As we've reported, thousands of Canadian cars buyers have headed south of the border to save money on new and used cars. Several manufacturers have [belatedly] responded to the exodus by offering incentives that bring Canadian new car prices back in line with their American equivalent. But not all, and used car prices are still significantly lower. So the trade continues apace. Only now the Canadian government has stepped in and staunched the wound. The Toronto Globe and Mail reports that Transport Canada now refuses to license imported American cars until they're fitted with a Canada-compliant anti-theft immobilizer. Seriously. They're stopping vehicles at the border and/or allowing new car buyers to drive them home– and that's all. At least until the device is fitted and the car inspected (and Honda of Canada says they know of no legal aftermarket conversion). Transport Canada spokesman Patrick Charette moved to quash conspiracy theorists (that's us) by pointing out the new reg was announced two years ago. Mr. Hill ain't buying it. The Calgary financial consultant bought a 2008 Sienna in the U.S. last month, saving CA$15k. The vehicle is currently sitting on a dealer's lot 320 kilometers away from his driveway. "This is either collusion or unintended consequences." While dozens of frustrated buyers cry foul, the list of banned vehicles was broadened last week to include 2008 models manufactured after Sept. 1 and sold in the United States by Ford, Hyundai and Suzuki; all 2008 GM models, several Honda vehicles and about half of the Toyota Motor Corp. lineup.
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Maybe the Canadian Parliament needs to go back and read that little binding contract they signed back in 1965, allowing free trade of cars across the border, which agreement itself was expanded and replaced by the NAFTA agreement.
I think I’d be getting a sharp lawyer if I were a Canadian buyer and setting up a class action lawsuit AGAINST THE GOVERNMENT.
Can someone explain why the gov’t would even care? They get thier taxes; you pay GST at the border and PST when you register it…Consumers cried foul and said ‘hey, throw us a frickin bone!’ and the solution? Eleminate the problem by removing the option to shop in the US. I understand that they say this has been a requirement for 2 years but really…do we need it?!! We have the stricktest bumper laws in the world, which get us screwed enough…what do i really need an engine imobilizer for? Oh for the insurance company? Oh, the same insurance company that charges me out the hoo-haw because I am a male under 25? Yeah I’ll get right on doing things for them.
I wonder if the Canadians could boycott all new vehicle purchases, and whether that would do any good.
Its important to note that this applies only to vehicles manufactured after september 1st, 2007,
Thank god, i’m importing a 2007 GTI and i almost had a heart attack
Edit: I’ve confirmed this twice
I’m not sure it’s the Canadian government that is actually fully “responsible” here (take that statement anyway you like!). The regulation was created several years back and most manufacturers complied by ensuring there vehicles have the appropriate engine immobilizer – however, it would be a stretch to believe that US & CAD spec vehicles carry different immobilizer systems, and/or a retrofit is impossible…
The company responsible for processing the imports (RIV – Registrar of Imported Vehicles), can only process those vehicles based on a list provided by the vehicle manufacturer as to which vehicles are acceptable for import; by claiming the vehicle doesn’t meet Canadian requirements, they have an easy way to deny entry. There was a posting several days ago (I’ll attempt to dig up the source) by a fellow who took apart the immobilizer system in a 2008 US spec & CAD spec Toyota (Minivan?Suv?) – guess what? same parts!
The key is that it is up to the manufacturer to identify which vehicles meet regulations, not a Canadian company (or the government)….
As Robert alludes to, the “Canada-compliant immobilizer” is a red herring. The wording of the law is that IF THE MANUFACTURER APPROVES, you can get an after market installation. Yeah, I’m sure Honda Canada will get right on that one. It’s the same reason why Evos are illegal to import no matter how big of a bumper you install, it has to be approved by Mitsubishi Canada, who won’t. Basically, they’ve banned all imports on a technicality.
