Yesterday, we reported on a Canadian class action lawsuit claiming carmakers and dealers conspired to violate “competition and consumer protection laws” to artificially inflate new car prices. Today, the National Post reports that Porsche is lowering prices on its 2008 models in Canada by more that 10 percent– plus an additional 2 percent on an “equipment adjusted basis” when compared to an ’07 model. "We cannot ignore our customers and dealers in Canada who can look to the U.S. and recognize a substantial price difference," says the president and CEO of Porsche North America. Yes, but– the price of a new Porsche will remain higher than those sold in the US. Assuming the loonie is at parity with the US dollar, a 2008 Cayenne will still cost some 27 percent more in Canada (C$55,200) than German sport trucks sold south of the border (US$43,400). Still, Porsche’s Schwarzenbauer's back remains patted: "We listened to the market and did what is best for our customers in Canada."

India’s economy is growing fast. Too fast. To curb inflation, the country’s central bank has been busy raising interest rates. Bloomburg.com reports the result at the auto industry’s sharp end: new car loans are the most expensive they’ve been in five years. As nearly 75 percent of all of India’s fresh whips are purchased on credit, the new car market has slumped since June. Most Indian automakers are reacting to the credit crunch by trimming production or holding off on new factories. With plans for three new plants in the next 18 months, Tata managing director Ravi Kant has decided to offer new customers deep discounts to move the metal. If and how this will effect the Indian automaker’s bid for Ford’s damaged Jaguar brand is uncertain, but it can’t help.

CTV reports that a class action lawsuit suit filed in Ontario Superior Court claims carmakers and dealers conspired to violate “competition and consumer protection laws.” Lawyer Henry Juroviesky claims US car dealers suppressed cross-border shopping by limiting supply, inflating prices and voiding warranties. In the past, dealers “used the large gap between the Canadian dollar and U.S. greenback to justify the higher prices in Canada,” says Juroviesky. "Now that the dollar is at parity they can't use that cloud… to mask what they're doing.” Meanwhile, a recent study says the problem is going away. "In all of our 'popular' segments… the price gap between Canada and the U.S. narrowed in 2007," says Dennis DesRosiers, President of DesRosiers Automotive Consultants Inc. of Richmond Hill, Ontario.

According to Jacksonville.com, the legislation requiring that Florida drivers carry no-fault personal injury policies (PIP) expires next Monday. Insurers welcome the end of the (PIP) system, which is rife with fraud. Problem: the Florida legislature may attempt to pass a measure that will renew the requirement. If so, insurance companies will need time to re-program their computers, figure out new rates and apply for their approval. Fort Lauderdale Rep Ellyn Bogdanoff sums up the mess: "The companies simply do not have the capacity to turn around in 24 hours." In the meantime, Sam Miller of the Florida Insurance Council has a message for drivers with current PIP policies: "Your contract with the insurance company is not voided by PIP going away." Yes but… Florida drivers who renew or take out a new policy after October first may find that a wreck may leads to a court fight over fault.

According to USA Today, six states are about to test the same gas tax alternative currently contemplated for the UK. Early next year, the University of Iowa will equip some 2700 vehicles with computers and satellite equipment to clock their exact mileage. These Road User Charge Study volunteers will then get “sample” bills, simulating what they would have paid for that month’s motoring using a per mile charge. The reasoning: Americans’ cars are gaining fuel efficiency and using E85. In other words, the government’s looking at lower revenue and it’s NOT HAPPY. As hoiking-up gas taxes would be a kiss of death for any politician's career, “virtual tolls” would enable a suitable end-run– and raise serious questions about privacy. Still, the study’s “principal investigator” isn’t fazed. "It's not a question of if this is viable,” says Jon Kuhl. “It's a question of when it becomes politically and socially viable to make such a large-scale shift.”

Toyota is expanding its car insurance business into the world's second largest country (by area). “If everything goes well, we want to [offer policies] within a year,” Toyota Canada's president and CEO told ReportonBusiness. The automaker already sells auto insurance in Asia, Europe and Australia. University of Calgary prof Ryan Lee is good with the expansion. Ish. “Having the ability to sell insurance through an existing dealership network would give an auto maker a major advantage at the outset; however it is not clear to what extent such a move would shake up the market.” Toyota has also set its sights on the retail banking industry. ToMoCo has a bank in Poland and recently opened ZAO Toyota Bank in Moscow. In the U.S., Toyota Financial Services offers everything from mortgages to savings accounts from its offices in Henderson, NV. The juggernaut rolls on.

Our friends across the pond are in the midst of celebrating (or not) “European Mobility Week 2007.” This year’s theme: “Streets For People.” EurActiv reports that some 1600 cities are holding car-free events aimed at “reclaiming road space for pedestrians and cyclists… to cut congestion and pollution without reducing people's mobility.” If that sounds like something of a challenge, the European Union (EU) wants to “combat climate change, boost economic growth and improve European citizens' quality of life” while promoting “more sustainable modes of transport.” In an article entitled “Severing car dependency in EU cities 'very realistic’,” Copenhagen’s vice-mayor (and Mobility Week cheerleader) Klaus Bondam offers a practical solution: “buy goods that come from your local area, so you don't need all that transport.” So the politician promoting an anti-car week created by an organization that began life as the European Economic Community suggests reducing trade with member states to protect the global environment. Go figure.

