from what I read tonight an american dealer will be in big doo doo for selling to a canadian and risking his doo dealership. and second from what I read even if it is third party there will be NO warranty . dont believe it lol ? just say and I will go back and find it for you
Bombardier tells U.S. dealer to stop selling to Canucks
No more buying rec vehicles with hot loonie
Mon Oct 15 2007
By Aldo Santin
JOHN STENNES / FOR THE FREE PRESS
Ron Thompson says he wasn’t protected from Americans heading north to buy when the greenback was strong.
A Grand Forks snowmobile dealer said he's been ordered by Quebec-based Bombardier Recreational Products Inc. to stop selling snow machines, ATVs and watercraft to Canadians who are looking to take advantage of the rising value of the Canadian dollar.
Ron Thompson, owner of Gateway Sports in Grand Forks, said over the course of the past two weeks Bombardier -- which manufacturers the popular Ski-Doo and Sea-Doo vehicles -- ordered him to impose a surcharge to Canadians of several thousand dollars on sales, and ultimately to not make any sales at all.
"Canadians want to buy a Canadian product but I'm not allowed to sell it to them," Thompson said. "I had more than 35 calls from Canadians last week and another 10 calls this week," adding he had to turn those inquiries away.
Thompson said Canadians can save several thousands of dollars on the purchase of a snow machine. The Renegade X 800 model sells for $10,000 at his shop, he said, adding it would go for $13,000 to $14,000 in Winnipeg.
Thompson said Bombardier's standard policy had been for its dealers to impose a 7.5 per cent surcharge on all sales to Canadians. Then two weeks ago, Bombardier altered the surcharge fee to 7.5 per cent or $1,250, whichever is greater. Last week, Bombardier imposed a $3,000 surcharge on sales. And earlier this week, Thompson said a Bombardier representative told him not to sell to Canadians at all.
"They said it's to protect the Canadian dealers but when the Canadian dollar (was at 70 cents) and Americans were going north to make their purchases, nobody was protecting my interests," Thompson said.
Thompson said Bombardier will void the warranty on any craft purchased by a Canadian in the United States -- even if the purchase was initially made by an American -- and it has threatened to cancel dealership arrangements with dealers who sell to Canadians.
"I'm paying $5,000 a month interest on the inventory I have but I'm not allowed to sell to Canadians who are trying to save some money," Thompson said. "It's just not right."
Bombardier spokesman Pierre Pichette, vice-president of communications and public affairs, said the Quebec-based firm has always assigned geographic boundaries to its dealerships and financial penalties to enforce the terms of the agreements.
Pichette said dealers are not allowed to sell to citizens of another country, adding the policy is based on market analysis and ensures that dealers can not only sell but also service the products they sell.
Pichette said the penalty was repeatedly increased in the past two weeks to prevent American border dealers from buckling to pressure from Canadian customers.
"We've had to make adjustments (to the penalty) for today," Pichette said, adding in the past dealers had to get permission from the company before it sold a product to someone from outside its boundaries and a financial penalty was always imposed.
Pichette said the company policy also applies to Canadian dealers, adding they are not allowed to sell to Americans.