Canadian Pricing is Not Sustainable

[iluvnascar]

With the Canadian dollar now worth about $1.06 US; and with the strength likely to be long-lasting although perhaps not quite this high; the Company has no choice but to bring Canadian prices down. Canadian consumers are already heading over the border to shop for all kinds of goods; Canadian customs backlogs from Internet ordering are growing by the day; and many multi-nationals are rolling back prices on a regular basis. Chrysler has already announced selective price matching.

 

I checked out an MKZ........it was 30% more in Canada. Freight on an EDGE is 76% higher.....and that car is built in Canada. And those differences are not unusual. It can't go on for long because consumers (fired-up by the media) will simply boycott the companies that fail to get with the program.

[LincolnFan]

#1 rule when buying cars in Canada, never buy them from Canada.

[suv_guy_19]

With the Canadian dollar now worth about $1.06 US; and with the strength likely to be long-lasting although perhaps not quite this high; the Company has no choice but to bring Canadian prices down. Canadian consumers are already heading over the border to shop for all kinds of goods; Canadian customs backlogs from Internet ordering are growing by the day; and many multi-nationals are rolling back prices on a regular basis. Chrysler has already announced selective price matching.

 

I checked out an MKZ........it was 30% more in Canada. Freight on an EDGE is 76% higher.....and that car is built in Canada. And those differences are not unusual. It can't go on for long because consumers (fired-up by the media) will simply boycott the companies that fail to get with the program.

 

 

Automakers are beginning to reduce prices now, and the big threes sales numbers do not show much of a problem. Pries are beginning to lower in every area of the market. Patience is a virtue.

[jpd80]

Here in Australia, the Aussie Dollar is approaching 93cents, up from "normal" 70cents 6 months ago.

So you would expect that our local cars would parallel North American prices - well, Asian cars do.

 

Entry level Falcons and Commodores start at AUS $32,000 - about $30,000 US.

Focus starts at AUS $20,000 and Mondeo at AUS$29,990.

 

We get an entry level Fusion sized Mondeo for the price Americans will pay for a Pontiac G8 GT.

The G8 GT - a.k.a. Holden Commodore SS-V retails here for AUS$52,000.

 

I think this is an example why Ford and GM do much better outside North America - the prices we pay.

Edited November 4, 2007 by jpd80

[LincolnFan]

Here in Australia, the Aussie Dollar is approaching 93cents, up from "normal" 70cents 6 months ago.

So you would expect that our local cars would parallel North American prices - well, Asian cars do.

 

Entry level Falcons and Commodores start at AUS $32,000 - about $30,000 US.

Focus starts at AUS $20,000 and Mondeo at AUS$29,990.

 

We get an entry level Fusion sized Mondeo for the price Americans will pay for a Pontiac G8 GT.

The G8 GT - a.k.a. Holden Commodore SS-V retails here for AUS$52,000.

 

I think this is an example why Ford and GM do much better outside North America - the prices we pay.

 

20K for a Focus? Wow, I paid 12.5K for mine. It has a 1.6L gas/4-spd Auto.

[jasonj80]

It is not just cars that are cheaper here -- it is pretty much everything (minus prescription drugs). With the CND dollar where it is at it will be a rough Christmas season for business in boarder towns. The stores around Michigan are littered with Ontario licence plates of people buying everything form electronics and furniture to Costco getting household items (a Costco membership can be used at any Costco in the world) Not to long ago when the dollar was so strong it was cheaper to go to Canada for things and people were importing CND cars to the U.S.

[bolita]

It is not just cars that are cheaper here -- it is pretty much everything (minus prescription drugs). With the CND dollar where it is at it will be a rough Christmas season for business in boarder towns. The stores around Michigan are littered with Ontario licence plates of people buying everything form electronics and furniture to Costco getting household items (a Costco membership can be used at any Costco in the world) Not to long ago when the dollar was so strong it was cheaper to go to Canada for things and people were importing CND cars to the U.S.

 

 

IIRC, the tax structure in Canada is similar to that in the US, so as exchange rates migrate to 1 to 1, so would the pricing on goods such as cars.

 

I really don't know about Australia, but in Europe great % of retail price is tax, so all cars are more expensive. Even in a 3rd world market such as Brazil, prices are much higher than those in the US for similar products...

[Financeman68]

I work at a Ford dealership and we are being told that Ford USA won;t reduce the purchase price for Ford Canada.

 

Ford USA doesn't give a rats ass if Canadian shoppers buy from US dealers or Canadian ones, because they still make money.

 

They released new pricing incentives on Monday and payments on 2007 F150's went up from 2 months ago!

 

Ford needs to get their heads out of their asses and realize that people are fed up with these games. If they want to sell more vehicles start treating customers right.

 

If Ford wants to know why import buyers hate them, it is because of BS like this:

 

1) Huge variance in markups, so customers don't feel they got the best deal...ever!

 

2) Trade values all over the map from dealer to dealer because everyone retails differently...wholesale to wholesale vs retail to retail.

 

 

$1.10 Canadian dollar value vs 85 cents 6 months ago, payments are the same on the best selling truck in North America?

 

I can go across the border and buy an American retailed Ford, drive it back to Canada and have it converted and on the road and save :

 

$17,000-$20,000 on a New F450 6.4L

 

$14,000 on a new Taurus Limited

 

 

I found this out in 5 mins on the Internet, do you think consumers are not realizing this?

 

If Ford keeps this shit up, I honestly hope that every single customer walks over to Dodge.

 

Then I will go there too.