Jul 30
Hey Doug… what about the Camry.. 9.63% Difference.
Serge just competed a study on the Toyota Camry XLE 2010. He identified a 9.63% difference. Take a look at this one!
camry-2010-xle-v6comparison-july-30-20091.pdf
We have to assume that once the dollar approaches par that many thousands of Canadians will head south… a par dollar would generate over 17% savings. Canadian Companies better start sharpening their pencils or maybe they will just pump more money into their lobbying fund to entice our “Consumer Supporting” (sic ) Polititians to put up more roadblocks for hard working Canadians.
If you can’t beat them, just change the rules of the game!
July 31st, 2009 at 4:16 pm
Hi Bob - as discussed it looks like Toyota would have used an $0.82 dollar when they did their Canadian pricing vs their US pricing. So if the dollar goes up to $0.92 - that’s about 13% increase and the US cars are 13% more attractive - if the dollar goes to $1.00 - 1 for 1 then the increase would be about 20% and the US cars would be 20% cheaper than the Canadian simply by way of the exchange rate.
Companies like Toyota cannot adjust the price quickly for price variations - they could but it would upset the whole Canadian market. Because as we know 1.6 million cars (or so) are sold and at worst only about 300,000 were imported - that represents way less than 20% - so the tactic is to scare Canadians and put up these barriers - devious - dishonest practices - but it still scares a lot of Canadians. On the other had if the Can. dollar goes to $0.75 or $0.70 then the Americans are looking up north to cash in.
So the Canadian dollar $ can fluctuate every day - but for cars - any benefit to Canadians is removed astutely by the big corporations. The same big corporations that often need hand-outs, incentives to stay in America and who’s CEO make millions - tens of millions and hundred of millions a year. Gosh some CEO’s make more than Tiger Woods himself.
AND they call this FREE TRADE - free for the companies.
Have a great show on Sunday.