Cars made and sold in Canada are more Expensive

Traditionally Canada was the low-cost alternative to making cars in the U.S. U.S. automakers saved about $6/hour per worker by manufacturing cars in Canada.

The recent strength of the Canadian dollar has now made Canada one of the most expensive places to build cars and trucks.

With 1.8 million vehicles being made in Canada annually, the savings really added up. Ontario is currently the largest state/provincial automobile producer in North America but is forecasted to lose more than 600,000 units of production capacity by 2012.

The other market effect has been the pricing problems with cars in Canada and the USA. The price gaps between the USA and Canada has been about $1000 per car but the Canadian dollar rise has created a gap of between $2000 and 10,000 in some vehicles making USA shopping more favourable.

For additional info go to the Desrosiers Canadian - USA Pricing Observations

http://www.desrosiers.ca/2007%20Update/Documents%20and%20Reports/2007%20OBS/Obs%202007-9%20Canadian%20-%20U.S.%20Vehicle%20Pricing.pdf

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Cars in Canada Blog URL
http://cars-in-canada.blogspot.com/


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