Porsche Cars North America is the first automaker to announce that it will be sharply reducing the prices of its vehicles sold in Canada. The price reduction goes as high as 10%. This move by the german automaker comes as a response to the US and Canadian dollar parity and also because of the $2B class-action lawsuit being filed against automakers over the price discrepancy between cars sold in the U.S. and Canada.
Even with the price reduction, the Porsche car models are still cheaper in the U.S, with the base prices starting at around 20% cheaper than the canadian market.
Peter Schwarzenbauer, President and CEO of Porsche Cars North America, Inc., said yesterday in a press release,
We cannot ignore our customers and dealers in Canada who can look to the U.S. and recognize a substantial price difference.
It is interesting to see if the other german automakers will follow this trend. We already reported last week BMW's response to the price slashing in Canada, but things might change in the near future.
We're almost positive that if Mercedes-Benz will start cutting their prices for the canadian market, then BMW would have no choice but to follow this trend.