PORSCHE CANADA ANNOUNCES CANADIAN CURRENCY CREDITS
04-06-2010, 09:18 AM
#1
Rennlist Member
Thread Starter
PORSCHE CANADA ANNOUNCES CANADIAN CURRENCY CREDITS
PORSCHE CANADA ANNOUNCES CANADIAN CURRENCY CREDITS
MISSISSAUGA – April 5, 2010 --- Two-and-a-half years ago, at a time of US-dollar parity, Porsche was first to market with reduced prices for Canadian buyers. As the Canadian dollar once again flirts with parity, Porsche Cars Canada has introduced a Canadian Currency Credit program to effectively reduce prices. The program is subject to change at anytime.
Canadian Currency Credits are factory-to-dealer credits available on all 2010 Porsche models as well as the new 2011 Boxster Spyder. They are available to qualified retail customers through participating Porsche dealerships whether the customer pays cash, or leases or finances through Porsche Financial Services.
Model Canadian Currency Credit (for April 2010 deliveries)
Boxster models $4,000
Cayman models $4,500
911 models $6,000 - $9,000
Cayenne models $2,500 - $8,000
Panamera models $5,000 - $10,500
“Canadian Currency Credits address the cross-border price disparity caused by a strengthening Canadian dollar,” said Joe Lawrence, Porsche Canada’s President and CEO. “In effect, the strong dollar has significantly reduced prices for Canadian Porsche buyers, despite ongoing improvements in equipment and technology on all our products.”
Model MY2007
MSRP MY2008
MSRP MY2010
MSRP Currency Credit
(for April 2010 deliveries) MY2010 MSRP less Currency Credit Var. vs. MY2008 Var. vs. MY2007
Boxster $63,600 $58,100 $59,600 $4,000 $55,600 -4.3% -12.6%
Cayman $69,600 $63,500 $65,300 $4,500 $60,800 -4.3% -12.6%
911 Coupe $100,700 $93,200 $96,700 $6,000 $90,700 -2.7% -9.9%
Cayenne $60,100 $55,200 $56,700 $2,500 $54,200 -1.8% -9.8%
“Available across the entire Porsche range through participating dealers, Canadian Currency Credits act as an effective price adjustment during this time when the Canadian dollar is close to US-dollar parity. They are available even on virtually sold-out models like the new 911 GT3 RS,” added Lawrence. “Customers are encouraged to contact their local Porsche dealership for the latest information.”
###
MISSISSAUGA – April 5, 2010 --- Two-and-a-half years ago, at a time of US-dollar parity, Porsche was first to market with reduced prices for Canadian buyers. As the Canadian dollar once again flirts with parity, Porsche Cars Canada has introduced a Canadian Currency Credit program to effectively reduce prices. The program is subject to change at anytime.
Canadian Currency Credits are factory-to-dealer credits available on all 2010 Porsche models as well as the new 2011 Boxster Spyder. They are available to qualified retail customers through participating Porsche dealerships whether the customer pays cash, or leases or finances through Porsche Financial Services.
Model Canadian Currency Credit (for April 2010 deliveries)
Boxster models $4,000
Cayman models $4,500
911 models $6,000 - $9,000
Cayenne models $2,500 - $8,000
Panamera models $5,000 - $10,500
“Canadian Currency Credits address the cross-border price disparity caused by a strengthening Canadian dollar,” said Joe Lawrence, Porsche Canada’s President and CEO. “In effect, the strong dollar has significantly reduced prices for Canadian Porsche buyers, despite ongoing improvements in equipment and technology on all our products.”
Model MY2007
MSRP MY2008
MSRP MY2010
MSRP Currency Credit
(for April 2010 deliveries) MY2010 MSRP less Currency Credit Var. vs. MY2008 Var. vs. MY2007
Boxster $63,600 $58,100 $59,600 $4,000 $55,600 -4.3% -12.6%
Cayman $69,600 $63,500 $65,300 $4,500 $60,800 -4.3% -12.6%
911 Coupe $100,700 $93,200 $96,700 $6,000 $90,700 -2.7% -9.9%
Cayenne $60,100 $55,200 $56,700 $2,500 $54,200 -1.8% -9.8%
“Available across the entire Porsche range through participating dealers, Canadian Currency Credits act as an effective price adjustment during this time when the Canadian dollar is close to US-dollar parity. They are available even on virtually sold-out models like the new 911 GT3 RS,” added Lawrence. “Customers are encouraged to contact their local Porsche dealership for the latest information.”
