Dec 04
Subaru Puts up the Wall! “X” marks the spot!
We thought it was going to be a slow news day, but we are totally amazed with the public support we are receiving from all across North America. On behalf of our team thank-you all for your kind letters and calls of support!
“X” marks the spot!
December 4th, 2007 at 8:30 pm
Consumers should avoid Subarus. Just don’t buy them in Canada or the USA and let Subaru know you intend to do that.
Buy a from a company that is more responsive to consumer needs. Subaru will get the meassge that fighting with their clients is a losing game for them.
December 4th, 2007 at 8:46 pm
I Agree with the above post. Any company going out of their way to fight with their clients does not deserve their business. I for one will not ever buy a subaru.
December 4th, 2007 at 9:19 pm
As bad as this is, Toyota is much worse. They flat out ordered their US dealers not to sell to Canadians. Despicable, despicable behaviour.
December 4th, 2007 at 9:21 pm
My worry is that other manufacturers will follow suit, and while there are definite advantages to purchasing late-model or pre-owned vehicles in the US, these types of directives fly in the face of NAFTA. I will be participating in the consultation call tomorrow and hope that this topic is brought up, or at the very least can be discussed at a later date. Another nail in the coffin…
December 4th, 2007 at 10:52 pm
I am in the market for a 2008 Subaru WRX STI. I recently sold my 2005 STI and have found myself in a position to purchase a 2008. I have been absolutely disgusted with the tactics SoC and SoA are employing to deter US car sales to Canadians. The current 2007 WRX STI retails in Canada for $48,995 USD, while the exact same model (excluding heated mirrors/seats) retails for $33,495 USD. I’ve estimated that after import fees and taxes, the difference in price could be upwards of $12,000 CDN. The 2008 WRX STI retails for around $39,000 USD and the Subaru enthusiasts have been hearing rumours that Subaru of Canada might announce pricing at around $43,995-$45,995. Once again, the only difference between the US and Canadian model is that the Canadian model gets heated seats and mirrors; though the US model has fog lights, whereas the Canadian model does not.
This pricing disparity by Subaru needs to be addressed, whether through cash-back incentives or an overall price drop on 2008s. I appreciate Subaru of Canada’s situation with leased cars and profit margins, but they have only themselves to blame for setting ridiculous pricing.
I really hope the proposed TC amendment passes as-is because if Subaru of Canada doesn’t equalize pricing, my business will be going south. I’m sure I’ll be able to find a dealership willing to sell to me. I would prefer to buy my car in Canada but that would require Subaru of Canada to “do the right thing” and fix their price gaps. Unfortunately, judging by this letter, they have very little intention of playing fairly.
I wonder if this practice could be considered illegal, according to US state laws, as per that class action lawsuit that was in the news a while back.
December 4th, 2007 at 10:54 pm
(correction to the above post)
$48,995 USD should be $48,995 CDN. Sorry.
December 5th, 2007 at 8:01 am
It’s a terrible state of affairs. I understand that Subaru of America needs to measure the performance of a dealership against its pre-defined geographical areas of interest, so I suppose I also understand that a sale into Canada should not necessarily be counted towards a dealership’s sales quota etc. — that, I believe, is SOA’s right.
What I find strange about the letter is that it says such sales are discouraged, and that they require SOA’s express written permission. I have a problem with this part of the letter — “discouraged” is a fairly mild word, so why then is express written permission required. It’s a mixed message, and although I’m not an expert in the subject, I think the “express written permission” part flies in the face of NAFTA. Why does a dealer need SOA’s express written permission to sell a car to a Canadian? Is SOA more powerful and more knowing than NAFTA?
I think there’s a growing number of interested parties here who are setting themselves up for a class action lawsuit. Just my opinion, and like I say, I’m no expert.
December 5th, 2007 at 8:28 am
I completely agree with Joel’s last comment. SOA and SOC do not appear to be interested in playing fairly. First we get hit with SOC’s crazy “inadmissible” letter to TC, then we get hit with SOA’s letter to their US dealers. It’s pathetic that a company which Subaru owners hold in such high esteem have now stooped to such questionable tactics. Also, what’s the connection between SOC and SOA — why do SOA care if their vehicles are sold to Canadian customers? The vast majority of such sales were not going to made by SOC anyway because of their compleyely crazy pricing strategy, so this is all “upside” business for SOA, most of which they barely had to work for. Most businesses cannot believe their luck when this kind of opportunity to be handed to them on a plate.
It really is a crazy situation that I for one find almost impossible to understand. The guys who run these companies are supposed to be really smart business men and women — why then do they appear to be completely blind sided by basic logic, and why do they appear to position themselves such that NAFTA rules exist for everybody else other than them?
December 5th, 2007 at 10:22 am
Perhaps we should all purchase vehicles in Mexico!!!!
December 5th, 2007 at 11:42 am
My family has had 8 (or 9) Subarus in total. I’ve been very loyal to this brand and haven’t really considered anything else. I’m currently in the market for a new car. I can’t really justify buying a vehicle in Canada when the prices are so high. I’ve held off on my purchase to see how this all plays out. However, I have been in contact with a dealer in the States and the car I want is available.
If SoA doesn’t want my money however, maybe I’ll look at a different brand. Honda/Acura has 0.9% financing on all their models, unlike Subaru, who only offers this on the Forester.
December 5th, 2007 at 11:33 pm
My brother just bought a new SUV. He absolutely loved the Tribeca, it was the best of the lot he looked at. The problem was the price. Then I showed him the difference between the Canadian and US car, that really put him off Subaru. He bought from a different manufacturer.
Subaru is losing their loyal supporters with these anti import tactics. Guess what Subaru, the vast majority of those importing, would not buy the Canadian car anyway with the current pricing! Your not losing sales, THEY NEVER EXISTED. Live with the imports, perhaps we will visit for service and accessories, then buy our next Subaru from you after you wise up.
The cars are great, to bad the management isn’t.
I’m also looking at the new STi. Lower the MSRP, give us cash back, some negotiation room and I’ll order one right away. Otherwise… see ya!
And why is the freight charge that gets added to MSRP double that of the US? Sheesh.
December 5th, 2007 at 11:40 pm
I suspect that SoA letter came about at the request of SoC.
December 11th, 2007 at 1:21 am
Could someone tell me where I can find SOC’s “inadmissible” letter to TC?