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Canada: Hyundai passes on Canada-Korea FTA benefit to customers, reduces prices by up to CA$1,300

January 20, 2015
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Hyundai is passing on the benefit of the Canada-Korea Free Trade Agreement (CKFTA) to its customers by reducing the prices of a range of 2015 model year vehicles. Before the agreement became effective, a 6.1% federal import duty was applied to the landed cost of the vehicles manufactured in South Korea. The new agreement eliminates this import duty in three annual reductions, with the first one being effective this month.

The vehicles manufactured in North America are already imported duty-free due to the existing North American Free Trade Agreement. Now vehicles imported from South Korea also get benefit of a Free Trade Agreement. The 2015 model year vehicles for which prices have been reduced are, the Accent, the Elantra, the Elantra GT, the Santa Fe Sport, the Santa Fe XL, the Veloster, the Tucson, the Sonata and the Equus. However, price reductions are for specific trim levels and/or configurations only.

More information is available in the press release below.

Hyundai reduces prices by up to $1,300 due to Canada-Korea Free Trade Agreement – Press Release

Hyundai Canada CKFTA

TORONTO, Jan. 14, 2015 /CNW/ – Amidst an environment with a Canadian dollar that is declining in value on international markets and an automotive industry that is raising vehicle prices, Hyundai Auto Canada Corp. is celebrating the next significant step toward barrier-free international trade by announcing today that – effective January 15 – the manufacturer suggested retail price (MSRP) of many Hyundai models have been reduced by up to $1,300. This move is made possible with the recent implementation of the Canada-Korea Free Trade Agreement (CKFTA). The price reductions affect a wide variety of 2015 model year Hyundai vehicles in the company’s line-up, from the Accent subcompact and Elantra compact, to the Equus full-size premium sedan and 7-passenger Santa Fe XL SUV.

“Hyundai is pleased to pass the benefits of this significant free trade agreement on to consumers,” said Don Romano, President and CEO of Hyundai Auto Canada. “We wanted to take action quickly after the government took the first step toward removing the import duty. Hyundai vehicles have a well-known reputation for making advanced technology and premium features available to consumers at an accessible price.”

Previous to the agreement, a 6.1% federal import duty was applied to the landed cost of vehicles manufactured in South Korea. The CKFTA eliminates the duty in three annual reductions, with the first being effective this month. Vehicles manufactured within North America are already imported to Canada duty-free due to the existing North American Free Trade Agreement.

“This is definitive proof that the Free Trade Agreement between Canada and South Korea delivers a true benefit to consumers,” added Romano. “We believe that eliminating international trade barriers empower consumers to make more informed purchase decisions by providing a clearer picture of the merits of a product. Pricing is obviously a major factor in that decision, so, by adjusting the prices of Hyundai vehicles, our customers will see just how competitive our products actually are.”

The pricing adjustments vary by model and by trim; examples can be found below:

VEHICLE

PREVIOUS MSRP

NEW MSRP

DIFFERENCE

Accent 5-door L 6MT

$13,899

$13,599

– $300

Elantra Sedan GL 6AT

$20,999

$19,449

– $650

Veloster 6MT

$18,299

$17,999

– $300

Equus Ultimate

$72,299

$71,000

– $1,299

Santa Fe XL

$31,299

$29,999

– $1,300

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