###
04-06-2010, 10:44 AM
#2
Drifting
Canadian retailers are STILL 12%-15% too high even after lowering prices and Porsche Canada is no better then Chapters/Indigo for example. This 'lowering of prices' has nothing to do with 'helping' Canadian buyers and everything to do with attempting to put the brakes on Canadians going south to buy Porsches. I've read the studies that have come out recently where Canadian retailers of items originating from the US have no reasonable excuse for their mark up – other then ‘the cost of being Canadian’. When business costs are taken into account for Ontario (for example) they are actually lower then the majority of US states. Health care costs – the single highest employee expense for American companies – is born by the state up here.
The real reason specifically for Porsche Canada’s still higher pricing is that the cost of running the operational budget is most likely a 'charge back' to PCNA’s budget and as a result there is ‘mark up’ applied to our sales. Porsche Canada is not truly a separate organization (outside of local marketing) as they import all parts and cars from the US marketer and receive direct technical support via computers to Atlanta (which they charged for in US dollars) instead of from Stuttgart. Until this changes, Porsche Canada is held hostage to ‘$$$Daddy USA$$$’.
What they should be allowed to do is become a FULL independent importer using Canadian dollars without the 'Atlanta fee' (profit) tacked on to the vehicles and parts we pay for. The economies of scale are overblown – vehicles are not like selling Oranges. Pricing levels are maintained within 10% of the highest volume dealerships to the lowest volume dealerships. Invoices on parts are at whatever the list price is. What we have been held hostage to over the years is the exchange rate form Euros’ to US dollar – then PCNA’s mark up and then the exchange rate from US dollars to Canadian dollars. I call BS on the whole operation!
Send EVERYTHING straight from Stuttgart to Mississauga, pay ONCE for it in Canadian dollars - no bloody middleman (PCNA)!
The real reason specifically for Porsche Canada’s still higher pricing is that the cost of running the operational budget is most likely a 'charge back' to PCNA’s budget and as a result there is ‘mark up’ applied to our sales. Porsche Canada is not truly a separate organization (outside of local marketing) as they import all parts and cars from the US marketer and receive direct technical support via computers to Atlanta (which they charged for in US dollars) instead of from Stuttgart. Until this changes, Porsche Canada is held hostage to ‘$$$Daddy USA$$$’.
What they should be allowed to do is become a FULL independent importer using Canadian dollars without the 'Atlanta fee' (profit) tacked on to the vehicles and parts we pay for. The economies of scale are overblown – vehicles are not like selling Oranges. Pricing levels are maintained within 10% of the highest volume dealerships to the lowest volume dealerships. Invoices on parts are at whatever the list price is. What we have been held hostage to over the years is the exchange rate form Euros’ to US dollar – then PCNA’s mark up and then the exchange rate from US dollars to Canadian dollars. I call BS on the whole operation!
Send EVERYTHING straight from Stuttgart to Mississauga, pay ONCE for it in Canadian dollars - no bloody middleman (PCNA)!
04-06-2010, 10:51 AM
#3
Rennlist Member
Thread Starter
Canadian retailers are STILL 12%-15% too high even after lowering prices and Porsche Canada is no better then Chapters/Indigo for example. This 'lowering of prices' has nothing to do with 'helping' Canadian buyers and everything to do with attempting to put the brakes on Canadians going south to buy Porsches. I've read the studies that have come out recently where Canadian retailers of items originating from the US have no reasonable excuse for their mark up – other then ‘the cost of being Canadian’. When business costs are taken into account for Ontario (for example) they are actually lower then the majority of US states. Health care costs – the single highest employee expense for American companies – is born by the state up here.
The real reason specifically for Porsche Canada’s still higher pricing is that the cost of running the operational budget is most likely a 'charge back' to PCNA’s budget and as a result there is ‘mark up’ applied to our sales. Porsche Canada is not truly a separate organization (outside of local marketing) as they import all parts and cars from the US marketer and receive direct technical support via computers to Atlanta (which they charged for in US dollars) instead of from Stuttgart. Until this changes, Porsche Canada is held hostage to ‘$$$Daddy USA$$$’.
