Strong loonie drives Porsche prices down

If you've been hopelessly ogling a sweet new Porsche, it's no longerquiteas far out of reach.

Porsche announced Tuesday plans to lowerprices by an average of about eight per cent on its 2008 models to better reflect the loonie's strength.

"We cannot ignore our customers and dealers in Canada who can look to the U.S. and recognize a substantial price difference," said Peter Schwarzenbauer, president and CEO of Porsche Cars North America, Inc., in a release Tuesday.

"We listened to the market and did what is best for our customers in Canada."

Porsche's 2008 Cayenne Tiptronic is now priced at $59,400; the 2006/2007 manufacturer's suggested retail price was $64,300.

The Canadian dollar reached parity with the U.S. greenback for the first time in almost 31 years on Sept. 20. Since then, it has hovered a little under parity. U.S. retailers have reported a boom in business, while Canadian consumers have complained that retailers at home haven't changedsticker pricesto reflect the currentexchange rate.

In particular, some car shoppers have crossed the border to purchase vehicles, saying even with duties and taxes, U.S. prices are notably lower.

But industry analyst Dennis DesRosiers last week released a report suggesting cross-border car shopping may not save consumers much money as Canadian prices in certain segments have fallen. He also noted Canadian dealers have been offering aggressive incentives, lowering the difference further.

Still, U.S. auto sales to Canadians have climbed significantly as the dollar has gained strength, with sales last year exceeding 65,000 — an increase of 50 per cent over the previous year, according to the Registrar of Vehicles operating under Transport Canada.