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Strong Loonie Causes Porsche to Lower Prices

By Bob Ewing     Sep 25, 2007 in Business
The strong Canadian loonie and the drive across the border by Canadians to buy a car has caused Porsche to lower the prices on its 2008 models, Now is the time to buy that dream car.
Come on, you know you want one but the price is just too high. Well, the strong Canadian dollar may have brought that dream of owning a Porsche closer to reality. Porsche has announced that it plans to lower its prices on it 2008 models by eight (8) per cent.
"We cannot ignore our customers and dealers in Canada who can look to the U.S. and recognize a substantial price difference. We listened to the market and did what is best for our customers in Canada." said Peter Schwarzenbauer, president and CEO of Porsche Cars North America, Inc., in a release Tuesday.
Porsche's 2008 Cayenne Tiptronic is now priced at $59,400 and the 2006/2007 manufacturer's suggested retail price was $64,300.
As the Canadian dollar reached parity with its American cousin, Canadians looking to buy a new car where crossing the border, in increasing numbers to take advantage of the price difference. Canadian also complained that Canadian car dealers where not being responsive to the changing market place.
Well Porsche is listening. Porsche's response to the change in the loonie’s status reflect what industry analyst Dennis DesRosiers said in a report that was released last week DesRosiers’ report stated that cross-border car shopping may not save consumers much money as Canadian prices in certain segments have fallen.
DesRosiers also noted that Canadian dealers have been offering aggressive incentives, lowering the difference further.
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