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Consumers sue automakers over Canadian import restrictions

November 23, 2010
A lawsuit filed Feb. 20 charges DaimlerChrysler, General Motors, Ford, Honda, Toyota, the NADA, and the Canadian Automobile Dealers Association with breaking antitrust laws by conspiring to prevent Americans from buying cars imported from Canada. The suit, filed by a group of U.S. consumers, states that several automakers have stopped honoring warranties on Canadian cars resold in the U.S. The lawsuit, filed in San Francisco, says the industry illegally restricts competition by refusing to honor warranties on vehicles bought in Canada for use in the United States. The factories say they are losing out on more profitable U.S. sales when Americans buy cars intended for the Canadian market. Automakers set lower prices in Canada because consumers there have less money to spend than American buyers. The suit seeks class-action status on behalf of all consumers who bought cars at authorized U.S. dealerships. A similar suit was filed in Chicago.