Canadian tariffs

[Doneworking]

With PleasureWay, Roadtrek and perhaps others being Canadian products, the 25% tariffs could be quite a factor in buying a new one wouldn't you think?

 

[pringle410]

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[mumkin]

With PleasureWay, Roadtrek and perhaps others being Canadian products, the 25% tariffs could be quite a factor in buying a new one wouldn't you think?

If you consider that the Promasters are built in Mexico, there would already be a 25% bump on the platform... and then another 25% bump when it crosses the border from Canada to the US.

Of course, all is now on hold while the stupidity of it all is pondered...

 

[booster]

If you consider that the Promasters are built in Mexico, there would already be a 25% bump on the platform... and then another 25% bump when it crosses the border from Canada to the US.

Of course, all is now on hold while the stupidity of it all is pondered...

I am not a tariff guru by any stretch of the imagination, but I think if somebody like Roadtrek was buying a US spec promaster direct from Mexico or if a dealer in Canada was buying it, my guess is that there would be ship through to Canada type waiver for the tariff as it would not be staying in the US until it came back and got the tariff on the entire finished cost of the completed van. Just like if it went by boat direct to Canada.

 

[mumkin]

The American platforms have to be purchased from a US based Ram dealer. I know that American Promaster platforms are purchased from Beaver Motors in PA by Roadtrek.

Way back when Dodge was Mercedes owned, it and they were selling Sprinters, both Pleasureway and Great West were getting their platforms from the Dodge dealer in Minot, ND.

I don't know about where the manufacturers in Canada are getting their platforms. They are very likely to be shipped from Mexico directly to Canada, and then to some Canadian Ram dealer.

I can only hope that these tariffs never go into effect because it will be a total nightmare for manufacturers, dealers, and us customers who will be stuck with paying them.

 

[RobRyan]

Could be they may sell Ducato's in Canada. A European free trade deal with Canada considering the circumstances now. They cannot be sold in the US, unless the current administration changes the US Emissions policy

 

[RobRyan]

What I forgot to write in the above post, these tariffs will have a severe impact on the North American Automotive Industries, something that should have been avoided

 

[Sensfan-ClassB]

Agreed. It is logical to conclude that if such tariffs are activated, they should be named “North American”, not
“Canadian".

 

[mumkin]

Could be they may sell Ducato's in Canada. A European free trade deal with Canada considering the circumstances now. They cannot be sold in the US, unless the current administration changes the US Emissions policy

No, they use the same Promasters... likely from the same Mexican factory. The only question I would have is whether they are shipped directly to Canada or if they pass through the US dealer.

Tariffs are ridiculous at this point... merely a tax on the citizens that isn't called a tax. Never expect logic and knowledge to enter into any decisions made concerning the effects of these tariffs due to the limited knowledge by those creating them... especially as relates to the auto/RV business.

 

[RobRyan]

Being Canada directly from Mexico, shipping through a 3rd Party in the US then and now, would not be a good idea. As fas as Tariffs yes impact could be severe

 

[Sensfan-ClassB]

Being Canada directly from Mexico, shipping through a 3rd Party in the US then and now, would not be a good idea. As fas as Tariffs yes impact could be severe

Severe enough to scare off a significant percentage of potential American buyers, who make up about 80% of the market for Canadian camper van manufacturers. If taxes/tariffs are imposed on potential American buyers, Canadian manufacturers will need to pivot by restructuring their operations to discover and connect with alternative markets.

 

[mumkin]

What alternative markets? Their only options are CA and the US... perhaps a limited market in MX. Europe already has a lot of converters making great RVs for much cheaper. As does Australia...

 

[Sensfan-ClassB]

From a short term perspective, everyone agrees that there are limited options for Canadian camper van manufacturers. IMHO, however, novel medium and long term business collaborations will appear to replace the outgoing present day arrangement.
Only time will tell

 

[RobRyan]

"
From a short term perspective, everyone agrees that there are limited options for Canadian camper van manufacturers. IMHO, however, novel medium and long term business collaborations will appear to replace the outgoing present day arrangement.
Only time will tell"
An interesting thing is these tariffs will bring down the Canadian, making the Class B's as cheap or cheaper than before

 

[RobRyan]

What alternative markets? Their only options are CA and the US... perhaps a limited market in MX. Europe already has a lot of converters making great RVs for much cheaper. As does Australia...

Yes Australia has probably more Class B manufacturers and converters than the US and Canada conbined

 

[GeorgeRad]

Yes Australia has probably more Class B manufacturers and converters than the US and Canada conbined

Is Westfalia selling in Australia?

 

[RobRyan]

Is Westfalia selling in Australia?

No Jayco does Crafter conversions that can be purchased from VW Showrooms( see my Promaster versus Transit thread) also Trakka does many VW Conversions on different VW Van platforms Trakka

 

[Sensfan-ClassB]

What alternative markets? Their only options are CA and the US... perhaps a limited market in MX. Europe already has a lot of converters making great RVs for much cheaper. As does Australia...

Que será, será ... Whatever will be, will be.

The change from what is to "whatever will be” has begun for the Canadian RV market, in both sales and purchases. Most dealers at a last weekend Canadian RV Show indicated that they plan to cancel all American-made orders, if threatened tariffs proceed. That would represent more than two-thirds of all units manufactured for the Canadian market. The primary reason given was the anticipated revolt of customers. This would remove 12 per cent of sales from American manufactures.
Canadians are ready to pay more to buy Canadian made RV’s.

 

[mumkin]

The change from what is to "whatever will be” has begun for the Canadian RV market, in both sales and purchases. Most dealers at a last weekend Canadian RV Show indicated that they plan to cancel all American-made orders, if threatened tariffs proceed. That would represent more than two-thirds of all units manufactured for the Canadian market. The primary reason given was the anticipated revolt of customers. This would remove 12 per cent of sales from American manufactures.
Canadians are ready to pay more to buy Canadian made RV’s.

Canadians have always been paying more than the US customers for the Canada builds like Roadtrek, Pleasureway, and LTV. Cancelling all the American builds means they are left with basically these 3 plus a few smaller converters. The good news is that they are left with the consistently better quality products... and needn't bother with Thor, etc. lol

This won't bother the dealers as much, but could be a catastrophe for the companies converting the rigs. The US is their main market by far.

Let's hope that common sense prevails, but I fear that is in limited supply in Washington DC.

 

[RobRyan]

Unfortunately it appears common sense is not too freely available. Problem is the current Canadian manufacturers are seeing their customer base erode. Still if the Canadian dollar drops it will mitigate the effect of any tariffs to the US consumer. On the other hand US RV manufacturers will find difficulties selling in Canada.