Canadian Price Increased

[VanCityMike]

Also remember that 4.5% difference is peanuts. It costs a whole lot more money to do business in Canada vs the US. A service center in Canada vs a US location costs way, way more for wages, electricity, water, rent, insurance ect...ect... and also divided by a lower volume of vehicles to boot.

Are you sure on that? Can you define "way, way more" in some meaningful way?

Regional differences likely cause far more variability than Canada to USA.

What are the wage differences in Canada vs USA for similar roles? Adjusted for currency exchange of course.

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[SANZC02]

Are you sure on that? Can you define "way, way more" in some meaningful way?

Regional differences likely cause far more variability than Canada to USA.

What are the wage differences in Canada vs USA for similar roles? Adjusted for currency exchange of course.

I would be curious as well. I would be surprised if the cost in Canada are that different than California with adjusted currency rates.

 

[M3_R2]

Listings on Rivian Roamer are not inventory. A listing on Rivian Roamer (and Rivian.com) is just saying that given configuration is available for purchase. There may be 0 vehicles behind it, there may be 1,000.

I had cross checked them against the Rivian site and they were all accurate. Maybe an anomaly, not sure but that's what I was seeing so am presuming the new ones are accurate as well. I'll check further tonight but really, it doesn't matter much. If you want one, you will pay the price or you will pass. Good on anyone that picked one up before the price increase but at an already high base price, additional increases really add up.

The pricing before this increase was already taking cost of business in Canada into account.

 

[sub]

The pricing before this increase was already taking cost of business in Canada into account.

Or the pricing before the increase was taking into account how much they expected it to cost business in Canada and they updated the price because they realized it was falling short of the actual cost.

 

[VanCityMike]

THE PRICING Is right in line and fair. Our exchange rate as of today is a 1.435. They're adding in 6.5 basis points, or about 4.5% "buffer". They just can't change list prices over and over again so they set a price for the year to cover their @sses and if the exchange rate goes the other way in our favor then they can always offer discount promos.
Also remember that 4.5% difference is peanuts. It costs a whole lot more money to do business in Canada vs the US. A service center in Canada vs a US location costs way, way more for wages, electricity, water, rent, insurance ect...ect... and also divided by a lower volume of vehicles to boot.
Fortunately I snuck in just on time and was waiting for around a month for a blue colored R1S with max battery to come into the inventory queue. Got the old $10k cheaper pricing and the $4300 promo on the max pack. It landed from the factory on Mon and I literally pick it up tomorrow morning

Ford pricing doesn't follow this logic. The F-150 is not made in Canada, the XLT and Lariat trims sell for less in Canada than the equivalent truck in the USA accounting for currency.

 

[MountainBikeDude]

I do wonder why they upped the price so much... is their CFO really forecasting our CDN $ to be that weak?!

To be fair to Rivian, their prices didn't fluctuate with the exchange rate, and were typically on par CAD/USD within a few hundred dollars. It's difficult to do business in other markets because your costs are typically in one currency, but you're trying to sell in another.

 

[VanCityMike]

To be fair to Rivian, their prices didn't fluctuate with the exchange rate, and were typically on par CAD/USD within a few hundred dollars. It's difficult to do business in other markets because your costs are typically in one currency, but you're trying to sell in another.

Rivian isn't unique in the auto industry though.

 

[SANZC02]

Ford pricing doesn't follow this logic. The F-150 is not made in Canada, the XLT and Lariat trims sell for less in Canada than the equivalent truck in the USA accounting for currency.

It depends on when they set the prices. That is part of the pricing matrix and why companies include items in their earnings reports covering positive or negative values based on exchange rates.

If they set the prices when the exchange rate was 1.29 you see the lower price, if the exchange rate dropped to 1.20 it would look like they were over charging. They do not change pricing daily based on exchange rates. They also could be off setting the exchange by balancing what is made in Canada coming to the US and what is made in the US going to Canada.

 

[M3_R2]

I've double checked and the Rivian Roamer and Rivian site prices are identical for a few samples I took.

A top of the line Macan Turbo Electric is only $140k up here for comparison. Quite different vehicles but I think I'd much rather have that at $140k than an R1S TRI for $173,900 (less Q1 discount).

