Being no US citizen, I will refrein to give my opinion about your great leader.

I think however that cooperation, mutual understanding and respect of life are far way better than war.

We know that oil causes wars, then …

Well thank you. And not just about cars either.

For example, there are many of us here who believe that the former President of France was much closer to right about Iraq than our own dear leader.

Endless war is only making all of us poorer and less safe. Think of the good we could do around the world with the trillions (with a T) of dollars we have squandered on military adventures.

Thank Noel for your comments, I also think that we simple citizens may change the world to be a better place to live by exchanging informations that discriminating monopolists do not want to be disseminated.

To answer your questions :

1. The price of the Prius (and other Toyotas or Hondas) is higher due to the difference between taxes (DaV8or, the EU import quotas against japanese car imports have been abolished since 2000, and remember the US import quota transformed in a “voluntary restraint agreement” in the first half of the ‘80) . Here in Europe we have to pay the VAT (value added tax) on the purchase price (it differs between European states from15% (Luxembourg) and 25% (Sweden, Danemark), in belgium it is 21%).

In the USA I think that the sales tax is lower.

2) The € has fluctuated practically the same way against the yen than against the US $ in the last five years. I do not think the exchange rate is the cause.

3) We are left with the discriminant monopolist hypothesis, and the limited availability evoked by DaV8or is a possibilty. As well as the competitive situations with other car makers. Toyota was the only car company to give a five years warranty. Starting this year, Opel is giving a six years warranty but only in Germany (Why ?) so the perceived quality could be an explanation for higher prices.

Hope to have helped.

“Or is there some sort of a tax strategy on the part of the European governments to protect the home industries? If it is the latter, let me hasten to add that I am not being critical in any way.”

Last I heard, the EU has import quotas on automobiles from Japan and Asia. They limit the supply to consumers and so the price goes up. We don’t do that here, they are free to sell as many as they can. The Japanese have very strict quotas into their country, so it has never been fair trade. It hasn’t been much of an issue because we rarely make any cars here that Europeans or Japanese even want. However EU vs. Japan is another story. Japanese love BMWs and Mercedes and Europeans love Toyotas and Hondas, but both must pay really high prices due to limited availability.

Why do you suppose the price of the Prius is so much higher in Europe? Is it just a result of Toyota’s marketing strategy? Is it the difference in exchange rates? Or is there some sort of a tax strategy on the part of the European governments to protect the home industries? If it is the latter, let me hasten to add that I am not being critical in any way. Enlightened self-interest is a good thing, in my experience.

I am bound to say again that I really appreciate your comments here. They are alway very educational. In addition, I am so technologically backward that it is always a marvel to me to see comments instantly popping up from around the globe. It makes me hope that we simple citizens will find ways to connect and communicate past the clouds of spin and obfuscation that our political “leaders” throw up. Maybe this is how we will be able to work together to make this world a better place.

Sorry to go all emotional on you bloggers, but it is very cool when you think of it.