BillO wrote:
I'm not sure where it all began, but it seems it has been determined by business that Canadians are willing to pay more for stuff and not complain.
Just a year or so ago when our dollar was actually valued above the US dollar someone at the CBC called Toyota and asked why a certain model of Corolla was under $14K in the US and $18K in Canada. Toyota Canada responded that it was the cost of transportation to Canada more than anything. The reporter, undaunted, called dealers in Alaska and Hawaii and got quotes of under $15K from both locations. Officials from Toyota Canada were unavailable for further comment.
Given that a Corolla built to US standards is mechanically the same as the Canadian version (except for the speedometer and some other gauges, and the owner's manual), Toyota Canada has to be inflating the shipping. The story about transportation cost is BS. Continental US-bound Toyotas that were assembled in Japan usually come in through Long Beach CA. Canada-bound Toyotas from Japan usually arrive at Vancouver or thereabouts. The rest of the trip to the dealer is via rail (very economical for long hauls, around $100 per automobile and about $115 for a light truck) and local truck delivery. It doesn't cost $4000 more to ship an automobile from Vancouver to, say, Toronto, than it does to ship the same car from Long Beach to Chicago. In fact, long-distance rail shipment in Canada tends to be cheaper per mile/kilometer than in the US due to Canadian railroads being able to operate freight trains at higher speeds (80 MPH maximum vs. 70 MPH in the states) and over greater distances in between stops.
No question you guys are being gouged, which is evident in Toyota Canada dodging the CBC person after he(?) found out that the same car was cheaper in Alaska (definitely off the beaten path, eh?). Maybe Canadians should boycott Toyota and force them to get real with their prices. Their cars aren't that good that everyone has to have them. Recent Ford products are better in most respects—my wife's 2014 Fusion was a substantial improvement over the 2009 Toyota Corolla she traded in, and has a better sound system to boot.
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So much for free trade and the auto-pact.
Nothing forces foreign car makers like Toyota to agree to the auto-pact. NAFTA did level the playing field and made it possible for Canadian manufacturers to gain parity in the US market—two of my home appliances are products of Canada, but cost about the same as US-made equivalents. The problem with automobiles is that unless they are assembled in Canada, Mexico or the US, NAFTA isn't going to have any effect.
Situations like what you describe with car prices p*ss me off. There's no reason for Canadians to have to pay more for the same model, except Toyota's greed.