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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

Not surprised to see responses from gov't officials that are full of talking points and spin.

Stark, I, too wrote a letter to Mike Wallace. Here is the brief response I received just a couple of days ago:

Thank you for your e-mail. After discussing the issue with the Caucus Liaison Officer in the Finance Minister’s office, he has suggested that, due to the technical aspect of import duties, the Department officials in this area should respond to you. I am therefore forwarding your correspondence to them.
Sincerely,
Mike Wallace

I guess that is why this was followed a few days later with the same letter listed elsewhere on this thread from Mr. Fast.

Yes, the 6.1% is $3593. So hardly a deal-breaker on its own.

Cathy, you got a nicer response than I did:

Thank you for your e-mail. Due to the technical nature of duties, I am forwarding it to the Department of Finance for a response.

Mike Wallace

Hopefully something can be done. Brian H, I know in the grand scheme of things it isn't that much, it's the principle that is bugging me personally. We already get taxed to death up here. Us in Ontario will also be paying 13% Goods and Services Tax (GST). So throwing another 6.1% on top of that for something that should really fall under "free trade" irks me. Of course, maybe I'm just cheap! On a sunnier note, I'm meeting with a solar company tonight to plan my solar install which will take advantage of feed in tariffs offered by the government.

Perhaps a GST exemption for north american made (over 50% parts content, assembled in NA) plug ins would be make a good piece of legislation... It would be a tax relief and encouragement of North American manufacturers so I see no reason why a centre-right guy like PM Harper would not like it. If he took the lead on this no way NDP and Liberals could say no on a green issue like this, a real political winner. PC's seem to have more sense then their cousins to the south who lost the election miserably by not learning from Reagan or Clinton and failing to win the centre by practical smart moves like what I am suggesting. However if proposed by opposition it might die as the Left might have other programmes it wants to protect more than a common sense measure that boosts jobs AND the environment.

Any updates about this? I am looking at all the 3 models, and each of them have the 6.1% duty. If the Canadian government is being difficult about the current battery, I can appreciate Tesla's pricing position. My question is, is Tesla going to do something about it to make the battery "US manufactured". Or at least enough to bypass this stupid duty. Or are we Canadians too "small fry" for them to care about this market?

One would argue that for someone spending 100K on a car, what's another 6K? You'd be surprised how many of us don't want to make the leap just purely out of principal of not getting robbed by the government.

@pasan
Sorry to jump in this thread. I have no dog in this fight but I was curious if this is another example of rules and laws that never envisioned EVs when they were created. For example, the "turn off engine" rule when driving through some military check points.

My observation is this, what if you bought a $50K ICE vehicle for Canadian use that was 100% American made but included a $20K lifetime supply of (probably foreign) gasoline? Would that affect the 6.1% tax calculation? Does that make that car 60% American made?

Some could argue that the battery is not equivalent to a gas tank and it is actually an energy source, like gas. It is a stretch, I know, but it is still not fair to treat the battery as equivalent to a gas tank. So the truth may lie somewhere in between.

The other point I was wondering is, who decides what percentage of the car is American made? Google to the rescue. It seems to me that Canadians might indeed have a bone to pick with us in the US, because it seems that we are the ones deciding what percentage of the car is US/Canadian made, according to Part 583 of the American Automobile Labeling Act (AALA): http://www.nhtsa.gov/Laws+&+Regulations/Part+583+American+Automobile+Lab...

Here is another one for a lawyer to chew on. The AALA states that the content is measured by value. It also states that "when optional equipment is offered for vehicles within the carline, the vehicle manufacturer estimates the installation rates for that equipment." The battery is an "option", right? I mean, the only battery that was "included" in the base model was the 40kwh battery. All the other sizes are optional upgrades. Therefore, can the extra $10K or $20K be computed as an installation rate and part of the American content of the vehicle? Even though the 40kwh model is not currently offered for sale, it is still part of the Model S carline.

By the way, Tesla is not even listed in the 2013 or 2014 AALA reports.

Just curious. Happy motoring.

@PorfirioR. Thank you - these are all great points.

Will follow up and see if something can be done about this. I suggest the other readers to do the same.

I am in tears as well. Why is the tesla I would like to buy is like 20K plus than the exact car in the USA.

Not NAFTA-qualified. Yet. When the battery giga-factory gets going, assuming it's in NA, that should change.

have a look at UK pricing (noting that 1GBP = 1.64USD) and tell me who should be crying... we Brits and other Europeans are really paying up for the privilege of driving the S!

I bought a tesla in Canada - and I felt the price was very fair relative to the USA. The price advertised in the USA is after the reduction from electric vehicle incentives ($7500) whereas the price advertised in Canada does not have the incentives deducted. Also when you look at exchange rate, etc. it is even more fair now.

The price is higher a bit compare to US models but Tesla made some compensation as Leather seats was standard when the time I placed the order on all models. Never seen one with textile in Canada.

You need compare to other Canadian auto pricing not Tesla US. Just an example, the Avalon is about $5k less in the US.

I have one with textile in Toronto. It's just personal but I'm not fond of the feel of leather. Honestly I find the look of Tesla's textile seats much more attractive than most others manufactures.

Anyone who has fully deconstructed non-US prices has found that TM is keeping their promise to hold prices stable and add only taxes, duty, and shipping.


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