What they should be allowed to do is become a FULL independent importer using Canadian dollars without the 'Atlanta fee' (profit) tacked on to the vehicles and parts we pay for. The economies of scale are overblown – vehicles are not like selling Oranges. Pricing levels are maintained within 10% of the highest volume dealerships to the lowest volume dealerships. Invoices on parts are at whatever the list price is. What we have been held hostage to over the years is the exchange rate form Euros’ to US dollar – then PCNA’s mark up and then the exchange rate from US dollars to Canadian dollars. I call BS on the whole operation!
Send EVERYTHING straight from Stuttgart to Mississauga, pay ONCE for it in Canadian dollars - no bloody middleman (PCNA)!
The real reason specifically for Porsche Canada’s still higher pricing is that the cost of running the operational budget is most likely a 'charge back' to PCNA’s budget and as a result there is ‘mark up’ applied to our sales. Porsche Canada is not truly a separate organization (outside of local marketing) as they import all parts and cars from the US marketer and receive direct technical support via computers to Atlanta (which they charged for in US dollars) instead of from Stuttgart. Until this changes, Porsche Canada is held hostage to ‘$$$Daddy USA$$$’.
What they should be allowed to do is become a FULL independent importer using Canadian dollars without the 'Atlanta fee' (profit) tacked on to the vehicles and parts we pay for. The economies of scale are overblown – vehicles are not like selling Oranges. Pricing levels are maintained within 10% of the highest volume dealerships to the lowest volume dealerships. Invoices on parts are at whatever the list price is. What we have been held hostage to over the years is the exchange rate form Euros’ to US dollar – then PCNA’s mark up and then the exchange rate from US dollars to Canadian dollars. I call BS on the whole operation!
Send EVERYTHING straight from Stuttgart to Mississauga, pay ONCE for it in Canadian dollars - no bloody middleman (PCNA)!
That said, you have to admit the pricing is closer than ever before. Base price on a 911 in the US is $77,800. If you add 6.1% duty that's $82,546 vs. $90,000 in Canada (dollar is roughly at par). They may not even have the same standard equipment.
I think that's close enough for me to buy up here. I'd rather have a good relationship with the local dealer especially on a car this expensive.
04-06-2010, 11:48 AM
#4
Team Owner
the whole question then becomes why are you having to pay 6.1% duty ? on a car made in Germany that Americans don't have to pay .... the governement wants there cut too... on top of the federal tax you pay of course which is on top of the Provincial tax you pay ... gotta pay for that health care some how ..
04-06-2010, 12:28 PM
#5
Captain Obvious
Super User
Super User
the whole question then becomes why are you having to pay 6.1% duty ? on a car made in Germany that Americans don't have to pay .... the governement wants there cut too... on top of the federal tax you pay of course which is on top of the Provincial tax you pay ... gotta pay for that health care some how ..
Trending Topics
04-06-2010, 03:21 PM
#9
Rennlist Member
Thread Starter
04-07-2010, 02:23 AM
#12
Burning Brakes
I'm hardly a business expert but there must be increased costs in setting up a business infrastructure to cater to a market as small as Canada vs. the economies of scale of a market as large as the US?
That said, you have to admit the pricing is closer than ever before. Base price on a 911 in the US is $77,800. If you add 6.1% duty that's $82,546 vs. $90,000 in Canada (dollar is roughly at par). They may not even have the same standard equipment.
I think that's close enough for me to buy up here. I'd rather have a good relationship with the local dealer especially on a car this expensive.
That said, you have to admit the pricing is closer than ever before. Base price on a 911 in the US is $77,800. If you add 6.1% duty that's $82,546 vs. $90,000 in Canada (dollar is roughly at par). They may not even have the same standard equipment.
I think that's close enough for me to buy up here. I'd rather have a good relationship with the local dealer especially on a car this expensive.
A couple of years ago with the strengthening Canadian dollar a couple of my larger manufacturing clients looked seriously at moving their production south. There were some great incentives to go to Alabama or Mississippi but when they totalled up all the added health costs and some other local taxes and costs it did not make sense to move. Factor also that professional fees are way higher in the US.
