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Bombardier blocks sales to Canucks

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  #1  
Old 10-16-2007
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Default Bombardier blocks sales to Canucks

Bombardier blocks sales to Canucks

U.S. snowmobile dealer must refuse bargain hunters
BY ALDO SANTIN WINNIPEG FREE PRESS
WINNIPEG


A U.S. snowmobile dealer said he’s been ordered by Quebec-based Bombardier Recreational Products Inc. to stop selling snow machines, ATVs and watercraft to Canadians looking to take advantage of the surging loonie.


Ron Thompson, owner of Gateway Sports in Grand Forks, N.D., said over the past two weeks Bombardier — makers of the popular Ski-Doo and Sea-Doo vehicles — ordered him to impose a surcharge on 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 the customers away.


Thompson said Canadians can save several thousand dollars on the purchase of a snow machine by coming to the U.S.


The Renegade X 800 model sells for $10,000 at his shop, he said, adding it would go for $13,000 to $14,000 for shoppers 230 kilometres north 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.


Protecting dealers


“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 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 cannot 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),” Pichette said.


He said 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, explaining they are not allowed to sell to Americans.






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  #2  
Old 10-16-2007
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Default Bombardier blocks sales to Canucks

This just blew my mind!
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  #3  
Old 10-17-2007
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Default Bombardier blocks sales to Canucks

So is there any law saying a US citizen (not a dealer) can't sell DOO's to a canadian citizen??
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Old 10-17-2007
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Default Bombardier blocks sales to Canucks

Yes, you need a dealer's license to sell more than a specific amount of vehicle withing a year - different states have different limits- some are 5, some 10, etc.

At the auctions we've been SWAMPED with Canadian sales. 4 this week alone, plus a guy from ICELAND!
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Old 10-18-2007
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Default Bombardier blocks sales to Canucks

Yeah my buddy with the dealers license has said that, but what I'm saying is, would it be possible to let's say buy 6 or 8 DOO's, drag them across the border and dump them for say 500 over cost?? Not get too big of an interprise going, maybe just something on the side to pay for sled parts and trips out west??
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Old 10-20-2007
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Default Bombardier blocks sales to Canucks

sounds like a one way street to me. the canadians protect there dealer but piss on the us dealers. if I was a ski doo dealer I would be selling them to canadians. I would tell the canadian to make a us friend and use his mailing address for the sale. where there is a will there is a way. he is paying 5k a month on interest I would start sending statements to ski doo for the money since they are telling him he cant sell. sounds like a minnesota law for the gov to tell people how to run there buisness into the ground. but hey we all might be on social health care soon as well? mother #$%^@^'s
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Old 01-26-2009
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Originally Posted by PolarisRich View Post
Bombardier blocks sales to Canucks

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.
nothing but this to stop you
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