"Hybrids are technologically of doubtful benefit, and expensive, but necessary from a political and public relations point of view. The reduction in fuel consumption does not pay for the technological content and cost of the vehicle." GM Car Czar Bob Lutz, July 19, 2006. Fast forward to today… "While the overall U.S. vehicle market is down, hybrids are a bright spot in the automotive industry with this category projected to easily exceed 300,000 vehicles this year." This from R.L. Polk's Lonnie Miller. Compared to the first seven months of 2006, hybrid sales are up more than 49 percent. "Hybrids are being adopted by vehicle buyers in all regions at an increasing rate for many factors which include fuel prices, differentiating themselves from other consumers and environmental activism," Miller announced in a PRNewswire press release. Overall, the Toyota Prius captured over 50 percent of hybrid sales, followed by the Camry hybrid at 15 percent. Looks like the technology Lutz claimed best suited the "what-would-Jesus-drive crowd" is here to stay. “Hybrids have not hit plateau,” Miller affirmed.

Top Gear (TG) presenter James May’s nickname is Captain Slow. As you’d expect from a country where sarcasm is a team sport, the moniker disses Mr. May’s driving skills. But the nickname could just as easily refer to May’s intellectual agility. Like automotive alpha Jeremy Clarkson, May is always happy to take an analytical shortcut, especially if it leads to some good old fashioned America bashing. Writing about his recent stateside sojourn in the Telegraph– "Eat Junk, Drive Junk"– May once again reveals that the U.S. and the UK are two nations separated by British snobbery.

As the Smart ForTwo prepares for its U.S. debut, its manufacturer is busy spinning their mini (not MINI) marvel to the U.S. press as the ultimate green machine. “America has never been more ready for a car like this,” Smart’s U.S. Prez David Schembri told CNN, after ticking off a list of issues including urban congestion, the cost of gas and general “economic concerns”. America maybe; the American media most definitely. After posing the obvious left-leaning question– “Can a culture that prides itself on big houses and jumbo sport-utility vehicles really fall for a car roughly the size of a golf cart?”– Lake accompanied Schembri for a spin in Smart’s SUV toe-jam through the mean streets of Manhattan. She pronounced the Smart “zippy” and, setting aside any pretense of journalistic objectivity, ejaculated “oh this fabulous.” All in all, Schembri would have to agree. 

According to the National Highway Traffic Safety Administration, most new cars contain data recorders. While the information captured by the box (speed, direction, etc.) could work in your favor after an accident, things could just as easily go the other way. The American Civil Liberties Union (ACLU) gets it, calling data recorders the “spy in your car.” According to the ACLU’s privacy director in Seattle, "It's my information not public information." Insurance companies and the police beg to differ. While that battle plays out, the public at large remains ignorant of their hidden homie. “Not one driver I interviewed knew they had a silent witness on board,” says KOMO TV reporter Michelle Esteban. As of 2011, automakers must notify car owners they’ve got a flight recorder on board. Be sure to check page 374 of your owner’s manual.

According to Italy’s DueMotori, converting cars to run on liquefied petroleum gas (LPG) is not only “for tree-hugging, penny pinching, slow driving, woolly jumper wearing motorists with a guilty conscience.” Drivers fortunate enough to be left off that list are advised to consider an LPG conversion package from the UK’s Future Power, which is “ideal for high performance cars and luxury vehicles.” On September 22nd, Future Power will be showing a 300hp LPG-powered Subaru WRX on “Rally Day” at the Castle Combe circuit in Wiltshire. Future Power’s managing director Malcolm Douglas is gassed about LPG’s potential. “It is now quite possible for the executive and the enthusiast to have their sporty car and also combat critics by running on LPG, making their cars much more environmentally friendly than many alternative petrol or diesel ‘city’ cars." Proof positive, if proof were needed, that the greens have pistonheads on the defensive.

Drive dutifully reports the results of a MINI-commissioned survey of 2,018 UK motorists on the subject of diesel cleanliness. Market-research agency YouGov (who me, Giv?) discovered that “diesel-powered cars are thought to be way behind hybrid models for cleanliness.” Those of you equipped with a functional PR BS-detector will immediately note the “thought to be” proviso and the vague “way behind” qualifier. You’ll also fail to be surprised when MINI’s UK brand manager Andy Hearn follows-up this startling factoid by revealing that his employer’s new, oil-burning model generates CO2 numbers that are “identical” to the Toyota Prius’. This despite the fact that “just three per cent believe a diesel vehicle could be considered a low source of carbon emissions.” On the subject of relative levels of particulate matter emanating from diesel and hybrid engined tailpipes, the survey and its PR lackey the Cambridge Evening News showed no interest whatsoever.

Carseek reports that Microsoft is forming a partnership with Siemens to develop a line of ICE (in-car entertainment) products. Their goal: improve connectivity between car music players and mobile phones by 2009. The market for such "infotainment” is currently valued at some $38b, rising to $54b by 2012. Microsoft and Siemens are hoping “to bridge the gap between the relatively rapid development cycles common in information and communications technology and the long ones that are the norm for automotive engineering.” Time will tell if the tortoise and the hair will be able to cooperate and reach the finish line together.

There may be trouble ahead for Australian car makers who don’t offer diesel-powered large cars. According to GoAuto, a Roy Morgan Research survey indicates that some 38.2 percent of current large car owners say they’ll “seriously consider” a diesel model for their next car. If all 38.2 percent of these large car owners purchase oil burners, GoAuto figures “Ford, Holden, Toyota and Mitsubishi could stand to lose more than 100,000 sales combined a year.” GM’s Holden division begs to differ. After pointing out how a diesel-powered car typically commands a price premium in excess of $1K, mouthpiece John Lindsay goes for the financial jugular. “They are interesting statistics, but I think there is a follow-up question that needs to be asked – how much are they prepared to pay for it?” With unleaded gas in Melbourne averaging AU$1.27 per liter, some Australians might consider Lindsay’s comments to be a bit shonky.