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Canadian pricing out... i am in tears

Canadian pricing is out:

http://ca.finance.yahoo.com/news/tesla-motors-announces-canadian-pricing...

$64,500for base 40kWh model, Model S with the 60 kWh battery pack and 85 kWh battery pack will start at $75,200 and $85,900 CAD respectively. Base will have heated seats and decor included.

I am floored, you can't imagine my deception level following that announcement. Truly have the impression of being screwed here. Huge mistake from Tesla.

GB is stating that they took a really straight forward approach: "Canadian base prices start with U.S. pricing, plus 6.1 percent for import duties and an additional 1.5 to 2 percent, depending upon the model, for incremental transportation costs and country specific business expenses. The total is then adjusted using the current mid-term currency exchange rate."

Sorry but I am very familiar with the matter and the 6.1% duty doesn't apply to cars built in the Canada-USA-Mexico as part of the Free-Trade-Agreement. Only applies to cars sold in the US for example coming from Japan. So it should have said 6.1% more margins..... And doing straigh math 65,400 - 57,400 is 14% more than the 57,400 US price. Unfair

Stopping here to dry my tears and calm down

Thank you, Brian. I have sent my letter to the PM and explained as best I can what many of us feel is an unjust taxation.

Hopefully an exception for electric vehicles can be made!

Josh, would you mind posting the contents of your letter here? The easier it is for people to write the PM, the more letters he will get, the more this helps our cause. Thanks.

Here's the letter I just sent to the PM:

------
Good morning sir,

I am writing to you this morning to address an issue which I feel needs attention. I am buying a new electric vehicle (Tesla Model S) from a company in the US (Tesla). The car is manufactured in the US at their facility in California.

Tesla has only recently released the Canadian pricing for this vehicle as it is brand new on the market (perhaps you've heard of it), and they have divulged that they must pay a 6.1% import duty when bringing the car to Canada even though the car is manufactured in the US. They have informed anxious customers that they must pay this duty given that the elements going INTO the manufacture of the car are less than 62.5% of US origin even though the final assembly (even the metal stamping) is all done in the US.

I know that other prospective Canadian Tesla customers have written to you to ask for this duty to be dropped when the car is manufactured in the US, especially when it is an electric car and the government is promoting incentives to buyers when it comes to electric cars.

I propose that these duties should not apply to cars manufactured in the US by a US company, particularly when it comes to electric cars (where a large percentage of the car's weight comes from the lithium ion batteries which are manufactured out of country, but intelligently assembled by Tesla in California). Can an exception be made specifically for these cars, or can we propose an amendment to the agreement governing these duties?

Please let me know if you need any further information from me, I and many prospective Canadian Tesla buyers feel very strongly about this issue.

Sincerely yours,
------

Robin, Even though I am not Canadian I have been following this thread. I think that you have a very well crafted letter.

I would advise those who want to write to your PM that you not just copy this word for word as this dilutes the impact. It then looks like a form letter which we as ordinary people tend to discount when reading it. But having said that Robin has done a great job of capturing the relevant points and you would do well following her example.

Sorry, I just have to clarify :)

My name is Rob actually (Robert).

I'm IN Montreal, hence the RobInMtl alias.

Not a great name... I know...

Rob, Sorry about that. At least you are not mad that I wasn't able to figure it out and realize that it can be misread.

My letter:

"Dear Mr. Harper,

I trust my email finds you well.

About two months ago my wife and I began considering the purchase of a
second vehicle. Our main goal was to purchase a vehicle with the highest
mileage; we are eager to reduce both our carbon footprint and our foreign
oil dependency.

We were therefore extremely disheartened to discover that the Tesla Model
S was recently declared an import and will be subject to a 6.1% duty:

1)
http://www.teslamotors.com/en_CA/forum/forums/canadian-pricing-out-i-am-...

2)
http://www.teslamotors.com/en_CA/about/press/releases/tesla-motors-annou...

Mr. Prime Minister, we are trying to do our duty to the environment and
purchase a vehicle which I hear has more than 90% of its components list
manufactured in California. (A jurisdiction which as you know should be
covered by NAFTA and hence not be subject to any duty.) Our family
understands that such duties are commonly put in place to protect Canadian
businesses from facing unfair competition from those based offshore.
Unfortunately one explanation I was given was that by weight the Tesla
Model S was only 55% North American. Given that a large part of this
vehicle's weight is located in the batteries, I can only assume this is
the reason why a 6.1% duty was levied.

Essentially, I would like to know why I am faced with a 6.1% duty when I
am not aware of any lithium battery manufacturers based in Canada. Who are
we protecting?

Your reply is much appreciated.

With regards,

Joshua and Christine Burstyn"

Josh, Just a point of clarification. The 62.5% is based on value and not weight. Don't ask me what value or how it is determined, I just know it is based upon value.

Thanks, Theresa.

I am hoping Mr. Harper reads all of our letters and might be able to reopen the ruling. In our case, the 6.1% represents a duty of apx $5900.00, making the $8500.00 Ontario rebate much less useful.

