Vitamin C pricing
Write Turns
Mar 27, 2008
I read with interest your article on the new Mercedes-Benz C-Class (Vitamin C, January 2008).

Some auto manufacturers suggest they have cut prices for new cars because of the strong Canadian dollar. I am disappointed to see that Mercedes-Benz still has a wide discrepancy between U.S. prices and Canadian ones. My search on the Internet suggests a $24,000 difference between the U.S. CLS 550 and the Canadian one.

Are you aware of any plan for Mercedes Benz to come more into line with their Canadian prices?

I very much appreciate your Canadian perspective as presented in your magazine.

Don Davis

via e-mail

* * *

We shared your concerns directly with Mercedes-Benz Canada. Here is their response:

“Thank you very much for your inquiry; we certainly appreciate your concerns.

“Mercedes-Benz has no plans to reduce MSRPs.

“Mercedes-Benz Canada has always been committed to being priced competitively in the Canadian market, as evidenced by the fact that over the last couple of years we have improved our value position significantly by further increasing the price-value relationship of our vehicles — by more than 10 per cent in many cases.

“We also have very competitive lease and finance rates and strong residuals, which are corroborated by the stream of record sales we have been experiencing month after month this year. Alternatively, we are now offering a subsidy to cash buyers as well, effective immediately and until further notice.

“Numerous factors and conditions invariably affect pricing all around the world. As a result, there are several markets where Mercedes-Benz products are sold at much higher retail prices than in Canada.

“The Euro has only slightly weakened against the Canadian dollar.

“A simple MSRP comparison is inaccurate at best; there are many tangible and intangible costs to importing and converting a non-compliant car in Canada.

“We recommend that you visit an authorized Mercedes-Benz dealership and speak to a sales consultant who can explain the significant benefits of buying or leasing a Mercedes-Benz vehicle in Canada.”

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