Chrysler to Canadian Consumers: Go Pound Sand

Robert Farago
by Robert Farago

After Chrysler's executive [I have a] dream team addressed the issue of Canadian pricing in Sin City, they may soon wish that what they said in Vegas stayed in Vegas. Speaking to WardsAuto, Ex-Toyota Prez Jim Press said Chrysler had inflated their sticker prices north of the border to account for the historic 10 to 40 percent gap between the dollar and the loonie. And now that the currencies are at parity? “Currency is a long-term move," a pressed Press confessed. "It goes one place to another, and when cycles come up, you take (that) into account. What you have to do is price at where the market is, and that’s what we’ll continue to do.” As for Canadian customers who dare cross the border to buy a Chrysler product, the automaker admits it's trying to cut them off at the pass. Steve Landry, executive director-North American sales, told Wards that he's sent memos to U.S. dealers warning them against selling vehicles to Canada on the gray market Needless to say, Landry claims it's for the customer's own good, considering Canadian auto regs. “It’s not just homologation of an odometer. You have to also change the daytime running lights, which is a pain… Our dealers are more into selling vehicles where they can take care of the entire lifecycle of that customer in that vehicle." Convinced?

Robert Farago
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  • Gardiner Westbound Gardiner Westbound on Oct 24, 2007

    A Toronto law firm claims it has internal documentation proving Chrysler, General Motors, Honda and Nissan conspired to artificially enhance Canadian automobile prices and profits in violation of the federal Competition Act and provincial Consumer Protection Acts. The Competition Bureau's well-upholstered civil servants were apparently asleep at the switch.

  • Luther Luther on Oct 24, 2007

    Over time the automakers will adjust prices in Cananda lower since the falling dollar is a long-term deal (IMO) and the Loonie is in a long-term up trend since mineral resourses are in long-term demand.

  • AGR AGR on Oct 24, 2007

    Those guys had a potent Kool Aid in Las Vegas for that dealer meeting. Next week when Oct sales figures are out we should revisit this subject and see what spin will be disseminated by the manufacturers. Showrooms across Canada have not been as busy as anticipated in Oct, and Sept was down from the previous year. An interesting article from The Star

  • Glenn126 Glenn126 on Oct 25, 2007

    Canadian automobile companies and importers need to move NOW to bring prices down for Canadians, no excuses, ifs ands or buts. Of course this probably will mean some car price increases in the states since high Canadian prices are "probably" propping up corporate profits and allowing lower MSRP's on Canadian produced cars sold in the states - just guessing here, but I wouldn't be surprised to see it. In fact, European car prices "must" start moving up since the Euro vs US dollar exhange rate has swung quite violently (i.e. the US dollar value is dropping like a proverbial rock). This all COULD be a benefit for the Detroit 2.8 if they really pushed lower prices in Canada by sending US built cars there, and pricing them to take more market share away from Hyundai, Kia, Volkswagen, Audi, Mercedes, etc etc. Assuming, of course, the Canadian public were willing to drive craptastic-mobiles instead of decent stuff, I mean. Of course, I don't regard VW/Audi or Mercedes as "decent stuff" due to their terrible reliability record (or, is that an oxymoron?)