross border shop for deals, and now the reverse is happening due to retail prices that haven't adjusted as the currency's value has increased.

It'll repeat the cycle eventually, but who knows when. Until then, I'm betting we'll see more responses like BMW Canada's.

Don't judge all 35 million Canadians on the (class) actions of 4 people...