Cross at the border: Canadian shoppers steamed
Deborah Tetley , CanWest News Service
Published: Sunday, October 21, 2007
CALGARY -- Canadan shoppers bargain hunting south of the border for big-ticket items are seeing a growing number of roadblocks erected in front of them.
As the rising loonie makes shopping in America cheaper by the day, some dealers have been ordered not to do business with Canadians.
Calgary's Carla Abraham wasn't going to take no for an answer when she went shopping for a Honda minivan that was thousands cheaper in Montana. She got in just under the wire before Honda ordered sales to Canadians be shut down.
"If we were talking a $1,000 or $2,000 difference this would not be an issue," Abraham said. "But we're talking more than $9,000. Sorry, I am not that patriotic."
Canadian buyers aren't the only ones frustrated.
Ben Eisinger, owner of Eisinger Honda in Kalispell, Mont., says his manufacturer's abrupt decision last week to prohibit cross-border new-vehicle sales to Canadians will cost him tens of thousands of dollars.
"Honda has forgotten the most important element in all of this and that's the customer," said Eisinger, who says he has more than two dozen vehicles languishing on his lot ordered for Canadian buyers, mainly from Alberta.
But it's not only vehicle sales causing a stir.
It's also becoming increasingly difficult for shoppers north of the border to buy snowmobiles, watercraft and ATVs in the U.S.
Quebec-based Bombardier Recreational Products came under fire last week for its regional distribution policy prohibiting American dealers from selling their lower-priced products to Canadians.
In some cases the price difference is 40 per cent.
"It's turned into a very touchy situation for us," said Dean Lingelbach, owner of One-Way Marine and Motor Sports in Helena, Mont. who sells BRP vehicles.
"The prices for Canadians are outrageous, when you look at ours, but I understand the manufacturer not wanting to cut the throats of their dealers up north."
Indeed, protecting the interests of Canadian dealers who could lose customers to American dealers selling the same equipment is part of the motive behind BRP's move, officials say.
But Pierre Pichette, vice-president of communications and public affairs at BRP, said the policy is not meant as a slight against Canadians.
"We understand the frustrations and we want to be fair," said Pichette, adding the company is reviewing its policy.
"But we need to make sure we make the right move so we don't create a lot of turbulence for the market."
Consumers' Association of Canada president Bruce Cran noted the irony of Bombardier refusing sales to Canadians.
"Do they think we are a bunch of dupes that we are putting up with this stuff?" said Cran.
"Bombardier has been subsidized by Canadian taxpayers over a great many decades and now they will sell to Americans -- and only Americans -- for 40 per cent less? That's the reward we get?"
dtetley@theherald.canwest.com
Calgary Herald
© CanWest News Service 2007