The strong Canadian dollar is here to stay for the next few years. Let's see what happens to our retailers. Do they adjust or will we see more and more cross border transactions. I know that lots of auto manufactures are trying to stop the flood of US cars by denying warranty. I was looking for a Nissan GT-R from the US (at least 20% less) but was told that there would be no warranty in Canada.
04-07-2010, 11:17 AM
#14
Drifting
The problem with the retail segment in Canada is that they have always had this attitude that if I can't make a 100% mark up on items then it isn't worth selling. That has been the mindset up here since the death of the US branch plant industry and the rise of NAFTA. When they see they can't compete with the USA they move out of that industry or product line to another. But wait... The rise of China and India comes along - then eBay... now what are they to do? The worst thing in the world was the 60 cent dollar up here because it promoted poor manufacturing standards and service levels - but the US buyers and offshore groups with higher currencies bought into it because it was a 40% discount none the less. Now that our dollar is high - these same idiots who couldn't get off their butts to compete on quality and service levels - want everyone else to pay for their industry’s (export) laziness by pressuring Ottawa to get the Bank of Canada to up the prime rate so that all of us end up padding the exporters bottom lines while we pay more for mortgages, business loans and car financing. I'm sorry - we're about done with subsidizing crappy products and crappy service. If you build a better product then the world will come to your door step anyway.
Does anyone really believe our cameramen were 'better' then Hollywood's cameramen? Come on. Gee, at a 100%+ dollar - they better be the world best pull focus and special effects people now! THATS how you create greatness. Not some lazy a$$ed currency resaons.
Pricing up here has nothing to do with a lower population as the retail propaganda mouth pieces like Cartharine Swift like to promote. It’s always the money. Americans simply have a better take on what it means to move products. Canadian companies are quite happy to sit on their butts and watch that item on the shelf sit and gather dust for months. Why? The mark up. They don’t have to work so hard when they bought that oil filter for $5 bucks from China and are selling it for $20. Americans would sell it for $8.50 to get it the heck off the shelf and move 20 of them. $3.50 profit x 20 units = $70 dollars profit. Canadian retail guys??? Well they would wait months to sell that over priced item for that $15 dollar profit (150% mark up) meanwhile their carrying costs (and the staff sitting around doing squat) are building. Thats the Canadian retail mentality. Oh but of course - is all our fault for being ‘too expensive' to do business up here huh??? BULLS**T!
The Heather Riesman’s (Chapters/Indigo) of the Canadian retail world and her ‘like’ - better give their heads a shake before they lose their businesses. But wait - they’ll ask for 'protection' (of their profit margins) from Ottawa. Book banning at the border soon - you watch.
Does anyone really believe our cameramen were 'better' then Hollywood's cameramen? Come on. Gee, at a 100%+ dollar - they better be the world best pull focus and special effects people now! THATS how you create greatness. Not some lazy a$$ed currency resaons.
Pricing up here has nothing to do with a lower population as the retail propaganda mouth pieces like Cartharine Swift like to promote. It’s always the money. Americans simply have a better take on what it means to move products. Canadian companies are quite happy to sit on their butts and watch that item on the shelf sit and gather dust for months. Why? The mark up. They don’t have to work so hard when they bought that oil filter for $5 bucks from China and are selling it for $20. Americans would sell it for $8.50 to get it the heck off the shelf and move 20 of them. $3.50 profit x 20 units = $70 dollars profit. Canadian retail guys??? Well they would wait months to sell that over priced item for that $15 dollar profit (150% mark up) meanwhile their carrying costs (and the staff sitting around doing squat) are building. Thats the Canadian retail mentality. Oh but of course - is all our fault for being ‘too expensive' to do business up here huh??? BULLS**T!
The Heather Riesman’s (Chapters/Indigo) of the Canadian retail world and her ‘like’ - better give their heads a shake before they lose their businesses. But wait - they’ll ask for 'protection' (of their profit margins) from Ottawa. Book banning at the border soon - you watch.
04-07-2010, 01:43 PM
#15
Still plays with cars.
Lifetime Rennlist
Member
T-Worker, increasing the prime lending rate should increase demand for Canadian dollars which would drive our dollar higher than it is now. Good for commodity exports but bad for manufacturing and certainly retail as Canadians would find US prices even more attractive.