Further comparison:

An Ioniq 5 N series is $81k CAD vs $66.1k in the USA. Maybe not a good choice due to tariffs but $66.1k USD = almost $95k CAD!!! So it's a steal in Canada by comparison. That's the reality.

Rivian's offerings prior to the price hike became pretty lame up here since the price hike was advertised and suddenly there are more options right after? That's a little underhanded in my books. So even it you took advantage and tried to buy something, you were left with (mostly) poor choices and V1 tonneau covers.

I can only imagine that Rivian doesn't want to get into frequent price changes so have built in some buffer zone at the expense of current consumers. All perfectly fine but the reality is that the new prices will surely be a death knell for CDN sales. It would probably have been better to just close up shop entirely up here. Compared to other manufactures, there's no value now in Rivian whatsoever in Canada.

 

[MountainBikeDude]

Rivian isn't unique in the auto industry though.

No, of course not. I was just pointing to some of the challenges with pricing between exclusively manufacturing in the US, and transporting and selling the vehicle in Canada.

 

[Motoarzon]

Are you sure on that? Can you define "way, way more" in some meaningful way?

Regional differences likely cause far more variability than Canada to USA.

What are the wage differences in Canada vs USA for similar roles? Adjusted for currency exchange of course.

Minimum wage here is $17.50, Median household income is $70k in Canada, US it's $10k higher at around $80k. But we but pay 1.45(our exchange rate) more for most goods, services and energy. You buy a TV for $1000, we pay $1450. For instance base price here for the R1S Dual is $130k. Plus we pay 13% sales tax extra on pretty much everything. I'm picking up my R1S tomorrow. It was a dual max pack with blue color option, 22" bright wheels, and the sound&vision package, that's it, and it was (after $4300CDN max pack rebate) $155k out the door. Without rebate would have been almost $160k, go price in $US to compare.
Don't get me started on the carbon tax. You know how most homes and businesses get their natural gas bill. Well the carbon tax portion is "more" than the actual gas itself. A small home might cost $100/mth in natural gas and the carbon tax is slightly more, another +$100/mth and that rate is going up 23% more come April.
Real-estate here is also out of control.
I used to deal with US clients coming up into Canada all the time and travelling with them for business, so there was always lots of travel time to shoot the sh!t...believe me, they were always blown away at how ridiculously more expensive everything was.

 

[M3_R2]

Good luck with your R1S!

 

[VanCityMike]

Rivian's offerings prior to the price hike became pretty lame up here since the price hike was advertised and suddenly there are more options right after? That's a little underhanded in my books. So even it you took advantage and tried to buy something, you were left with (mostly) poor choices and V1 tonneau covers.

I can only imagine that Rivian doesn't want to get into frequent price changes so have built in some buffer zone at the expense of current consumers. All perfectly fine but the reality is that the new prices will surely be a death knell for CDN sales. It would probably have been better to just close up shop entirely up here. Compared to other manufactures, there's no value now in Rivian whatsoever in Canada.

It's a hard pill to swallow for sure. Here is $8600 off but we are raising prices by $10,000. Ouch.

It's the death knell for me buying an R1T right now, but I can keep driving the F-150 for now and hope prices come down or a nice used quad comes up.

 

[ksumnole]

Rivian just bumped up pricing in Canada stating a currency exchange adjustment. They are using an exchange rate > $1.50 which is very high and after tax puts the Tri models north of $200k after taxes. Ouch.

I was looking daily for a Tri in the shop, hoping to take advantage of the CAD $8600 discount. The way the Tri models are prices (right around CAD $150k), this makes a much bigger impact as the taxes in BC are such that PST jumps from 15% to 20% at $150K. With the discount applied, I would save the $8600 from Rivian and a further ~$7500 in tax, a total of $16k. Unfortunately, no models hit the shop and the prices are just far too high now. I can't justify this, so I'll just sit on my cash and wait for better pricing in the future. Might also just look for a well-priced Gen1 Quad.

Pricing before and after the currency hike. This will jump even higher if Canada retaliates Trump tariffs on US-made vehicles. Going to be a rough year for Rivian in Canada.

Come to California. I’ll sell you my Tri for what I paid, and pick up another one. We’re nice here.

 

[VanCityMike]

Come to California. I’ll sell you my Tri for what I paid, and pick up another one. We’re nice here.

i am thinking of visiting Palm Springs for spring break in March

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