Lawsuit Alleges Collusion In High Car Prices
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By Tony Wong
Sep 27, 2007
Honda
The MDX, a flagship SUV for Acura, Honda’s upscale car brand, is proudly built in Canada at the company’s plant in Alliston.
But a funny thing happens when the award-winning vehicle crosses the border into the United States. The car gets cheaper.
Canadians pay $52,500 for the popular automobile that was redesigned for 2007, while Americans pay $40,195 (U.S.).
A $2 billion (Canadian) class-action lawsuit launched yesterday alleges collusion between the Canadian and American head offices of some automakers to allegedly inflate the prices of cars in Canada while inhibiting cross-border shopping.
The suit, by four Toronto residents through Toronto-based law firm Juroviesky and Ricci, alleges that each person paid more money to buy a vehicle in Canada than the price tag would have been in the United States.
One Toronto man paid $58,645 for a Jeep Cherokee in Canada, when the same car was advertised for less than $40,000 (U.S.) in the United States, says the statement of claim.
It’s also alleged that some manufacturers do not honour warranties on U.S.-bought vehicles, forcing customers who want those warranties to buy in Canada.
