Canada - U.S. car import conspiracy?

By: Drivers.com staff
Date: 2008-02-28

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Two Canadian car leasing companies are alleging the Canadian government is conspiring to prevent its citizens from crossing the border to purchase cars at prices made much lower by the drop of the U.S. dollar.

"We're alleging that Transport Canada, Mercedes, BMW and Canada Border Services Agency have violated the Competition Act in regard to people who are importing American vehicles into Canada," said Lawyer Brian Osler, whose firm filed the suit on behalf of Fournier Leasing Company Ltd. and Canadian Auto Associates Ltd. They are seeking class-action status for their claim.

Canadians purchasing vehicles in the U.S. must go through a complex process to ensure that all appropriate taxes are paid and the cars meet Canadian pollution and safety standards. The two leasing companies are alleging that Canadians are paying excessive fees for unnecessary vehicle modifications and approvals when they import Mercedes and BMW cars from the United States.

They are alleging that they were compelled to get modifications to BMW and Mercedes cars at exorbitant prices at dealerships instead of going to repair shops of their choice.

"The government has one set of rules for Mercedes and BMW and another set of rules for everyone else," says Mr. Glyn Hotz, a colleague of Brian Osler.

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