I am very disappointed that our government has not been more proactive and made it a priority to remove as many barriers as possible to electric vehicle adoption.

@RobinMtl - FYI you can change your forum name (maybe RobInMtl) anytime easily should you wish. I mis-typed mine first time and changed to my current (correct) name.

Josh, Just a point of clarification. The 62.5% is based on value and not weight.

Part cost value? Then 37.5% of the 40kWh version is battery and other non-Tesla electronics. 37.5% of $57 is $21k. $21k/40kWh = $534/kWh. Sounds about correct, battery + some other minor parts go over 37.5% of the car value. It's much worse for 60kWh and 85kWh versions.

josh;
I'd have dropped the bit about "foreign oil dependency". Not in Canada! We PROVIDE much of the foreign oil upon which the US is dependent, in fact.

LOL
;)

Hi Brian,

"I'd have dropped the bit about "foreign oil dependency". Not in Canada! We PROVIDE much of the foreign oil upon which the US is dependent, in fact."

You are correct that we do (via the tarsands) produce crude oil. I believe, however that all oil goes into a collective pool. (Not a literal pool of course.) To my understanding, regardless of whether we produce oil we draw upon global supply when we arrive at the pump. That would mean are still relying upon at least some measure of foreign oil.

In any case, I wrote and submitted the email, realizing my folly only after I hit "send". Oh well. :-)

The 6.1% represents a duty of apx $5900.00, making the $8500.00 Ontario rebate much less useful.

At least Ontario has rebate. Wonder if Alberta would consider offering a rebate ?? probably NOT :((
Oh well...

Ron_S,

Unless Alberta has changed since I was there last, there's no sales tax on anything. You're already getting a bargain.

Jewsh;
Wrong. Alberta and Sask., etc., have been producing and exporting since before a shovelful of oil sands was dug.

Reducing Cdn. usage might have slight effects on US imports, but is irrelevant to US import dependence. Which is soon (already in planning and strategic sense) to be history anyway. http://bentekenergy.com/CrudeAwakening.aspx

Has anyone else written to the PM?

I know everyone here is in love with the Model S. Maybe no one more than me.

I have spoken with Mr. B and unfortunately the car and its increased cost has pushed the purchase price beyond what my wife and I can afford.

In so saying, we withdrew our reservation. For now. Maybe in a couple of years I will own one.

But for now, I continue to own my awful honda civic.

I hope that everyone that gets their cars enjoys them. I test drove one the other week and I have never had a better drive. Ever.

Enjoy the cars! someday I too will join the ranks of Model S owners...Just not now.

@ RobertMTL

I wrote to the PM a couple of days ago

@ bortolottom

I am really sorry to hear this. I have to admit, after seeing the price annoucement, i couldn't help but think that Model S will not be as popular in Canada just because of the price point vs the US. Depending on the Supercharger option for 60kWh, the maintenance cost and the presence of a service center or not in MTL, i might cancel as well.

Guys,

Have you heard the news last night about our Prime minister signing deals with Asia/Pacific countries for less duty fees on environmental products.

Hopefully we can benefit from that momentum and have Model S exempted from the 6.1% duty.

Continue to write to the PM

pm@pm.gc.ca

George, if you are still reading this thread... I know Canada is only 5% of your target market right now, but Canadians are generally an environmentally friendly population who are open to change, and not as set in their (traditional) ways as some other populations. I think we are a great potential market for Teslas in general.

Please appeal to the various government bodies governing this 6.1% duty. It really makes no sense when you look at the purpose of environmentally friendly automobiles AND the fact that the Tesla is assembled almost 100% in the US.

Brian H - Thanks for the info.

I worry that our current federal government is not particularly focused on environmental performance. Seems like you are too!

pbrulott - Are there any details on "Environmental Products"?

Keep up the good fight,

-J.

I got back my deposit yesterday and cashed it today.
So long everyone. =(
The 10% increase was too much for me. I know about the 6.1% duty but really, with current currency rates (1$US = 0.973$CAN), this whole 10% increase does not make sense to me...

I'll keep watching for the upcoming Bluestar.

Canadian P39 has left the building.

@ jewsh, no details sorry

question to all, what is the cost of personal delivery for Canadian Model S? is it $950 like for the US deliveries, $950 + around 8-10% like for the car and options or more?

any insights?

@ pbrulott:

The prices listed are for north america, and should be the same as those in the USA (no markup).

+1 to AWESOME for the official announcement of a Montreal service center!

jeeps,

Where is the announcement of the official Montreal service center?

all,

Are Canadian prices changing to reflect the strong Canadian dollar?

For those of you who wrote to the PM, have you received any responses?

"Are Canadian prices changing to reflect the strong Canadian dollar?"

I would doubt this, if you look at all kinds of other retail products made in other countries, the prices aren't constantly adjusted based on exchange rates.

They might be changed over a longer period of time and a large difference in the exchange rate between when the product was introduced and now might be one of the factors in dropping or raising the price, but I haven't heard of manufacturer's constantaly adjusting MSRP's based on currencies.


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