Wednesday, October 6, 2010

Transatlantic car prices

I was yesterday on the phone with my friend François Feuz from Switzerland and as it always does when boys are talking, the conversation went into cars. François had told me he was getting a new automobile and I happened to be interested in the same brand and model, albeit a slightly different version. I told him how expensive that car was in the USA and my friend was shocked and told me how much more money it was in Europe. I wasn't nearly I surprised because I knew the dichotomy well enough to say that, German cars in particular, are heavily subsidized in North America, because it's their largest market in the world and they can't afford to let their competitor steal market share. While the automobile in question wasn't made in Germany and was a good old Volvo made in Sweden, the situation was exactly the same.
 Click on image to enlarge
Today, I checked on the internet, and found out that the same car (even a little bit better in its US version, with a larger motor and some extra features,) is priced a whopping 85% cheaper here than it is in Switzerland. We Americans thought that the Chinese were the only one lending us a hand and lending us money; well, they're not alone in supporting our spending spree, the Europeans are paying through the nose for for their autos so America still can afford driving Audis, BMWs, Mercedes and Porsches!

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