What do you expect from the manufacturers, it’s business pure and simple. You dont want to hang your Canadian dealers out to dry and you dont want to be losing profits unecessarily. If i was an automaker, especially one like Toyota or Honda, i’d be milking the consumer for all he/she is worth. GM or Ford on the other hand could use all the sales they can get, so possibly if people cant import an import (lol) they might choose a domestic, assuming GM, Ford and Chrysler play ball.
Wow. That is beautiful. A law so twisted and perverse that the biggest lobbyist in Washington DC has to love and respect it.
You have to install an after-market piece of hardware that the car’s manufacture has to approve of, which they won’t. Joseph Heller would be proud!
yankinwaoz: the catch-22 is no stranger to canadian law. I am not sure if they changed it yet but, it is totally LEGAL to grow weed for medicinal use, you just need a permit…to get that permit you must prove that you have the capabilities to grow weed. How do you do that? well you grow weed without a permit, which is illegal…
BTW… Western Australia also requires de-mobilizers for all registered cars. But you can get one installed quickly and cheaply at most car stereo shops. There is no “approved” list.
Imports and NAFTA aside. The fact that Canada law allows car makers to dictate what after-market accessory is allowed sounds like a restraint of trade. Canadians should be outraged and that law should be scrapped pronto!
The immobiliser requirement had been on the books for a few years that it was going to come into effect with vehicles built after Sept 1,2007.
In a strange twist its playing to the manufacturers side, and they are taking advantage of the situation.
The real issue: manufacturers have not adjusted the Canadian MSRP’s they are giving rebates for cash buyers, not giving rebates for finance or lease customers, other are giving rebates irrelevant of cash, finance, or lease.
Whenever a government legislates methods and procedures rather than standards this is the result. The really nasty part is that these consequences are often intended.
I’d still love to see a provincial secession take place. I may even come up there to defend Alberta if they do it.
The Canadian marketplace is as cosy a little spot as any businessman could find. Competition? Hah! Everyone watches everyone else and keeps those prices virtually the same, high, while solemnly holding their hands over their hearts and declaring just how socially benevolent they are.
National newspapers with a mission to get something done? Hah! No, they have just two priorities — (a)to make money, and (b)don’t piss off the advertisers.
Canadians get stuck with ridiculously high cell phone fees, as the big boys have sucked up the entire market and made sure, nudge, nudge, wink, wink, that they all charge virtually the same, which is way too high.
Tire prices? A mere 80% more than the equivalent US price. Cars, 50%. The Insurance company of British Columbia which is government run by that province does list approved aftermarket immobilizers in their web pages, and even the procedure required for fitment.
So Honda spokesmen don’t know how immobilizers can be retrofitted? More of the same Canadian corporate double speak designed to allow truly obscene profit margins. I’m sure they are completely unaware, ha ha, about the IBC web page. I’m sure they don’t even remember that all the Hondas assembled in Canada have immobilizers fitted if they are to be sold in Canada. What? Honda doesn’t know how to fit one in their own cars? Horse manure. They just want to keep that golden goose of a Canadian marketplace where cars are worth so damn much their bonuses are safe and their ceegars lit with $100 bills.
Am I mad? You betcha. There hasn’t been one damn car company (besides the completely irrelevant Porsche) with the balls to reprice their cars. Not a damn one. They’re all happy making way over the odds profits on their current market share. Why risk the ire of your “competitors” by rocking the boat? Customers? Customers are just there to be rooked.
This is what happens when there is “collusion” in the marketplace. I cannot prove it, but golf courses in Southern Ontario are no doubt filled with bigwigs playing in foursomes who know just how to keep prices high without raising the Federal Competition boys from their normal stupor. Oh wait, those people are playing on the golf course too. Silly me, I thought we were paying them to pay attention.
Like I said — got a business? Come to Canada and ream us. This marketplace is wide open. Yeah, join in the Canadian Dream — “Peace, Order and Good Government”. POGG. I kid you not, that’s our official motto in this country. Google it, you won’t believe your eyes.
Porsche has only reduced their prices by 10%, IIRC. Most Porsche buyers who aren’t stupid (and most of them are not) can still click right onto Porsche USA and see the 50% price difference.
