Original CTV story
TORONTO -- A lawsuit filed this week accuses two government agencies and two automakers of conspiring to drive up prices on some luxury cars imported into Canada.
Transport Canada and the Canada Border Services Agency are named, along with BMW Canada Inc., Mercedes-Benz Canada Inc. and Mercedes-Benz USA LLC in the court action, which is seeking more than $1 billion in damages.
Here's some background on how Mercedes Benz canada charge higher prices for the same cars that sell in the US for 30-50% less.
Mercedes Benz canada, actually have an arrangement with their parent company, (Daimler Chrysler Benz Germany) The german parent co, charges Mercedes Benz canada 30-40% more for the wholesale cost of the vehicle...
so mercedes benz canada buy a c300 from germany for CAD$32,000 and the MSRP in canada is CAD$41,000
mercedes benz USA buy the identical vehicle from germany for US$18,000 and MSRP it for US$32,000
so basically the extra money that MB is making on the canadian car goes back to germany, where Mercedes Benz gets all kinds of tax breaks and incentives...MB Canada reports a smaller profit and the canadian buyer gets stung for an extra $9,000 on the BASE cost.
it's criminal conspiracy tax evasion in canada, because MB Germany are inflating the cost to shift revenue back to germany, and MB Canadas measures to block US imports are conspiracy to fix pricing and prevent competition, What the hell is going on Canada, what happened to NAFTA?
Mercedes Benz Canadas statement on pricing discrepancy with the US: "We dont compete with other markets, we compete in the Canadian market"