http://www.autoblog.com/2008/02/29/sh-t-hi...govt-and-autom/

Due to a slumping greenback, the Canadian Loonie and the U.S. dollar are worth roughly the same amount, but the price of most new cars in Canada haven't made the adjustment. Two leasing companies are suing the Canadian government, BMW Canada Inc., Mercedes-Benz Canada Inc. and Mercedes-Benz USA LLC for a cool billion dollars, but not because of the uncompetitive pricing in the United Province.

The leasing companies have filed suit because strict import rules are preventing the companies from buying cars in the U.S. and selling them in Canada. The many fees, procedures and restrictions allegedly resulted in a 20-30% increase in the sale of more expensive Canuk cars. One example is a $350 admissibility charge to import a Bimmer, and a far more ridiculous $500 fee will be levied for bringing over a BMW that has received a recall repair in the States. The leasing companies allege the all those fees and fines enable BMW and Mercedes to sell vehicles that cost between 20% and 35% more than similar US models.

Rather than these two leasing companies, it seems like customers in Canada are the ones who are losing out the most with high vehicle prices. At least the Canadians still have plenty of other cars and trucks that they can import from the U.S.

Edited March 1, 200818 yr by regfootball

It was bound to happen sooner or later.

Gee, it's almost like Canada is a different country or something.

Those leasing companies are only whining because they are getting raped with all those BMWs and Lexus coming off lease that are worthless. Canada has every right to set its own rules and regulations. Daytime running lights, requiring French and English owner's manuals: there are costs to running a separate country, not to mention our higher business taxes, real estate taxes and 'free' health care. Why should leasing companies get a free ride, buying cars (and circumventing franchise laws in both countries) and bringing them up here.

This is (sigh) again, not news. Sony doesn't allow it. Hitachi doesn't allow it. Why would the auto companies be any different?