Meh, I just can’t get worked up over new car prices. Only fools buy new cars anyway. You’ll note that there’s an equally large number of people (namely, those who just BOUGHT cars in Canada) who will fight tooth and nail to keep the imports out and their resale prices high, just like any other commodity market. Of course, they won’t SAY that, and it will all be in the name of safety/the children/etc.
@wmba
You nailed it, Comrade.
This is why I am going to import 15-year-old whips from the US until this is cleared up. Or at least until they make a law prohibiting that too (shouldn’t take long, they’ll probably use the environmental stance as a pretext).
For the record, I am quite pleased with ICBC compared to the private insurance rackets in other provinces.
I love Canada, it now appears that we pay European prices for degraded NA market junk. Looks like I won’t be buying a new car any time soon.
They were talking about killing the 15 year rule a while back, but it looks like they’ve got bigger fish to fry now, and the heat is off temporarily.
By Appointment To Her Majesty, The Queen, the following marques are now exempt from such requirements
* MG Rover
* Jaguar
* Rolls-Royce
* Bentley
* Lotus
* TVR
* Aston Martin
* AC
* Caterham
* Westfield
* Morgan
* Marcos
* McLaren
The government has sufficient well-upholstered civil servants to instantly crack down on citizens but, gosh darn, just can’t get around to investigating automobile manufacturers and dealers for illegal price fixing.
@wmba: can’t say that I agree with you… do you happen to recall a half dozen (or more?) years back when the Yanks were travelling to Canada to buy cheap cars? At that time where Canadians all being ripped off by the manufacturer? I simply can’t equate currency fluctuation with price fixing (as opposed to say gas stations – who obviously fix their prices with each others – quite evident in SW Ontario).
Attempting to keep US vehicles out of Canada, however, would seem to cross the NAFTA line. By allowing free movement across the border, you’d see the prices self regulate over time anyway…
@storminvormin: nothing wrong with importing an ’07 or earlier…
One of the strangest cases has to be cars where the entire NA supply is made in Canadian plants – Lexus RX – I’m looking at you! – After all, in this case, it should be Canadian prices that are steady, and American ones that rise or fall with currency values.
What the hell is my government doing requiring anti-theft immobilizers on new cars anyway?
Shouldn’t that be left up to the market? Either the manufacturer adds it as a feature to add value, or the consumer can choose to buy an optional one, or buy from someone elsel, or buy none at all.
Bastards.
What the crap do you Canadians expect? You want to have your own country up there with your own policies primarily all based on being Not-America, then you get pissed when things in Canada don’t cost the same as things in the U.S. They SHOULDN’T cost the same; there is a reason they don’t cost the same.
Every government wants to control and buffer its economy. That’s particularly important for Canada, since there is a vast border connecting Canada to a country that has 10 times its population.
If there were wide open, uninhibited free trade between the US and Canada, then we hordes of Americans would completely hoover up anything in Canada that happens to be cheaper than in the U.S. (prescription drugs? Moose jerky?). There’d be nothing left for you. What happens when you throw the valve wide open on a high-pressure tank?
So yes despite NAFTA, Canada is hellbent on erecting trade barriers wherever they can still get away with it; otherwise they’d lose their distinctive Canadian-ness.
Think of the big picture. Everyone here is interested in cars, but what about everything else in the economy? Will one of you Canadians please tell me if you really expect every business in Canada to just drop their prices by 30% on everything just because of a currency exchange rate?
Please if any Canadians actually expect that, please say so.
@wmba: can’t say that I agree with you… do you happen to recall a half dozen (or more?) years back when the Yanks were travelling to Canada to buy cheap cars? At that time where Canadians all being ripped off by the manufacturer?
This myth has been perpetuated long enough! You’d have to go a lot further back than a few years to find a time when cars were chepaer in Canada than the USA. There may be a few exceptions, but the dollar would have to be at 60 cents US for most of the main stream cars to be on par and 30 or 40 cents US for the high end ones. All those Americans coming north saying they were buying a new car…they were getting liver transplants.