Did Ford gouge Canadian police forces for the Crown Vic?
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Ford slashes Crown Vic cruiser prices
FORD OF CANADA: Story detailed $7,500-plus price differential between police cars sold to Ontario, U.S. forces
By JONATHAN SHER, THE LONDON FREE PRESS
Weeks after The Free Press showed how Ford Canada padded profits on cruisers charged to Ontario police, the car maker has slashed its price, a difference that will save London taxpayers alone $160,000.
Ford Canada has long charged police in Ontario far more for Crown Victoria police cruisers than what American police pay, even though the vehicle is made near St. Thomas and is closer to domestic markets than to most U.S. customers.
The difference: Ford was selling its basic cruiser here for $31,167 while selling one loaded with all sorts of extras in Texas for the equivalent of $23,720 Cdn.
Then, after a Free Press story outlined the disparity, Ford Canada suddenly -- for the first time in decades, perhaps ever -- offered a $4,999 discount.
A Ford spokesperson wouldn't explain Friday why the company dropped the price, writing only, "Ford of Canada works to be competitive in the Canadian market."
But some London politicians have little doubt the newspaper story pressured the auto maker into doing the right thing.
"It probably put some heat on them. It would have definitely had an effect," Controller Bud Polhill said.
With London police set to order 32 cruisers this year, the discount will save the force about $160,000, Deputy Chief Ian Peer said. That savings might be used to buy four extra cruisers at discount rates this year so next year's order can be scaled back, he said.
But many other forces will not save because they ordered Crown Vics before Ford introduced the discount.
Each year police in Ontario buy about 900 Crown Victoria cruisers, said Scott Lindsay, director of material management with Peel Police and point- person for a consortium that tenders contracts for cruisers on behalf of all police in Ontario.
That means an $8,000-per-car markup would cost police in the province more than $7 million a year, money that otherwise could be used to hire dozens of police or to reduce costs and the burden on taxpayers.
"In the 20 years I've been doing this, the prices have always been tremendously better (in the United States)," Lindsay said.
During a decade, Ontario police may have paid tens of millions of dollars beyond what the vehicle sold in the U.S.
"That's a lot of money," Lindsay said.
Ford's discount was a first in Lindsay's experience.
He doesn't know if the Free Press article sparked the change -- but if it did, that's a good thing.
"I hope (the article) did put pressure on Ford Canada," he said.
http://www.lfpress.com/news/london/2010/03/29/13390936.html
********************
Ford slashes Crown Vic cruiser prices
FORD OF CANADA: Story detailed $7,500-plus price differential between police cars sold to Ontario, U.S. forces
By JONATHAN SHER, THE LONDON FREE PRESS
Weeks after The Free Press showed how Ford Canada padded profits on cruisers charged to Ontario police, the car maker has slashed its price, a difference that will save London taxpayers alone $160,000.
Ford Canada has long charged police in Ontario far more for Crown Victoria police cruisers than what American police pay, even though the vehicle is made near St. Thomas and is closer to domestic markets than to most U.S. customers.
The difference: Ford was selling its basic cruiser here for $31,167 while selling one loaded with all sorts of extras in Texas for the equivalent of $23,720 Cdn.
Then, after a Free Press story outlined the disparity, Ford Canada suddenly -- for the first time in decades, perhaps ever -- offered a $4,999 discount.
A Ford spokesperson wouldn't explain Friday why the company dropped the price, writing only, "Ford of Canada works to be competitive in the Canadian market."
But some London politicians have little doubt the newspaper story pressured the auto maker into doing the right thing.
"It probably put some heat on them. It would have definitely had an effect," Controller Bud Polhill said.
With London police set to order 32 cruisers this year, the discount will save the force about $160,000, Deputy Chief Ian Peer said. That savings might be used to buy four extra cruisers at discount rates this year so next year's order can be scaled back, he said.
But many other forces will not save because they ordered Crown Vics before Ford introduced the discount.
Each year police in Ontario buy about 900 Crown Victoria cruisers, said Scott Lindsay, director of material management with Peel Police and point- person for a consortium that tenders contracts for cruisers on behalf of all police in Ontario.
That means an $8,000-per-car markup would cost police in the province more than $7 million a year, money that otherwise could be used to hire dozens of police or to reduce costs and the burden on taxpayers.
"In the 20 years I've been doing this, the prices have always been tremendously better (in the United States)," Lindsay said.
During a decade, Ontario police may have paid tens of millions of dollars beyond what the vehicle sold in the U.S.
"That's a lot of money," Lindsay said.
Ford's discount was a first in Lindsay's experience.
He doesn't know if the Free Press article sparked the change -- but if it did, that's a good thing.
"I hope (the article) did put pressure on Ford Canada," he said.
http://www.lfpress.com/news/london/2010/03/29/13390936.html
