[sandecker]

All I want to know is, where do I sign up for the class action!!??

Ottawa sued over car import rulesGREG KEENAN


00:00 EST Thursday, February 28, 2008

Two vehicle leasing companies have launched a class-action lawsuit on cross-border vehicle shopping with a new twist, alleging Transport Canada and the Canada Border Services Agency were participants in a conspiracy to keep vehicle prices high.

The two arms of the government have been named along with BMW Canada Inc., Mercedes-Benz Canada Inc. and Mercedes-Benz USA LLC in a lawsuit that alleges actions they required of people or companies trying to import U.S. vehicles into Canada reduced competition and enabled prices of vehicles sold here to be 20 per cent to 35 per cent higher than similar U.S. models.

The auto makers, Transport Canada and the CBSA imposed restrictions on vehicle importers that created additional fees and charges, said a statement of claim filed with the Ontario Superior Court.

Fournier Leasing Co. Ltd. and Canadian Auto Associates Ltd. are seeking damages that total in excess of $1-billion.

"These additional charges, fees procedures and restrictions prevent more competitively priced Mercedes vehicles from entering into the Canadian market, thereby enabling the Mercedes defendants to charge higher prices for new vehicles sold and leased by them in Canada," the statement said.

For Mercedes and BMW, "these additional fees and charges are not payable under Canadian law," the lawsuit said.

The charges have not been proven in court and none of the defendants in the lawsuit has filed a statement of defence.

JoAnne Caza, a spokeswoman for Mercedes-Benz Canada, would not comment. BMW Canada spokeswoman Stacy Morris said the auto maker was not aware that any such lawsuit has been filed.

The two luxury auto makers were among the first companies to offer cash incentives in Canada last fall when the Canadian dollar hit par against the U.S. currency. The rise of the loonie enabled Canadians to potentially save tens of thousands of dollars in the U.S. on such luxury vehicles as those sold by BMW and Mercedes Benz.

Luxury vehicles are believed to represent the bulk of the record 189,738 vehicles imported into Canada last year.

Transport Canada is named in the suit because of its role in certifying vehicles imported into Canada through the Registrar of Imported Vehicles program, which maintains a list of vehicles allowed to be imported and outlines the modifications necessary to make sure vehicles comply with Canadian regulations.

Among the requirements is one that importers provide proof to the CBSA that any repairs required under recalls have actually been made.

The auto makers forced importers to pay "artificially high fees and charges" for information about recalls, the lawsuit alleges.

BMW Canada's website says importers require a letter of admissibility from the company that costs $350. The fee for a letter saying the vehicle has been repaired under any recall orders is $500.

"There is a process. The law is quite clear that if you follow that process, you're entitled to import a vehicle into Canada," said Brian Osler, one of the lawyers for the two leasing companies.

© The Globe and Mail

[Nikos335i]

Don't know but good for them! And good for us in the long run!!!

Might entice me to start looking into that 530xi if it’s positive

[seifufu]

Good.... it's about time somebody stands up to this sh*t from BMW!!!

[DJ 83]

I saw this comming! I'm surprised no one sued sooner.

-D.J.

[CaptChaos]

Good stuff!

[inTgr8r]

Saw the same thing in "Report on Business"
- about time, is right

[Rossland]

It's about time!!

[Marven]

I'll watching this one as well..BMW is dictating to the Fed Gov't what needs to be done to make the vehicle admissible when it should be the other way around...if BMW didnt make such good cars I would never buy bimmer again!

[Zender]

Finally... sheesh how do I get in on a class action lawsuit!

[shiggy]

FREAKEN EH!!....by the time my 3 yr lease is up....maybe i can afford to get into an M3!!!!!

[JohnnyK]

Hey guys great discussion.

I am a victim of these two bed partners.
When I was buying my 07, 328xi I tried to negotiate with my dealer but he started doing all these stupid lease/buy calculations and offering a pathetic rebate 2K.
I did all my homework regarding importing and keeping an eye on the Gov of Canada RIV site to make sure it was all good and then went ahead and purchased the car in the US (10K-12K cheaper).
While my car was being transported to Canada, BMW Canada with the cooperation of RIV changed the rules over night. Stating that you had to have these two letters mentioned above, totaling $850 plus 14% tax. ...but it gets better....
On top of that they would not give me the second letter unless I agreed to allow them change the instrument cluster and reprogram at a cost of $1400.00 plus 14% Tax. They described it as "Canadianizing the Car"

When I asked them if I would have had to pay for these things if my car had come across the boarder before the change the rules.... there answer was... you guessed it.... No...

Nice eh!!!

Keep up the good fight

[raf]

Me too. I ordered a 335i and will be getting delivery at the end of the month. As a dual citizen I could easily have bought a car in the states, but decided it wasn't worth the (albeit, manufactured) hassle, although I did have some interesting conversations with my sales guy and his sales manager. I also think its important for Canadians to buy locally whenever possible, but BMW Canada's actions and attitude have really turned me off. I am buying the car in spite of them, not because of any perceived value they bring to the table.

Creating false barriers to the competition is not sustainable in the long run.

[Asclepius]

Hmmmmm.... you guys think who ever has imported their car and has had to pay these rediculous fees for the letters and mods will recieve some kind of rebate once/if the law suit falls through? I have no idea how these legal precedings will affect the importers themselves so if anyone can shed some light that would be awsome. Thanks in advance.

[kalch]

my friend called the law firm and is now part of the class action

[seifufu]

so all you have to do is call to become a part of it? or is there some other conditions?

[davig]

It's nice to see RIV named. They are totally complicit in this attempt to artificially boost prices.

[Williewinky]

Perhaps Transport Canada should request our boarder be closed to all American plated vehicles being driven to Canada by American tourists since their cars are obviously unsafe and our wives and kids are being put at risk driving on the same roads!!!

What a joke and total rip-off -- I can't wait to see the fall out from this lawsuit.