Canada Should Match U.S. Fuel Rules Not Set Own Chrysler Says
Canada Should Match U.S. Fuel Rules, Not Set Own, Chrysler Says
By Hugo Miller
Feb. 15 (Bloomberg) — Canada should follow new,
“extremely aggressive;; auto fuel economy standards adopted by
the U.S., not set its own rules, the chief of Chrysler LLC;s
Canadian unit said.
For Canada, which “represents less than 2 percent of the
global automotive industry, to want to come up with its own
homemade environmental standards is simply going to result in
reduced selection and significant increases in costs,;; Reid
Bigland, president of Chrysler Canada, said in an interview in
Toronto yesterday.
The Canadian government said last month it will establish
rules by 2011 that cut auto emissions to a level that matches or
exceeds standards in the U.S., the market for more than 90
percent of Canadian vehicle exports. Automotive products account
for about a sixth of Canada;s foreign trade.
New U.S. standards require autos and light trucks to meet a
national average of 35 miles per gallon (6.7 liters per 100
kilometers) by 2020. Canadian Transport Minister Lawrence Cannon
said the government will determine its “made-in-Canada;;
benchmarks after a 60-day consultation period.
Chrysler, Jeep and Dodge sales in Canada climbed 5.5
percent to 232,688 in 2007, overtaking Ford Motor Co. as the No.
2 brand behind General Motors Corp. Closely held Chrysler, based
in Auburn Hills, Michigan, is the third-largest U.S. automaker,
behind GM and Ford.
Chrysler cut its Canadian prices in November. The move came
after the Canadian dollar rose to parity with the U.S. dollar in
October for the first time since 1976, making consumer
comparisons easier between higher Canadian-priced vehicles and
lower-priced U.S. models.
Reacting to Price
“Obviously the speed in reacting to the pricing helped;;
Chrysler move past Ford, among other reasons, Bigland said. The
new Dodge Journey crossover wagon is priced at C$19,900 in
Canada, identical to the U.S., he said.
“We;re going to price our products in the marketplace so
that they can sell. If that means bringing pricing down, that
means bringing pricing down,;; said Bigland. Further customer
discounts will come in incentives, he said.
Volkswagen AG, Europe;s largest automaker, said this week
it will cut retail prices on most of its 2008 models in Canada
to account for the stronger dollar, some by as much as 11
percent.
Chrysler;s Canadian unit is based in Windsor, Ontario.
To contact the reporter on this story:
Hugo Miller in Toronto on
